True corporate responsibility is much more than just a buzzword or "actions", and is to be seen in its complexity. Nowadays it is almost trendy to criticize the near hegemonic capitalist economic system, but the perceptions differ pretty well about what comes next or what should come next. The "neoliberal" capitalist model and the non-profit or altruistic model are very far from each other, and - for a long time - it seemed that the gap between the two worlds could not be bridged. However, in recent years the leaders of both worlds (for-profit and non-profit) have recognized that a holistic approach is needed and the only a shift from the for-profit (that is, for shareholders) to the concept of for-benefit (that is, for all concerned) can be the basis of long-term sustainability. Mr. Tibor Héjj's presentation on social ventures explores the main characteristics and potential of the so called "social entrepreneurship" (that is, "doing business for others") and the "for-benefit" conception, two concepts that enables capitalism to get to a higher level while both economy and society benefit from this process. Mr. Héjj also describes the foundation and operation of a for-benefit company, "Sunflower", that strives for offering sustainable jobs and integrated employment rehabilitation for the disabled.

1. On Social Ventures
Prepared and presented by Tibor Héjj
Budapest March 24th, 2014.

2. 2
True (corporate) responsibility is much more than just a
buzzword or „actions”, and is to be seen in its complexity
In addition new, unknown buzzwords are emerging, such as we will see soon

3. It is almost trendy to criticize the near hegemonic capitalist
economic system…
• Many people see this way (Business Insider, Jan. 28, 2013.):
"The crisis itself has ruthlessly laid bare many of the illusions about Capitalism. The
‘U.S. model’ that many elites worshiped has lost its appeal and been discredited. Sharan
Burrow, Secretary-General of the International Trade Union Confederation, believes
that the Capitalism of the 20th century is out of date and does not fit the 21st century.
World Economic Forum Founder and Executive Chairman Klaus Schwab raised the
issue of ‘outdated and crumbling models.’ He said that Capitalism, in its current form, is
no longer suitable for the world around us. IMF Chief Economist Kenneth Rogoff cited
many problems with modern Capitalism and pointed out that the current Capitalism is, in
essence, transitory in nature. The U.S.-U.K. model that leads the world will be replaced
by other models."
…but the perceptions differ pretty well about
what comes next or what should come next…

4. The previous quote was cited from the flagship magazine of the
Central Committee of the Communist Party of China
• … and their conclusion, solution and perspective:
„Now ‘Marxism fever’ in the West can no longer be ignored. One can see a strong
contrast between the decay of Neo-liberalism and the popularity of Marxism. Today,
Marxism has become a main character in Western political life.”
„The revival of Marxist thought shows the inevitable trend of the development of
world history.”
• But the former mainstream approach should not be buried, as it is strong and alive…
…most probably in all of us, because who would not want his pension contribution to be
kept in profitable capitalist enterprises (but instead let it flow away as a donation
without return?!)
• Do we have, or at least can we have our own answer to this paradoxial challenge?...
Not an easy task, but we should not give up!
I am here today to give you some inputs and thoughts – so you can decide…

5. 5
Thus the neoliberal capitalist model and the altruistic model are
very far from each other…
For—profit
enterprise
Non—profit
donation
fundraising
For a long time it seemed that the gap beetween the two worlds could not be bridged
„Profit-peak” „Altruism-peak”

6. 6
Michel Porter and Pope Benedict XVI are popes or apostles of
apparently two different worlds
Porter
• The ” anointed apostle” of free market
capitalism
• The guru or even the „pope” of profit-
generating
• The most important influencer of
managers not dealing much – or at least
so it would be logical for several people
– with spiritual things .
• Who and whose followers focus only on
money
• Believers of wordly (immanent) and
material (money) values
Pope Benedict XVI
 The anointed apostol-successor of Jesus’
mission
 The Pope of the Church focusing on
spirituality
 The most important inflluencer of
clergymen (priests) not dealing much – or
at least so it would be logical for several
people – with economic and business
things
 Who and whose followers focus only on
idealistic conceptions
 Believers of unwordly (transcendent) and
spiritual (virtue) values
Probably they have never met physically, and mentally they also live in a completely
different world - or at least we would think so

7. 7
But the leaders of both worlds have recognized that a holistic
approach is needed not just disjoint sets
• We are not just profit-making robots…
• If and until we regard ourselves as such,
we do not get out of the crisis
• Global thinking means global
responsibility too
• Destruction of the environment
physically and ruin of personal life is not
worthy
• We know it from our private life that it is
not just material goods that counts for
happiness
• BUT: we can’t and we don’t want to
induct complete ”system change”, just at
least a partial paradigm shift
• We do not have just spiritual life…
• If we can’t provide guidance in economic
questions, we leave the people alone in a very
important field of life
• Seeing the world through God’s eyes requires
not only global, but holistic approach as well.
• Human development includes development
from a divine perspective in all the "secular"
area,
• Only money can’t buy happiness, but with no
work and no money, few can live happily
• AND: following Jesus is not limited to isolated
areas, but the fullness of life

8. 8
ONLY „for-benefit”, truly responsible enterprises can ensure sustainability in its multiple
aspects!
„for-benefit” models
„CSV” „CiV”
„Profit-peak” „Altruism-peak”
„Benefit”= advantage, profit, gain
„Public benefit”= common good
For—profit
enterprise,
maximizing the
financial interest
of the owner
Non—profit
fundraising to
minimize the
number of needy in
the society
Optimizing the
needs of the entire
society
The shift from for-profit (for shareholders) to the concept of for-
benefit (for all concerned) is the basis of long-term sustainability.

9. 9
• CSV = Creating Shared Value (2011)
• According to Michael Porter companies have three key ways to create shared value
opportunities:
1. by reconceiving products and markets,
2. by redefining productivity in the value chain,
3. and by enabling local cluster development.
• Results:
• Innovation
• Growth
• Societal profit
• „Each of these is part of the virtuous circle of shared value; improving value in one area
gives rise to opportunities in the others”
• Real social entrepreneurships are also creating shared value besides social benefit. As
a result boundaries are blurring between successful for-profits and nonprofits.
Capitalism can get to a higher level thanks to CSV and the
economy and society will benefit from this process
Source: http://hbr.org/2011/01/the-big-idea-creating-shared-value/ar/pr

10. 10
The 2009 encyclical letter „Caritas in veritate” (CiV) addresses
the business world directly, as if it were a call
• „The market is subject to the principles of so-called commutative justice, which
regulates the relations of giving and receiving between parties to a transaction. …
Without internal forms of solidarity and mutual trust, the market cannot completely
fulfill its proper economic function.” (35) Thus: market, equality, solidarity, and trust – it
is possible and necessary to coordinate the integration of these!
• „Thus every economic decision has a moral consequence.” (37) Thus: the
economy, and business should (also) also have a moral basis!
• „responsibility on the part of everyone with regard to everyone, … cannot therefore
be merely delegated to the State” (38) Thus: if everybody is our brother/sister, we
should be responsible for everyone – without professional, national, geographic, etc.
limits!
• „In recent decades a broad intermediate area has emerged between the two types of
enterprise. … one which does not exclude profit, but instead considers it a
means for achieving human and social ends.” (46)
So the approach of Porter and the approach of Pope Benedict XVI might not only meet
in „infinity”…

11. 11
After CiV in 2009 and CSV in 2011, in 2013 the synthesis was
reached: President of Worldbank (Jim Yong) visited the Pope and
said something interesting…
• “I was so grateful to meet the Holy Father and was inspired by his passion and
commitment to help the poor, the sick, and the hungry,” Kim said. “We talked
about ways we could work together with faith leaders to make a
preferential option for the poor, so they can have greater opportunity and
justice in their lives.”
• “Pope Francis and I agree on the urgent moral imperative to lessen the
suffering of over 1 billion people and to end the scandal of poverty. We
share a vision of a world with greater compassion for all people in need.”
• “At the World Bank Group, we have set a goal to end extreme poverty in
less than a generation, and to boost shared prosperity for the bottom 40
percent of people in developing countries.”
Source: http://www.worldbank.org/en/news/press-release/2013/10/28/world-bank-group-president-kim-pope-francis-efforts-end-
poverty
„With the pope we say the same: growth won't happen if you don't invest in people”

12. 12
Tax fraud,
corruption,
Illegal
employment
Let us now segment the companies according to the combination
of their interests and their values
Self-
interest
INTEREST
Common good
Illegal
Legal
Ethical
(besides
acting
legally)
Offshore,
tax evasion
Tax optimizing
multinational
company,
profit abroad
Local company,
not optimizing,
profit spent locally
Company + CSR
VALUE
+
-
Foundation,
organizations
living on charity
„CSV”
Altruistic
(besides
acting
ethically and
legally)
True responsibility means close to common good and not just „legal correctness”!

13. 13
Tax fraud,
corruption,
Illegal
employment
It is difficult to define social entrepreneurships, there are various
segmentations
Self-
interest
INTEREST
Common good
Illegal
Legal
Ethical
(besides
acting
legally)
Offshore,
tax evasion
Tax optimizing
multinational
company,
profit abroad
Local company,
not optimizing,
profit spent locally
Company + CSR
VALUE +
-
Foundation,
organizations
living on charity
„CSV”
„Doing business
for others”
Altruistic
(besides
acting
ethically and
legally)
„Social entrepreneurships”
True responsibility
True responsibility means close to common good and not just „legal correctness”!
Forprofit Nonprofit
Hibrid

14. 14
Thus the traditional segmentation of companies and
organizations became more complex by today…
For the
common
good
E.g. environmental
protection, private
school, private
hospital…
E.g. a foundation
for the
disadvantaged
people
Traditional,
general
E.g. stock market
companies, private
companies
E.g. a for-benefit
company providing
jobs for the
handicapped
For-profit, for the
owner
Non-profit/for-benefit,
for a target segment
Orientation, that is:
„For whom does the organization exist?
Based on content,
activity, that is:
„What does the
organization
do?”

15. 15
Few know that the owner of Erste and Zweite Bank is a foundation, which was established in
1819 in order to help the poor!
…moreover the same activity (e.g. bank) can find its place in each
class
For the
common
good
Banca Etica
- For-profit bank of socially
beneficial enterprises
Grameen Bank
from M. Yunus
- Providing micro credit, without
official structure and branches
Traditonal,
general
Classic banks, e.g.:
Erste Bank
Bank-like operation, but with
volunteers and CSR manner,
e.g.:
Zweite Sparkasse
For-profit, for the owner
Non-profit/for-benefit, for a
target segment
„What does the
organization do?”
„For whom does the organization exist?

16. 16
I agree with the approach and definition of „social venture” as a
for-benefit company
Every organization,
which is socially
beneficial as well
Non-profit
organizations
Non-profit firm,
which serves one
target segment
I am not only studying this issue, but practicing it, too.

17. 17
To start a company that creates & ensures jobs
To ensure a job, so that donation would not be needed
To give anonymously to a stranger
To give
anonymously to a friend
To give to a stranger
To give without/ before being asked to
To give when asked, suitably
To give deliberately, but not suitably
To give unintentionally
To provide jobs instead of charity – an innovation, already
invented in the Middle Ages – which we further developed,
adjusted to our times
Source: Orban, P. (2006). Employment – Rehabilitation – Integration. Napra Forgó Kht.
Original source: Maimonides
The respect of dignity can best be realized by ensuring work – this is how rehabilitation
becomes, beyond the existential aspect, a constructor of humanity as well.
To ensure a job, so that donation would not be needed
To give anonymously to a stranger
To give
anonymously to a friend
To give to a stranger
To give without/ before being asked to
To give when asked, suitably
To give deliberately, but not suitably
To give unintentionally

18. 18
My not-for-profit (for-benefit) company, „Sunflower” strives for
offering sustainable jobs and rehabilitation
• Outsourcing based on “work teams” (unified outwards, supporting
inwards) for the sake of employment rehabilitation is a possible, tried
and tested way, acknowledged with the award “The Social
Entrepreneur of the Year 2007”, issued by the Schwab Foundation
(founding organizer of the World Economic Forum in Davos)
• Its goal is integrated employment rehabilitation. Sunflower
provides a positive “experience” of the disabled in order to reduce the
lack of knowledge, diminish prejudice and assist them in their
complete reintegration by experience. Thus the notion “disabled
persons” loses its significance, the individual selected through
experience becomes a sterling colleague.
• Its mission defined by the founders: To offer labor market services
for the disadvantaged (and especially the disabled or impaired)
people and thus assist them in finding employment in a certain
region. To work together with them and for their sake.
Source: Orban, P. and Hejj, T. (2008). Outsourcing based on “Work Teams” for the sake of employment rehabilitation
Employment rehabilitation: „Reintegrating those people into the society, who
have lost their creative work, everyday activity, organizing principles for life, self-
support, livelihood etc., through the tailor-made use of employment tools and
through utilizing their available skills and developing their competences.”

19. 19
The company was set up at the Millenium and its 14-year track
record proves the idea
0
50 000
100 000
150 000
200 000
250 000
300 000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
thousand HUF
Year
total
revenues
revenues
from
outsourcing
employees
(1/1000
person)
With the help of EU funds we could set up branch offices in 3 more cities last year

20. 20
Key performance indicators of Sunflower’s labour market services
(in 2013)
Disabled jobseeker contacts (pre-screening, testing skills, feedback
on career profile)
254 persons
Disabled recruitment recommendations 214 persons
Successful employment cases 52 persons
Services to non-disabled (yet disadvantaged) jobseekers 589 persons
The importance and impact of the company is much more than
being a sustainable venture…
Providing jobs directly and indirectly for the people in need is the most important social
benefit these days!

21. 21
Do not forget: more and more people believe that corporations
can achieve the greatest impact on society instead of
governments!
In Europe the government (still) has the greatest impact as the participation of
individuals and companies is traditionally lower.
When the business sector activates itself and uses its resources for common
purpose as well, it will outperform governments.
Source: Deloitte, Societal Purpose – A journey in its early stages, 2012

22. 22
The real „common good” can only be permanent if value-driven
thinking defines our other aspects!
Value-driven
thinking
Science Economy
Responsibility!
We are only really humans, if we live like this!
This is the only warranty for a sustainable future.

23. 23
You are our hope! According to a 2011 survey the typical so-
called „millennium” (generation Y) person’s view differentiates
from the current managers’
• For business leaders the primary term is
profit, other relevant factors only follow.
• According to the generation Y (born
after1981):
• The purpose of business is far broader
than the financial figures.
• Business has essential importance in
societal development and innovation.
Enterprises can pioneer societal progress
and positive change.
• Business has the greatest potential to
effect positive societal change.
• They are looking for inspirational and
innovative business leaders who have a
long-term view of the societal roIe of their
business.
These young fellows choose their work place, consume products and select services
according to these aspects. Are you one of those?!
Source: Deloitte, The Millennial Survey 2011

24. 24
Finally about myself: I try to sustain a balanced life, that reflects
my values and beliefs
Country Manager
International Vice President
MSc in electrical engineering,
+ Specialist engineer in digital technology
MBA
Founded (in 1991)
a foundation for
the handicapped
Founder of a non-profit company,
providing employment for about
50 handicapped annually, since 2000
Supervisory
Boardmember
Homestart
Foundation -
Member of the
BoardJudit
Rita
Dávid
Kristóf
Balázs
Tibor Héjj
Owner - manager
Member of a spiritual movement
Founding vice president
Sophia University (Italy)
PhD – in process …

25. Thank you for your attention –
and be responsible!
1126 Budapest, Szendrő u. 30.; Comp. Reg. No..: 13-09-092832;
ISO 9001:2008 Certificate Registration No.: 01 100 1319942
Email: hejj.tibor@p-m-c.eu
www.p-m-c.eu