GUEST ENTRY

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There is a public call for tax relief and policy changes in Sweden to motivate corporations, as well as private donors, to support donations for research and charitable organisations (Regeringskansliet SOU 2009:59). Tax relief on charitable giving is the most important funding driver for the third sector in the UK and in the US.

Personally, I believe it would open up a tremendous opportunity also in Sweden to better integrate business with all of its stakeholders in society. It would be an important aspect of encouraging businesses to develop a broader and more efficient CSR strategy, in particular the SMEs, who currently may not think they can afford to do so.

Several high profile people have written articles in the daily newspapers to urge the government to vote for the proposition in order to stimulate the growth of social entrepreneurship. Among them is the director of the Fondation de Luxembourgh, Tonika Hirdman, in Dagens Industri on January 16^th. 

As much as I appreciate the proposal, in the debate things do get mixed up.  As a social entrepreneur, business is my focus. Not charity. The “social” aspect of my enterprise is that I wish to use my business acumen and my capital not only to generate a profit, but to actively strive to make a positive social change. It is in the mission of the company, in its measurements and affects all aspects of managing costs and income. It would also confuse the purpose of my operations, if what I do is labelled philanthropic, since I wish to reach a level of self-financing and profit where I can grow and develop just like other entrepreneurs.

In my role as consultant I have both started several social enterprises and guided other organisations that wish to contribute financially, but also with their products and services. They always want to make clear upfront that they do not wish to see these projects as philanthropy. They point out that they see it as taking their social responsibility.  Even so, in practice it is common that companies encourage employees and customers to fund raise for example, and that could benefit from the proposal.

For long-term engagement with the third sector though, I see two problems. First, the donor cannot expect anything in return. How do we then have a dialogue about the impact? Second, donations are an easy, but over time not very effective way for a business to engage with the third sector.

We need to call for additional economic incentives that consider the whole picture – today social enterprises often operate more like business than charity.

/Ruth Brännvall, Founder Njord Management Consulting Ltd