Finding 6
“ Good social engagement actually goes beyond that description . Good social engagement takes place directly in the core business .”
In addition , business collaboration with social enterprises is increasing , for example in sourcing : Adidas has entered into a partnership with Parley for the Oceans to manufacture sports articles from recycled plastic which , in many cases , would otherwise have ended up in the sea . SAP has launched the ‘ 5 & 5 by 25 ’ initiative , in which organisations agree to source five percent of their procurement from social enterprises and a more diverse range of providers by 2025 . Zalando , together with other actors , has invested in a fund that promotes technical and social innovations in the management of textile supply chains . 20
At the same time , there are programmes by means of which large companies address the needs of disadvantaged groups by funding social enterprises – with the possible bonus of attracting them as customers in the future . For example , the Bayer Social Innovation Ecosystem Fund was launched in 2019 to finance agricultural and health services for African smallholder farmers . The funds are made available to intermediary organisations that can offer various local services and support entrepreneurial solutions coming from the farmers themselves . Covestro works with various governmental organisations and NGOs in the Global South to implement inclusive business models in the areas of housing , sanitation and food security through the use of its products .
Among German companies , however , business models that are primarily socially oriented remain the exception . When these models get close to the value chain , the focus is mostly on the skilling up of a potential future workforce or the well-being of the communities where they operate . Suppliers and potential customers rarely play a role . Social enterprises tend to be supported independently of the value chain , for example by employees offering their expertise , as at Deutsche Bank and SAP , or through the BMW Foundation ’ s impact investing and venture philanthropy programmes . Although we see a lot of sense in initiatives of this kind , the creative potential of social innovation for the core business is still generally underestimated , especially in comparison to large French and Dutch companies , where corporate impact investing is already much more widespread . This may result in a competitive disadvantage for German companies in the medium term .
“ All our products can be socially responsible if they are used properly . We have to think about that at the development stage .”
“ The borderline of whether something constitutes social engagement can be found where responsibility lies : Is it something handled by corporate communications or more in business development ?”
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