Comunication presented at the 4rd EMES International Research Conference on Social Enterprise, July,2013, Liege, Belgium

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1 Comunication presented at the 4rd EMES International Research Conference on Social Enterprise, July,2013, Liege, Belgium By Isabel Vidal

2 MAIN TOPIC This paper focuses on multi-stakeholder dialogue and multi-stakeholder governance as cooperation tools between different stakeholders

3 ASSUMPTIONS 1.- The networking and partnership among Third Sector organizations and the different national welfare systems explain in part the development and consolidation of social enterprise in Europe 2.- The multi-stakeholder concept within the definition of EMES social enterprise suggest cooperation with key stakeholders

4 FROM EMES SOCIAL ENTERPRISE DEFINITION For EMES s members, a social enterprise entails an organization with a clear social goal to benefit the community. To be able to follow more easily their action plan the organization progressively increase their market presence and in some cases, they choose a multi-stakeholder dialogue or a multistakeholder governance management models

5 GLOSSARY (I) Stakeholder.- refers to groups or individuaals that influence or have been influenced by the organization s activity Multistakeholders.- refers to different interest groups, each one of which has different aspirations and hopes related to what it can expect from the organization s activity

6 GLOSSARY (II) Multi-stakeholder dialogue.- take place when the dialogue involves a large number of interactions between different stakeholders regardind different topics. Multi-stakeholder governance model.- refers relationships can be formalized by a contract and the partners representation can be acknowledge through voice and vote in governing bodies

7 MODELS OF GOVERNANCE (I) Agency Theory.- Agency theory holds that public services providers have different interest to those of the public administration. From this perspective, Agency Theory would not accept a Board of Directors with some members representing clients and others members representing the service provider.

8 MODELS OF GOVERNANCE (II) Stewardship Theory:_ Stewarship Theory accepts the customer and the provider working together to improve the strategy and to add value to high level decisions Two other models: - democratic model; one member, one vote - multistakeholder model as an extension of democratic model

9 HOW TO INTEGRATE THE FOUR MODELS? A PROPOSAL Stewardship, democracy and multi-stakeholer are models coexisting in the management of social enterprise corporate governance. A well integrated combination of the stewardship, democracy and multi-stakeholder models can help to resolve the agency problems arising among the stakeholders

10 SIMAP, A CASE OF MULTI-STAKEHOLDER DIALOGUE (I) The Alert Monitoring Intelligent System Program (SIMAP) is an example of multistakeholder dialogue enabling the provision of a new service aimed to promoting autonomy among the people with certain level of cognitive.

11 SIMAP(II) The stakeholders: Catalan Red Cross, who manage the service The Catalan Association of relatives of Alzheirmer, The regional government The local government and Two technological corporations supply the technology a low price as a CSR action

12 CASA D INFANTS PROGRAM, AS EXAMPLE OF MULTI-STAKEHOLDER GOVERNANCE MODEL (I) The Catalan Regional Government has exclusive competence for child protection and assistance to families and children However, legislation enables the Education Platform Foundation to design a project engaging institutions to provide better public service to children and adolescent in risk. The name of the program is Casa d Infants: a foundation (FASI)

13 CASA D INFANTS PROGRAM (II) FASI Board of Directors Regional government:4 members Education Platform Foundation: 2 members Mutual benefit society as an investor: 1 member The public administration holds the presidency of the foundation (FASI)

14 CASA D INFANTS PROGRAM (III) But the stakeholder collaboration through the one member, one vote mechanism suggest that the FASI governance management style is characterized by a combination of the stewardship, democracy and multi-stakeholder model

15 WHEN WILL BE THE COORDINATION BETWEEN DIFFERENT STAKEHOLDERS? There must be three circunstances closely related to the reason for this cooperation: Uncertainly Strategic interdependence Possibility for improvement

16 THANK YOU VERY MUCH FOR YOUR ATTENTION By Isabel Vidal

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