Social economy advancement: from voluntary to secure organizational commitments to public benefit

Abstract

Purpose This paper aims to explain the development of the social economy by analyzing when, why and how the community interest company (CIC) legal structure was established in the UK. The CIC legal structure was designed for social enterprise to ensure that company assets are committed to public benefit in perpetuity. Design/methodology/approach This research paper uses archival data and semistructured interviews to analyze the historical development of the social economy, emergence of social enterprise and the establishment of the CIC legal structure. Findings The historical analysis describes why and how the idea for the CIC emerged from practitioners and explains how collaboration between practitioners, lawyers, civil servants and politicians established the CIC as a new legal structure for social enterprise. Practical implications The analysis explains how practitioners influenced policy development and demonstrates how practitioner influence can be usefully incorporated into policy development. Social implications The CIC legal structure advanced the social economy by creating an institutionally recognized brand identity for social enterprise that locks assets to public benefit in perpetuity. Originality/value The paper presents a detailed empirical account of the establishment of a new legal structure for social enterprise and applies theoretical concepts to develop an integrated account of social economy advancement.