Trade offs? Achieving your mission in the consumer market


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Trade offs? Achieving your mission in the consumer market

  1. 1. AM 7Trade offs? Achieving your missionin the consumer marketChair: Olof Williamson, Sustainable Funding Manager, NCVONational Council for Voluntary OrganisationsSustainable Funding Project
  2. 2. Jonathan StearnDirector of Projects, ConsumerFocusNational Council for Voluntary OrganisationsSustainable Funding Project
  3. 3. Véronique JochumResearch Manager, NCVONational Council for Voluntary OrganisationsSustainable Funding Project
  4. 4. Civil society involvement in the market placefor consumers in vulnerable positions: researchfindingsNCVO Sustainable Funding Conference 201228 November 2012 4
  5. 5. IntroductionObjective of the projectTo map civil society involvement in the market place for consumers in vulnerable positions.Scope of the project Useful definitionsFive consumer markets: Civil society• Insurance For this study we are including charities, community groups, social• Banking and credit services enterprises, cooperatives, mutuals and all organisations that operate• Energy independently of the state and for public benefit.• Health equipment and products/mobility aids Market place• Furniture/household appliances. Where the sellers of a particular good or service can meet buyers of those goods and servicesMethodology Consumers in vulnerable positions People who cannot choose or access essential products and servicesDesk research based on the following sources: which are suitable for their needs or cannot do so without• Business databases disproportionate effort/cost/time.• Trade journals• Trade associations/umbrella organisations• Research institutes• Organisational/corporate websites• Other institutions. 5
  6. 6. Civil society, the state and the market: blurring boundariesIn recent years the boundaries betweencivil society, the state and the markethave continued to blur, as reflected inthe development of social enterprisesand the mutualisation of public services.The diagram here highlights howdifferent types of civil societyorganisations are positioned in relationto communities, the state and themarket – some are closer to the marketand the state than others. Source: The UK Civil Society Almanac 2012 6
  7. 7. Generating income: the income spectrum Donor Funder Purchaser Consumer Gift economy Structured Open market Includes philanthropic Grant funding market Some types of trading giving and voluntary Usually restricted Payment according to are undertaken purely donations. Provides funding provided to the terms set out in a to generate profit; other unrestricted funding deliver outputs and/or contract between types can also for organisations to use mutually agreed organisation and contribute to the at their discretion to outcomes purchaser delivery of an further their aim organisation’s mission. Income in this way is unrestricted Asking EarningSource: The Good Guide to Trading (NCVO) 7
  8. 8. Generating income: voluntary sector income in 2009/10 Total income: £36.7bn Earned income: £20.1bn Investment income Private sector Trading subsidiaries 7% 3% Voluntary income 4% Voluntary sector 39% 6% Individuals 33%Earned income 55% Statutory sources 54%Source: The UK Civil Society Almanac 2012 8
  9. 9. Generating income: earned income from individuals 8,000 £6,346 £6,423 £6,578 £6,565 6,000 £6,098 £5,674 £4,442 £ 5,394 £5,238 4,000 £4,183 2,000 0 03 01 02 04 05 06 07 08 09 10 2/ 6/ 0/ 1/ 3/ 4/ 5/ 7/ 8/ 9/ 00 00 00 00 00 00 00 00 00 00 2 2 2 2 2 2 2 2 2 2Source: The UK Civil Society Almanac 2012 9
  10. 10. Civil society and the consumer market: a multitude of examples Offers phone, broadband and mobile services Works towards better prices and working conditions, local sustainability, A micro hydroelectric scheme and fair terms of trade for farmers and workers in the developing world Grows and sells organic food Provides holiday accommodation Campaigns for real ale, pubs and drinkers’ rights Second-hand shops selling cloths, books, music and collectablesProvides an affordable and environmentally-friendly bus service for people without cars Community run village shop and post office Represents passengers using train services operated by Provides information and guidance on Chiltern Railways , London veganism Midland and Cross Country Temporary shops selling cards 10
  11. 11. Civil society and the consumer market: examples relevant to consumers in vulnerable positions Accreditation given by Age UK for products considered age-friendly Provides tailor-made equipment for the needs of people with disabilities Offers resources, tools and training to help people handle their money well Conducts research and publishes consumer reports for disabled and older people Provides furniture and electrical goods to the general public and people in needPartnership with EDF Energy Provide loans at very low rates of interestto support customers during and helps people manage their financepower cuts Provides affordable home contents insurance Campaign, run by an alliance of scheme for housing organisations, calling for warm association tenants homes and lower energy bills Partnership with Barclays to develop Tests, evaluates and sells for an information booklet, specifically people with hearing loss designed to help older people and their families 11
  12. 12. Civil society and the consumer market: type of involvement Accreditation and Research and development Testing and evaluation endorsements Affinity partnerships Other partnerships Direct provision and supply Information, advice and Awareness and education support Campaigning Advocacy and representation 12
  13. 13. Civil society and the consumer market: rationale for involvement Responding to a gap in Addressing market failure Improving quality of supply the market Bringing about social Improving accessibility, Meeting and responding to change and tackling global inclusion and fairness needs challenges Providing alternative models Generating income and Providing alternative of production and diversifying income models of ownership distribution streams Developing skills and providing employment 13
  14. 14. Conclusions • Many civil society organisations are involved in activities that relate to the market place for consumers in vulnerable positions, appealing to individuals as consumers but also as beneficiaries, supporters and activists. • One of the most striking findings of this project is the diversity of involvement within the different sectors we looked at and amongst the organisational examples we identified. • Within each sector we found examples of several involvement types, although some were more prominent than others. For instance, in the insurance sector affinity partnerships were particularly popular as were product accreditations and endorsements in the health equipment/mobility aids sector. • Individual organisations were, in most cases, involved in more than one type of involvement offering a mix of activities, and had more than one reason for being involved. • Many initiatives aimed to improve access and fairness - some did this by offering better value for money, others by ensuring that the needs of their beneficiaries are known and taken into account; and some combined both approaches. • Being involved in multiple ways and for multiple reasons can be challenging if organisations are pulled in different directions and if rationales for involvement compete. It is particularly a challenge for larger organisations and could be, in the current context, increasingly difficult for organisations looking for alternative funding sources to statutory sources. • An organisation’s values can provide an effective means of checking and challenging the appropriateness and effectiveness of the services and goods provided. 14
  15. 15. on mission Majority activity Prime target Grant /donation Primary trading funded requires subsidy makes money Subsidised activity Non-primary trading Stay out! Proceed with caution off missionNational Council for Voluntary OrganisationsSustainable Funding Project
  16. 16. AM 7Trade offs? Achieving your missionin the consumer marketChair: Olof Williamson, Sustainable Funding Manager, NCVONational Council for Voluntary OrganisationsSustainable Funding Project