Issue

[Issue] [February 2016] Special Issue : The 1st ‘Best Social Enterprise Award’ awarded by CCEJ

The 1st ‘Best Social Enterprise Award’ awarded by CCEJ

 

Kwon Oh-in

Director, Economic Policy Team


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What does this
award imply?

CCEJ awards its first ‘Best Social Enterprise Award’ on December 15th of 2015.

According to the Social Enterprise Promotion Act, social enterprise refers
to an organization that pursues social causes alongside business activities by
providing job opportunities to socially disadvantaged classes and improves the
quality of life in local society. In other words, what differentiates “social
enterprise” from general “profit-making enterprise” is what the enterprises
mainly pursue. So-called “social enterprise” has emerged as a new growth
alternative economy model in the Korean economy.

 

What does this
award mean?

Social Economy emerged as an alternative to Neo-liberalism. Since the Social
Enterprise Fostering Act was established in 2007, the government has been ‘supporting’
the establishment and operation of social enterprise. Despite the government’s
insufficient support and mismanagement of the social enterprise system, which
has been dragging down its sustainability, Korea has 1,506 established social
enterprises to date.  In order to
encourage the sustainability of social enterprise, CCEJ created the ‘Best
Social Enterprise Award’.

 

Who were the nominees?

Enterprises certified by the Korea Social Enterprise Promotion Agency were
on the list of nominees. A total of 184 enterprises were on the list, divided into two categories according to the type of
social enterprise: one category for job creation and the other for social
contribution & services.

 

What factors were
evaluated?

The evaluations were made in 3 categories: public value (45 points),
ethical value (25 points) and economic value (20 points). Public value was evaluated
by the extent of their societal contribution, job creation and societal
service, which are the main purposes of social enterprise.  This category is detailed by social
contribution and satisfaction of the benefactors. The extent to which they
contributed to disadvantaged classes, created jobs and satisfied employees are
all noted in the rating index. The ethical value evaluates how ethically, transparently,
legally and environmentally friendly they managed their business. Their decision-making
policies, devotion to public announcement, employee involvement in management, level
of lawfulness and energy savings are all detailed in the rating index. Finally,
the economic value was evaluated by growth potential and the profitability of the
enterprise. Only 20 points are allocated to this part since making profit is
not the main goal of social enterprise. Nonetheless, there’s no doubt that profitability
affects sustainability, so profitability, activity, productivity, growth
potential, stability and future vision are all detailed in the rating index for
economic value.

The evaluation was performed in six steps. 1) selection of social
enterprise to be evaluated 2) quantitative evaluation according to the index 3)
selection of candidate enterprise 4) qualitative evaluation 5) interviews 6) final
selection

 

 Who is the best social enterprise of 2015?

The first award goes to 4 enterprises. The best award in job creation was
given to Architerior Goldenlight River, the second best goes to Nongteo
Agricultural and Fisheries Enterprises. In social contribution Hope Housing got
the best award, followed by Ulsan Happy School Nonprofit Organization.

 

The Best Award in
Job creation: Architerior Goldenlight River

Architerior Goldenlight River received the best award in job creation with
score of 65.19. In detail, 25.1 from public value, 25.16 from ethical value and
15.38 from economic value. This company was established in 2010, aiming to
improve housing culture and welfare for socially disadvantaged classes through
business in architecture & interior design. Particularly housing welfare,
with more than 10% profit input to achieve their goal to provide free repair
services to more than 15 houses every year. In addition, this company supports their
local art community and seniors under the title of social reinvestment. This
company shows big potential in sustainability as well by achieving 240 million
won net profit in 2015, and 210 million won in 2014.

 

The best award in
Social Contribution & Service: Hope Housing Corp.

Heemang (Hope) Housing ranked first, scoring a total of 67.33; 27.75 from
public value, 25.85 from ethical value and 13.73 from economic value. This
company was established in 2010 to provide job opportunity to low income classes
and make pleasant housing environments. This company improves the quality of
life through a series of projects, such as papering walls/floor, roof repair
and waterproofing. Hope Housing also contributed to improve housing environments
by renovating old house, painting walls and making flower gardens. Five of every
six employees are hired from socially disadvantaged class. In addition, Hope Housing
contributed to disadvantaged classes by providing scholarships to low-income families
and by hiring people from low-income-dense areas.

CCEJ will continually find committed social enterprise through this award to
promote the establishment of social enterprise in Korean society.

 

Translator : Jeong Eun-Seong