Social and Fair

What is a Social Enterprise?

Definition:

A social enterprise is an organization that prioritizes social impact over profit, aiming to improve the lives of underserved communities through sustainable economic opportunities.

In Bangladesh, particularly in rural areas, these enterprises support women and young girls by providing them with raw materials and fair compensation for their handmade work. Despite their potential for empowerment, many social enterprises face challenges such as a lack of buyers and effective oversight, which can limit their ability to sustain livelihoods over time.

Some of the key criteria of this type of organizations are listed on the right:

Social Impact Focus

The primary goal is to create positive social or economic impacts, particularly for marginalized groups like women and young girls in rural areas.
Sustainable Business Model:

Social enterprises operate with a business model that generates revenue, often through selling products or services, while ensuring fair compensation for workers.
Community Engagement:

They work within local communities, providing raw materials and resources to individuals, enabling them to contribute to the production process and improve their livelihoods.
Support for Vulnerable Populations:

Social enterprises focus on empowering vulnerable groups by offering economic opportunities that are otherwise inaccessible, fostering skill development and self-sufficiency.
Challenges in Market Access and Oversight:

Despite good intentions, social enterprises frequently face difficulties in securing consistent market access and maintaining proper oversight, which can limit their ability to provide sustained support.
Privately Owned

These organizations are often privately owned, allowing for flexibility in operations and decision-making while fostering entrepreneurial initiatives within the community.

Social enterprises are the backbone of our nation, offering vital opportunities to women who quietly support the primary breadwinners of their households.

John Doe,

CBI Expert

Relationship between Social Enterprise and Fair Trade

Social enterprises play a crucial role in supporting communities by providing economic opportunities to marginalized groups, particularly women and artisans. However, many of these enterprises struggle to sustain their impact due to a lack of proper oversight and market access. By becoming part of ECOTA, the largest fair trade networking body in Bangladesh, these social enterprises can receive essential support, including monitoring and auditing to ensure fair wages and ethical practices. ECOTA can also guide these organizations in adopting the 10 fair trade principles. With this support, social enterprises have the potential to evolve into fully recognized fair trade organizations, ensuring long-term sustainability and equitable trade practices.

Similarities

Community Focus:

Both prioritize the welfare of marginalized communities by creating economic opportunities.
Empowerment:

They aim to empower vulnerable groups, especially women and artisans, through skill development and fair compensation.
Ethical Practices:

Both types of organizations emphasize ethical working conditions and responsible sourcing.
Sustainability Goals:

Both types of organizations seek long-term, sustainable solutions to poverty and social inequities.
Social Impact:

Both types of organizations focus on achieving a positive social impact over profit maximization.

Differences

Monitoring and Accountability:

Fair trade organizations are regularly audited, while social enterprises often lack formal oversight.
Guiding Principles:

Fair trade organizations follow specific principles, while social enterprises may not have standardized guidelines.
Market Access:

Fair trade organizations typically have better market exposure, while social enterprises often struggle with visibility.
Profit Focus:

Fair trade organizations balance profit and social impact, whereas social enterprises focus more on social outcomes.
Certification

Fair trade organizations pursue certification, while social enterprises usually do not.