Database of labour market practices
This database gathers practices in the field of employment submitted by European countries for the purposes of mutual learning. These practices have proven to be successful in the country concerned, according to its national administration. The European Commission does not have a position on the policies or measures mentioned in the database.
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Original Title: | Yhteiskunnallinen Yritys-merkki |
Country: | Finland |
Responsible body: | The Association for Finnish Work |
Name(s) of other organisations involved (partners / sub-contractors): | Ministry of Economic Affairs and Employment |
Start Year of implementation: | 2011 |
End Year of implementation: | Ongoing |
EU policy relevance: | Concerning the European Employment Strategy, the policy is highly relevant to Guideline 4 “Fairness, combating poverty and promoting equal opportunities for all” and 3 “Better functioning of the labour markets, with a specific focus on reducing labour market segmentation and improving active labour market measures and labour market mobility”. |
National labour market context: | The Finnish government is in the process of reforming the way of organising employment and welfare services. The focus of social enterprise development has been on work-integration and welfare services provision. However, social entrepreneurial activities are diversifying and finding new grounds. So far government support to social enterprises has been limited mainly to the European Social Fund and to the recognition of a social enterprise business model, by i) approving the law for Work Integration Social Enterprises (WISEs) which offers employment to persons with disabilities and long-term unemployed and are regulated by law (Act 1351/2003 revised 924/2012), and ii) launching the Social Enterprise Mark, awarded to businesses aiming to address social or ecological problems and which invest the majority of their profits in promoting social or environmental aims. This business model features openness and transparency. |
Policy area: | Job creation, Labour market functioning and segmentation, Prevention of poverty through inclusive labour markets |
Specific policy or labour market problem being addressed: | Similar to many other countries, during the last century, Finland developed a rather large public sector, providing among other things, social welfare and employment services to its citizens. These services were mainly provided by the public sector, only leaving a complementary role to private sector. However, during the last decade, there has been a rapid shift towards an increasing number of welfare and employment services being provided by private for-profit and non-profit actors. The Finnish government is also in the process of reforming the way of organising publicly funded employment and welfare services, and have shown interest towards social enterprise solutions. Developments in this area have taken place, within a socio-economic and political context dominated by the economic crisis and the pressure to find ways to reform and upgrade general interest services and develop sustainable work-integration solutions for disadvantaged groups. The mark increases public awareness of social enterprises by communicating that the company has been set up to solve societal challenges. |
Aims and objectives of the policy or measure: | The purpose of the Finnish Social Enterprise mark is to help social enterprises to distinguish themselves from other businesses and demonstrate that the enterprise applies the Finnish Social Enterprise business model. To give (positive) brand identity to social enterprises, to differentiate them from traditional enterprises and, in more general terms, to raise awareness of the social enterprise business model. |
Main activities / actions underpinning the policy or measure: |
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Geographical scope of policy or measure: | National |
Target groups: | Small and medium-sized enterprises (1 - 249 employees) |
Outputs and outcomes of the policy or measure: | By early 2020 a total of 244 organisations have been awarded Social Enterprise Mark. Almost half of all organisations that have been awarded the Mark are non-profit associations or foundations that run commercial activities in their business sector. (European Commission (2019), Social enterprises and their ecosystems in Europe. Country report – Finland) |
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