Montenegro has adopted the following legal frameworks, strategies, and vision documents related to social innovation:

• Non-profit organizations and charities
  
• Welfare sector
• Community based
• led organizations
• SDG
• ESG

Stage5: Welfare sector
Stage6: Non-profit organizations and charities
Stage7: Welfare sector

with

• Stage1: “No Policy or Recognition: No formal recognition, discussion, or policy exists. The sector operates informally or without government involvement.”;
• Stage2: “Initial Discussions & Awareness: The government acknowledges the sector and has started discussions or consultations, but no formal policy framework or regulation exists.”;
• Stage3: “Draft Policy or Framework in Development: A draft policy, strategy, or regulatory framework is currently being developed. The government may be conducting research, stakeholder consultations, or legislative drafting.”;
• Stage4: “Pilot Programs or Limited Implementation: Some initiatives, pilot projects, or partial government-backed programs exist, but full implementation has not yet been achieved. Policies may be tested in select regions or for specific groups.”;
• Stage5: “Policy Adopted but Not Fully Implemented: A formal law, policy, or regulation has been passed, but it has not been fully implemented, enforced, or funded. Gaps in execution may still exist.”;
• Stage6: “Policy in Effect & Actively Implemented: The policy is fully enacted and actively being implemented. There is clear government support, funding, and enforcement mechanisms in place.”;
• Stage7: “Policy Reviewed & Strengthened: The existing policy has been evaluated and improved over time based on feedback, data, or evolving needs. New funding, incentives, or structural reforms may have been introduced.”; and
• Stage8: “Leading in Policy Innovation: The country is recognized as a leader in this policy area, with best practices, strong regulatory frameworks, and incentives that actively promote and support the sector.”

More details:

Montenegro has been applying the Law on Non-Governmental Organizations since 2017. Non-governmental organizations, foundations, associations are of a non-profit nature and are involved in all areas of solving social problems. All the mentioned organizations are financed by projects from domestic and international funds. The Government of Montenegro allocates certain budget funds on an annual basis for the best projects of non-governmental organizations in priority areas of activity such as, social and health care, assistance to the elderly, social care for children and youth, protection of PWDs, protection from violence and domestic violence, development of civil society and volunteerism, protection and promotion of human and minority rights, gender equality, etc.

In Montenegro, the Law on Social and Child Protection applies, which specifically protects children, young people, adults and the elderly. the law prescribes two basic categories of rights: material benefits and services in the field of social and child protection. The Ministry of Social Welfare, Family Care and Demography is the policy maker in the field of social and child protection and supervises the implementation of this law. Citizens exercise their rights in the field of social and child protection through centers for social work and some of them in institutions or with service providers, where in most cases the service providers are licensed non-governmental organizations.

In Montenegro, organized associations are in most cases formed to solve a certain social problem, for example, associations of parents of children with disabilities, associations of PWDs, associations for providing assistance to women victims of violence, associations for assistance to migrants. All these associations are organized as non-governmental organizations. There are other types of community associations that are of the cooperative type, such as agricultural cooperatives that are for-profit and housing cooperatives that are not-for-profit. Also, there are associations that are not of crucial importance for the topic of social innovations, such as professional associations, trade unions, employers’ associations, etc.

Montenegro adopted the National Strategy for Sustainable Development until 2030. The adoption of all new strategies in Montenegro, as well as those that are current now, respect the strategic goals of the National Sustainable Development Strategy, which focuses on strengthening social inclusion, improving demographic trends in terms of reducing demographic deficits, emphasizing inclusive education, lifelong learning, waste management, green economy, increasing employability, etc.

ESG principles are becoming more and more relevant in Montenegro, especially in the context of global changes and pressures towards sustainability and responsible business. Montenegro, like many other countries, is increasingly recognizing the importance of integrating environmental, social and management factors into business strategies. However, the application of ESG principles in Montenegro is still at an early stage. Environmental factors are key for Montenegro, because the country has a wealth of natural resources. Like all countries, Montenegro faces problems such as air pollution, waste management and energy efficiency. In recent years, the country has begun to recognize the importance of green economy and sustainable development. Social factors in Montenegro include issues such as labor rights, occupational safety, education and health. There is a need to improve living standards, reduce unemployment, and ensure equal rights for all citizens, including minority groups. The Government of Montenegro is harmonizing its legal and institutional framework with EU best practices in terms of governance. It also works to strengthen trust in government and local institutions and create an environment for the private sector where the model of social responsibility is promoted in a business context.