The Social cooperation in Italy and the CGM consortium experience. Pècs 18 October 2012

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1 The Social cooperation in Italy and the CGM consortium experience Pècs 18 October 2012

2 Italian social cooperatives The origin Social cooperatives were born in Italy during the 70s. They have been recognised by the Italian legislation on November 8th, 1991, through the Law 381/91. Social cooperatives have as their purpose to pursue the general interest of the community in promoting human concerns and in the social integration of citizens

3 public nature Law 381/91 Art.1 private Primary and secondary objects are reversed if compared to ordinary enterprises: Primary object Satisfaction of all its social interlocutors Accomplishment of the general interest of society Secondary object Respect for the economic and efficient placement criteria for all the available resources

4 Law no. 381/91 Art.1- Typologies Type A Type B Cooperatives of SOCIO-HEALTH and EDUCATIONAL SERVICES Users : handicapped, elderly, minors, mental disabled persons, social excluded, drug addict people, children.. WORK INTEGRATION Cooperatives mainly supporting adult people EXCLUDED FROM SOCIETY; DISADVANTAGED PERSONS (drug addict, offenders, handicapped people, )

5 Law 381/91 Art.1 - Typologies Operators/ employees/ members Market A Type Everybody (coherently with the carried out activities). Fields: Socio-health Educational B Type 30% of disadvantaged people Any

6 Law 381/91 Art.1 It's social because it carries out activities of social interest a Social Cooperative b It's social for the way in which productive activity is carried on

7 We have 3 categories of members: Law 381/91- Members 1. WORKER MEMBERS economic compensation. (Ordinary working members, paid members, disadvantaged working members). 2. VOLUNTEER MEMBERS. 3. USER MEMBERS (users of services/activities of social cooperatives + their families) + FUNDING MEMBERS (Law 52/92, art.4) (whoever grants capital (without limits) to the cooperative, but not directly involved in the cooperative activities; natural and legal persons.)

8 Social cooperation in Italy Social Cooperatives Members Workers Work placements Volunteers Income This phenomenon is widespread in the whole country, although not in a homogeneous way. Source: ISTAT data 2005

9 Social cooperation in Italy A-type cooperatives: 59% B-type cooperatives: 32,8 % Mixed cooperatives: 4,3 Consortia: 3,9% B-type cooperatives and consortia are more spread in the Northern regions; In the Southern part we mainly find A-type cooperatives; In Central regions instead, we find many mixed cooperatives. Source: ISTAT data 2005

10 Social cooperation in Italy persons operate in social cooperatives divided as follows: paid human resources volunteers civil service 733 ecclesiastic people Compared to 2003, people employed in cooperatives increased by 26,2%. Women represent 71,2% of the total amount of people working in social cooperatives (74% employees, 52,5% volunteers). Source: ISTAT data 2005

11 Social cooperation in Italy A-type cooperatives divided into fields of activity 59,1% of A-type cooperatives operate in the field of social care, followed by the education and research field (21%), culture, sport and entertainment fields (10,7%) and health (9%). Also in this case, we find important differences in the A-type sectorial specialisation of social cooperatives across the country. Source: ISTAT data 2005

12 Social cooperation in Italy Work placements in B-type cooperatives Disadvantaged people in B-type cooperatives are (27,8% more if compared to 2003). The percentage of disadvantaged workers is 55,5% of the total workforce (much higher than the minimum of 30% required by law). The average number of disadvantaged people for each cooperative is 12. The most numerous categories are handicapped people (46,3%) and drug addict people (16%). Source: ISTAT data 2005

13 The social cooperation in Italy The development of the social cooperation New needs not satisfied Increasing demand of greater quality of life Transformation of the social and familiar roles Transformation of the welfare systems Local dimension of welfare Contracting out of the services Local programming (law 328/00) Evolution of the third sector Greater economic and social importance From protection s forms to services production From the voluntary service to the social enterprise

14 The social cooperation in Italy Social cooperative models Location distinguishing them between cooperatives located in the northeast, northwest and in the south Various organizational and ownership schemes determined by The size based on the size of the incomes, we identify cooperatives with small, medium and large sizes The presence of volunteers distinguishing between cooperatives that are lacking and cooperatives with a meaningful presence The membership based on the presence of one or more stakeholders (single or multi stakeholder)

15 Social cooperation in Italy Consortia The main purpose of social consortia is to offer services aimed at sustaining the expertise and management activities of member cooperatives: o management of human resources o account assistance and finance consulting o management of administrative documents o training o information o projects planning o assistance in taking part to public tenders o support in elaborating political strategies o taking part to public tenders on behalf of member cooperatives (general contractors). Among the most offered services are those concerning the assistance in taking part to public tenders (74,6% of consortia), projects planning and coordination (72,5%) organising the exchange of information and experiences between cooperatives (70,8%), promoting cooperatives image and the promotion of new services (67,6%). Source: ISTAT dara 2005

16 The new law on social enterprise (L.D.155/2006) Definition of social enterprise: any kind of private organisation (e.g. associations, foundations, co-operatives, non-cooperative companies) which permanently and principally operates an economic activity aimed at the production and distribution of social benefit goods and services while pursuing general interest goals. SE may not limit their goods or services to members only. Social benefit goods and services qualified on the basis of economic and social sectors (social assistance, healthcare, education, environment, cultural sector, social tourism, university education, research and cultural services, instrumental services for SEs), or the specific scope of the enterprise, namely the working integration purpose of the organisation (minimum 30% disadvantaged workers) Non-distribution constraint (also for companies), except for: capped remuneration of financial instruments in favour of nonmembers (today 5%).

17 The new law on social enterprise (L.D.155/2006) (In associations companies) majority of directors shall be appointed by members (non-members may appoint the remaining part) SE may not be controlled by for profit entities and/or by public entities (independency requirement) Required: beneficiaries and workers involvement (information, consultation, participation, influence on specifically relevant decisions) Limited liability if assets amount to a certain value Accounting and reporting rules (derived by company law) Social balance sheets requirement Internal or external auditors (if applicable on the basis of legal requirements mainly concerning the size of the firm)

18 The Cgm consortium The consortium structure cooperative cooperative cooperative Local consortium Local consortium Local consortium The cooperatives are generally joined in local consortia on territorial basis (provincial or metropolitan ) The local consortia can be member of the national consortium CGM

19 The Cgm consortium The numbers of Cgm CGM is the biggest network enterprise of the Italian social cooperation It associates 78 territorial consortium networks (provincial or metropolitan) which at their turn associate social cooperatives diffused on all the national territory, for a total of workers, volunteers and an aggregated turnover of 1,1 billion euros. It associates also 4 funding members.

20 The Cgm consortium Its mission and values Our mission Cgm supports the development of social cooperatives. It helps third sector organisations to become social enterprises close to the citizens in every phase of their life-cycle. Our values The centrality of the person. Ethics of the action. The economic pluralism and the democracy. The entrepreneurship. The active citizenship.

21 The Cgm consortium Main areas of action Disabilities Childhood and adolescence Labour inclusion of disadvantaged persons Migration, international cooperation Active labour policies Mental health Social tourism

22 The Cgm consortium To bring about its own projects...and in conformity with its own statute, Cgm carries out: Editorial activitiy Studies and researchs Training Technical-managerial and organizational advice Moreover it: coordinates relationships between social cooperatives sector and public actors (mainly Government and Ministries) promotes and encourages new initiatives for social cooperatives.

23 The Cgm cooperative group In 2005 Cgm has decided to create trademark companies for its consolidated activities in order to increase the know-how accuminated by Cgm during the last decade. These companies manage specialized and consolidated activities according to a strong entrepreneurial logic. They are: ACCORDI (AGREEMENTS): for labour inclusion, particularly in the environmental area CGM FINANCE (FINANCE CGM): intergroup financial company COMUNITA SOLIDALI (SUPPORTIVE COMMUNITIES): care (elderly, disabilities, mental health) LUOGHI PER CRESCERE (SPACES TO GROW): education (childhood, minors, education) MESTIERI (EMPLOYMENT): labour mediation, guidance and training SOLIDARETE: internationalisation of social enterprise CONNECTING PEOPLE: migration WELFARE ITALIA: welfare and services for families

24 What is social business for the European Commision

25 Milano Via Marco Aurelio, 8 tel Rome Palazzo della Cooperazione Via Torino, 146 Representation Bruxelles Square de Meeus 18 Pierluca.ghibelli@consorziocgm.it CONFCOOPERATIVE FEDERSOLIDARIETA

Social Enterprise in Italy: Typology, Diffusion and Characteristics. Carlo Borzaga Simone Poledrini Giulia Galera

ISSN 2281-8235 Working Paper n. 96 17 Carlo Borzaga Simone Poledrini Giulia Galera Social Enterprise in Italy: Typology, Diffusion and Characteristics Please cite this paper as: Borzaga, C., Poledrini,