Social finance
Encyclopedia
Social finance is an approach to managing money that delivers a social dividend
and an economic return.
Social finance includes community investing, microlending, social impact bonds, and sustainable business and social enterprise lending
. Outcome-based Philanthropic
grantmaking and program-related investments - sometimes referred to as venture philanthropy- also fall under the umbrella of social finance.
These approaches to investment and funding share the twin focus of stimulating positive social and environmental returns for investors and the larger world. Some social investors even try to affect an environmental return, which is referred to as a regard for a ‘triple bottom line
’.
Social dividend
A social dividend is a proposal for allocating surplus value, or economic profits, generated by publicly-owned enterprises in a socialist economic system...
and an economic return.
Social finance includes community investing, microlending, social impact bonds, and sustainable business and social enterprise lending
Social enterprise lending
Social enterprise lending is a form of social finance which refers to the practice of offering loans and other financing vehicles below current market rates to social enterprises and other organisations pursuing social goals. This is often referred to as patient lending or financing with ‘soft’ terms...
. Outcome-based Philanthropic
Philanthropy
Philanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
grantmaking and program-related investments - sometimes referred to as venture philanthropy- also fall under the umbrella of social finance.
These approaches to investment and funding share the twin focus of stimulating positive social and environmental returns for investors and the larger world. Some social investors even try to affect an environmental return, which is referred to as a regard for a ‘triple bottom line
Triple bottom line
The triple bottom line captures an expanded spectrum of values and criteria for measuring organizational success: economic, ecological, and social...
’.
See also
- Socially-responsible investing (also known as Impact investingImpact investingImpact investing refers to investments made based on the practice of assessing not only the financial return on investment, but also the social and environmental impacts of the investment that happen in the course of the operations of the business and the consumption of the product or service which...
) - Social FinanceSocial FinanceSocial Finance is a London, England, based organisation created in 2007 with the aim of developing a social investment market in the UK. The organisation provides access to capital and advice to investors and social sector entities interested in delivering social impact.- Funding :Initially...
(For the Public Limited Company)
External links
- A place in society: Financial innovation and the poor, The EconomistThe EconomistThe Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
, Sep 25th 2009 - Social Impact Bonds
- Clann Credo: What is Social Finance?