Social enterprises in the Philippines aim to directly address social needs through products, services, and work provided by marginalized groups. They operate as businesses to achieve a clear social mission, investing profits back into social programs rather than increasing individual assets. Key social enterprises discussed include Gawad Kalinga, Human Nature, and Enchanted Farm Social Businesses, which employ and support marginalized communities while providing environmentally-friendly products and services. The proposed Magna Carta bill would help the social enterprise sector through loans, insurance, capacity building, procurement preferences, and tax incentives.

1. Social Enterprise in the Philippines
“Moving the Society Forward”

2. Social Enterprise
-originated by Bill Drayton
(Founder of Ashoka Foundation)
-It AIMS to directly address
social needs and other nonfinancial goals through their own
products, services or through
the work rendered by
marginalized people or
volunteer workers within the
organization.

3. Profit Maximization Business
(Business Enterprise)
Business Enterprise with CSR
(Corporate Social Responsibility)
Social Enterprise (Social Business)
Non-Government Organization
(For Profit)
Non-Government Organization
(Non-Profit)

4. Social Enterprise
Definition from SENS:
A business that operates with an idea that the profits earned by selling
products or services serve to achieve a clear social mission.
It means that earned funds do not serve to increase the assets of individuals - but
are invested in socially useful purposes, such as hiring people who have
difficulties in finding a job, social and medical services, education, environmental
protection and cultural activities in the community.

5. Social Entrepreneurs play the role of change agents in the
social sector by:
 Adopting a mission to create and
sustain social value (not just
private value)
 Recognizing and relentlessly
pursuing new opportunities to
serve that mission
 Engaging in a process of
continuous innovation, adaptation
and learning

6. Social Entrepreneurs play the role of change agents in the
social sector by:
 Acting boldly without being limited by resources
currently in hand
 Exhibiting heightened accountability to the
constituencies served and for the outcomes created

7. Social Enterprise
Definition from House Bill No. 6085:
MAGNA CARTA for SOCIAL ENTERPRISES
Social Enterprises refer to organizations engaged in providing goods and
services that are directly related to its mission of improving social well-being.
-It generates profits or surplus with due regard to social and environmental
costs, and makes a pro-active contribution to social and environmental
problems.
PRIMARY Stakeholders/Beneficiaries: Marginalized Sector of Society

8. How will the Bill help the Social Enterprise
Sector?
Provision of accessible non-collateralized loans thru
special credit windows with a Guarantee Fund Pool
Comprehensive insurance system to reduce
vulnerability to climate change/calamities
Resources for comprehensive capacity development
for SEs and poor as partners
Proactive SE market development program promoting
principles of fair trade

9. How will the Bill help the Social Enterprise
Sector?
R&D on strategic economic subsectors, appropriate
technologies and innovations to democratize access of
poor to quality basic social services
Preferential treatment in government procurement
including coverage of performance bonds
Tax exemptions and tax breaks
Cash incentives (i.e. at least 25% of minimum wage for
social enterprises employing PWDs)

10. Social Entrepreneurs in the Philippines
Tony Meloto
Social Entrepreneur of the World
(World Entrepreneurship Forum,
2012)
Chairman of Gawad Kalinga
Foundation

11. Founded in 2008 by:
Anna Meloto-Wilk, her husband Dylan and her sister Camille
Primary Goal:
To use business to build a better Filipino society, especially for the poor
Core Principles:
 Pro-Philippines
 Pro-Poor
 Pro-Environment

12. Pro-Philippines
-Products are 100% manufactured in the country and raw materials are
sourced locally
-Employs several Gawad Kalinga (GK) residents from GK Enchanted
Farm in Angat, Bulacan
-Empowers GK farming villages to grow and produce high-standard
ingredients
-Sourcing some of the essential oil ingredients from local farmers’
cooperatives in Bicol and in Negros
(ex. Citronella Oil for Citronella Bug Spray)

13. Pro-Poor
-Employs GK residents from nearby communities in QC and provides fair
living wage more than the minimum wage required by law and full time
benefits
-Helps marginalized farmers through partnership with PFEC and AIDF
(Philippine Federation and Environmental Concern)
(Alternative Indigenous Development Foundation, Inc)
-Human Nature provided a Php 300,000 grant to AIDFI that will help
increase their lemongrass oil production to another farm in Murcia, Negros
Occidental.
-Its GOAL is to develop multiple farms that will grow an industry for
Philippine essential oil and extracts.

14. Pro-Environment
-All the raw materials are naturally-derived, free from toxic
chemicals and environmentally-friendly.
-Guarantees the integrity of the products through placing
the natural seal on its product labels
-Uses PET recyclable bottles in packaging their products
-supports “Balik Bote, Bigay-Buhay” Program

15. Natural Products
1.
Ingredients are biodegradable and at least 95% natural (the same standard set by the
Natural Products Association in the USA).
2.
The ingredients come from a renewable resource with no petroleum compounds,
and are also processed in a way that doesn't harm the environment.
3.
A product may contain a "non-natural" ingredient, but is only permitted if there
is no readily available natural alternative, at which point, the ingredient meets
strict criteria on human and environmental safety and biodegradability.
It gives awareness to the product users the ingredients used .

16. Product Ingredients:
What’s IN and What’s NOT?
LEGEND:
Synthetic Chemical
Human Nature’s Natural Alternatives
What It Does To You

17. Social Enterprise Partners:
Bayani Brew
refreshing brewed beverages
Trese –
t-shirt
merchandise
Kape Mariacoffee
Gourmet
Keso
Red Carpet- specializes in locally-made furnishings, weaving
items that utilizes indigenous deisgn and materials

18. Enchanted Farm Social Businesses:

19. Enchanted Farm Social Businesses:

20. Enchanted Farm Social Businesses:

21. Enchanted Farm Social Businesses:

22. Enchanted Farm Social Businesses:

23. Enchanted Farm Social Businesses:

24. Enchanted Farm Social Businesses:

25. Enchanted Farm Social Businesses:

26. Enchanted Farm Social Businesses:

27. Enchanted Farm Social Businesses:

28. Enchanted Farm Social Businesses:

29. Enchanted Farm Social Businesses:

30. Enchanted Farm Social Businesses:

31. Enchanted Farm Social Businesses:

32. Achievements of Social Enterprises in the
Philippines
 Built sturdy structured-homes in clean and beautifully
landscaped communities

33. Achievements of Social Enterprises in the
Philippines
 Families were able to send their children to school
 No longer poor, no longer hungry

35. How will you help change the world?
 Let us support and patronize the products of our local
social entrepreneurs.
 Let us support Gawad Kalinga’s nation-building
operations through volunteering.
 Collect and surrender empty plastic bottles in your
village to these social enterprises and they will
convert it to a recyclable material.
 Fundraise for them to support social improvement
activities.
 Sponsor an event.
 Generous donations.

36. References:
http://www.gk1world.com/home
http://humanheartnature.com/buy/content/category/advocacy
http://www.sens.rs/en/social-entrepreneurship
http://socialbusinesssummit.net/venue/enchanted-farm-social-businesses
http://www.pef.ph/phocadownload/Social-Enterprise-Bill_HB-6085.pdf