What is the “social economy?”
The concept of “social economy” encompasses a great diversity of companies within the EU, but whilst it may differ from one Member State to another according to national legislation, for economic or historical reasons, it is commonly accepted to comprise cooperatives, mutuals, associations and foundations.
Today, it is estimated that the social economy represents 8% of European companies, employing more than 9 million people; i.e. about 7.9% of employment.
Social economy enterprises operate like traditional, public limited companies (PLC), as they are driven by the market but they differ from them in that they put their social objective above the pursuit of profit per se. Driven by values such as solidarity, social responsibility and democracy, social economy enterprises present another form of entrepreneurship. Former President of the European Commission Romano Prodi once said that “they are competitive enterprises based on a solidarity that goes beyond the limits of the market and extends to social reality.”
Social Economy and the European institutions
At the European level, back in 1989 Commission President Jacques Delors set up a unit entirely dedicated to the Social Economy within the Commission’s Directorate General for Enterprise. But in 1997, divergences among the Member States in the Council lead to the dissolution of the unit and its integration within the "Crafts, Small Enterprises, Co-operatives and Mutuals" unit in 2000.
Among the projects undertaken by the Social Economy Unit, one strove to improve the communication between the existing representative bodies and enhance relations within a somewhat uncoordinated sector. This led to the creation, in 1998, of the Consultative Committee for Co-operatives, Mutual societies, Associations and Foundations (CCCMAF).
After two years of work chaired by the Commission (on topics such as the creation of European statutes, specific rules for VAT, etc.), the Consultative Committee was transformed into the European Standing Conference of Co-operatives, Mutual societies, Associations and Foundations (CEP-CMAF), a completely autonomous organisation. In January 2008, CEP-CMAF changed its name to Social Economy Europe (SEE).
Within SEE, the four "families" are represented by AMICE and AIM for the mutual sector, Cooperatives Europe for the cooperatives, CEDAG for the associations and EFC for the foundations.
Social economy and world institutions
This resolution acknowledges the importance of cooperatives worldwide as businesses combining economic and social development. It also exhorts Member States to promote the cooperative model and governments to assess the legislation on cooperatives with a view to ensuring their growth and sustainability.
United Nations Secretary-General Ban Ki-moon says:
"Cooperatives are a reminder to the international community that it is possible to pursue both economic viability and social responsibility."