Is Making Profit a Company s Only Goal?

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Agnes Hilary Evans
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1 Is Making Profit a Company s Only Goal? I THE SPECIFICITY OF DIVINE CHOCOLATE Resources: Divine Chocolate video: ; PowerPoint presentations to be downloaded from: ; extract from the European Commission website: 1. Focus on the table below and try to explain each notion (one or two sentences) Activity The activity of the company consists in. Final objectives Structure of the company Location Financial resources Producers Sources of income for the producers Sources of profits for the share holders Values of the company Is Making Profit a Company s Only Goal? 2012 SCÉRÉN CNDP 1

2 2. How to qualify this company? According to the information given in the PowerPoint presentation, how would you qualify the company? Find 4 adjectives and write them below: 3. What is the name given to this type of organisation? 4. How does the activity of this company affect its environment favourably? 5. Do you think Divine Chocolate could have to face a conflict between the actors who are involved in the activity? If yes, which actors could be affected? Why? 6. Try to find out several words or phrases which could define the inputs and outputs of the company. As an example: human resources, raw materials, etc. Adding value INPUTS TRANSFORMATION PROCESS OUTPUTS Is Making Profit a Company s Only Goal? 2012 SCÉRÉN CNDP 2

3 II A PARTICULAR FOCUS ON SOCIAL ENTERPRISES QUIZ 1. A social enterprise is a specific kind of charity. Yes or no? 2. It is run by volunteers. 3. A social enterprise makes profits. 4. It employs staff. 5. It is not considered as a proper business. 6. The shareholders are other companies. 7. The social purpose is not always announced and measured. 8. A social enterprise doesn t have to report for its activity to the government and tax administration. 9. Social companies are not entitled to receive funds from the government or local authorities. 10. A social enterprise is a cooperative. 11. A social enterprise is a mutual company. 12. A low cost company is a social enterprise. III ROLE-PLAY SETTING UP A PROJECT OF SOCIAL ENTERPRISE The class is divided into 2 groups. Group A: entrepreneurs aiming at establishing a social enterprise and looking for a partner Group B: potential partners going to work in association with the entrepreneurs of group B Instructions group A Read the list of questions in the following document personal traits and discover your strengths and weaknesses. Define a project you would like to build as a social entrepreneur. Present your project to a potential partner and try to guess her/his ability to work with you. Instructions group B Read the list of questions in the following document and discover your strengths and weaknesses. Give details on your educational background, your personal interests, your financial and professional potential, the time you are ready to invest in a partnership. 5 to 10 minutes are given to prepare the role-play 5 minutes to discuss with a partner Change partner 5 minutes to discuss with another partner 5 to 10 minutes are given for the feed-back Is Making Profit a Company s Only Goal? 2012 SCÉRÉN CNDP 3

4 You Personal traits Tick if true are trustful are tenacious are rigorous are stubborn are mature are dependable are organised are analytical are very creative are dynamic and efficient tend to be quite rigid like working in a partnership seek solutions rather than find out who to blame use persuasion welcome feedback are interested in other points of view attempt to build mutual success like to help others take responsibility for the consequences of your actions often feel threatened and wrong IV - SYNTHESIS Re arrange the words given below in several sentences putting them into order so that they explain the two kinds of objectives for an organisation. Prompts: economic aim - social objectives - to target - social investment - to make profits - fair trade - social company - socially responsible organisation - share-holders - environment protection - disadvantaged communities or areas - employment - to produce goods or services How would you answer the question Is making profit a company s only goal? (Justify your answer)? Is Making Profit a Company s Only Goal? 2012 SCÉRÉN CNDP 4

EXTRACT of the EUROPEAN COMMISSION WEBSITE http://ec.europa.

5 EXTRACT of the EUROPEAN COMMISSION WEBSITE Small and medium-sized enterprises (SMEs) Social Economy A significant proportion of Europe's economy is organised to make profits not only for investors. The socalled Social Economy, including cooperatives, mutual societies, non-profit associations, foundations and social enterprises, provides a wide range of products and services across Europe. There are more than 11 million jobs in the social economy across Europe, but membership of social economy enterprises is much wider, with estimates ranging as high as 160 million. Social economy enterprises are characterised by a strong personal involvement of its members in the management of the company and the absence of seeking profits in order to remunerate shareholders capital. Due to their specific way of doing business which associates economic performance, and solidarity amongst members, they also contribute to the implementation of important Community objectives, particularly in the fields of employment, social cohesion, regional and rural development, environmental protection, consumer protection, and social security policies. Common Characteristics of Social Economy Enterprises They contribute to a more efficient market competition and encourage solidarity and cohesion. Their primary purpose is not to obtain a return on capital. They are, by nature, parts of a stakeholder economy, whose enterprises are created by and for those with common needs, and accountable to those they are meant to serve. They are run generally in accordance with the principle of solidarity and mutuality and managed by the members on the basis of the rule of "one man, one vote". They are flexible and innovative (they meet changing social and economic circumstances). They are based on active membership and commitment and very frequently on voluntary participation Social economy enterprises represent 2 million enterprises (i.e. 10% of all European businesses) and employ over 11 million paid employees (the equivalent of 6% of the working population of the EU): out of these, 70% are employed in nonprofit associations, 26% in cooperatives and 3% in mutuals. Social economy enterprises are present in almost every sector of the economy, such as banking, insurance, agriculture, craft, various commercial services, and health and social services etc. Is Making Profit a Company s Only Goal? 2012 SCÉRÉN CNDP 5

Decision-making Exercises and Tools

Decision-making Exercises and Tools This Section presents four decision making exercises for use by advisors to help groups decide which organisational structure is most appropriate for their needs. The