ANNEX TO THE RESOLUTION:

RECOMMENDATIONS AS TO THE CONTENT OF THE PROPOSAL REQUESTED

Recommendation 1 (creation of the European Social Economy Label and qualifying undertakings)

The European Parliament considers that the legislative act to be adopted should aim to create a ‘European Social Economy Label’, which will be optional for enterprises based on the social economy and solidarity (social and solidarity-based enterprises), regardless of the legal form they decide to adopt in accordance with national legislation.

The European Parliament considers that the European Social Economy Label should only be awarded to enterprises complying with the following criteria in a cumulative manner:

(a) the organisation should be a private law entity established in whichever form available in Member States and under EU law, and should be independent from the State and public authorities;

(b) its purpose must be essentially focused on the general interest or public utility;

(c) it should essentially conduct a socially useful and solidarity-based activity, i.e. via its activities it should aim to provide support to vulnerable groups, to combat social exclusion, inequality and violations of fundamental rights, including at the international level, or to help protect the environment, biodiversity, the climate and natural resources;

(d) it should be subject to an at least partial constraint on profit distribution and to specific rules on the allocation of profits and assets during its entire life, including at dissolution; in any case, the majority of the profits made by the undertaking should be reinvested or otherwise used to achieve its social purpose;

(e) it should be governed in accordance with democratic governance models involving its employees, customers and stakeholders affected by its activities; members’ power and weight in decision-making may not be based on the capital they may hold;

The European Parliament considers that nothing prevents conventional undertakings from being awarded the European Social Economy Label if they comply with the above-mentioned requirements, in particular regarding their object, the distribution of profits, governance and decision-making.

Recommendation 2 (mechanism for the certification, supervision and monitoring of the European Social Economy Label)

The legislative act should establish a mechanism of certification and of supervision and monitoring of the legal label with the involvement of Member States and representatives of the social economy; such a mechanism is essential to protect the legal label of enterprise based on the social economy and solidarity’ and preserve its intrinsic value. The European Parliament considers that this control should involve organisations representative of the social enterprise sector.

Penalties for the infringement of the relevant rules could range from a mere admonition to the withdrawal of the label.

Recommendation 3 (recognition of the European Social Economy Label)

The European Social Economy Label should be valid in all Member States. An enterprise bearing that label should be recognised as a social and solidarity-based enterprise in all Member States. The label should allow any undertaking bearing it to carry out its main activity in other Member States under the same requirements as national undertakings bearing that label. They should enjoy the same benefits, rights and obligations as social and solidarity-based enterprises incorporated under the law of the Member State in which they operate.

Recommendation 4 (reporting obligations)

The legislative act should require social and solidarity-based enterprises willing to maintain the label to issue on an annual basis a social report on their activities, results, involvement of stakeholders, allocation of profits, salaries, subsidies, and other benefits received. In this regard, the Commission should be authorised to produce a model to help social and solidarity-based enterprises with this endeavour.

Recommendation 5 (guidelines regarding good practices)

The legislative act should also authorise the Commission to establish guidelines regarding good practices for social and solidarity-based enterprises in Europe. Such good practices should include, in particular, the following:

(a) models of effective democratic governance;

(b) consultation processes for the establishment of an effective business strategy;

(c) adaptation to social needs and to the employment market, particularly at the local level;

(d) wage policy, professional training, health and safety at work and quality of employment;

(e) relations with users and clients and the response to social needs not covered by the market or the State;

(f) the situation of the enterprise with regard to diversity, non-discrimination and equal opportunities for men and women among their members, including positions of responsibility and leadership;

Recommendation 6 (list of legal forms)

The legislative act should include a list of legal forms in Member States of enterprises and undertakings qualifying for the European Social Economy Label. Such list should be reviewed regularly. In order to ensure transparency and effective cooperation between the Member States, that list should be published on the European Commission website.

Recommendation 7 (revision of existing legislation)

The Commission is invited to review existing legal acts and to submit, where appropriate, legislative proposals establishing a more coherent and complete legal framework in support of social and solidarity-based enterprises;

Recommendation 8 (on the eco-system for social and solidarity-based enterprises and cooperation between Member States)

The Commission should ensure that its policies reflect the commitment to create an eco-system for social and solidarity-based enterprises. The Commission is invited to take account of the fact that social and solidarity-based enterprises have a strong local and regional influence, which gives them the advantage of being more aware of specific needs and able to offer products and services, most of them community-based, as well as to enhance social and territorial cohesion. The Commission is invited to take steps to promote cooperation between social enterprises and solidarity-based enterprises across national and sectoral boundaries so as to nurture the exchange of knowledge and practices in such a way as to support the development of such enterprises;