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Socially Responsible and Accountable Business Ventures

Through the establishment of socially responsible business ventures, Samadeepa have been able to create a stable source of funding for community service actions, as well as offering improved financial stability for the individuals and communities involved in Sri Lanka's Anuradhapura and Trincolmalee districts.

Description

This initiative involves the foundation of six private companies which are each affiliated with a social service organisation. It is intended to improve the accountability and independence of the social service organisations, and the social responsibility of the private companies. Each company will be established with a combination of a loan from the associated social service organisation and capital invested by the future directors of the company and volunteers from the community. The board of directors will include representatives of the respective social service organisation.

The participants in the initiative are selected from the areas of Anuradhapura and Trincomalee, with the majority chosen from the war and Tsunami affected North and East. The investors include volunteers from the Anuradhapura District, and the profits and rights (e.g. rights to company shares, land, materials, etc) of each venture are shared by all, including the community.

The project began in July 2006 and is expected to complete its initial phase (the establishment of the businesses) by November 2006. Following this period, the initiative expects to be in a position to contribute more actively in conflict transformation, being autonomous and accountable only to the community, and therefore more able to contribute funds to community service actions.

Aims / Objectives

The initiative aims to establish six joint business ventures that have a high level of social accountability as well as secure profit making potential. This is intended to make any associated conflict transformation initiatives independently functional, and therefore make the programs more sustainable and more able to respond quickly to changing situations.

The majority of the participants in the initiative are from the war affected North and East areas of the country, and the initiative aims to give them financial security as a way of supporting them in their situation. Also, with participants selected for the ventures from all ethnicities, in working together, inter-ethnic harmony is promoted.

How it is Articulated

In the first phase of the initiative, Samadeepa selected 100 participants from associated NGO's in the districts of Anuradhapura and Trincomalee, and gave them residential training on community management, project formulation, monitoring, and evaluation. The participants were selected based on their contributions to past programs.

Subsequently, they began the process of issuing loans and pooling money from the member investors. Representatives for the each organisation's board come from the investors and the selected 100 participants.

The business ventures (which vary from multi-ethnic vegetable distribution companies to multi-ethnic small level banking associations), when once established, will commit a portion of its profit and employees to be spent carrying out social service activities in the affiliated NGO's.

Achievements / Learning Points

The people involved in the initiative who live in areas of ongoing conflict such as Trincomalee, have benefited from improved stability in their lives through having investments and connections in areas not directly affected by war. The idea of having jointly owned property in relatively safe areas gives these people increased peace of mind in a context where they might lose their lives or property at any moment.The entire initiative has been a learning process. The most important learning point so far, is that transferring ownership of an initiative to the people involved allows them to take more responsibility, and to engage more actively in the initiative. These people also become increasingly socially conscious and responsible, and offer continuing contributions to the conflict transformation in their areas. They are able to invest more time in community service activities such as voluntary community service and supporting marginalised groups, since their livelihood is secured through the company.

Geographical Area of Operation

Anuradhapura and Trincomalee districts

Funding Resources

Oxfam Hong Kong gave the money to support the Tsunami and war affected people and Samadeepa have generated money from this in the form of loans, to support the initial phases of the initiative.

Organisations Involved