Buy Social Canada is a social enterprise that exists to build healthy communities that are rich in social, cultural, human, environmental and economic capital. A core component of achieving this mission is our Social Enterprise Certification.

We certify social enterprises for four key reasons:

1. To create a national verification standard, as there is no one way to incorporate a social enterprise in Canada
   
   
2. To connect purchasers with verified suppliers so they can feel confident they’re buying with impact
   
   
3. To raise awareness of social enterprise as the business model that puts people and planet before profit
   
   
4. To foster relationships and movement building amongst Canadian social enterprises

Who we certify

Buy Social Canada Social Enterprise Certification uses the following definition:

A social enterprise is a business that generates the majority of its revenue from the sales of goods and/or services, it has a defined social, cultural or environmental purpose, and it reinvests majority (at least 51%) of its profits or surplus back into its purpose.

This definition is also used by Social Enterprise Council of Canada, and is internationally aligned with Social Enterprise World Forum, Social Enterprise UK, Buy Social Scotland, Government of South Korea, Social Traders in Australia, Social Enterprise Ghana, Social Enterprise Ethiopia, Buy Social USA, Buy Social Ireland, and others.

Buy Social Canada Social Enterprise Certification is a business model verification. Unlike other certification models that evaluate and award points for social or environmental policies, practices or impact, and have no restrictions on the use of profits, Buy Social Canada’s criteria for certification focus on the structure of the organization with a particular focus on the organizations’ ownership and assets.

Unlike traditional for-profit businesses, social enterprises do not exist purely to generate profits. They exist to address a community purpose. The majority (at least 51%) of the profits generated are redistributed back into that purpose. The asset lock defined in the structure of the organization ensures that no matter the type of incorporation, the social enterprises in our Social Enterprise Directory have committed to advancing their community purpose and will always do so, no matter the ownership structure of the organization.

A consistent standard

In Canada there is no single incorporation for social enterprise. Buy Social Canada’s social enterprise certification creates a national verification standard for purchasers to have confidence that they are buying with impact, and to unify the Canadian social enterprise sector by breaking down perceived differences between incorporation types and connecting leaders across the country to share learnings and build the social enterprise movement.

Social enterprises can be incorporated as:

• Not-for-profits
• Not-for-profits with charitable status
• Hybrid social enterprises, such as:
  • Cooperatives without share capital
  • Community Contribution Companies (CCC) or Community Impact Corporations (CIC)
  • For-profits owned by non-profits or charities
  • For-profits that have amended their articles of incorporation to clearly state a perpetual asset lock so that the majority (at least 51%) of profits or surplus are reinvested back into the purpose

Buy Social Canada works with businesses of all types, and we offer support to adapt or amend articles as needed as part of the certification process.

While the variation in incorporation types can create confusion about what a social enterprise really is, Buy Social Canada’s Social Enterprise Certification ensures that all Certified Social Enterprises meet the same criteria regardless of incorporation, creating a consistent standard.

Why certification matters

Increasing numbers of purchasers across Canada have implemented social procurement policies and are putting social value into their purchasing criteria. Many of these policies prioritize purchasing from Certified Social Enterprises and local, small, and diverse-owned businesses.

Likewise, consumers across the country want to vote with their dollars, choosing businesses that align with their values to do good and effect change in their communities.

Although purchasers and consumers of all types are passionate about spending with social enterprises and other social value suppliers, there are still concerns about risk. As more people investigate the businesses they buy from, they are looking for certainty that they are not supporting green washing or social washing – essentially, that the money they spend will really have the impact the business says it will.

While self-attestation may be a good option for purchasing from diverse-owned businesses, Buy Social Canada does not recommend using self-attestation for social enterprise. Instead, we advocate for purchasers to seek verification to ensure that profits or surplus are reinvested.

The term social enterprise is still not widely understood or agreed upon and is often confused with the idea of a business that just does some social good. Although businesses of all types doing social good should be applauded for their efforts, and even awarded in competitive bid processes, these good efforts are not enough to align with the international definition of a social enterprise, nor do they guarantee where the money goes. Without seeking verification, there are many businesses who would mistakenly self-identity as social enterprises.

As demand for social procurement grows, certification is crucial to identify, recognize, and raise the profile of the social enterprises that exist in Canada, while verifying that the money purchasers spend is being reinvested into community.

Join the movement

Become Certified

Verify your social impact with social enterprise certification to show stakeholders, clients, and your team that you put your money where your mouth is and contribute to community wellbeing.

Learn more about the full range of certification benefits, and apply now.

Buy with Impact

For all purchasers and consumers, find social enterprises to purchase from in the national Social Enterprise Directory, filterable by location, social value, or goods/services sold.

For public and private sector purchasers across sectors, we offer consulting services and social purchasing partnerships to support you on your journey to practice and implement social procurement and achieve strategic goals. We also offer a wealth of free online resources and training to support team learning and capacity building.

Continue the conversation

Have reflections on this conversation? Want to explore other ways to work together to advance social procurement and social enterprise in Canada? Don’t hesitate to reach out to us at info@buysocialcanada.com.