Social and Solidarity Economy (SSE)
This term covers a set of structures based on common values and principles: social utility, cooperation, local anchorage adapted to the needs of each territory and its inhabitants. SSE activities provide responses to social and societal needs by combining sustainable economic activities with positive social effects. The actors contribute to an inclusive, intelligent and sustainable growth, quality jobs, social cohesion and local and regional development.
Since 2009, Luxembourg has a ministerial social and solidarity economy department dedicated to the promotion of SSE at national and international levels.
Since 2016, a law highlights the specificities of the social and solidarity economy sector in Luxembourg.
This term refers to the transformation generated by an organisation's activities on society, its citizens and its environment over the long run. It is important to differentiate between the impact of an organisation's output and outcome. Outputs are the actions, products and services that the organisation develops. Results are the immediate effects of these actions.
Finally, the impact is the medium and long-term effect that these actions create on the stakeholders.
Social innovation provides new and effective solutions to social and societal needs that are poorly or not at all satisfied in all sectors and that neither the state nor the market can meet alone. The social and solidarity economy often goes hand in hand with social innovation.
The law on the cration of SIS companies provides for a minimum of 2 performance indicators to quantify the social impact of the SIS and thus to verify effectively and reliably that the corporate social purpose has been achieved.