Page 48 - Social Enterprise A New Business Paradigm for Thailand

• The Pulse System – Created by The Acumen Fund
• Theory of Change – Used by various mission-driven organizations

• Base of the Pyramid Impact Assessment – Applied by the William Davidson Institute
• Measuring Effectiveness – A framework employed by Ashoka

An example of a simple yet impactful metric comes from the Grameen Bank, which tracks the
number of borrowers who have moved above the poverty line. This approach incorporates direct
feedback from the borrowers themselves, who are asked to determine whether their families
have escaped poverty. It also relies on tangible indicators, such as improved housing conditions
and enhanced quality of life (Grove & Berg, 2014).

Additionally, large corporations that engage in Corporate Social Responsibility (CSR) frequently
adopt international benchmarking tools, including the Global Reporting Initiative (GRI) and the

Dow Jones Sustainability Indices (DJSI), to track and report their social and environmental
performance.

1.7 Meaning of Social Economy and Social Business

1.7.1 The Importance of the Social Economy (Third Sector)
The social economy, also known as the third sector, refers to a segment of society composed of
organizations that exist outside the public sector (government) and beyond the profit-oriented
private sector. These entities operate primarily for the benefit of society, communities, or the

public good. They share several defining characteristics:

1. Non-profit orientation – Their core purpose is to generate social value, not to maximize profit.
2. Operational independence – These organizations function autonomously, free from
government control or private capital interests.
3. Reliance on volunteerism and public donations – They often depend on volunteers and
donations from the general public to sustain operations.
4. Commitment to solving social problems – Their mission typically involves addressing critical
issues such as poverty, environmental degradation, education, public health, and community

development.

Examples of third-sector organizations include:

1. Non-profit organizations (NPOs) – such as foundations and associations;
2. Charities – focused on aiding disadvantaged populations or addressing specific social issues;
3. Social enterprises – revenue-generating businesses that reinvest profits to support
community or social development. (In many countries, the terms “social business” and “social
enterprise” are used interchangeably.)

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