Social enterprises prove that a morally good economy is also a prosperous one, says Charlotte Harrington

What does “business as a force for good actually look like? The phrase is thrown around all the time. Is it about growing the economy? Helping vulnerable communities? Making sustainable choices in the middle of an environmental crisis?

I’ve been reading Markets Built for Humans – one of those books that makes you genuinely rethink some of the assumptions we hold true. The core message is that a morally good economy is also a prosperous one; that greed does not have to be the price of growth, and that the challenge ahead of us is to build an economy that rewards fairness.

If it sounds too good to be true, then you’re not paying attention to all the businesses out there already proving this to be a prosperous, very possible path.

They’re called social enterprises; companies that operate commercially but exist to fund social or environmental impact. Somewhere in between a charity that relies on donations, and a traditional business maximising returns for shareholders – they’re the definition of business as a force for good.

It’s surprising how many people aren’t familiar with what social enterprises are – especially when you learn that there are around 100,000 across the UK, with a collective turnover of £78bn and a workforce of 2.3m. 

Despite these economically challenging times, despite many headlines warning ‘bad for business’, almost half of the social enterprises across the country reported an increase in turnover last year – 12 per cent higher than any other form of business.

I think social enterprises should be the future, our path to fair prosperity. This is my shout out to them.

The environmental tax reducing funding for WaterAid

At Belu, 100 per cent of our profits go to the nonprofit WaterAid. Business is better than ever for us, which would typically mean WaterAid receives more funding for their work providing clean water to the world’s most vulnerable communities. But there’s an environmental policy known as the Extended Producer Responsibility (EPR) tax that is absorbing our funding for them. We support the sustainability ambitions behind EPR, but as a B2B social enterprise, the implementation framework is too simplistic.

Government has exempted charities from the tax, understanding that imposing additional costs on organisations that exist to deliver positive impact ultimately reduces the resources available for that impact. Social enterprises fund these charities, but they have been forgotten under the scheme, meaning this year our donation to WaterAid will be substantially less.

Thoughts on screen time

My children have grown up fluent in technology in a way my generation never was. They reach for screens as soon as they feel bored. And yet the more normalised that digital world becomes, the more I wonder what we may be quietly losing in the process: attention, patience, blue-sky thinking space. I think this new social media ban for under-16s is a really promising step to acknowledging the impact of the online world. I doubt it’s going to be a smooth road, but I’m glad we’re embarking on it.

Quote of the week

‘Never doubt that a small group of thoughtful, committed citizens can change the world; indeed it is the only thing that ever has.’

Margaret Mead

Recommendations

The Anxious Generation by Jonathan Haidt. I think this is a must (and topical!) read, especially for parents and teachers. He looks at how childhood has changed with smartphones and social media and what that’s done to young people’s mental health. It’s a fairly uncomfortable read in places, but in a good way. There’s some great advice in there too, and it makes you think about what we need to change for the next generation.