From the editor
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Suzanne Henderson |
An overheated market, stagnating wages and the withdrawal of government from the provision of low cost housing - how will we ever afford to own our own homes again? Welcome to the second issue of CCC eNews and our special feature on housing. Discover how cooperatives provide an answer to the perennial question of affordable housing. Also in this issue - explore how business networks are 'harnessing the power of many' and delivering hard economic benefits, as well as a warm inner glow, to their members. Our industry champion in this issue, John Coyle, harks from a leading business network HunterNet (see the case study and read John's views on the benefits of this burgeoning model for doing business). Catch up on the world of mutuals with an update from the last ICMIF conference, celebrate the restoring to nonprofits of their mutual status, and discuss the crisis in capital for Australian nonprofits (can you assist a new study into the problem?). We also address promoting excellence in nonprofits, cooperative buyouts, top cooperative performers and how to raise funds for investment in community-owned and small business enterprises. Don't miss our essential events list and industry announcements.
Cooperative principles
The cooperative principles are guidelines by which cooperatives put their values into practice.
- Voluntary and open membership
- Democratic member control
- Member economic participation
- Autonomy and independence
- Education, training and information
- Cooperation among cooperatives
- Concern for community
Want to know more?
CCCeNews is published bi-monthly and supplements regular industry e-bulletins and newsletters like australia.coop and the ICA digest, with a magazine style forum for in-depth discussion of issues and developments affecting the cooperative and social economy sectors. Each edition will have a special focus as well as our regular features - industry commentary, champions talk, case studies, news from around the globe and events calendar. Your suggestions, comments and contributions are always welcome.
See you in April for our special features on health and ageing.
Suzanne Henderson
Editor CCCeNews
What's On
If we missed your event, please email us with details
Announcements
New website, publication, development? Let us know so we can tell others
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Affordable Housing
Cooperative home ownership
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Mark Snell, Equilibrium Chairman |
Consider the cooperative model for the provision of affordable housing, says Mark Snell, chairman of Equilibrium Community Ecology Inc.
According to Snell, the state government should facilitate cooperative ownership to provide affordable housing. Cost-based limited-equity cooperatives are an effective means of providing affordable housing on a perpetual basis and would cost the government comparatively little to support.
Equilibrium plans to use such a model to establish an eco-village on the NSW Central Coast.
More from Mark Snell on cooperative housing...
Some people may associate cooperative housing with the hippies of the 1960s and 70s, but it's gaining support today and may be an important way of ensuring we can own homes in the future.
"Last week we found out about the push towards high density housing in Australian cities, and how the principle of strata title will have to develop to accommodate these changes. Well this week, we're looking at another way of organising the legal and social side of living: cooperative housing." Alan Saunder
Radio National, Saturday Extra with Geraldine Doogue Oct 1, 2005
Snell said the cooperative ownership model was a middle ground between the classic scenarios of rental and private home ownership. "A person renting pays money that is never returned to them," he said. "A person buying a home can usually expect a capital gain well in excess of inflation. In a cost-based limited-equity cooperative, a person will pay for a shareholding and have the money they have paid returned to them when they leave."
Snell said this was ideal for low-income earners. It allowed them to build equity in their own home. It was also ideal for councils and governments, being essentially self-financing, requiring minimal government support, and its benefits were ongoing.
See also:
Affordable Housing through Cooperative Ownership
Habitat for Humanity Australia
The Cohousing Network
communitybuilders.nsw Discussion Forum
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Why do we need affordable housing?
Incomes earned by those on the basic wage have increased far less than house prices have increased during the last 25 years, yet governments have largely withdrawn from providing housing for people encountering housing difficulties. Sydney has become a particularly difficult environment for those on the basic wage (or just over) to find affordable housing. In recent years, state and local governments have attempted some initiatives to provide a small amount of affordable housing, writes John Wilkinson.
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Summary: Affordable housing in NSW: past to present
- The onset of booms in business activity, has frequently led to escalations in house prices which, in turn, result in a shrinkage in affordable housing
- During the period immediately after the second world war, governments, at both a federal and state level, decided on intervention to solve a crisis in affordable housing
- Since the late 1970s, however, governments have largely withdrawn from providing housing for people encountering housing difficulties
- Rather than providing homes, governments have turned to providing small amounts of rent assistance as a means of alleviating the accommodation difficulties of those on low incomes
- In recent years, the NSW government, in conjunction with Sydney local governments, has attempted some initiatives to provide a small amount of affordable housing
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Read the full text of Affordable housing in NSW: past to present
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Housing co-ops – Building Bridges with Government
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Karine Shellshear, Executive Director, ARCH |
Karine Shellshear, Executive Director, Association to Resource Cooperative Housing (ARCH) describes how the Association has facilitated the introduction of a Performance Based Registration system to its cooperative housing members in NSW.
In June 2005, the NSW Community Housing Sector began a long awaited process of Performance Based Registration (PBR), the first in series of regulatory undertakings to bring Housing Associations and cooperatives in line with Government expectations for achieving performance outcomes.
"We proved that co-ops work by performing their primary role of offering secure, quality long-term housing for their members. They have also carved out a legitimate role in the communities in which they live, and a credible stake in the broader social housing fabric in the state. It's this contribution in the shape of a registration certificate we should thank them for." Karine Shellshear
The process has been one of developing confidence in the sector and building bridges of trust with Government. Performance Based Registration, combined with the existing voluntary accreditation process, created a most formidable set of hoops to prove to Government and the public that organisations have the appropriate management capacities to meet expectations and run their services adequately.
"Getting the results they did, proves that they are solid sound and successful organisations and that success is predicated on the day to day application of the core values and fundamental precepts of cooperative living and the cooperative ideal." Paul Wilson-Brown, Chair of ARCH.
ARCH played a key role in facilitating the introduction of 9 key Performance outcomes.
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Mutuality as old as the hills
Fear held them mute: alone, untaught to fear,
Tydides spoke--"The man you seek is here.
Through yon black camps to bend my dangerous way,
Some god within commands, and I obey."
But let some other chosen warrior join,
To raise my hopes, and second my design.
By mutual confidence and mutual aid,
Great deeds are done, and great discoveries made;
The wise new prudence from the wise acquire,
And one brave hero fans another's fire.
The Iliad of Homer (800 B.C.E.)
Translated by Alexander Pope 1899
From www.gutenberg.org
Mutuality
Mutuality misunderstood
"The Hospital Benefit Fund of WA - or the HBF Health Fund Inc as it is known today" as cited from the HBF website www.hbf.com.au.
"For more than 65 years HBF has been one of Western Australia's best-known brands and we thought it was timely to reflect the fact that we are now more than just a health fund, but at the same time we are ensuring that we remain true to our origins," says Mike Gurry, Managing Director of HBF.
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Mike Gurry, Managing Director of HBF |
"I am very committed to HBF remaining a mutual organisation, as it enables us to provide a greater range of benefits and products to members."
"Whilst it's absolutely critical to remain financially sound, our focus is not on driving up profits, it's on providing more value to our membership. This means we must continue providing products of importance to members, even if they're only marginally less profitable."
HBF is very much about putting people first and we thought it was important to highlight this in our new advertising campaign and in the way we communicate with members.
Mike Gurry
"While some companies prefer to get rid of products with low profitability, we prefer finding alternative sources of income so that we can maintain those products that are important to our members, such as hospital insurance, which currently runs at a slight loss."
"The other benefit of HBF, and something I am very proud to say, is that we are one of the few insurers left in WA that is WA-based and owned. I see this as the best way to understand what members want and to provide products and services to the community." http://www.hbf.com.au/index.html
Read the press release.
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The principle of mutuality was introduced in Roman law (Roman soldiers had an early equivalent of today's mutual sickness and death benefit funds) and has been settled law for many years. Mutuals and nonprofits provide services that government is unable or unwilling to provide for members of the community. The CIMCL case showed how vulnerable those services can be to taxation policy.
The concept of mutuality is not widely understood by Western Australians
"While recently we have seen a reduction of mutuals in Australia, many governments around the world see them as the way forward. In fact, mutuals are viewed by many as consistently providing better value for the community.
"A recent study in Europe found that mutual insurers provide better value products to consumers than publicly listed insurers." Read more about the project
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Mutual Status of Nonprofit Organisations Restored
To be or not to be (a mutual)
Yet another Australian mutual discusses the option of demutualisation.
Members of Australian Unity have been asked to consider the future structure of the Group.
Members have been sent a report, 'Australian Unity Our Future', which outlines both the advantages and disadvantages to its members of either remaining a mutual or demutualising.
In a letter accompanying the report, Australian Unity chairman, Mr Alan Castleman, told members that the Board currently sees no compelling business reason to demutualise. However, the Board seeks members responses to the key issue of whether to maintain the status quo or a change.
Watch this space for an update on what they decide
Nonprofit organisations have had their mutual status restored. Uncertainty followed the decision in the landmark case CIMCL v Federal Commissioner of Taxation, which had the effect of making 200,000 - 300,000 nonprofit organisations subject to taxation on members' contributions, ironically because the entity had a nonprofit winding up rule.
The situation has finally been resolved after seven years by the intervention of the Federal Government in December last year when it introduced the Tax Laws Amendment (2005 Measures No. 6) Bill 2005 (click Legislation on the left then browse by Title).
Jenni Mattila writes more on the Coleambally test case
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ICMIF biennial conference
"In the era of the free market, the mutual and cooperative movement can act as a counter-weight to for-profit enterprises to ensure that stakeholders' interests are balanced.
Profits are a means to an end, not the end. In the long term, insurance should be viewed as a way of improving human life, the community, and living standards." Mr Lim Boon Heng
Secretary-General, National Trades Union Congress and Minister, Prime Minister's office
The International Cooperative and Mutual Insurance Federation (ICMIF) biennial conference took place in Singapore, 16-18 November 2005
Nearly 250 delegates from fifty countries attended the event. To give a flavour of what was discussed see the conference newsletter Dialogue
Presentations from the conference are available on the conference website.
The next conference will be held in Brussels in 2007.
"In the era of the free market, the mutual and cooperative movement can act as a counter-weight to for-profit enterprises to ensure that stakeholders' interests are balanced."
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Mr Lim Boon Heng, Secretary General |
"Profits are a means to an end, not the end. In the long term, insurance should be viewed as a way of improving human life, the community, and living standards." Secretary-General, National Trades Union Congress and Minister, Prime Minister's office, Mr Lim Boon Heng
Reflecting on the minister's words, Shaun Tarbuck (Chief Executive Officer of ICMIF) concluded, "I wish that all MPs from around the world shared your empathy with the mutual and cooperative movement."
"Mutuals are rare in Australia and they are under a lot of pressure, so it's good for employees of mutuals to come to a conference where there are other mutuals and find people talking positively and openly about the advantages of being a mutual. We, in Australia, are constantly bombarded by the press about what is wrong with mutuality and why it is backward - we are asked, "when are you going to demutualise?" It is the positive, supporting attitude from this conference which I know our chairman will take back with him," said Paul Italiano, HBF Insurance (Australia).
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Mutual Principles
Mutuals and cooperatives have similar values and principles:
- Controlled and owned by the membership
- Protections designed for needs of members
- A forum to discuss risk management
- Pooling of risk management information for the benefit of members
- Stability
- Competitive contributions
Discretionary Mutuals
Members of discretionary mutuals have ownership and control of their organisation in much the same way as members of cooperatives.
Discretionary Mutuals offer members an alternative to insurance. Mutuals provide members with access to a facility for the management of financial risks that have in some industries been traditionally difficult to place at an affordable price in the insurance market. For this reason, the protections offered by a mutual can be tailored to take into account the specific needs of members. Charles Taylor Consulting (CTC) can assist in developing and managing solutions for cooperatives and their members...
http://www.charlestaylorconsulting.com/management/6cs.aspx
http://www.unimutual.com/view/
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Industry Profiles
Business Networks - harnessing the power of many
How can small business respond to the challenges of an increasingly complex business landscape - a global marketplace, swiftly changing technology, aggregated purchasing and competitive pressures? Business networks can provide an answer. Take the case of HunterNet Cooperative Limited.
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Industry Champion - HunterNet Cooperative Ltd
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John Coyle, Executive Officer |
Established in 1992, HunterNet is a network of small and medium-sized manufacturing, engineering and consulting companies located in the Hunter. It involves some 60 companies, active in national and international markets in defence, power generation, mineral processing, transportation and major resource projects.
HunterNet formed as a response to the shifting economic climate of the 1990s, which saw many of the smaller manufacturing and engineering companies competing in a more limited market. Small to medium enterprises needed to create new opportunities for themselves and the region in order to survive. By combining their skills, expertise and the power of many, these companies were able to focus on competing globally.
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HunterNet working party |
Each member company holds one share in the cooperative with HunterNet's board of directors and business manager guiding the direction and focus of the network's activities. It has four task groups and relies on strong interaction between members to achieve the greatest levels of success and to realise opportunities that arise.
HunterNet markets the combined capability of the members, provides business development and training opportunities, utilises the combined leverage for group purchasing and for advancing a common viewpoint, and promotes the Hunter as a manufacturing and engineering region of excellence.
Cooperative leadership
The Power of Many
By John Coyle, Executive Officer, HunterNet Cooperative Limited
"A network such as HunterNet is a great example of what a cooperative is meant to achieve. That is, a means whereby people with a common interest can meet, network and assist each other in the achievement of individual and group goals."
"In our case competitors/ collaborators in the Hunter's engineering based industries were able to use their joint strengths and capabilities to truly exhibit the 'Power of Many'; enabling them to withstand the impact of dramatic change in our industry and indeed to prosper and ensure the long term viability of their enterprises."
The network provides member companies with the opportunity to take part in activities previously out of reach of smaller enterprises including training and development, networking, joint marketing initiatives, joint project bids, focused task forces, trade missions and tendering.
Relationships with key government bodies such as the Department of State and Regional Development, Hunter Economic Development Corporation and TAFE provide the network with additional support, services and weight in the political and business arena.
"There is a strong cooperative spirit amongst these bodies who, together with HunterNet, are committed to promoting the Hunter as a growing centre of manufacturing excellence."
Contact: John Coyle on phone +61 2 4908 7380
http://www.hunternet.com.au/
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More on Business Networks
Recruit a "Champion"
An effective and respected leader or champion member from within the industry or region is vital in maintaining the passion and enthusiasm necessary to make the initiative work. This person can express the common needs, stimulate interest and to provide confidence in the value of the network as well as help build trust between the members, which is the key ingredient for the sustainability of the network.
More information and case studies of successful networks including cooperatives and associations: NSW Small Business website
(click on "Brief on Business Networks")
A growing number of businesses are forming networks to tackle the scale and capability limits inherent in operating a small business. Goals are as varied as increasing market share, reducing costs through bulk purchasing, sharing staff and winning larger contracts than would have been possible by working alone.
The logic is compelling - building on the strengths of others while nurturing one's own business strengths will develop competitive advantage. There are many different types of networks and each is shaped by its objectives and membership. The unifying theme is businesses cooperating and sharing knowledge or resources to increase their competitiveness.
In most cases, the decision to get involved in a network is driven by the need to solve a problem that may not be possible by going it alone; to combat a threat; or to take on a major opportunity that is beyond the resources of a single firm. A network eventuates when several businesses in a particular geographic or virtual community come to a similar conclusion.
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Global 300 - Next stage
A draft ranking of the largest 300 cooperative and mutual organisations in the
world, based on turnover, has been compiled since the concept Global 300 was launched at the ICA General Assembly in September last year.
The next stage involves detailed validation of the data. "We are also hoping to involve all relevant national organisations in a major media campaign for the launch of the Global 300," says Gary Cronan of the ICA. For more information contact: cronan@ica.coop
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Wealth beyond welfare
Community Finance Summit
Social Enterprise Partnerships (SEP) will host a Community Finance Summit, March 1-2 2006, in Melbourne, to address some of these issues.
Towards a national network for the community finance sector
The Australian community finance sector is growing despite a hostile policy and regulatory environment; no national leadership or peak body; and little strategic collaboration between institutions and projects. It is growing because the demand for financial products serving community and social goals is outstripping supply.
The Social Enterprise Partnerships (SEP) says the sector in Australia now needs a national network to drive its growth and development on the scale that is now taking place in the UK and the US.
"Our vision in Australia is a network that combines institutions and projects which contain some of these features, including:
- Community credit unions and mutuals that retain a community or social ethos
- Micro-finance projects and micro-enterprise lenders
- Ethical and social investment funds
- Private sector institutions with a community engagement and partnership ethos
The summit will focus on financial services, products and projects which have a community base and a social orientation. The aim of the summit is to put in place steps towards a national community finance network. Two national networks in the UK and the US serve as models for what the summit aims to achieve.
In the UK, the Community Development Finance Association was formed in 2001. The creation of a trade association for CDFIs (Community Development Finance Institutions) was one of the recommendations made by the UK Government's Social Investment Task Force in its report, Enterprising Communities: Wealth Beyond Welfare, in October 2000.
In the US, the Opportunity Finance Network is a network of 167 financial institutions including community credit unions, community development venture capital funds, micro-enterprise lenders, as well as community development loan funds. In January 2006 it changed its name from National Community Capital Association to underscore its focus on creating and financing opportunities for American people, communities, and markets that are currently outside the economic mainstream through an emphasis on high-volume and high-impact financing strategies to leverage private financial markets to achieve economic growth and social gains.
Both of these networks are associations of CDFIs. This term has had relatively little currency in Australia. In 2003, the former Australian Centre for Co-operative Research and Development (ACCORD) produced a detailed report on the lack of such specialist financial intermediaries.
For an outline of the international CDFI phenomenon, see this brochure (PDF).
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Keeping Rural Businesses Alive
Community Economic Development Service
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Lydbury North Community Store, UK |
A new Community Economic Development Service is offered by the Mercury Centre, a not-for-profit cooperative, to assist the communities of small towns to purchase those businesses which are vital to their futures. "We can assist them to own and operate the businesses as a community cooperative. The process has a lot to contribute to small town renewal. The program is similar to one being offered in the UK, more details about which you can see on the website," says Alan Greig, Strategic Development Manager, Mercury Centre. The website provides information on the process, with accompanying brochures "Keeping Rural Businesses Alive".
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Saving Kaniva - Case study of a community buyout
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Main street of Kaniva |
Cooperating as a community saved a small remote country town in Victoria from possible extinction, when in 2004, a major oil company decided to decommission the town’s only retail fuel outlet.
The Victorian town of Kaniva, located 400 km west of Melbourne on the Western Highway to Adelaide is the last town before the South Australian border. The nearest town is Nhill, 40 km to the east.
Community Store
By David Griffiths
Benambra is an East Gippsland town of about 200 residents, north of Omeo in Victoria. The owner of the local store is selling and the plan is for the community to raise funds to buy the store. The store is also the local post office, newsagent and the Olde Teapot Cafe. Shares of A$1000 are being offered to locals with a A$5000 limit per adult. The community's inspiration has been the Yinnar Community Hotel Cooperative - when the local community formed a cooperative to purchase and operate the local hotel.
UK experience
In the UK the Village Retail Services Association (ViRSA) has been supporting rural communities who want to set up and run a community owned shop.
More on community buy-outs: The Lexton cooperative post and transaction centre
Like other small Australian rural towns, the continuing centralisation of services to larger towns and regional centres meant Kaniva residents faced travelling long distances to access essential services. The closure of the petrol station would have resulted in Kaniva’s 900 residents having an 80km round trip to purchase fuel from the nearest outlet in Nhill.
Community leaders feared that losing the town's only fuel outlet would increase the population drift from Kaniva to other larger rural centres, threatening businesses and jobs needed to sustain the long-term viability of the community. Tony Gill, Director, Cooperative Development Services Ltd writes about the survival of Kaniva in his case study: Saving Kaniva
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Silent cooperation
Top Cooperative Performers
By David Griffiths, Secretary, Victorian Cooperative Federation
The Managing Director of Snowy River Seeds, Mr. John Auer, quoted in The Age (03 February 2006) states: "The Australian landscape is littered with the carcasses of cooperatives, and with good reason."
Originally a cooperative, Snowy River Seeds was privatised in 1999. It has 27 shareholders with five owning seventy percent. Four of the board's seven directors are considered independent, according to investor-owned wisdom.
He is further quoted as saying there are successes like the dairy giant Murray Goulburn but, "most try to apply farm-based management in the manufacturing world. Most farmers find it hard to go beyond the farm gate."
Mr. Auer's views are not unusual for the spokespersons of demutualised cooperatives, nor indeed for many economists, business consultants and public servants, who share an assumption that cooperatives are old fashioned.
But, Australia has many economically significant cooperatives that are proud of their cooperative values and principles and do not aspire to enrich directors and managers through privatisation.
Indeed, Australia's successful cooperatives continue being successful - economically and cooperatively. This 'silent' success is both a strength and a weakness; a strength because they just get on being economically successful and a weakness because it allows the pessimists to dominate public debate.
Some top performers
The Western Australian based cooperative Bulk Handling Group (CBH) Group stores, handles and markets grain. Western Australia's harvest averages ten million tonnes annually, of which 95 per cent is exported, and represents up to 40 per cent of the nation's average annual production. The CBH Group is a leading grains industry organisation, marketing grain to over 20 export destinations and with a total storage capacity in excess of 16.5 million tonnes. CBH is controlled by over 6,500 grower-shareholders, who plant and harvest grain grown across some 320,000 square kilometres that comprise the Western Australian grainbelt. It has 750 staff and an annual turnover of A$900 million.
Murray Goulburn Cooperative Co Ltd was established in 1950. It is Australia's largest manufacturer of dairy products and its milk intake is 35% of Australia's milk production. Murray Goulburn's international business accounts for approximately 9% of the world's dairy trade.
Murray Goulburn has 3109 member shareholders and $1.63 billion turnover. Exporting to over 100 countries, the coop is the largest container user in Port Melbourne, Victoria.
The Community Cooperative Store (Nuriootpa) Ltd, located in Nuriootpa, South Australia operates a department store, supermarket, hardware, Homemakers Carpet and a Betta Electrical franchise. The cooperative has 13250 members, 270 employees and an annual turnover of $50 million.
CCCeNews profiled another highly successful WA coop in its launch edition in December 2005. The Capricorn Society Ltd is the largest independent automotive parts buying cooperative in the southern hemisphere. It acts as an intermediary by facilitating strategic partnerships between its members and suppliers. Members are typically proprietors of mechanical workshops, service stations and smash repairers. There are 9800 members - including members in New Zealand and South Africa. The cooperative has 130 employees and an annual turnover of A$535 million.
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Not-for-profits examined?
Do Australia's nonprofits face a capital crisis? A request for assistance
Anecdote suggests that many Australian nonprofit organisations face a capital crisis. This problem appears to have three dimensions: long established organisations in many fields face the need to replace, or massively refurbish aging facilities and/or to invest in new technologies. Other nonprofits, including many that are newer, need to expand to meet growing need for their services. The need here is for finance to invest in long-term assets. In addition, new nonprofit organisations, especially those that propose innovative programs or social enterprise models of operating, face difficulties obtaining start-up capital.
Initial analysis suggests that the problem is experienced more intensely in some fields or industries, and even in those fields, some nonprofits have successfully found solutions to the problem. In some cases it appears that the problems lie with financial institutions which do not recognise that nonprofits are a different sort of lending proposition to a conventional firm; but it may also be the case that many (especially smaller) nonprofits are not prepared, or do not know how, to approach a lender. It is also clear that Australia is not alone in facing this problem and that in North America and Western Europe a variety of mechanisms for addressing the problem have been tried.
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Professor Mark Lyons |
The National Roundtable of Nonprofit Organisations (NRNO), assisted by Professor Mark Lyons at the Centre for Australian Community Organisations and Management (CACOM) at the University of Technology, Sydney (UTS) has obtained a grant from the Westpac Foundation to explore this issue.
The first step is to prepare a short discussion paper setting out the dimensions of the problem in Australia and sketching solutions that have been developed, or are in the process of being developed, along with those used in similar overseas countries. This paper will be the basis of a workshop convened by the NRNO towards the middle of 2006.
To help develop this paper, we are hoping to interview a small sample of leaders from different parts of the nonprofit sector to discover if they believe there is a problem, what its causes may be, and whether potential solutions are available.
For further details please contact: mark.lyons@uts.edu.au
We also welcome your opinion. Please email your comments to the editor, suzanne.henderson@uts.edu.au
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Measuring the performance of charities and foundations
One of the key issues today in Australia is the low trust that donors have in charities - an important 'social capital' issue. One of the reasons for this is the resistance of charities (and the NFP sector as a whole?) to forms of 'disclosure' that other 'financial' organisations take for granted.
As an individual investor, there will come a day when you can choose to spend your annual donation to charity, not based on, "it feels good to give to this nonprofit because I know someone who has the disease they research," but based on knowing which of all the thousands of nonprofits operating in the country delivered real social return on behalf of their investors.
David Bornstein
In his latest book, How to Change the World: Social Entrepreneurs and the Power of New Ideas, (Oxford University Press, 2004), journalist David Bornstein, traces the broader movement of social entrepreneurship and its role in inventing the future. Fast Company recently spoke with Bornstein, a member of the advisory board for the magazine's 2003 Social Capitalist awards issue, about the significance of the social entrepreneur movement and the factors driving its growth.
"The good news is that 20 years from now, hopefully sooner, there will be a whole field that will evolve around evaluating social entrepreneurs, the same way that you have analysts who rate for-profit companies as investments. As an individual investor, there will come a day when you can choose to spend your annual donation to charity, not based on, "it feels good to give to this nonprofit because I know someone who has the disease they research," but based on knowing which of all the thousands of nonprofits operating in the country delivered real social return on behalf of their investors. You'll be able to make rational choices about where your contribution will be most effectively used". David Bornstein
Read the interview
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The New Business of Human Services
On Monday 10 April 2006, the Council of Social Service of NSW (NCOSS) is holding a conference to explore the views that key private sector and not-for-profit sector leaders have about the future of human services in Australia.
Substantial changes are taking place in the funding and provision of Human Services (health, community, disability, ageing, housing, employment assistance, community care, children services etc) with continued outsourcing by Governments, the targeting of certain service provision activities by for-profit businesses and the restructuring of the not-for-profit human services sector through market based funding practices, amongst other influences.
This one day conference will investigate the shape of today's and tomorrow's Human Services sector and look forward over the next 10-15 years to identify what human services might look like and what will be required to achieve their vision.
Exploring the impact of large for-profit businesses, and major charities running much of the service system and how small to medium-sized non-government organisations are functioning. The program includes speakers from major human services organisations, large and small, for-profit and not-for-profit, as well as government representatives.
The conference will also examine, through its plenary session, "Is a consensus view about future human services possible?"
Conference program and registration: www.ncoss.org.au , or phone Victoria Jones on 02 9211 2599 ext 101.
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Excellence in the not-for-profit sector
SVA Mentor Match
SVA Mentor Match is Australia's leading social mentoring program connecting high quality mentors from the corporate, social and government sectors, with social ventures that have the capacity to create high impact social change.
Social Ventures Australia (SVA) Australia's first venture philanthropy organisation, was established in 2002 by the Benevolent Society, The Smith Family, WorkVentures and AMP Foundation. SVA is unique in Australia in its approach to philanthropy.
- SVA is Australia's first not-for-profit organisation which uses a venture capital model in its approach to philanthropy.
- SVA provides resources, in the form of commercial expertise, education and funding, to high impact social initiatives determined to find solutions to Australia's social problems.
- SVA is committed to raising standards, in terms of outcome-based measurement and accountability, in the not-for-profit sector.
For further information on SVA Mentor Match contact Carolyn Lakos, National Administration Manager, Social Ventures Australia on (02) 9339 8091.
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Social Enterprise
British PM backs social enterprise
While organisations in the Australian social economy are taking up the social enterprise baton, we can only marvel at the bipartisan political support, UK-based social enterprise receives.
Voice 06 National Social Enterprise Conference
Over 800 delegates attended the Social Enterprise Coalition's second national conference in Manchester on January 25, 2006.
The conference heard from the Prime Minister and Alan Michael MP, Minister of State for Industry and the Regions.
Tony Blair's message to Voice 06 (7.6MB wmv)
Download workshop presentations and other material from the Voice 06 Home page
And from the other side...
Conservative Leader Champions Social Enterprise
On Tuesday 10 January David Cameron MP met leaders of over thirty social enterprises at a lunch organised by the Social Enterprise Coalition.
He said "You showed us that social enterprises are not just creating social good, but creating jobs and opportunity. Our shared objective must be to help social enterprises grow and prosper to become major national and international brands."
Press release
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A home-grown example
The Brotherhood of St Laurence (BSL) is tackling poverty in Australia by developing new ways of supporting and delivering welfare. One idea gaining momentum is that of social and community enterprise. These enterprises can raise revenue for charitable work, create employment and training opportunities, operate within an ethically sound framework and offer low income earners affordable, high quality services and products.
Social enterprise: A social enterprise is a business. But it's a business with a difference. All profits made by a social enterprise are reinvested back into the community to develop much needed services and resources. A social enterprise is run in a socially and environmentally responsible manner and the business itself often provides an unmet service to the community.
To find out more about each of the Brotherhood's social enterprises search further on:
Modstyle - an importer and wholesaler of optical frames
BSL retail stores - selling recycled clothing and home wares
Hunter Gatherer stores- selling hand picked retro clothing, our No SweatShop accredited fashion label, and accessories and home wares from young independent designers.
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Cooperating out of disaster
The cooperative movement has a strong record of responding to disasters. When the tsunami struck Asia in 2004, cooperative organisations and cooperative development agencies immediately responded to the appeals for help. The ICA, along with several major international cooperative development organisations will develop a protocol for a coordinated cooperative response to natural disasters. This is an important and logical outcome of the collaboration which occurred following the Asian Tsunami.
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Announcements
Definition of a cooperative
A cooperative can be defined as: "An enterprise freely established that is owned and controlled by a group of legal persons for the purpose of equitably providing themselves with mutual benefits that arise from the activities of the enterprise and not primarily from investment in it."
© Plunkett Foundation : Extract from Reinventing Cooperation, the challenge of the 21st century by Edgar Parnell published by the Plunkett Foundation, Oxford, UK.
Parnell characteristics of cooperatives
2006 theme for International Day of Cooperatives
The International Day of Cooperatives to be held on 1 July 2006 has announced the theme of the day - 'Peace Building through Cooperatives'
This theme will help highlight the contribution cooperatives are making to peace building throughout the world. Background on the theme will be shortly available. See COPAC's website
New ICA Youth Network's website
The site contains the latest information on Youth Network activities along with forums and discussions on a range of topics of interest to the network. The website can be found at: http://icayouth.coop
Join ICA's new speakers list
Are you an excellent speaker with expert knowledge within the cooperative movement? The ICA is developing a speakers' list to help facilitate the preparation of programs for international and regional conferences, seminars and forums, national and sectoral events - organised by the ICA and ICA member organisations. The success of these events often depends on an interesting program and high quality speakers. If you are interested in being on the ICA speakers list please let us know. Contact: cronan@ica.coop
Global communications list
Most cooperative organisations have some form of communications, ranging from simple newsletters and websites to fully-fledged corporate communications. The ICA is compiling a listing of all such media, publications and contacts to enable cooperative communicators throughout the world to better share ideas and content, leading to a more coordinated approach to presenting the cooperative message. The listing will be used at the time of the Global 300 launch. If you would like to be included in the listing and to share such information, contact: cronan@ica.coop
New Publication
Guidelines for Cooperative Legislation
The second revised edition of the Guidelines for Cooperative Legislation can be used to develop a checklist of items to be considered when drafting a new cooperative law or amending an existing one. It is not prescriptive and allows for options that best fit the realities of the movement and countries in which the law is be enacted. Electronic version available shortly. Hard copies are available through the ILO with limited copies available through COPAC.
UNAA Year of Community 2006
The United Nations Association of Australia has declared 2006 as the National Year of Community. See the Community Builders website for more information.
Community television returns to Sydney
TVS is a new free to air community television channel that will officially launch early in 2006 providing many opportunities for community participation. See the Community Builders website for more information.
NFPN launches website
The Not-For-Profit Network (NFPN) has launched a new website. It includes a resource centre for not-for-profit organisations. You can access information on fundraising, governance, human resource management, marketing, meetings, membership, technology, and more. You can also access a Directory of Suppliers to the sector. Shortly the Resource Centre will be available only to Subscribers to NFPN so take your free peek now. To subscribe to the free NFPN email bulletin please email subscribe@nfpn.com.au.
New Bridges website
Bridges is about strengthening communities to respond positively to alcohol and other drug issues. A key strategy is providing opportunities for people and groups to have a voice and share their stories, experiences, strengths and visions around relationship and alcohol and other drug issues. The Bridges website will be providing greater opportunities for striking up new connections as well as strengthening relationships between young people and adults, between communities and organisations. The website can be found at http://www.brdges.org.au.
Publications and Chat sites
From www.wisc.edu
Worker Cooperative discussion group
Regional Community Economic Development
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What's on
In Australia
1-2 March 2006, Victoria
Community Finance Summit - Growing Australia's Community Finance Sector
1-3 March 2006, Sydney
The Great Australian Dream? Waking Up To Homelessness
Australian Federation of Homelessness Organisations Conference
2-3 March 2006
Corporate Social Responsibility Forum
7-10 March 2006
11th National Conference On Volunteering
8 March, Melbourne
The death of social democracy
Clive Hamilton, executive director of the Australia Institute and author of Growth Fetish and Affluenza: When Too Much Is Never Enough, foreshadows his controversial forthcoming Quarterly Essay. With a response from author and speechwriter Dennis Glover.
8-10 March, Canberra
Corporate Governance In The Public Sector - From Theory To Practice
International Conference Organised By The Corporate Governance ARC Project
Thursday 9 March 4.30 - 5.30pm Newcastle
Friday 10 March 12noon - 1.00pm Sydney
Putting Disability, Mental Health and Carer Issues on the Political Agenda
http://www.peoplepower.org.au/Events.htm
17 March 2006
Cooperation and the Politics of Consumption
Business and Labour History Group, School of Business, University of Sydney Women's College
Register at: http://blhg.econ.usyd.edu.au/CPC_conference/register.html
Further details: Nikola Balnave n.balnave@uws.edu.au or Greg Patmore g.patmore@econ.usyd.edu.au
1-2 May 2006
Changing the World with Technology - the Digital Means to the Social End
3 May 2006
Consumers' Issues Mental Health for Young and Old Conference
Issues which affect people with a mental illness, their carers, service providers and the general community
16-17 May 2006
Empowering Individuals and Families in the Human Services National Policy Conference
Call for papers
6-9 June 2006
7th International Cities Town Centres & Communities Conference
25-27 September, Melbourne
Governments And Communities In Partnership: From Theory To Practice
Centre For Public Policy Conference
26-28 November
2006 ANZTSR Eighth Biennial Conference: Navigating New Waters
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International events
10-12 March 2006
Consumer Cooperative Congress 2006, Stratford-upon-Avon
Contact Dr John Butler + 44 (0) 161 246 2927 or email john.butler@cooperatives-uk.coop
22 March 2006
Redefining Social Capital Conference, Manchester
Further information: tina.johnston@nwda.co.uk
23 March 2006
Thriving or Surviving? The Future of the Women's Voluntary and Community Sector, London
Contact the Womens Resource Centre on +44 (0) 20 7324 3030 or email conference@wrc.org.uk
15-26 May 2006
cooperative policy and law seminar, Turin Italy
See http://learning.itcilo.org/entdev/coop/
24-27 May 2006
4th Annual International Youth Conference, Manchester
Contact, UK Coop College; Mervyn Wilson, mervyn@co-op.ac.uk
30 May - 2 June 2006
2006 Annual Conference of The Canadian Association for Studies in Cooperation, York University, Toronto
www.coopresearch.coop/Conference_2006/eng_call_2006.htm
4-8 June 2006
8th Asian Development Education Workshop, Bangkok
Contact: Registrar, Asian DE Program
Association of Asian Confederation of Credit Unions
E-mail: accu@aaccu.coop
Website: www.aaccu.coop
19-21 June 2006
26th CIRIEC International Congress, Istanbul, Turkey
Theme: The public, social and cooperative economy in the context of globalisation.
19-23 June 2006
International Conference on cooperatives in the Pursuit of Peace, British Colombia, Canada
1 July 2006
International Day of Cooperatives
13-15 July 2006
13th Conference of the International Association for the Economics of Participation (IAFEP) Mondragon University, Spain
27-30 July 2006
World Credit Union Conference, Dublin
2-5 August 2006
Association of Cooperative Educators 2006, Puerto Rico
15-16 August 2006
ICA Asia-Pacific Cooperative Research Conference, Colombo, Sri Lanka
or Akira Kurimoto
17 August 2006
4th Regional ICA Cooperative Forum, Colombo, Sri Lanka
6-8 September 2006
International Conference on Cooperative Forms of Organisation, Cardiff
Reclaiming the Economy: the Role of Cooperative Enterprise, Ownership and Control
Call for papers
Details: http://aeoa.org.au/0024/_forum/topic.asp?TOPIC_ID=64
Or see: www.uwic.ac.uk/ubs/conferences/#Sugg
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About this Newsletter
We welcome your comments on our newsletter and any suggested topics or items for inclusion in the next issue, due for publication in early May 2006. Please forward any items of interest including news and events, case studies, profiles, reports or commentaries to suzanne.henderson@uts.edu.au by 5 April 2006.
To refer a friend or to unsubscribe, please e-mail: suzanne.henderson@uts.edu.au. All contact information provided will be kept strictly confidential.
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