[MUSIC]. Let's take a look at a spectrum of organizational forms. On the left, we'll see, voluntary associations, trusts, charities, non-profit organisations. These have all been effective models in organizing around a social mission. Ultimately, these organizations are accountable to their beneficiaries, to their stakeholders, and funders. And they measure their success, through the social impacts they achieve. If there's any surplus in these organizations, they are distributed back into the organization and into the community. On the right hand side of the spectrum, you'll see traditional businesses and private companies. And there are many organizational forms around private corporations, around the world. We know these organizations are regulated and accountable to their shareholders. They are driven by a profit mission, and ultimately they measure their success in a unit of currency. In some form of profit measurement, return on investment and if there's any surplus or profit created on these organizations, it's distributed to private individuals. So, we've seen mounting pressure on both of the extremes of the spectrum in the last two decades. The non-profit organizations and charities have seen pressures come from donor organizations. From a more competitive landscape, from increasing demands on being performance oriented and measuring their success. And also their own sustainability as organizations. So they've started to move up the spectrum and think about how can they start generating their own income, create more independence. Be more performance oriented and open up new forms of capital fund raising? The pressures on the business sector, many people have seen as we as citizens asking business to be more responsible. We see this certainly, for example, in the pharmaceutical industry where mounting pressure has come from citizens and community organizations. To drive access to essential medicines and make those more affordable. Also mining companies have come under significant pressure to be more environmentally responsible and sustainable. So the pressure has mounted on private business to be more responsible socially and environmentally. And so practices corporate social responsibility and sustainability and responsible business practice have started to emerge. In the middle of the spectrum, we see the rise of the social enterprise. Essentially a set of experiments around organizational form trying to blend both the social and economic mission of organizations. While keeping the social mission foremost in mind, we are able to start thinking about performance orientation, sustainability strategies, and bringing them together in one organization. We've seen this play out in many different ways across the world as people experiment with new organizational forms. In many countries, there are hybrid organizations being created. So organizations that look like they are something between a non-profit and a for profit. And sometimes they are hybrid in the way that there are multiple organizations connected to each other. So a non-profit organization, for example, owning a small business or a large business setting up a non-profit or a trust. As we saw in the 19th century regulation catching up to practice of non-profit and for profit organizations. We see new regulation emerging around legal structures and so it's fascinating to see new legal entities being created in many countries across the world. In France for example, we have the solidarity company In the UK, the Community Interest Company, or CIC. In Canada, the Community Contributions Company. And now increasingly across the world, something we've mentioned before, the Benefit Corporation, or B Corp. The B Corp Is regulated in two ways. The first is through a new legal structure, which is available in the USA. And in the rest of the world, through a certification mechanism, like Fair Trade, for example, where companies are certified to be benefit corporations. And we've seen this explode with none more than a thousand 700 companies in the world being BCOP certified across 50 countries and a 130 different industries. So, we can see now our playbook is more than just these two extremes of this organizational spectrum, the non-profit and full profit. But, we have a range of different ways of organizing around implementing a social innovation. But let's not forget that these are the only ways in which social innovations can be implemented. We can see social innovations emerge and arise through existing organizations, like government departments or large corporations or existing non-profit entities. And continue to work and be implemented through informal organizing, such as social movements. In the next video, we're going to start looking at how we can start to measure success in these organizations, and also how they can be funded. [MUSIC]