In recent years, conversations about sustainability, impact, and responsibility have moved from the margins of business strategy to the heart of corporate decision-making. Yet, despite this shift, there remains a missed opportunity: the inclusion of social entrepreneurs as non-executive directors on the boards of private organisations.
This is not about tokenism or symbolic gestures. It’s about recognising the invaluable expertise social entrepreneurs bring to the table — and ensuring they are fairly compensated for it. For over 20 years, I have watched as commercially minded individuals are sought after on the Boards of social enterprises, charities and voluntary organisations – why not the other way around?
The Value of Third Sector Expertise in the Private Sector
Social entrepreneurs are problem-solvers. They spend their careers navigating the complexities of social issues, often with limited resources and immense constraints. Their experience in the third sector gives them a unique skill set:
- Innovation under pressure: Making meaningful impact with scarce funding teaches agility and creative problem-solving.
- Community insight: Social entrepreneurs deeply understand stakeholder needs, especially marginalised voices that businesses often struggle to engage.
- Sustainability focus: Impact-driven leaders know how to balance profit, people, and planet — the very foundation of ESG strategies.
By bringing these perspectives into private sector boardrooms, organisations gain lived expertise in embedding purpose into profit.
Why Paid Positions Matter
Historically, social sector leaders have been expected to “give back” for free when invited into commercial spaces. But if their insights are valuable enough to guide billion-pound decisions, why should they not be compensated equitably?
A paid non-executive director role ensures:
- Recognition of expertise: Valuing third sector knowledge on par with financial or legal expertise.
- Equity of opportunity: Only those with independent wealth can afford to contribute without pay; remuneration opens the door to more diverse voices.
- Sustainability for their own organisations: Compensation allows social entrepreneurs to reinvest in and strengthen their own impact-driven ventures.
This is not charity — it’s a mutually beneficial exchange.
Building Stronger, More Responsible Businesses
Businesses are under pressure to prove their relevance in a world of climate crisis, inequality, and shifting consumer expectations. Appointing social entrepreneurs to their boards is not just the “right thing to do,” it’s also the smart thing to do:
- It future-proofs companies by integrating social value into long-term strategy.
- It enhances corporate reputation through authentic leadership, not box-ticking exercises.
- It unlocks opportunities for cross-sector collaboration, where private and social enterprises co-create solutions.
A Call to Action
For too long, the business and social sectors have been treated as separate worlds, with different rules and values. In reality, their futures are intertwined. To meet today’s challenges, we need leaders who can bridge those worlds — and social entrepreneurs are already doing just that.
Giving them the opportunity to sit as paid non-executive directors on private sector boards is more than inclusion. It’s an investment. It’s innovation. It’s impact.
The question isn’t why should this happen — it’s why hasn’t it happened already?