This module covers the governance of your social enterprise, including identifying stakeholders, and managing your internal organisational hierarchy.

This includes the creation of a RACI (Responsibility, Approver, Consulted, Informed) matrix, a system which allows you to create an effective responsibility chain within your social enterprise. It will also cover the role of the board. For many social enterprises, this board of directors is the primary source of funding, and they provide vital oversight to your operations. By developing an effective governance structure, and thereby establishing strong oversight, your organisation will be in a strong position to develop and scale in the future.

This module is closely linked with the Impact Measurement and Financial Management of your social enterprise, as the board will conduct oversight of how you spend, and whether that spending proves to be effective. It will also be of great use to individual staff, as it will allow them to understand the structure of the social enterprise, and provide them with a better understanding of the role of the directors.


How do I use it?

First, you must determine the stakeholders in your social enterprise, and split them between internal and external stakeholders. Internal stakeholders are your employees and others within your organisation. External stakeholders are those who are not directly within your organisation, though this will include those directly impacted by your organisational decisions.

Once this is completed, you will construct a RACI matrix. This involves: naming the Responsibility (person who will conduct a task); the Approver (who has final decision-making responsibility); the Consulted (individuals who must be consulted during the process or prior to its completion); and the Informed (those who must be notified of the decision). This will allow you to track responsibility and increase accountability.

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