Page 128 - Social Enterprise A New Business Paradigm for Thailand

structure. As a result, the U.S. experience with social enterprises remains relatively distinct from
that of many other countries. However, the United States does have another business model

known as benefit corporations, which has gained broader popularity both domestically and
internationally. Benefit corporations are for-profit entities that incorporate social objectives into
their corporate bylaws and allow corporate directors to take social impacts into account in their
decision-making, rather than being solely bound to maximize profits for shareholders. As
companies today increasingly seek to enhance their image as socially responsible actors, several
countries in Europe and Latin America have enacted legislation to officially recognize benefit
corporations. These include Italy, France, Spain, Colombia, Peru, Uruguay, and Panama.

Benefit corporations are also closely linked to the concept of B Corps. Specifically, if a company

passes the assessment and receives certification from B Lab, it is entitled to use the designation
"B Corp" in its name. As a result, B Corps have spread across many countries, including Thailand,
even in places where there is no specific legal framework recognizing the formation of benefit
corporations.

Most studies on social enterprises typically categorize the United Kingdom within the Anglo-
Saxon group, alongside the United States, viewing social enterprises as hybrid organizations that
combine elements of both non-profit and for-profit models, generating income to support their
social missions through market mechanisms. However, this study finds that the development of

social enterprises in the United Kingdom differs significantly from that of the United States.

The UK has long maintained a consistent policy and legal framework in support of social
enterprises. In 2004, it enacted legislation creating a legal form specifically for social enterprises:
the Community Interest Company (CIC). CICs are subject to a "community interest test," must
follow asset lock provisions, and are subject to a dividend cap.

In addition, several other key laws have contributed to the growth of social enterprises in the UK.
These include the Public Services (Social Value) Act of 2012, which mandates that public sector
bodies consider social and environmental benefits in procurement processes; tax regulations
appended to the Finance Act of 2014, which introduced Social Investment Tax Relief (SITR),

allowing individuals who invest in social enterprises to receive income tax and capital gains tax
relief; and the Dormant Bank and Building Society Accounts Act of 2008 and the Dormant Assets
Act of 2022, which authorize banks, financial institutions, and participating companies to transfer
dormant pension accounts, investment assets, and other long-inactive financial holdings to
designated public bodies to be used for social and environmental initiatives. The United Kingdom
is also the first country in the world to implement Social Impact Bonds (SIBs) as a financial tool
for delivering social services. Altogether, the UK's policies and legal framework provide a strong

model for other nations seeking to build institutional and legal environments conducive to the

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