The only way to create a world with no need for affirmative action i.e no human disparity, is possible via adoption of practices which are affirmed and unbiased for all. Gauging the potential that the sector holds, Fiinovation and CII have come together for a webinar, second in the series, on Social Enterprises and Affirmative Action. It aims to highlight how social enterprises can bring in the much needed social impact, leading to effective participation in decision making while realising their civil, cultural, economical and social rights in all arenas of life on the basis of non-discrimination.

1. Social Enterprises through A

2. Mr. Soumitro Chakraborty
CEO, fiinovation
Mentor of the Webinar

3. • A CSR based research consultancy working in areas of education, livelihood,
environment and health since last seven years
• Assists businesses to support requirements of communities by designing and
implementation of sustainable projects
• Through practices such as CSR-CSO Partnership, Initiative Design, Initiative
Management, Monitoring and Evaluation, Impact Assessment, Sustainability
Reporting; Fiinovation facilitates corporations for promotion of social enterprises
About Fiinovation

4. Agenda of the Webinar
• Better understanding on Social Enterprise models (Indian & Global)
• Social Enterprise laws in India
• Understanding of Affirmative Action in India
• Promotion of Social Enterprise models among marginalised communities
• India Inc and Social Enterprise movement
• Top examples of Social Enterprise Models in India
• Conclusion
• Way forward

5. • A social enterprise (SEs) is an organization that applies commercial
strategies to maximize improvements in human and environmental well-
being. This may include maximizing social impact rather than profits for
external shareholders.
• SEs have a mixed and contested heritage due to philanthropic roots in the
United States, and cooperative roots in the United Kingdom, European
Union and Asia.
What is a Social Enterprise?

6. • A SE could be engaged in any business activity
fulfilling any need (Maslow’s need hierarchy)
– E.g. Entertainment, Nutrition, Sanitation,
Communication, Livelihoods, Transportation,
Education, Training, Financial Inclusion
• Asian Development Bank defines SEs as
organizations that have triple bottom line returns
namely, addressing social and environmental needs
such as affordable health services and energy, and
have a financially sustainable revenue model (or
plan to become sustainable in the near future).
Social Enterprise, the concept
Personal fulfillments
Self-esteem, status,
reputation
Love, affection, family,
culture & relationships
Shelter, protection, safety
& stability
Air, sleep food, hunger,
thirst, warmth
Social Needs
Basic Needs
Maslow’s need hierarchy

7. • 'Social Entrepreneurship' can be traced to Beechwood College near Leeds, England
(from 1978) where Freer Spreckley used the term 'social enterprise' to describe
worker and community co-operatives that used the 'social accounting and audit'
system developed at Beechwood
• Ashoka: Innovators for the Public – a US foundation established by Bill Drayton was a
program to support the development of social entrepreneurship
• In the US, the term is associated with 'doing charity by doing trade', rather than
'doing charity while doing trade'. In other countries, there is a much stronger
emphasis on community organising and democratic control of capital and mutual
principles, rather than philanthropy
Social Enterprise – Global Context

8. • Public Services (Social Value) Act, 2012 (United Kingdom)
• NYU Fellowships in Entrepreneurship, Social Entrepreneurship, and Innovation
• Social Enterprise Summer Fellowship, Harvard Business School
• Amazing Grace, Rangoon, Myanmar
• Global Social Entrepreneurship Network, UK
• Schwab Foundation for Social Entrepreneurship
• Global Social Enterprise Initiative
• Yunus Social Business
• Rubicon Programs, California, USA
Social Entrepreneurship Development Initiatives

9. • Definition is not limited by legal structure. SEs may be registered as:
– Private limited companies
– Cooperatives
– Not-for-profits, trusts or any other legal entities
• In India, a non-profit can be registered as:
– A Society, under the Registrar of Societies
– or as a Trust, by making a Trust deed
– or as a Section 8 Company under the Companies Act, 2013
• Under Section 8 of the Companies Act, 2013, a limited company
– (a) has in its objects the promotion of commerce, art, science, sports, education, research, social
welfare, religion, charity, protection of environment or any such other object;
– (b) intends to apply its profits, if any, or other income in promoting its objects; and
– (c) intends to prohibit the payment of any dividend to its members
• Impact investing in India has roots extending back to 1982, when the Ashoka Foundation provided
grants to Indian social entrepreneurs.
Social Enterprise – India Context

10. • Social enterprises are not just scaling up, they are scaling out
• Governments and international institutions have a huge role to play
• The bigger the enterprise, the greater the need for democratic accountability
• Potential to transform the socio-economics of poorer nations, but individuals require support
such as capital, infrastructure, market access etc.
• Entry of big businesses to the market
• Social enterprise leaders do not often come from traditional business backgrounds, hence lack
expertise
• Genuine need and desire for collaboration across sectors and geographies
• Need of donor support
• Progress on large social impact investments had been slow due to multiple hurdles
• Need for better infrastructures to support the sector
Challenges – Social Enterprises

11. Few Social Enterprises
Global India
•Anand Milk Federation Union
Limited (Gujarat Co-operative
Milk Marketing Federation Ltd)
•Godavari Women Weaver’s
Services Producer Company
•Nyayika, Leaps & Bounds
•Sukhibhava
•Frontier Markets
•m.Paani
•Innovative Financial Advisors
•Samhita Social Ventures
•Make A Difference
•Samasource
•Community Shop
•Textbooks for Change
•ArtZoco
•eBatuta
•Water Health International
•Kiva
•Edgar and Joe’s
•Bio Lite
Global

12. Understanding Affirmative Action
Known as:
• Employment Equity in Canada
 Requires employers to engage in proactive employment practices to increase
the representation of four designated groups: women, people with disabilities,
Aboriginal peoples, and visible minorities
• Affirmative Action in USA
 Focus on issues such as education and employment, specifically granting special
consideration to racial minorities and women who have been historically
excluded groups
• Positive Action in UK
 Promotion of people based on belonging to non majority identity groups in the
workplace, educational institutions and positions in society

13. Contd…
• Affirmative Action in India
 Known locally as “reservation” policy it is an elaborate quota system for public
jobs, places in publicly funded colleges and in most elected assemblies
• An action favouring those who tend to suffer from discrimination; positive
discrimination
• AA reverses longstanding discriminatory tendencies in the society
 For people of a certain caste, gender, sexual orientation, race, or ethnic
background
• AA provides supposedly fairer conditions and corrects past injustices

14. Different Approaches to AA
Affirmative action
Through CSR
•Implementing CSR Activities as
per Schedule VII of The
Companies Act, 2013
•Targeting SC/ST communities
•Recruiting employees or
providing opportunities in the
recruitment process for SC/ST
communities
•Procuring from SC/ST Vendors
•Offering solutions to address the
needs and challenges of the
SC/ST communities
Affirmative Action

15. Poverty Among SCs and STs
• As per the erstwhile Planning Commission, ST population below poverty line
came down from 47.4% in 2009-10 to 45.3% in 2011-12 in rural areas.
• In urban areas, it declined from 30.4% in 2009-10 to 24.1% in 2011-12.
• Census 2011 revealed that the situation of non-workers among total ST
population (i.e. 42.0%) was not dismal as compared to SC (i.e. 52.2%) and
all other social groups (53.3%).

16. Contd…
• Percentage of ST non- workers declined from 50.9% in 2001 (Census 2001) to 42% in
2011 (Census 2011) at all India level.
• According to SECC, 133.5 mn households (74.5% of the total; 84% for SC and 87% for
ST households) have a monthly income where the highest earning household
member earns less than Rs 5,000, whereas households with any one of the seven
deprivations is only 86.9 million.
• As per NSS, 34% of SCs and 46% of STs households were in self-employment in 2004-
05 in rural areas as compared to urban proportions with 29% and 26% respectively.

17. Contd…
• There are 46, 844 villages in the
country having greater than 50
per cent SC population
• The SECC covered 24.39 crore
households across the country
— 17.91 crore are rural
households
• 21.53 per cent of rural
households belong to the
Scheduled Caste/Scheduled
Tribes

18. Unemployment Rate (%)
Maharashtra government
on the issue of suicides
among cotton farmers in
the state suggests that
“suicide incidences are
slightly higher among SCs
and STs across caste groups
and for marginal and small
farmers across size-class of
land.”
Year ST SC OBC Others Total
Rural Male
2011-12 1.3 2.0 1.7 1.8 1.7
2009-10 1.7 1.7 1.4 2.0 1.6
2004-05 1.1 1.7 1.5 2.0 1.6
Rural Female
2011-12 1.1 1.4 1.7 2.4 1.7
2009-10 0.9 1.5 1.4 2.5 1.6
2004-05 0.4 1.4 1.9 2.9 1.8
Urban Male
2011-12 3.4 3.2 2.5 3.4 3.0
2009-10 4.4 3.1 2.8 2.7 2.8
2004-05 2.9 5.5 3.3 3.7 3.8
Urban Female
2011-12 4.8 4.5 4.7 6.3 5.2
2009-10 4.3 4.2 6.2 6.2 5.7
2004-05 3.4 4.6 6.7 8.5 6.9

19. Social Entrepreneurship & Affirmative Action
• Allocation of Rs 200 crore in the Budget Estimates 2014-15 for setting up Venture Capital Fund
for SCs
• Earmarking of Plan Outlay under Tribal Sub-Plan at 24.71% under Indira Awas Yojna & 20.59%
for NRLM/ Aajeevika
• Specific provisions made in the guidelines of programmes such as MGNREGA, PMGSY and
NSAP for the benefit of SCs/STs
• MUDRA Bank will be financing 6 crore small vendors and businesses, 61 per cent of whom are
SCs, STs, OBCs and minorities
• India Development Marketplace, a World Bank initiative, to fund & support social enterprises,
announced grants worth $2 million to 20 social entrepreneurs in Jharkhand, Madhya Pradesh
and Chhattisgarh

20. India Inc and Social Enterprise
• Tribal Farmers’ Producer Company Srikakulam, Andhra Pradesh (ALC & NABARD)
• NTFP (Gatherers' Self-Help Cooperative), Mayurbhanj, Odisha (ALC & SPARDA)
• Tata Social Enterprise Challenge (Tata Group, Acumen, Ankur Capital, Yunus Social
Business and Ennovent)
• On 21st May, 2012, SEBI notified the word ‘Social Venture Fund’
• Aavishkar, a venture capital firm, has been investing in social ventures for over a
decade, catalyzing innovation at the bottom of the pyramid

21. CII & Social Enterprises
• CII-ITC Centre of Excellence for Sustainable Development mentors, advises, and
provides a platform to social entrepreneurs and enterprises
• Mentorship and advice is on business models, strategies, and partnerships
• Annual event 'Sustainable & Inclusive Solutions‘, a platform for social entrepreneurs and
enterprises
• Social Enterprises that CII have worked with are in energy access, rural distribution and
agricultural services
• Association with Selco Incubation Centre for creating conditions to deliver energy
services to low income families
• CII's sponsored Code of Conduct for affirmative action – Signed by 690 companies for
collecting data on SC/ST employees in 2010

22. AffirmativeAction & IndiaInc.
0
5
10
15
20
25
30
35
40
45
SC ST OBC Others Not Recorded
7.83
5.76
41.94 43.56
0.9
Percentage Distribution of Enterprises by Social Group of Owner
As per MSME Report 2014-15,
•7.83% of the enterprises were owned by Scheduled Caste entrepreneurs
•5.76% by Scheduled Tribe entrepreneurs
•41.94% by entrepreneurs of Other Backward Classes

23. Contd…
•All India Confederation of SC/ST Organization was created in 1997 under the flagship
of Dr. Udit Raj, who is the National Chairman of confederation that works for government
reservations, ban on contract system, promotion among other things
•All India SC & ST Railway Employees Association
•Tribal Cooperative Marketing Development Federation of India Limited (TRIFED)
•The Narendra Modi government's 'Farm to Fork' programme over
2,000 farmer organisations in Chhattisgarh, Jharkhand, Madhya Pradesh, Andhra
Pradesh and Telangana will be incubated to grow into a cooperative society, trust and
ultimately, a company, as part of the plan being implemented by the National Bank for
Agriculture and Rural Development, the country's largest development lender.

24. Conclusion
• Need to promote Social Enterprises through social venture funds
• Establish platforms to highlight social innovators
• Create larger market space by addressing social issues through social businesses
• Government should adopt policies to reduce red-tapism and encourage individual
social entrepreneurs
• Encouragement of co-operative movement as a social enterprise model
• Corporations can invest their CSR funds to establish social enterprises addressing
social issues & also generating income for a particular community

25. Way forward…
India Inc, Social Enterprises & Affirmative Action

26. Tripartite Model – Social Enterprise,
Affirmative Action & CSR
Illustration
Corporation X’s total
CSR expenditure:*
Rs 200 cr
Product: Handicrafts / Food Processing
Registration : The Companies Act, 2013
Organization
Structure
Operations: Sourcing from community members,
processing of finished products,
marketing
Sharing of Revenues: Yearly dividends, remuneration of
community members, salaries to staff,
operational expenditure, expansion
costs
*Utilization of funds as initial capital for a Social Enterprise
Board
Members
Farmers/Artisans
(SC/ST)
Farmers/Artisans
(SC/ST)
Farmers/Artisans
(SC/ST)
Managers

27. Benefits of Tripartite Model
• Provide an opportunity to gain financial sustainability & independence for the SC/ST
communities
• CSR grant will allow corporations to spend money on social & environmental issues,
and services not otherwise funded
• Assets of SEs belong to the community and cannot be sold off for private financial gain
• People, who are local stakeholders in the area of benefit, play a leading role in the
enterprise ensuring inclusive development
• Local community are the shareholders who ensure accountability of the enterprise to
the community
• The SEs will be able to generate profits or a surplus that can be re-invested or
distributed for community benefits

28. The Way Forward
Soumitro Chakraborty
CEO, Fiinovation
Jaya Sinha
Dy. Director – Media &
Communication, Fiinovation
Rohit Srivastava
Graphics Designer, Fiinovation
Rahul Choudhury
Dy. Manager, Fiinovation
Contributors to the PPT