How do you align your social enterprise vision and strategy with your governance structure and processes?

1 Define your purpose and values

The first step is to clearly define your purpose and values as a social enterprise. What is the problem you are trying to solve, the change you want to see, and the impact you want to create? How do you measure and communicate your social or environmental performance? What are the core values that guide your decisions and actions? Having a clear and shared purpose and values will help you attract and retain the right people, partners, and funders for your social enterprise, and will also inform your governance structure and processes.

2 Choose your legal form and structure

The next step is to choose the legal form and structure that best suits your social enterprise model and objectives. There are different options available, depending on your location, such as non-profit, for-profit, hybrid, cooperative, or social purpose corporation. Each option has its own advantages and disadvantages, and implications for your governance, such as ownership, control, accountability, liability, taxation, and reporting. You should consult a legal expert to understand the implications of each option and choose the one that aligns with your purpose and values, and allows you to balance your social and financial goals.

4 Develop your governance processes

The fourth step is to develop your governance processes, which are the mechanisms and tools that enable your governance structure to function properly. Your governance processes include how you plan, monitor, review, and report on your social enterprise activities and outcomes, how you communicate and engage with your stakeholders, how you manage your risks and opportunities, how you handle conflicts of interest and ethical issues, and how you learn and improve from your experience. You should develop clear and consistent governance processes that align with your purpose and values, and that comply with the relevant laws and regulations.

5 Review and adapt your governance

The fifth step is to review and adapt your governance, which is the process of assessing and improving your governance structure and processes over time. Your governance should not be static, but rather dynamic and responsive to the changing needs and expectations of your social enterprise and its stakeholders. You should regularly review your governance performance and impact, using both quantitative and qualitative indicators and feedback. You should also identify and implement any changes or improvements that are needed to enhance your governance effectiveness and efficiency, and to align with your vision and strategy.

6 Learn from others

The sixth step is to learn from others, which is the process of seeking and sharing knowledge and best practices on social enterprise governance. You are not alone in your journey as a social entrepreneur, and you can benefit from the experience and insights of other social enterprises, networks, associations, experts, and resources. You can also contribute to the development and dissemination of social enterprise governance standards and principles, and to the advocacy and recognition of social enterprise as a viable and valuable sector. You should seek and create opportunities to learn from others, and to share your own challenges and successes on social enterprise governance.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?