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

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