STEEPLE2016

STEEPLE 2016
Sociological, Technological, Environmental,
Economic, Political, Legal and Ethical
Analysis of StexFGiving environment
Summary
Sociological p.1
Technological p.7
Environmental p.10
Economic p.13
Political p.17
Legal p.20
Ethical p.23

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Sociological
Several millions people employed in the social sector - Social investment: a force for social
change 2016 strategy, HM Government
p.2
3/4 social enterprises want to stay in Europe - www.civilsociety.co.uk p.2
Austerity protest - www.bbc.co.uk p.2
Charity sector loses public faith - www.pioneerspost.com p.3
Charity sector individually strong, collectively weak - www.thinknpc.org p.3
Expectations of both the government and the public - www.theguardian.com p.3
Funding cuts in school system - www.theguardian.com p.4
Housing crisis - Gentrification - www.standard.co.uk p.4
Organizations are facing unprecedented pressures - The Emerging Fourth Sector, Heerad
Sabeti with Fourth Sector Network Concept Working Group
p.5
Northen UK threatened by ‘Brain drain’ - www.ft.com p.5
Social inequality - Social inequalities in Europe: Facing the challenge, Jutta Allmendinger &
Ellen von den Driesch
p.5
UK, an International place for Social Enterprise - Social investment: a force for social
change 2016 strategy, HM Government
p.6

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Several people employed in the social sector
It’s well known that the 3rd sector produces a lot of jobs. Such as environment and social
segments, it is an interesting source to create sustainable and responsible jobs.
● More jobs could be created in the future, which gives the possibility to see the
growth of new 3rd and 4th sector companies, so more and more customers.
● In order to valorize our work and our status of social enterprise it’s important to
valorize this kind of data that show that it’s a viable alternative.
● Is the number of jobs growing?
● Is the number of jobs stabilising or decreasing?
● What is the part of sustainable and viable jobs?
3/4 social enterprises want to stay in Europe
A survey, carried out by Social Enterprise UK (SEUK), shows that social enterprises are
attached to Europe and particularly to European funds.
● Almost all Social enterprises have the same opinion about European benefits. This
fact can be grown in the goal to strengthen links/partnerships with others
companies (Brexit or not).
● 3/4 of social enterprises are worried EU funds, which means that the competition is
harsh and fierce.
Austerity protest
People in UK, but also in EU, are beginning to protest/fight against austerity programs,
which have shown their inefficiency to resolve the economic/social crisis.
● These protestations lead to see growth new wave and new ideas. For instance the
movement “Nuit debout” in France which is getting bigger and bigger and push the
French government to react. This kind of protestation have already happen in
London with the Panama paper crisis where David Cameron was involved.
● These protestation could lead to push the general opinion to the politics extremes,
In France, Germany and now Austria these extremists parties are very
represented. This thing could happen in UK, especially in Ireland.
Confidential data have been hidden

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Charity sector loses public faith
After years of stable levels of trust in charities public faith in the sector has taken a hit and
has yet to recover. It suggested that the sector as a whole faces a greater reputational risk
than it realises.
● This change of the public opinion offers the possibility of a turnover…
● … And bring forward new ways to manage charity/social group, such as Stex F
Giving.
● The turnover could be long and irregular. Alternatives would take time to set up and
the business environment would be chaotic.
● This bad opinion could ‘parasitize’ the social enterprise notoriety because of is
double nature: social and business.
Charity sector individually strong, collectively weak
“Although we have many strong, effective and admirable charities in the UK, the sector is
collectively weak. And if the political environment is becoming less hospitable for charities,
then that is a very real concern” - Rob Abercrombie
● If charity is collectively weak, why not strengthen it? Can we think about collective
communication campaign with charities that share common goals? This could
represent business and notoriety benefits…
● … And also create (a) network(s) that could be used for the company development.
● A large inequality between charities can lead to power and financial takeover by
the more competitive ones, even worse the more ‘aggressive’ ones.
● Maybe (need to be proved/unproved) UK charities don’t work collectively it is
because they can’t. If true, the nature of the what could lead to a possible
resolution.
Expectations of both the government and the public
The principle of social enterprise is to gather business and social purposes. This sends the
signal “we do business for the common good”. If the organisation does (or seems to do it)
business for personal profit, the government and the public could desapprouve and stop
supporting it.
● People expect this kind of initiative and they expect that it will achieve its
objectives.
● ‘We are our own best advocates’. If you want the common good, you will work for
it. If more and more people want to see initiatives such as social enterprise, they
will support it and/or participate to it.
● Social enterprise values become the core and the reason for being.
Degraded/corrupted them will be the last mistake…
● … Also ‘We are our own best advocates’ as we can be ‘our worst advocates’. What
we show will be interpreted as what the company is...

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● … A misunderstanding and/or a disruption of communication between the company
and the public is a serious threat.
Funding cuts in school system
Unless enough extra money is put into the system, schools in inner-London and other
cities are likely to lose out. This will put everything which has supported London schools’
remarkable success stories at risk.
● Emergence of new actors to support services that will be cuts. Those news actors
could be parents, neighborhood or community associations.
● Less money for the school system means less services and more pressure for the
parents. If the parents should invest more time for their children, it is less time for
other activities such as charities or associations.
● Private school would become more competitive because of services they propose
that the public school won’t propose anymore.
Housing crisis - Gentrification
● Gentrification is a social pressure. If we know the place that are
gentrifying/disadvantaged, we can determine specific action areas.
Organizations are facing unprecedented pressures to adjust to new circumstances
The fast development of social enterprise is a natural consequence. Until now, enterprises

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have been for-profit organizations and forgotten/abuse of societies and environments for
the good of benefit. The best example is the recent “Dieselgate” where Volkswagen has
fooled its customers with diesel greenwashing. Now people want organizations that work
with and for people.
● Customers want fair and honest company. Non-honest companies have used to
much disrespectful techniques such as Greenwashing. Now people do their best to
not be fooled again.
● If malicious methods exist such as Greenwashing, that means ‘Socialwashing’ is
possible. People can be aware of it (see Expectations of both the government and
the public).
Northern UK threatened by ‘Brain drain’
The centralization of UK activities in London shows a population movement from the North
to the South-East, which is stimulated the centralization (more activities => more people
=> more activities => more people...).
● The young population is motivated to work in/near our activity region. That
represents both potential customers and potential workers.
● The economy is centralized near the company.
● Not everyone find a (stable) work. Most of them don’t live but survive…
● ... They invest most of their time to gain money...
● … And the high concentration of people in a small area create social problems. But
could it be an opportunity to create services/social enterprises?
Social inequality
Because of its liberal choices, UK faces an increase of social inequality since the last
years. One interesting fact is that women in UK are more sensitive to poverty than men
(+1,4%).
● More social inequality equals more social problems, which more business
potentials for us.
● The social inequality is caused by the actual liberal system. If the system doesn’t
change, work on social problems won’t be a sustainable solution but a ‘palliative
care’. But if we work on it, can it help to change positively the system?
UK, an International place for Social Enterprise
Because UK is the first place in term of Social Enterprise, people from different countries
come here to discover and learn about mechanisms and processes. This is an opportunity
to share and gather informations and skills.

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● Differents point of views and cultures are beneficial to innovate, share, adapt and
improve strategies and methods.
● Create business and relation opportunities.
● International place could means international market so:
○ more competitors,
○ more factors to know,
○ less market share (unless we specialize our offer).

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Technological
Cyber security - The UK Cyber Security Strategy, Cabinet Office, The Rt Hon Matt Hancock
MP and National security and intelligence
p.8
Internet equality - www.ons.gov.uk/businessindustryandtrade p.8
Fast changing methods - 2013 State of the not-for-profit industry Survey Summary report
Oct 2013
p.8
Saturated communication market - Competitive intelligence 2016 (StexFGiving confidential
document)
p.9
Technological barriers - http://zpb-associates.com P.9

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Cyber security
From 2011 to 2016, the government funded a £860 million National Cyber Security
Programme to deliver the strategy’s vision of ‘a vibrant, resilient and secure cyberspace’.
The objectives of this programme aimed to:
● Make the UK cyberspace one of the most secure places in the world...
● … more resilient to cyber attack and better able to protect interests
● Help shape an open, vibrant and stable cyberspace that supports open societies
● Build the UK’s cyber security knowledge, skills and capability
● More security equals more reliability in ours work tools.
● Government has invested money where it offers us opportunities.
● Zero risks does not exist! We can just do our best to limit it.
Internet equality
Increasing demands and access to communication and new channels and reliance on
internet as source of information from majority of social groups/cultures.
● More Internet equality means more people will use it. Basically, if there is more
internet users, it implies that they would be more potential customers. But it could
also means more potential competitors.
● People who have unequal internet access are, most of the time, part of the poorest
population. In addition, they’re also the ones who are the ‘why’ 3rd and 4th sector
organisations exist → Homunculus (the snake that bites its own tail). How can we stop
this vicious loop?
Technological barriers - http://zpb-associates.com
● Opportunities:
● Threats:
Saturated communications market
Many companies offering highly specialised services/channels. Rapid advancements
being introduced to communications market e.g. VoIP systems, web conference tools etc.
● There is plentiful choice. So basically, there are possibilities that fit ‘perfectly’ to our
needs (and maybe at different times).
● Possibility to have an ‘inaudible’ market. If too many organisations speak (loud) at
the same time, it’ll be difficult for customers to find us. It’s not looking for a needle
in a haystack, it’s looking for a needle in a pile of needles.

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Fast changing methods
To meet 3rd
& 4th
sector market needs, methods are changing quickly e.g. social networking
for fundraising and online giving.
● New methods could mean new opportunities (business, management, finance
etc.).
● People are trained to get skills for working with those new methods.
● The risk that we could be outrunned by the speed of change…
● … Or in the opposite, that we go too far.

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Environmental
Air pollution crisis - www.londonair.org.uk/LondonAir p.11
Climate Change - www.gov.uk/government/policies/climate-change p.11
Energies - www.energy-transitions.org p.11
Green developments - Mainstreaming Sustainable Development, Department for
Environment, Food and Rural Affairs, March 2015
p.12
Green Economy - Mainstreaming Sustainable Development, Department for Environment,
Food and Rural Affairs, March 2015
p.12
Recycling - Mainstreaming Sustainable Development, Department for Environment, Food
and Rural Affairs, March 2015
p.12

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Air pollution crisis
Air pollution is recognized as an international public health concern because it’s a major
source of respiratory diseases. A air pollution ‘outbreak’ would impact economy and social
activities, as we can see in Paris and Beijing.
● If the Government doesn’t do anything to improve this situation, (the) solution(s)
will come from the public and/or the private sector - 3rd and 4th sectors. That
means potential customers.
● We work in a place exposed to a potential pollution disaster. If an ‘outbreak’
occurs, economic and social activities will be freeze for an unknown period and our
own health will be endangered.
● Creation of new laws/taxes that could disadvantage Stex F Giving.
Climate Change
Climate change is a global concerns with various local threats. In London for example,
floods are more frequents and more intense. It’s likely to increase because of sea level
rise, an another climate change consequence. Such as air pollution, natural disasters
would impact economy and social activities.
● Same than ‘Air pollution crisis’.
Energies
Renewable and local energies would improve the concern of the population on the
commitments made by organizations. Why? A company that pays attention to its energy
sources could means that it’s concerned by the community environment.
● Many sources of energy could lead to a price reduction. If it well manages (need to
be), it’ll be possible to optimise the cost.
● Creation of new laws/taxes that could disadvantage Stex F Giving.
Green developments
Policies and legislation to ensure Stex F Giving make the most of the opportunities they
present and avoid the pitfalls they pose e.g. water offsetting.
● Green action plan for SMEs (European Commission) helps business to take an
advantage of the opportunities offered by the transition to a green economy. Turn
challenges in environmental opportunities.

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● Support policies have become less friendly to wind and solar investors in several
countries including UK. European investments have fall to a 11 year fall due to UK
policies.
Green Economy
Sustainable development without damaging the environment, reducing environmental risk
and ecological scarcities.
● The transition to a green economy can create trade opportunities by opening new
export markets for environmental goods and services, by increasing trade in
products certified for sustainability and promoting certification-related services, and
by greening international supply chains.
● Mitigate adverse impacts such as pollution and emissions from transport, increased
pressure on natural resources for production and processing, and social
marginalisation.
● Reducing income inequalities and improving the livelihoods of local populations, as
well as using environmentally sound technologies and processes are key elements
for improving the sustainability of international trade
● Limitations in financial and human resources, weak regulatory frameworks, lack of
enforcement mechanisms and poor economic infrastructure.
Recycling
The activity or process of extracting and reusing useful substances found in waste
● Recycling offers potential cost savings, reducing the size and the quantity of
rubbish or the collection frequency

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Economic
Possible job loss in public administration, defence and social security - Which industries will
drive future jobs growth in the UK? UK Economic Outlook, March 2016
p.14
Business services could create around 1.5 million more jobs by 2025 - Which industries will
drive future jobs growth in the UK? UK Economic Outlook, March 2016
p.14
China's economic growth slowest - www.standard.co.uk p.14
Competitive market with specialized competitors - Competitive intelligence 2016
(StexFGiving confidential document)
p.14
Economic downturn - Economic Review April 2016, Office for National Statistics p.15
Inflation rate - Inflation and price indices, Office for National Statistics p.15
Possible increased budgets - UK Giving 2014, Charity Aid Foundation, April 2015 - Social
investment: a force for social change 2016 strategy, HM Government
p.15
Social investment worth more than £1.5bn - Which industries will drive future jobs growth in
the UK? UK Economic Outlook, March 2016
p.16
Tradeable market for charity ‘debt instruments’ - www.civilsociety.co.uk p.16

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Many jobs could be lost in public administration, defence and social security
Austerity induces public cuts and by definition, disparition of public services.
● The market niche could be taken by an another organization, such as a charity or
social enterprise.
● Some of this service could be useful to Stex F Giving and/or could be not taken by
an another organization.
● Those services could be recuperated by organizations such as for-profit companies
that don’t have any social objectives and only for-profit objectives.
Business services could create around 1.5 million more jobs by 2025
Business services are an opportunity for business growing.
● More specialized business services in the future means more
business/partnership/relational opportunities.
● We can speculate that those business services will be in the 4th sector (see
‘Social’ - ‘Expectations of both the government and the public’).
● Business growing leads to a market growing, so the apparition of new competitors.
China's economic growth slowest
UE/World economy strongly depends of Chinese economy (and inversely). Many times at
the beginning of 2016, chinese stock market was closed in advance because of prices
collapse. This has the effect to frighten market actors.
● The bursting of china financial bubble would be highly dangerous for china’s
economy and for world economy. The reason is that a lot of countries depends of
the chinese economy and/or has a big share of external debt.
Competitive market with specialized competitors
In the “Competitor intelligence 2016” in the folder “Business Development - 2016” on the
Drive, we can see that there is a lot of local competitors in and near London, and some of
them are specialized in Charities and/or in non-profits. This local competitors pool is highly
dense and we can say without any doubt that it’s a ‘red ocean’.
● We can “jump” into a ‘blue ocean’ because of our added value, the ethical
communication.
● Actually, we are in a ‘red ocean’.

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Economic downturn
When the global market is in crisis, almost all economies are affected. In our case, UK
government chooses to follow an Austerity in the purpose to reduce its external debt. This
means for example cuts in public subventions.
● Social enterprise are instruments used to solve social issues. So when the
government stops to take over some of those issues, it represent a bigger market
share for potential social enterprise.
● Government could cut social aid useful for us, but it doesn’t seem to be the case.
Inflation rate
Inflation Rate in the United Kingdom is expected to be 0.50 percent by the end of this
quarter, according to Trading Economics global macro models and analysts expectations.
● A low inflation rate is interpreted as a better purchasing power and cheaper
prices…
● … But it is true only if the purchasing power is privileged over the profit margin.
Possible increased budgets
In one area of target market -3rd and 4th sectors- due to government and the proportion of
people giving money to social enterprises and charity in a typical month increasing, as well
as the total amount given by individuals.
● As said in “Social”/”Expectations of both the government and the public”, ‘We are
our own best advocates’. If you want the common good, you will work for it. If more
and more people want to see initiatives such as social enterprise, they will support
it and/or participate to it.
● As said in “Social”/”Expectations of both the government and the public”, a
misunderstanding and/or a disruption of communication between the company and
the public is a serious threat.
Social investment worth more than £1.5bn
In a report that makes its first comprehensive estimate of the size and composition of
social investment in the UK, BSC says it found approximately 3,500 different social
investments outstanding at the end of 2015, with higher-risk products growing in
popularity.
● Trend shows that more and more investors chose to put money in
projects/organisations that include social objectives…
● … It represents more possibilities to find grants/funds that could fit to our financial
need.

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● It could motivate people working, initiating, creating and/or innovating in the social
field, which is a market opportunity for us…
● … But it also could motivate/boost new and current competitors.
Tradeable market for charity ‘debt instruments’
Even this proposition could allow financial opportunities for charities, it could also be a
treat for this sector where there is few skilled personnel in the financial field.
● Provides a new source to finance charities.
● Could not fit for all charities. Small ones would have difficulties to manage it.

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Political
Brexit - The Economic Consequences of Brexit: A Taxing Decision, OECD Economic Policy
Paper Series, April 2016
p.18
Government’s commitment to supporting 3rd and 4th sectors - UK Giving 2014, Charity Aid
Foundation, April 2015 - Social investment: a force for social change 2016 strategy, HM
Government
p.18
Sadiq Khan, Mayor of London- www.progressonline.org.uk p.18
Russian community & Russian government - www.ibtimes.com p.19
TTIP - The Transatlantic Trade and Investment Partnership (TTIP), European Commission p.19
Tradeable market for charity ‘debt instruments’ - www.civilsociety.co.uk p.19

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Brexit
The political environment is divided between ‘pro-yes’ and ‘pro-no’. Actually, it’s impossible
to say with certainty which side will win.
● An UK community based on the Brexit could lead to gather people behind a
common cause. This community could be pushed to support more positively the
social enterprise from UK that helps UK based people (difficulties lead commonly
to patriotism)...
● … But could also lead to nationalism.
● Possibly lack of opportunities to develop new skills, technology, funds,... Due to the
reduction of exchange student and the end of the European partnership.
● British households could lose out on as much as £173 billion per year in the worst
case scenario following a Brexit - Britain voting to leave the European Union -
according to a new report from the London School of Economics.
● An exit of UK from EU would have various consequences on the society such as
loss of free movement in European countries, less accessibilities for UK/EU
students in exchange programs, a heavy reduction in the purchasing power etc.
● “One reason that foreign banks, including the Swiss, flock to the City of London is
that they have free access to the European Single Market. We put this in jeopardy
by jumping ship” Thomas Sampson from the London School of Economics.
Government’s commitment to supporting 3rd sector
With tax incentives, Online Gift Aid processing and amendments to Gift Aid declaration
from HMRC, it’s an opportunity for donors to contribute more easily and support 3rd
sector.
● Opportunities:
● Threats:
Sadiq Khan, Mayor of London
Sadiq Khan, the MP for Tooting, has led his main rival, Conservative Zac Goldsmith, in
opinion polls all year and bookmakers make him the firm favourite, with recent election
results providing further grounds for confidence. Not since Johnson won his second
mayoral term in 2012 have the Conservatives got the better of Labour in London.
● Sadiq Khan, and the labour party in general, is more motivated by social issues.
Russian community & Russian government

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Unrelenting political pressure on anti-Kremlin activists and an economic recession in
Russia have created an increasingly vocal Russian exile community in the British capital
that has become a hub of opposition outside Russia to President Vladimir Putin.
● Innovative projects and enterprises are suppressed in Russia. Those who can
leave the country have the potential and the will to create in different area such as
social field.
● Diplomatic relations between Britain and Russia have drastically been damaged
because of many things - Britain supports and welcomes leaders of the opposition,
Russian government was accused to have assassinated one of its ex-psy on the
British territory, the annexation of Crimea and the support of pro-russian in East
Ukraine etc.
TTIP
If UK stays in EU, it will sit on the negotiating table for the TTIP, which represents for many
a risk because of the political differences between UE and USA.
● Most of european countries disagree with agreement’s terms because they give
unequal advantages to private and public american markets. The recent leak of
negotiation documents by Green Peace proves this point...
● … Because of those unequal advantages, european governments, such as France
and Germany, are ready to stop negotiations.
Tradeable market for charity ‘debt instruments’
David Floyd, managing director of Social Spider CIC, told that politicians are the cause of
a lot of the confusion and feelings of failure around social investment. He said:
“Unfortunately, while they may be operating with the best of intentions, politicians are the
single biggest source of misinformation about the social investment market that you can
possible find”.
● There is a risk that politicians don’t understand properly the charity field and don’t
have enough communication with sector actors. That could be source of
misinformation and misunderstanding.

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Legal
Increased scrutiny of 3rd and 4th sector clients - UK Giving 2014, Charity Aid Foundation,
April 2015 - Social investment: a force for social change 2016 strategy, HM Government
p.
Protections p.
Reduction in corporation tax rate p.
Special Legislation affecting 3rd and 4th sector clients - UK Giving 2014, Charity Aid
Foundation, April 2015 - Social investment: a force for social change 2016 strategy, HM
Government
p.
Tax policy approach (2010) - www.thirdsector.co.uk p.

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Increased scrutiny of 3rd
& 4th
sector clients
Enhanced levels of transparency and disclosure of financial information required.
● Opportunities:
● Threats:
Protections
Stex F Giving’s adherence to Data Protection Act 1998 and Personal Information Online
Code of Practice (ICO) 2010.
Intellectual property rights under Copyright, Design and Patents Act 1988
UK WEEE regulations 2013.
● Opportunities:
● Threats:
Reduction in corporation tax rate
From 28% to 21% in 2014 and to 20% in 2015. It provides potential for StexFGiving to
offer more services.
● Opportunities:
● Threats:
Special Legislation affecting 3rd
and 4th
sector clients
e.g. Charity Commission regulations.
● Opportunities:
● Threats:
Tax policy approach (2010)
It will allow for more accurate longer term financial forecasts for Stex F Giving reduction in
volume and frequency of changes to the tax code.
● Opportunities:
● Threats:

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Ethical
Equal opportunities policy to ensure recruitment of a diverse workforce p.
Keep our image pure - The Emerging Fourth Sector, Heerad Sabeti with Fourth Sector
Network Concept Working Group
p.

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Equal opportunities policy to ensure recruitment of a diverse workforce
Stex F Giving Employment Programme to ensure a respectful workplace environment that
values individual contributions and looks after welfare of employees.
Reinvesting 15% of pre-tax profits to Stex F Giving in employment Programme which will
look after needs of employees i.e. flexible working.
● Opportunities:
● Threats:
Keep our image pure
Unambiguous ethical policies should be in place. Awareness of and appropriate action
taken regarding unethical practices by suppliers, collaborators etc.
● Will help us to move from a ‘red ocean’ market to a ‘blue ocean’ market.
● It’s the core of our added value, error and misunderstanding are not an option.

STEEPLE2016

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