Fit for purpose: board development for social enterprise

Abstract

In recent times social enterprises have been afforded a high profile by the government in the UK, as a vehicle for enabling economic and social regeneration in communities. The developing trend to offer social enterprise organisations the opportunity to bid for public sector contracts raises the question of the viability, coherence and governance of such organisations. The creation of the Office of the Third Sector under the leadership of Ed Milliband suggests that social enterprise involvement in the delivery of public sector services is perceived to be of growing importance. The theoretical landscape of social enterprise governance is emergent though steadily accumulating evidence. The thrust of governance theory for these organisations offers a number of considerations: stakeholders; stewardship and agency / institutional perspectives have been proposed. Yet, an area that needs more provision is the empirical support for the variety of theoretical approaches to social enterprise governance. This paper aims to provide some empirical evidence, considering the importance of having a Board of Trustees that is 'fit for purpose'. The central premise is: does the Board in a social enterprise have the ability to lead and manage in a complex environment balancing economic reality with social and environmental values and mission. Case study data is used to enhance understanding of the sector and the skill requirements at Board level to promote survival and sustainability.

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