2. This lecture introduces students to key concepts within the third sector: Social Economy Voluntary Sector Non-Profit Sector Charity Sector Public Sector Social Sector Private Sector Social Enterprise Sector 3 rd System Civic Society
3. Social Economy Voluntary Sector Non-Profit Sector Charity Sector Social Sector 3rd System Social Enterprise Sector Are terms used interchangeably to describe areas of the 3 rd sector of the economy.
8. Third sector Private sector Mapping the sector Public Sector ? Health Government Education Social Security Social Justice Social Care Defence Urban Planning Postal Service Transport Power Telecommunications
9. Third sector Private sector Mapping the sector Public Sector Characteristics ? ? ? Market State
10. Third sector Private sector Mapping the sector Public Sector Market Civil Society State Available to those who can afford Available to all
11. Third sector Private sector Mapping the sector Public Sector Market Civil Society State Available to those who can afford Available to all Available to whom?
12. Third sector Private sector Mapping the sector Public Sector Market Civil Society State Available to those who can afford Available to all Available to whom? To whomever they serve, they are institutional forms not owned by the controlling arm of the state or the shareholders of the private – they are independent to take their own path to justice – the collective power of people to address their cause
13. Third sector Private sector Mapping the sector Public Sector Market Civil Society State Available to those who can afford Available to all Available to whom? Organisations of the 3 rd Sector Campaigners, Activists, Humanitarians, Environmentalists, Anti- state, Anti-capitalist Welfare provision (Healthcare, Human Rights, Mental Health provision, Drugs Health) Community Development International Relations and International disaster Environment Religion Arts Education Culture (Museums) Music Banks and Debt finance Farmers Disadvantaged groups – socially excluded, minority groups, disability groups After-School clubs Book clubs Sports Clubs
14. Third sector Private sector Mapping the sector Public Sector Market Civil Society State Available to those who can afford Available to all Free Democratic Society Available by cause
15. Third sector Private sector Mapping the sector Public Sector Market Civil Society State Available to those who can afford Available to all State Control Available by cause
16. Third sector Private sector Mapping the sector Public Sector Market Civil Society State Available to those who can afford Available to all UK political, economic and social system
17. Etzioni (1973) Neither the state nor the market alone could catalyse the necessary innovations and reforms of society but rather than the source will be a ‘third alternative’ that can combine the efficiency of the entrepreneurial marketplace with the welfare orientation of the state.
18. Historical context for the third sector. . . . Reading any book that offers an historical perspective on the 3 rd sector takes the movement back to the earliest systems of society. Early Egyptian civilizations developed a strong moral code, founded on social justice. Caring for the poor, needy and elderly. . .
19. Historical context for the third sector. . . . 1601 – ‘Poor Laws’ – Victorian Period 1883 - Charity Organisation Society – was one of the largest formal organisations of the British Empire. 1900’s – With Industrialisation vast charities in healthcare, social services and education existed – to the point that government saw it morally wrong to and inefficient to leave these services outside of state control. 1950’s - But not until the 1950’s did we see the National Health Service (although many services were still carried out by 3 rd sector organisations) 1970’s - During the 1970’s the 3 rd sector became a political weapon against Prime Minister Thatcher and her Conservative Party – as the state failed to accommodate public needs – yet rather than turn to the 3 rd sector – they chose the private sector to privatise – Power (coal, electricity), Transport (road and rail). 2000’s - Today’s modernisation of reforms where public-private partnerships are the trend the 3 rd sector has a clear role to play in the future direction of service delivery – especially Social Enterprise
20. Historical context for the third sector. . . . During the mid 1990’s there was an increasing drive to ‘marketise’ the welfare delivery. Thus 3 rd sector organisations becoming more involved with the state and being used more. Since 2000 the situation is becoming even more significant – yet the demands of the organisational structures of the state are being seen as major barriers to understanding 3 rd sector organisations. So as the 3 rd sector develops through the withdrawal of state provision they relationship with the 3 rd sector is one of gatekeeper and financier. The 3 rd sector is beholden on the relationships with the state to finance their missions as organisations
21. Size of the third sector. . . . £67 Billion goes into the 3 rd sector (Pharaoh 2004) 1,684,000 jobs (Borgaza and Defourney 2004) How much social, environmental value has been generated . . . . ?????
22. These organisations are driven by the desire to improve the world in which we all live. People who manage these organisations, people who work in them, people who volunteer for them all believe they are creating a fairer, more healthier, more moral and better world. . . A mission to the cause. The mission therefore is first and foremost in the minds of the people and in the development of the organisation. People throughout these organisations are very mission focused. So managing these organisations is different to the public or the private sector. The ethos and mission rule. Mission
23. Organisations whose 1st objectives are social not economic. . . . Driven by a cause. Socially Entrepreneurial. That is the 3 rd Sector. Why? . . . The 3 rd Sector
24. Further Reading. . . . (all in the handbook) Anheir (2005); 4-9; 29-31; 114-138 Borzaga and Defourney (2004); Chapter 15 Hudson (2004); Introduction; Chapter 1 Nicholls (2006); Preface, Introduction Pearce (2003) – Chapter 1,2,3 Werther and Berman (2001); 3-49 The 3 rd Sector