The Nippon Foundation, a leading Japanese philanthropy, hosted a high-level meeting in January 2014 in Tokyo on the potential of Social Impact Bonds. Today, roughly JPY 850 trillion, or 55 percent of financial assets in Japan, is held in commercial banks as cash deposits—a scenario that invites the question of what would be possible if only a fraction of these assets were invested with purpose.
More and more financial institutions and private investors are interested in investing in social enterprises: it is a more secure form of investment than financial markets and it has a social objective. But to be able to decide if to invest or not, investors need to measure their risk, therefore they are interested in measuring the social impact of the social enterprise they might decide to support. –
D. Capital, Dalberg’s impact investing arm, helped Nando’s create the model for the first social impact bond for malaria in Mozambique, and other partners include South African mining giant Anglo-American and Coca-Cola.
Distilling insights from interviews with social intrapreneurs, their colleagues and experts from around the world, the authors bring to life how business can be about more than just maximizing profit.
“If you rely on celebrity endorsement to prop up a failing or superficial product or charity service, then you are doing more harm than good … and quite probably taking the limelight away from other organisations doing good work in that field.”
As a social entrepreneur, you have the duty of showing that what you are doing is actually benefiting your stakeholders and the society at large as well as having the right management tools that let you manage your organization well.
Britain’s social economy is growing, but many early stage social businesses struggle to access the right kind of finance.
‘Social enterprises say, where’s the money? Social investors say where are the deals? Is social investment a great hype or a great hope?’ There is demand for social investment,’ said Brass, ‘we just need to get the money in. “Berenberg and LGT are the current investors. They have approached 350 people and 7 have signed up – generally agreed to be a great achievement. A particular achievement is having the London Borough of Waltham Forest Pension Fund among its investors.
As social problems mount, we must shift from the “charity” of our predecessors to an understanding of social change as part of everything we do.
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