In the French/Latin speaking areas, social refers to the type of ownership by
individual persons and not by shareholders, functioning on the principle of “one person, one
vote”. In the English speaking areas social economy is also known as the “third sector: “social”
relates to the purpose or the sector of activity, such as day-care, health, care of the elderly, etc.
As such, the third sector is positioned between the private for-profit (businesses) and public
(state-led public investments and redistribution processes) sectors. In both definition,
cooperatives, mutuals, association and non-profits as well as charities and foundations are
included. While Social economy is based on shared principles of cooperation, workers'
democratic engagement and environmental sustainability, it is usually part of the Market
economy and does not challenge it in a transformative way.
