Networks: Responsibility beyond profit

Why Fellow Karen Lowthrop believes that social enterprises can provide a way out of the recession by putting people, not profit, at the heart of their business model

As we emerge from the recession, there has never been a better time for businesses to address the balance between profit and responsibility. For husband-and-wife team Nigel and Karen Lowthrop, both RSA Fellows, the social enterprise model provides an ideal way of doing this.

The Lowthrops’ story goes back to their 1995 visit to Hill Holt Wood, near Newark, a woodland area damaged by repeated tree felling. The couple decided to set up a social enterprise that involved young people in the management of the woodland. The aim was to preserve the local environment while also providing valuable training to excluded schoolchildren, young offenders and unemployed or otherwise disadvantaged young people.

Today, Hill Holt Wood employs 21 staff, nine volunteers and 45 trainees – making it an important local source of employment.Karen Lowthrop believes that social enterprises have a part to play in solving the current unemployment crisis, both by creating jobs and by equipping young people with valuable skills. “We are a nurturing site,” she explains. “We look at what has gone wrong in young people’s lives and we try to make them feel valued.”

As a social ambassador for the East Midlands, one of Lowthrop’s goals is to influence government policy and spread public awareness by establishing partnerships with local authorities, charities and representative organisations. She works closely with the local council to set up training schemes and projects, one example being a gardening contract that sees Hill Holt Wood benefit from public funding in return for employing young people to work in local gardens. “Working on the land helps people develop a closer relationship with their community,” she says, “and breaks down the urban/rural divide.”

In the drive towards sustainability, we have much to learn from the values of social enterprises. “Unlike charities, which are reliant on external funding, we want to make our business model sustainable,” explains Lowthrop. “This means being locally valued, economically viable and a good employer.”

The CEO (Lowthrop herself) is never permitted to earn more than three times the salary of the lowest-earning employee – an impressive example to set at a time when the big bonuses and skyrocketing salaries of City bankers are increasingly perceived as symptoms of an unhealthy society. As the government is urged to take decisive action against excessive pay to prevent a repetition of the current economic crisis, the Lowthrops’ business model provides much-needed inspiration.

Lowthrop has ambitious goals for the future of the enterprise: “We would like to be seen as a centre of environmental excellence and to maintain the high standards of the alternative education we provide.” To help achieve these goals and to spread their message across the East Midlands, the couple host a Fellowship network in Newark, regularly organising events and discussion groups. An Open Space event on 1 October is being held in conjunction with Fellowship Council member Helen Westropp. The event, called ‘Can you make a real difference in the East Midlands?’, involves discussion about how social enterprises can have a positive effect in areas such as the environment, education and health.

For Lowthrop, the wealth of experience and connections that the RSA can provide has been invaluable in helping her to canvass support, provoke discussion and inspire change. “The work I do is very localised, so the networks have helped me to broaden my perspective,” she acknowledges. “And in return, we’ve shown the RSA how much of an impact social enterprises can have on local communities. I’m proud of what we’ve achieved.”

Get involved

Find out more about forthcoming RSA events in the East Midlands on the RSA East Midlands ning site.


The youth of tomorrow

As employment prospects for people under 25 become increasingly uncertain, the RSA aims to tackle the problem of youth unemployment at a local level by encouraging groups of Fellows across the UK to organise and participate in civic youth job summits. These events would be aimed at the public, private and voluntary sector and could include a cross-section of young people themselves.

Lowthrop is keen to get involved. “The problems many young people face, such as poor parental guidance or low aspirations, are often not of their own making,” she points out. "There is a misconception that young people do not want to work, when in fact they may not be aware of the career opportunities out there, as career guidance often does not exist for low achievers. Getting Fellows together on the same stage could have a real impact."

Post your comments on the initiative on Matthew Taylor's blog at Youth unemployment - a challenge for the RSA.