This report defines important terms used in the voluntary sector. It has been developed from joint work with the the EQUAL Theme D ‘Growing the Social Economy’ transnational partnership and the Scottish Voluntary Sector Almanac 2003. The initiative was designed to establish a shared glossary of terminology.
Contents
Group 1: Different types of Organisation
Social co-operative
Social co-operatives are social firms with a co-operative structure. Social co-operatives are established to provide employment opportunities for people with a disability and disadvantage in the labour market. They have a co-operative structure where the members are the owners and decision-makers in the business. The principle of ownership is valued by all co-operative workers and in many cases is more important than salary or role.
How do others define it?
A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise (EC).
Mutuals
Mutual organisations take many forms; credit unions, co-operatives, building societies and employee-owned businesses. They are organised by their members, who band together with the common purpose of providing a shared service from which they all benefit.
How do others define it?
A mutual enterprise is an autonomous association of persons (legal entities or natural persons) united voluntarily, whose primary purpose is to satisfy their common needs and not to make profits or provide a return on capital. It is managed according to solidarity principles between members who participate in the corporate governance. It is therefore accountable to those whose needs it is created to serve (EC).
Voluntary Organisation
Voluntary organisations are structured, non-profit driven, non-statutory, autonomous and run by individuals who do not get paid for running the organisation. Some voluntary organisations are recognised by the Inland Revenue as charities.
How do others define it?
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Associations / Voluntary Organisations (EC);
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voluntary and open membership
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equal voting rights, resolutions carried by majority
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members' fees, no capital contributions
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autonomy and independence
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service providers, voluntary work, sports and advocacy/representative
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important providers in health care, care for elderly and children and social services
Socia Firm
A social firm is a business created for the employment of people with a disability and disadvantage in the labour market. A social firm uses its market-oriented production of goods and services to pursue its social mission. Over 50% of the income of a social firm will be derived from the sale of goods or services to a market. A significant number of its employees (greater than 25%) will be people with a disability who are integrated into the staffing of the social firm. Social firms aim to pay a market rate wage or salary appropriate to the work. Work opportunities should be equal between disadvantaged and non-disadvantaged employees. All employees have the same employment rights and obligations.
How do others define it?
Note that these are the same as Type B social co-operatives as used in Italy.
A social firm is a business set up specifically to create employment for disabled people. There are 3 core values that social firms will subscribe to within their businesses, oriented around Empowerment, Employment and Enterprise (Social Firms UK).
Social economy
The social economy is used to describe the economic dimension of the voluntary sector.
How do others define it?
There are certain common characteristics shared by Social Economy entities: Their primary purpose is not to obtain a return on capital. They are, by nature, part of a stakeholder economy, whose enterprises are created by and for those with common needs, and accountable to those they are meant to serve. They are generally managed in accordance with the principle of "one member, one vote". They are flexible and innovative - Social Economy enterprises are being created to meet changing social and economic circumstances. Most are based on voluntary participation, membership and commitment (EC).
Social enterprise
Social enterprises are not-for-profit organisations, seek to meet social aims by engaging in economic and trading activities, have legal structures which ensure that all assets and accumulated wealth are not in the ownership of individuals but are held in trust and for the benefit of those persons and/or area that are the intended beneficiaries of the enterprise's social aims and have organisational structures in which the full participation of members is encouraged on a co-operative basis with equal rights accorded to all members.
How do others define it?
Social enterprises are businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners. (UK Government Department for Trade and Industry - DTI).
Social enterprises are businesses that trade in the market with a social purpose. They use business tools and techniques to achieve social aims and include an incredibly wide range of organisations, for example co-operatives, development trusts, community enterprises, housing associations, social firms, and leisure trusts. (Social Enterprise Coalition, UK)
Third Sector
All constituted organisations, plus the family economy, as set apart from the statutory and private sectors, and as such voluntary organisations are predominant within it.
How do others define it?
The 'third sector' refers to organisations between the market and the state. More specifically, there is no single 'correct' definition in Europe, with different collective nouns involving varied criteria of definition used for different purposes and in different contexts. (London School of Economics - UK).
Also see the EC’s ‘third system’ definition below.
Group 2: Being distinctive from other sectors Not for profit/ Non Profit Distributing
This term is used to describe organisations that do not distribute profits to shareholders. Any financial surpluses are re-invested into achieving the objectives of the organisation. These terms are often used when referring to the voluntary sector.
How do others define it?
A non-profit institution is defined as a legal or social entity created for the purpose of producing goods and services whose status does not permit them to be a source of income, profit or other financial gains for the units that establish, control or finance them (EUROSTAT).
Third System (CBS Network)
An alternative to distinguishing activities by sector (See Third Sector), is the concept of ‘value systems’, suggested by the CBS Network. Within this schema, activities carried out through the social economy are part of the Third System, which has three overlapping segments:
a system consisting of the illegal or "black" economy, the family economy, and neighbourhood and self-help economy;
a system consisting of the neighbourhood and self-help economy, and more formal community enterprises; and
a system made up of formal community enterprises and other larger social enterprises
How do others define it?
The term "Third System" refers to the economic and social fields represented by cooperatives, mutual companies, associations and foundations, as well as all local job creation initiatives intended to respond, through the provision of goods and services, to needs for which neither the market nor the public sector appear able to make adequate provision (EC).
Non - Departmental Public Body (NDPB)
Non-departmental public bodies, otherwise known as Quangos (Quasi-autonomous non-governmental organisation) These carry out specific government functions, but are set up as ‘arms-length’ organisations, rather than within government departments.
How do others define it?
NDPB - A non-departmental public body (or 'quango') that operates independently of Ministers, although Ministers have ultimate responsibility. There are 2 main types of NDPB: executive NDPBs, which carry out administrative, regulatory, executive or commercials functions, and advisory NDPBs, which provide independent, expert advise to Ministers. (Scottish Executive)
NGO (Non Governmental Organisation)
Sometimes called the voluntary agencies - Private independent, non-profit organisations of a charitable, research or educational nature.
How do others define it?
NGO - A nonprofit group or association organized outside of institutionalized political structures to realize particular social objectives (such as environmental protection) or serve particular constituencies (such as indigenous peoples). NGO activities range from research, information distribution, training, local organization, and community service to legal advocacy, lobbying for legislative change, and civil disobedience. NGOs range in size from small groups within a particular community to huge membership groups with a national or international scope (United Nations Environment Programme).
Group 3: Ethics & Responsibility Sustainable development
At its heart, sustainable development is the simple idea of ensuring a better quality of life for everyone, now and for generations to come. Sustainable development encompasses meeting four objectives at the same time:
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Social progress which meets the needs of everyone
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Effective protection of the environment
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Prudent use of natural resources
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Maintenance of high and stable levels of economic growth and employment
How do others define it?
Sustainable Development can be defined simply as a better quality of life for everyone, now and for generations to come. It is a vision of progress that links economic development, protection of the environment and social justice, and its values are recognised by democratic governments and political movements the world over (EC).
Sustainable development is defined as promoting economic development in such a way as to protect and improve our environment, now and for future generations (Scottish Executive).
Ethical Investment
Ethical Investment is used by organisations that want to ensure that their invested finances will not be used for any unethical purposes. It is used to describe the process of investing funds in companies who make a positive contribution to society through a managed investment fund.
How do others define it?
Ethical audit: The application of non-financial, ethical criteria to investment decision.
Ethical screening: inclusion or exclusion of stocks and shares in investment portfolios on ethical, social or environmental grounds.
Ethical trade: Aims to ensure that conditions within mainstream production chains meet basic minimum standards and to eradicate the most exploitative forms of labour such as child and forced labour and ‘sweatshops’. Labelling criteria are generally based on core ILO conventions.
(All from EC Green paper on CSR)
Corporate Social Responsibility
We believe that all organisations should take account of their impacts on people and their environment. This includes governments, businesses and civic society organisations. It concerns impacts that may be direct or indirect, current or future, local or global.
How do others define it?
CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (EC Green paper on CSR).
Group 4: Delivering services Public-Social Partnerships
Public-social partnership is a relatively new term. It can apply to partnership working at a strategic, development or delivery level. The term is more usually used to describe partnership working at development and delivery level. A public-social delivery partnership is occasionally a joint venture or formal partnership agreement where the partners are agreeing to deliver a specific service. The advantage of a public-social delivery partnership is that it allows the public sector partners to retain a higher level of influence on the delivery approach than is usual through straightforward procurement.
How do others define it?
Partnerships - Local, sub-regional, regional and sector groupings who work together (in the main, on an informal basis) to ensure projects coming forward in their area meet needs and do not duplicate and conflict with each other. (ESF)
Social clauses
There is growing interest in the incorporation of social or environmental clauses into contracts. Social clauses are seen as specifications that require the supplier to demonstrate that they can deliver social benefits and outcomes while carrying out other work described in the contract. The use of social clauses entails multiple objectives being delivered if such clauses are not the primary purpose of the contract.
Procurement
Procurement is the whole process of purchase by the public sector from third parties covering goods, services and capital projects.
How do others define it?
Within the Community, “Government Procurement” covers written contracts for pecuniary interest awarded by public authorities (including at a regional and local level), bodies governed by public law and certain utilities in respect of the supply of goods and the provision of services, including construction services. Procurement by any contractual means is covered, including purchases, leasing, rental or hire-purchase, with or without an option to buy. The entities covered are subject to a common EC-wide regime for procurement above certain threshold values. The rules concerning procurement under the threshold values are defined by national law, in accordance with the general principles of law laid down in the EC Treaties (EC).
Public service delivery
Public Sector service delivery is defined as the delivery of statutory services by the voluntary sector (or the private sector) on behalf of local and national government. This can include services in any area of activity, but will conform to the government’s agenda. The funding of Public service delivery involves a variety of arrangements from the public sector grants to the more formal service-level agreements and service contracts.
How do others define it?
Public Service - The concept of public service is a twofold one: it embraces both bodies providing services and the general-interest services they provide. Public-service obligations may be imposed by the public authorities on the body providing a service (airlines, road or rail carriers, energy producers and so on), either nationally or regionally. Incidentally, the concept of the public service and the concept of the public sector (including the civil service) are often, wrongly, confused; they differ in terms of function, status, ownership and "clientele". (EC)
Group 5: Adding value Added value (of social economy organisations)
The notion that organisations operating within the social economy have a ‘distinctive’ or specialist contribution to make which sets them apart from public or private sector organisations.
How do others define it?
Added value is the amount of extra benefit in terms of outputs gained as a result of European funding for the project, over and above those benefits obtained from other funding sources. (ESF).
Social capital
Social capital consists of resources within communities which are created through the presence of high levels of trust, reciprocity and mutuality, shared norms of behaviour, shared commitment and belonging, both formal and informal social networks; and effective information channels - which may be used productively by individuals and groups to facilitate actions to benefit individuals, groups and community more generally.
Intellectual Property Rights
Intellectual Property Rights allow people to own their creativity and innovation in the same way that they can own physical property.
How do others define it?
Intellectual property rights serve to protect your inventions, your business name, your creativity and your inventiveness. Intellectual property comprises two main branches: industrial property and copyright (EC).
Group 6: Planning & Development Local Development
In sociological terms, local development means the ability of a local community to “grow and regenerate” through mobilizing all available local resources as well as improving the value of local community weaknesses. In economic terms, local development is means a process of change as well as enrichment of local economic structures; indeed the integration of all local resources aimed at enhancing local development.
How do others define it?
Local Development - While the European Employment Strategy (EES) has so far relied mainly on efforts at European and national level, there is a growing awareness that the objectives that the European Union has set itself to improve performance in the area of employment cannot be achieved without greater participation of the regional and local levels (EC).
Community Development
Community Development is the process of developing active and sustainable communities based on social justice and mutual respect. It is about influencing power structures to remove the barriers that prevent people from participating in the issues that affect their lives. Community workers facilitate the participation of people in this process. They enable connections to be made between communities and with the development of wider policies and programmes.
How do others define it?
Community initiatives are programmes started by the EC in areas where action at EC level rather than at national level is considered to be more appropriate. These programmes aim to solve specific problems caused by the decline of traditional industries or by implementing other EC policies. (ESF)
Joint Planning
Public institutions at the local level together with Profit/Non-Profit organizations jointly plan wide-ranging local actions to enact within the local community. A typical joint planning example is the “Local Zone Plan”, which is defined as the main tool of local social planning.
How do others define it?
The term ‘Joint planning’ is similar to the term ‘Community planning’ in Scotland.
Community Planning
Community planning is the way in which councils, together with other national and local organisations, agree local priorities with the community and then work collectively to provide the services that are needed at local level.
How do others define it?
Community planning is a process that encompasses many aspects. However, the essence of Community Planning is recognition that the needs of individuals and communities must be addressed collectively by a range of organisations, if they are to be addressed successfully. (Community Planning Implementation Group, Scotland)
Sources for original definitions
The following web-based sources were consulted to build the original list of definitions in the survey and for definitions provided by other significant bodies such as the European Commissions.
AGENDA: Social Responsibility in Scotland
http://www.agenda-scotland.org/
CBS Network & CONSCISE (Community Business Scotland 2002)
http://www.cbs-network.org.uk/DiscussSE.html
Community Planning Implementation Group (Scotland)
http://www.communityplanning.org.uk/
Department for International Development (UK Government)
http://www.dfid.gov.uk/aboutdfid/files/glossary_n.htm
EQUAL ‘Scottish Procurement Guide’ for Social Economy Organisations (Forth Sector, Scotland 2004) See
www.socialeconomyscotland.info/glossary.html
European Social Fund (EC) -
http://www.esf.gov.uk/guidance/esf/35_gloss.asp
European Commission DG Enterprise (EC) – Social Economy -
http://europa.eu.int/comm/enterprise/entrepreneurship/coop/introduction.htm
European Commission EUROSTAT Glossary (EC) -
http://forum.europa.eu.int/irc/dsis/coded/info/data/coded/en/gl007162.htm
European Commission Green Paper on Corporate Social Responsibility (2001)
http://europa.eu.int/comm/off/green/index_en.htm
London School of Economics (LSE UK - Civil Society Working Paper Series, Editor: Jeremy Kendall 2004)
http://www.lse.ac.uk/collections/TSEP/faqs.htm
Standing Council for Community Development (UK)
http://www.comm-dev.co.uk/
Scottish Council for Voluntary Organisations (SCVO, Scotland)
http://www.scvo.org.uk/
Scottish Executive (Scottish Government)
http://www.scotland.gov.uk/
Social Firms UK (UK)
http://www.socialfirms.co.uk/what_is/what_is.php
Senscot (Social Entrepreneurs Network Scotland)
http://www.senscot.net/LD/Articles/Glossary.asp
Sustainable Development (UK Government)
http://www.sustainable-development.gov.uk/what_is_sd/what_is_sd.htm
UK Patent Office (UK Government)
http://www.patent.gov.uk/
VolResource (UK)
http://www.volresource.org.uk/moreres/glossary.htm