A social economic enterprise is a private business or foundation that runs a business with the purpose – through its activities and earnings – to promote social and socially beneficial purposes.
The Ricco Mortensen Foundation has chosen to follow the requirements for running a social economy business as follows:
Must have a social purpose
The foundation has a social purpose. The requirement is that the foundation must have a primary purpose for social benefit with an educational purpose.
Must run a business
The foundation has an essential element of business operations with the sale of education, training and giving advice to entrepreneurs who make up a significant portion of its revenue.
Must be independent of the government
The foundation is independent of the public sector. That is, the foundation is run without significant public influence on management or operations. It is crucial that the public does not have a controlling influence on the foundation.
Must be participatory and responsible in his work
A prerequisite for being a registered social economic business is that the foundation is participatory and responsible in its activities. This is understood to mean that the foundation’s management ensures that the foundation’s staff, customers, partners and stakeholders are involved in its activities, as well as showing responsibility for the social purpose of the foundation’s business strategy and business activities.
Must have social handling of profits
The foundation manages its profits socially, which means that the foundation uses its result to reinvest in new activities as well as teach vulnerable groups without a charge. In addition, it is not possible to pay wages that exceed what is considered customary according to the nature of the job and the scope of work, and what must be considered justifiable in relation to the social objectives of the foundation.