| The levels of competition |
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| Written by Hugh Morrow | |
| Friday, 16 November 2007 | |
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Within the Social Economy, competition can occur on at least three distinct levels; 1. For funds, funders and resources. 2. Program and project design/strategy. 3. Project / service delivery. That is, an individual and/or organisation can compete on one level while cooperating on the others. For example, a group of organisations operating in a community might work together on strategy and delivery but compete for funds. Equally, an organisation might team up with others to raise funds but operate independently on the other levels. Given the perceived scarcity of resources, it is quite natural to see organisations guarding closely their funding sources for fear of losing revenue. However there are circumstances where this competition might reduce overall social impact. For example, organisation ‘A’ might learn to be very effective at winning funding but might not necessarily be very good at implementing programs and creating social value. On the other hand, organisation ‘B’ might have excellent skills in program delivery and create significant social value, but may not be so good at securing funding. In this scenario, organisation A is able to obtain significant funding, possibly at the expense of organisation B. A’s less effective programs may grow whereas B’s do not. The second level, program design, is one source of excitement about social entrepreneurship and ‘innovative business models’. Competition at this level is interesting and can pose dilemmas. For example, if an organisation creates a truly breakthrough approach to creating positive societal outcomes, there is an onus on the inventor to share the strategy and know-how as widely as is possible. Thus the organisation might or should encourage competing organisations to adopt the innovation and maximise the benefit to society. Put another way, at the project/service delivery level, it can be argued that there is a moral obligation to share innovations that might create positive societal outcomes; and to share them widely and rapidly. There is also an appeal here to moral accountability, the principle that says: ‘it is right to do good’ and one of four drivers which ‘motivate’ the sector. However, to date there has been no distinction offered for the precise form of competition and at what level it might be desired and when. Discuss this article on the forums. (0 posts)
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