Zhang Yang

    nicolezyyy@163.com

    THE first nationwide certification standards for social enterprises were introduced during the 4th China Charity Fair, while seven social enterprises out of 70 applicants were certified yesterday.

    The certification was initiated and carried out by five organizations including two academic institutes, a social enterprise research center, a charity foundation and the fair’s organizing committee.

    Social enterprises are corporations and nongovernmental organizations that aim to solve social problems through commercial projects. These enterprises can make a profit but emphasize social values over economic returns.

    “We intend to set up industry standards and integrate social resources to nurture social enterprises in China,” said Dian Chunli, the secretary of the fair’s organizing committee. Dian said the certification standards will go through a yearlong trial period and may be adjusted later.

    The certification requires a social enterprise to set aside at least 65 percent of its annual revenue to help society, and over half of the enterprise’s proceeds should come from commercial activities like selling products or services. The social enterprises must also be legally registered and have operated for at least two years.

    According to the fair’s organizing committee, certified social enterprises are given priority when handing out resources. Resources include grants of more than US$1 million provided by the United Nations Social Enterprises Foundation.

    “Talent, training and consultants will also be provided for certified enterprises, and they can enjoy a free incubation service in the Huaqiangbei Startup Center for one year,” Dian said.

    “The public has two misunderstandings about social enterprises — doubting the independence of social enterprises with governmental support and distrusting those with commercial operations,” said Wang Zhenyao, the director of the China Philanthropy Research Institute at Beijing Normal University and the head of the certification’s panel.

    Wang said China should study the methods used in developed countries when setting up a certification system for social enterprises, gradually forming favorable policies and a legal framework.

    Meng Wenjing, the spokesperson of the cultural and education section of the British Embassy, said over 600 social enterprises in the U.K. have obtained the SEM certificates issued by the Social Enterprises Mark Co. to distinguish themselves from conventional corporations.

    “Data shows that 54 percent of customers in Britain intend to buy products and services provided by social enterprises with SEM certificates, while 88.2 percent of governmental officials are more willing to cooperate with enterprises that provide services that benefit the public,” Meng said.