4.4.3.1 Formal vs. informal

The Survey data (Charts 4.3 and 4.5) revealed that the input considered in the decision-making processes from different stakeholder groups is mainly informal rather than formal. Such finding is in accordance with similar empirical results identified in literature.1 The stakeholder input was found to be predominantly informal to the extent that it does not occur as having a basis in mandatory legal requirements nor is it imposed in the social enterprises’ constitutional documents, such as the AoA and/or document of incorporation, memoranda and SoA, e.g. through membership requirements or provisions regarding the composition of the board (Chart 4.3). More formalised is the input and communication with the government and public organisations, which tend to rely on formal communication due to archival requirements and bureaucracy. The input collected by shareholders prescribed in the constitutional documents of a number of the participating social enterprises with share capital also tends to be more formalised. The foregoing findings are similarly reflected in the responses received by open- ended answers. The formal input materialises through the statutes of association and the like constitutional documents that may introduce new bodies, such as advisory groups and committees and formal shareholder meetings for the social enterprises with a share capital. The formal input also materialises through public policy, laws and regulations, which may impose regulated meetings and interactions (Table 4.6) between certain types of stakeholders and the social enterprises.