THESIS REGULATORY FACTORS AND PUBLIC POLICY IN THE SUCCESS OF THE SOCIAL ENTERPRISE

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1 THESIS Do social economy societies have competitive advantages from other legal forms in competitive tendering for public contracts, to justify the inclusion of social clauses? (Case study in Valencia) Rosa Mateo Hernández. Head teacher: Rafael Chávez Ávila REGULATORY FACTORS AND PUBLIC POLICY IN THE SUCCESS OF THE SOCIAL ENTERPRISE Collaborator Subproyecto1. Reference: DER C02-01 IP: María Pilar Alguacil Marí Keywords: Social clauses, Cooperatives, Public Tenders, Public Procurement, economic agents, Economics Non-profit, labor companies, Social Economy, Public Markets. TABLE OF CONTENTS

2 0. Introduction. 1. Chapter I. Theoretical Framework. Public tenders and inclusion of social clauses National environment European environment. 2. Chapter II. Cooperatives and social economy Scope of social economy Definition of cooperative Comparison of cooperatives versus capitalistic companies. 3. Chapter III. Analysis of cooperatives Economic Analysis Social Analysis. 4. Chapter IV. Study of public tenders currently in the local environment Analysis of public procurement and implementation of current legislation Inclusion of social clauses in public procurement. 5. Chapter V. Methodological analysis Study and qualitative analysis of reality Study and quantitative analysis of reality. 6. Chapter VI. Conclusions. 7. Annexes. 8. Bibliography. 0. INTRODUCTION.

3 RATIONALE AND BACKGROUND. In a European and domestic environment, we find a framework that highlights the importance of public procurement as an economic agent, in which European guidelines on decent work is framed in this dichotomy of "business economics", we frame the coexistence in the economic market companies in the social economy environment. 1 Highlighting the position of the European Parliament adopted at first reading on January 15, 2014 with a view to the adoption of Directive 2014 /.../ EU of the European Parliament and of the Council on public procurement and amending and repealing Directive2004/18/CE 2. The environment in Spain, no different from the European trend, finding non- legislativeproposition 3 presented in the Palace of the Congress of Deputies, April 10, 2014-Josep Antoni Duran i Lleida, the Catalan Parliamentary Group Spokesman (Convergence and Union). Public procurement represents about 18.5% of the GDP of Spain data published by the Observatory of Public Procurement, at present, the European and Spanish guidelines are framing in an environment where the importance of public procurement as an economic agent priority, echoing the opinion piece de Santiago Lesmes 4. It has been studied the positive multiplier effect it has on the environment, the award of a public contract, which means that in the current economic situation, where the data published by the EPA for the ºTrimestre put the unemployment rate in Spain the 23.67% take a mandatory relevant research on issues related to the effects of socially responsible public procurement. We found the definition of socially responsible public procurement, in the guide "Buying Social. A guide to taking account of social aspects in public procurement". (2010) DG Employment, Social Affairs and Equal Opportunities of the European Commission 5. In this definition we emphasize that public entities are not only referring to create economic opportunities, but the inclusion of relevant employment is a decent job. The promotion of decent work 6 occupy high on the political agenda of the ILO since 2000 place: through its decent work agenda. In this economic and social sphere, we find some entities that live in our working society, companies considered social economy, located in the Spanish definition of SMEs, making relevant in the definition of cooperatives, although companies including economywe find social cooperatives, associations and mutuals. Associated Work Cooperatives (CTA) conjugated to a time professionalism, flexibility and participation. The CTA1 represent a business model in which economic and business objectives are integrated with other social issues. It is achieved as well, economic growth based on employment, social equity and equality. 1."The concept of" social economy "refers to the set of microeconomic organizations characterized by common features marked by a" social ethics "." Rafael Chaves and José Luis Monzón, CIRIEC and University of Valencia. 2,"Public procurement plays a key role in the Europe 2020 strategy... a strategy for smart, sustainable and inclusive growth while ensuring the most efficient use of public funds. To that end, they should be revised and modernized the existing rules on government to increase the efficiency of public procurement spending, facilitating in particular the participation of small and medium enterprises (SMEs) in public procurement, and allow purchasers to use better public procurement in support of common societal goals... 3 "The Congress of Deputies urges the Government to submit within three months a bill to fulfill the need to transpose Directive 2014/24 / EU of the European Parliament and the Council of February 26, 2014, on public procurement, the Spanish domestic legislation, contains timely and necessary to include in the regulatory framework for the procurement of the Central Government and the provisions concerning possible financial support, social clauses or elements of corporate social responsibility changes complementing the technical and economic assessments in the tender documents, and as a requirement for granting access and economic support. " 4 "The government set up the first trader, the most important generator of employment and the consumer with greater influence on the market... It is up to public authorities, also a constitutional duty to promote favorable conditions for progress social and economic. " 5 "The" CPSR "refer to procurement operations that take into account one or more of the following social considerations: employment opportunities, decent work, compliance with social and labor rights, social inclusion (including persons with disabilities) equal opportunity.... " 6 "'Giving all men and all women real opportunities to acquire decent and productive work in conditions of freedom, equity, security and human dignity". The European Commission, COM (2006) 249, dated May 24, 2006, p.2

4 Analyzing companies that act as agents in the economic market, we found that coexist three different agents, with considerable differences, public companies, venture capitalists and social enterprises. We can define these ecosystems as social organizations designed to achieve objectives through human resources and other resources that interact with each other. Therefore we define that companies are a social group composed of people who form a structure of relationships that interact together to produce goods and services that meet the needs of a community within an environment (stakeholders), leading to meet the purpose and mission of the organization. The difference between capitalist enterprises and social enterprises, concerns three pillars; the objective, decision-making and benefit sharing. Capitalist enterprises focus their objective, its reason for being in financial gain, while the objective of social enterprises, is not focused on profit, but on the social good of their mission, non-profit organization. To recap, we fluctuate in a contemporary framework, which highlights the importance of public procurement as an economic agent, framing in its guidelines decent work and the coexistence of markets firms, located in the area of social economy, which makes a priori symbiosis between these two elements must be paramount and distinguished. To achieve a justification of social clauses, we must justify the competitiveness of companies in the social economy, on a par with the efficiency of these. When defining business competitiveness as the ability of a company to get an economic return, we know that competitiveness depends on the relationship between the productivity of a company compared to the productivity of local companies, but include the definition of Alfred Marshall 7 We found as a tool for economic analysis of a company's EVA, Economic Value Added, or Castilian definition of Economic Value Added 8, this tool analyzes the value of the company (after covering all expenses and profitability of the funds stipulated own). THEORETICAL FRAMEWORK The theoretical framework of this research is framed in the field of social economy enterprises and outsourcing of local authorities, for it will analyze the current situation European locale and to move to defining social economy organizations, analyzing the differences with the capitalist enterprises. Chapter III of the thesis focuses on the analysis of competitiveness, efficiency and added value of social economy enterprises, supporting the hypothesis of consequence for in Chapter IV, we can raise the market dichotomous and the relationship with public institutions, analyzing the implicit characteristics of public procurement and social clauses as part of the subsequent justification. HYPOTHESYS Can the CTA be presented as the preferred option, provided the European guidelines in the field of Spanish public tenders, which must include social clauses in tenders? After analyzing the concept of capitalist enterprise, social enterprise market, noting that the Constitution states that public authorities shall promote each and every one of the principles that characterize social economy enterprises, 7 "The term" competence "was surrounded by a bad atmosphere, and has come to mean a lot of selfishness and indifference to the welfare of others" Alfred Marshal. (1931, Principles of Economics INTRODUCTION TO THE STUDY OF THIS SCIENCE) 8 "When a man is engaged in a business, your earnings for the year are excess revenues received from the business for a year on its expenditure in the business." The Principles of Economics: Alfred Marshal 1890

5 1. What percentage of public institutions contracted companies have a social market economy, to cover their needs outsourced? 2. The public body have positive discrimination clauses against social organizations in case of tenders published? 3. Are there tools for individuals or corporate entities, to inform themselves quickly and efficiently, of the public procurement outsourcing services of local public entities where they can offer their services? OBJECTIVE This research should analyze the current situation of public policies and companies hiring social market economy at the local level of the entities located in Valencia. Demonstrate the competitiveness of social organizations market and promote its procurement should compete with a commercial enterprise, either positive discrimination clauses either by saving money, and that public funds should exercise a social and economic function in society (local level), so they should promote the creation of these companies to meet its constitutional objectives, (so cross this work must deliver practical solutions to this contribution, creating tools viability of business projects to streamline its constitution when it arrives when a public tender). METHODOLOGY In this context, the aim of this paper is to provide an empirical analysis demonstrating that the cooperatives have competitive advantages over the award of public contracts, which justifies the inclusion of social clauses, on par with the current situation contrasted pairing contractual of the CTA and public entities in the area of Valencia this part will be performed quantitatively by observing the actual data from official sources. EMPIRICAL ANALYSIS The empirical research of this research deals with the dichotomy between qualitative and quantitative research, offering as a result an overview of the actual situation of the environment. Necessary to compare the objectives and to respond to the hypothesis tools are searched.

6 BIBLIOGRAPHY Chaves Ávila, R., Pérez de Uralde, J. M., Patronat Sud-Nord Solidaritat i Cultura, & Universitat de València. Servei de Publicacions. (2013). La economía social y la cooperación al desarrollo: Una perspectiva internacional. Valencia: Patronat Sud-Nord Solidaritat i Cultura : Publicacions de la Universitat de València. Chaves, R., Monzón, J. L., & e-libro, C. (2001; 2006). Economía social y sector no lucrativo. Valencia: Red CIRIEC. Chaves, R., Monzón, J. L., Morales, A. C., & Ciriec. (2003). Análisis económico de la empresa autogestionada. Valencia: CIRIEC España. Comisión Europea. (2010). Adquisiciones sociales. una guía para considerar aspectos sociales en las contrataciones públicas. Printed in Belgium: Dirección General de Empleo, Asuntos Sociales e Igualdad de oportunidades de la Comisión Europea. doi:doi: /17682 Comunitat Valenciana, & Confederació de cooperatives de la Comunitat Valenciana. (2003). Ley de cooperativas de la comunidad valenciana : Ley de 24 de marzo = llei de cooperatives de la comunitat valenciana : Llei de 24 de març [[Lleis, etc., de cooperatives]]. València: Confederació de cooperatives de la Comunitat Valenciana. Ramos Pérez-Olivares, A. (2012). La regulación de las cláusulas sociales en los contratos del sector público tras el real decreto legislativo (1ª ed.). Las Rozas Madrid: La Ley. Rodríguez Escanciano, S., & Instituto Andaluz de Administración Pública. (2009). Cláusulas sociales y licitación pública: Análisis jurídico. Sevilla: Instituto Andaluz de Administración Pública. Samuelson, P. A., & e-libro, C. (2000). La economía mundial a finales de siglo. Toluca México: Universidad Autónoma del Estado de México, Programa Editorial Universitario. Samuelson, P. A., & Stiglitz, J. E. (1970). The collected scientific papers of paul A. samuelson (2print ed.). Cambridge MA etc.: MIT Press.

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