Notes
1 See Robert H. Gertner, “The Group of Social Enterprises,” Annual Assessment of Economics, vol. 15, 2023.
2 Two current OECD reviews describe the utility of social enterprise identifiers developed by varied jurisdictions and supply recommendation and greatest practices for coverage makers contemplating comparable efforts. See OECD, Designing Authorized Frameworks for Social Enterprises: Sensible Steerage for Coverage Makers, Paris: OECD Publishing, 2022, which explains that authorized frameworks “legitimise social enterprises and enlarge the authorized idea of ‘enterprise’ to entities that twin an entrepreneurial strategy with social and more and more environmentally motivated missions.” See additionally OECD, Coverage Information on Authorized Frameworks for the Social and Solidarity Financial system, Paris: OECD Publishing, 2023, which describes how authorized frameworks for social enterprises, in addition to different establishments inside the bigger social and solidarity financial system, can assist the event of this sector and facilitate its entry to each capital and public help.
3 See Dana Brakman Reiser and Steven A. Dean, Social Enterprise Regulation: Belief, Public Profit, and Capital Markets, New York: Oxford College Press, 2017; Sofie Cools, “Social Entrepreneurship: The Alternative Between Labels, Variants, Devoted and Typical Company Varieties,” European Firm and Monetary Regulation Assessment, vol. 20, no. 1, 2023.
4 Below the auspices of the Worldwide Academy of Comparative Regulation, my colleagues Steven A. Dean and Giedre Lideikyte-Huber and I assembled a bunch of specialists to research social enterprise regulation in additional than two dozen jurisdictions. We requested every nationwide knowledgeable to report on the authorized approaches being deployed of their jurisdiction to establish, incentivize, and regulate entities that use enterprise strategies to attain social targets. Their reviews, together with a complete world evaluation and extra reviews on points that transcend nationwide borders, are revealed in Dana Brakman Reiser, Steven A. Dean, and Giedre Lideikyte-Huber, eds., Social Enterprise Regulation: A Multijurisdictional Comparative Assessment, Cambridge, United Kingdom: Intersentia, 2023. The findings mentioned right here, in addition to references to the practices of specific nations, are based mostly on the reviews contained on this quantity.
5 See Henry Hansmann, “The Function of Nonprofit Enterprise,” The Yale Regulation Journal, vol. 89, no. 5, 1980.
6 See, e.g., Social Enterprise Mark CIC, “Social Enterprise Mark – Eligibility Standards” (“[a] social enterprise should be primarily devoted to social aims”); Social Merchants, “Social Enterprise Certification: Steerage Notes and Requirements” (requiring “public/neighborhood profit [to] outweigh … personal profit”).
7 See Social Merchants, “Social Enterprise Certification.”
8 B Affect Evaluation Data Base, “Can Nonprofits Develop into Licensed B Corps?”
9 See Carol Liao, “Social Enterprise Regulation: Pal or Foe to Company Sustainability?,” in Beate Sjåfjell and Christopher M. Bruner, eds., Cambridge Handbook of Company Regulation, Company Governance and Sustainability, Cambridge, United Kingdom: Cambridge College Press, 2019; Brett McDonnell, “Profit Companies and Strategic Motion Fields or (The Existential Failing of Delaware),” Seattle Regulation Assessment, vol. 39, no. 2, 2016.
10 See additionally Janelle A. Kerlin, “Defining Social Enterprise: A Conceptual Framework Primarily based on Institutional Elements,” Nonprofit and Voluntary Sector Quarterly, vol. 42, no. 1, 2013.
11 See, e.g., Ākina, “Affect Certification.”
12 UK Corporations (Audit, Investigations and Neighborhood Enterprise) Act, § 35(1), 2004.
13 Delaware Basic Company Regulation § 365.
14 See Ellen Berrey, “Social Enterprise Regulation in Motion: Organizational Traits of U.S. Profit Companies,” Transactions: The Tennessee Journal of Enterprise Regulation, vol. 20, 2018 (6 p.c compliance price); J. Haskell Murray, “An Early Report on Profit Reviews,” West Virginia Regulation Assessment, vol. 118, no. 1, 2015 (8 p.c compliance price); examine Maxime Verheyden, “Public Reporting by Profit Companies: Significance, Compliance, and Suggestions,” Hastings Enterprise Regulation Journal, vol. 14, no. 1, 2018 (reporting compliance charges in Delaware (8 p.c), Colorado (11), Oregon (14), and Minnesota, the place the statute unusually penalizes noncompliance (one hundred pc)).
15 See OECD, Designing Authorized Frameworks (noting that improved authorized frameworks for social enterprise can help in concentrating on “tax incentives, public procurement, and monetary and non-financial help and advantages” to them).
16 See Metropolis of Philadelphia, “Sustainable Enterprise Tax Credit score.”
17 See HM Income & Customs, “Tax Aid for Buyers Utilizing Enterprise Capital Schemes,” October 6, 2023; HM Treasury, “Social Funding Tax Aid: Name for Proof,” March 23, 2021.
18 See Cook dinner County Chief Procurement Officer, “Social Enterprise Choice” (5 p.c bid choice for profit firms); Los Angeles County Client Enterprise Affairs, “Small Enterprise: Social Enterprise” (to bids from profit firms or licensed B Corps even when they exceed rivals’ bids by as much as $150,000).