The growing need for social services and economic benefits governments are becoming increasingly incapable of catering for due to chronic budget constraints has opened up regulatory space for newer forms of non-for-profit organizations. True, social work (and, for that matter, entrepreneurship) has grown by leaps and bounds in recent years. However, social entrepreneurship (aimed at broader public good by setting up innovative, self-funding business models) has, given more conventional company structure and organization laws, made public good an elusive goal. The introduction of Community Interest Company (CIC) model under Companies Act 2006 ("What is a CIC?") has, however, opened up broader horizons for social entrepreneurship. The pace of company formation under CIC status has, moreover, made CIC an increasingly effective model for achieving broader public good. In order to assess how CIC is posed to change social enterprise landscape, a deeper examination is required into new form's promises and structure. This paper aims, hence, to offer a brief overview of CIC as an effective organizational structure aimed for broader public good.
The CIC model is, if anything, an organizational innovation supported by a (hopefully improving) legislation of Companies Act 2006 ("What is a CIC?"). This new organizational structure (as is shown shortly in a successful example) has made possible filling in gaps unmet by key actors, particularly in public service and social work, including government, for-profit service companies and (now more conventional) non-for-profits. Put differently, by helping main stakeholders (enabled by a legal organizational form in lieu of grass root, informal efforts), particularly end customers / consumers, receive services at lower fees (compared to ones offered by conventional public and private enterprises) or exchange services based on a credit system (an increasingly adopted model for more optimum resource use), CIC offers an innovative platform for an unprecedented service model. Second, by opening up organizational space as to accommodate more public services, public and private enterprises face more competition, a necessity for more service quality and, not least, customer satisfaction. Third, as CIC model matures, government, public and private enterprises can shift focus on services minimally supported previously and hence can better allocate funds for much needed projects requiring massive spending but lacked "enough funds". Fourth, CIC model can, in long range, help reconfigure relationships between current public service actors such as to optimize existing relationships into more effective, and not least exchangeable, ones.
The organizational structure for a CIC comes in all shapes and sizes "from small ‘kitchen table’ type organizations, to multimillion pound turnover organizations" ("What is a CIC?"). Two characteristics define, however, CICs: asset locking and shareholder dividend and interest limitations, both regulated Community Interest Company Regulator under CIC34 reporting ("What is a CIC?"). By "asset locking" is meant a limitation on assets owned by a CIC company in order to ensure assets are used for public good. The limitations on stakeholder dividend and interest returns are meant regulate profits, if any, made but such as broader community benefit is achieved ("What is a CIC?"). The formalities of applying for a CIC status is offered online by Regulator of Community Interest Companies ("Community interest companies: forms and step-by-step guides").
Probably, one good example of CICs is thePeoplesPower ("How to get lower energy bills"). By offering a platform for individuals and communities to identify best energy, mainly electricity and gas, options in order to, primarily reduce skyrocketing energy bills, thePeoplesPower does not only help individuals and communities to reduce personal bills but also carbon footprint ("How to get lower energy bills"). In a model similar to carbon cab incentives offered by a number of national governments, thePeoplesPower's model can, indeed, make a business case for not only effective energy use but, more significantly, disappearance of intermediaries in energy supply chain and, not least, non-renewable energy resources.
Works Cited
"Community interest companies: forms and step-by-step guides." UK Government. UK Government, 5 September 2016. Web. 17 February 2016.
"How to get lower energy bills." thePeoplesPower. thePeoplesPower, n.d. Web. 17 February 2016.
"What is a CIC?" Community Interest Companies Association. Community Interest Companies Association, n.d. Web. 17 February 2016.
