Voluntary Code of Practice for Social Enterprise in Scotland
GSEN follows the Voluntary Code of Practice for Social Enterprise in Scotland.
- A Social Enterprise (SE) is a trading business – selling goods and services – but whose primary objective is to achieve social and/or environmental benefit. SEs are different from those charities and voluntary organisations which do not aspire to financial independence through trading.
- Regardless of its legal form, the constitution of a SE will include the requirement that profits are reinvested in the business or in the beneficiary community – and not distributed to private owners, shareholders or investors. (See FAQs)
- The constitution will always require that on dissolution, the assets of the SE are reinvested in another organisation with similar aims and objectives. Taken together Criteria 2 and 3 are referred to as the ‘asset lock’ – the defining characteristic of a SE – which distinguishes it from the private sector.
- SEs are constituted and managed in an accountable and transparent way – particularly with regard to the community they serve. To demonstrate this, SEs, regardless of their legal form, should have a minimum of three (unrelated) Directors
- SEs are distinct from the public sector and cannot be the subsidiary of a public body.
For more information on The Code
If you have any questions on your eligibility please do get in touch to see if we can help!