Global standards

Global standards for social enterprise are a set of five shared criteria that define what a social enterprise is. They give a clear and consistent way to describe the sector, both in Australia and around the world.

The five standards were developed through a global, collectively owned framework called People and Planet First. They state that a social enterprise must: Exist to solve a social or environmental problem; prioritise purpose, people, and planet over profit in its day-to-day decisions; have a self-sustaining revenue model, meaning it earns income through trade rather than relying only on grants or donations; reinvest the majority of any surplus back into its purpose; and choose legal structures and financing that protect that purpose over the long term. Each standard has a points-based system, and an organisation must meet the minimum threshold for all five to be verified.

In Australia, all state and national social enterprise peak bodies endorse the global standards, including Social Enterprise Australia. This matters because 'social enterprise' is not a legal structure in Australia. There is no single law or registration that makes an organisation a social enterprise. This means the term can be used loosely, sometimes by organisations that do not genuinely put people and planet first. The global standards help cut through this ambiguity. They give governments, funders, procurers, and customers a reliable way to identify and support genuine social enterprises.

For social enterprises themselves, meeting the global standards can open doors. Some government social procurement policies and grant programs recognise or require verification. Being verified also builds credibility with partners, investors, and the public. It signals that an organisation is the real thing - not just a business using social language for marketing purposes. For organisations early in their development, the standards can also serve as a useful checklist, a way to assess whether the structure, governance, and revenue model are genuinely aligned with the mission.