The Impact of Social Investment
Social investment is about investing in people. Social investing involves policies in communities, designed to strengthen skills and support them to participate in employment and social life. Policy areas vary from education, healthcare,quality childcare, training, disaster rehabilitation and job-search assistance
The question for social investors of starts with how can you make the world a better place?
Understand the needs of others. Open yourself up to critique and listen to advice from those affected by the issue. Understanding is a process that requires us to orient our ideas toward appropriate intervention.
Social investing can come in many forms. While altruism and guilt seem to be the prime motivator for investing in social issues, making an impact has started to surface as a third form of motivation with expectations of market-rate returns for social investments.
Social investors are driven by the aspiration to build something positive rather than the desire to fix existing liabilities and weaknesses.
Social investment is repayable finance that creates both social and financial returns. It is provided to charities, social enterprises and socially motivated businesses. Investors expect to get their money back (often with interest) and expect the finance to have created identifiable social impact. Social investment is not a grant or a donation. This group of aspirational investors typically use a value-based investment to build and manage their portfolio. Portfolio managers conduct all of their activities from selection and due diligence to impact assessment.
Faith, Gender and the Environment
In the faith-based investment category, a strong focus on human dignity and stewardship of the environment from the lens of charity. The focus is on projects that help the poor or less fortunate. These investments exclude industries such as tobacco,alcohol, and gambling. Gender investment benefits women who are otherwise overshadowed. Investing provides more equal opportunities, better access to the labour market and thus better social protection.
Social Investing solutions aim to provide great value to the world, beyond fiscal greed. The greatest value is achieved when social goals are at the forefront of the business strategy. There is a clear desire of investors to earn a stable return, all while achieving social impact.