Hudson’s Three Approaches to Social Economy Organizations and The Case of Toast Ale
Watch the video before doing the question B: https://www(dot)youtube(dot)com/watch?v=h4irMd3pZdM
Question B (15 points)
a. Describe Hudson’s three approaches to social economy organizations.
b. Explore the case of Toast Ale via the links below then identify which of Hudson’s categories best fits. Defend your response.
Homepage: https://www(dot)toastale(dot)com/
Impact Report: https://www(dot)toastale(dot)com/uploads/files/1647857751ToastAleImpactReport2021.pdf
Financial Filings (click on ‘Total Exemption Full Accounts’ from 2022 for latest): https://find-and-update(dot)company-information(dot)service(dot)gov(dot)uk/company/09926808/filing-history
Length: Approximately 400 words.
Question C (15 points)
You are students in a unique MBA program, one that focusses on CED. When you talk with friends or relatives about your program, most people likely understand what an MBA is, but probably less so the CED component.
Imagine you are writing a letter to your mother (or sibling, cousin, high-school friend) about the program. They have asked you what the program is all about and what is different from a conventional MBA. In your response, make sure you explain what CED is, how it is connected to business skills (accounting, marketing, finance, etc.), why you think it is important, and provide a quick example of CED in practice.
Length: Approximately 400 words.
Questions
Student’s Name
Institutional Affiliation
Instructor’s Name
Course
Date
Questions
Question B
* Describe Hudson’s three approaches to social economy organizations
Welfare (neo-liberal) approach
In this approach, social enterprises try to fill in the holes created by capitalist economies where the society has unique needs that go unmet (Hudson, 2020). With these needs, neither the public sector nor the market is able to address them. That is why social enterprises come. Therefore this approach is a gap-filling approach. It is a form of a social safety net. Under the approach, social enterprises do not target profits in their operations. However, they may engage in a little enterprising activity to provide a social safety net. Hudson attaches a political philosophy to this approach just like he does in the other two approaches by explaining that the welfare approach fits into the neoliberal mainstream capitalist approach to the economy because it takes off pressure from the system as it fills the gaps.
Alternative (Social-democratic) approach
In this approach, social economy organizations target profits in their operations. Profits are prioritized over organizational social purposes. The organization acts both as an enterprise and as a business. It creates wealth, and the welfare approach is more about the redistribution. The organization places a key priority on wealth generation as it competes with other key businesses in the market. However, it is worth noting that it does so for different values and purposes which are meant to redistribute generated wealth back to the community. The political component attached to this approach is that the social democratic approach accepts the market but tries to govern its negative features.
Radical (Post Capitalist) approach
This approach has anti or post-capitalist politics attached to it. In this approach, social enterprises see themselves as disruptive as they try to create a post-capitalist non-capitalist future in the societies where they operate (Hudson, 2020). The political component associated with this approach is its radicalism against capitalism. It seeks to eradicate capitalism and create a different future for the people in society.
* Explore the case of Toast Ale via the links provided, then identify which of Hudson’s categories best fits
Hudson’s alternative (Social-democratic) approach is the approach that best fits into Toast Ale's operations. Even though the organization seeks to generate profits as it competes with other businesses offering similar products, it aims to redistribute profits back to the community. It is heavily involved in charity work and giving back to the community. From the missions section of the company’s main website accessible through /about-us, we see that the company has donated over 81 million pounds to charity. Additionally, from the same pag...