What is social innovation?
Social innovation refers to any project that creates innovative and technological solutions that aim to benefit society. Solutions created through social innovation are often used to tackle extremely challenging environmental and social problems.
Solutions under the banner of social innovation operate under specific criteria relating to economic sustainability. They often demand active collaboration between the private sector, businesses, non-profits and charities and Governments at local and national levels. This often results in hybrid organisations and social enterprises being created.
Examples of social innovation
There are thousands of examples of social innovation in action around the world. Here is one relatively recent social innovation movement that is proven to improve conditions for workers and has created a sustainable economy.
- Fair Trade
This organisation is now globally recognised and has become an internationally popular brand. It’s an organised movement that acts to put in place high level trading standards for specific products, such as sugar, chocolate and coffee.
- EdTech and Distance Learning
While the concept of distance learning is not new, technology has helped advance the delivery of and access to education. Ultimately, education equals the playfield and enhances an individual’s chances of progressing the social and economic ladder that is social mobility.
What is impact investing?
Impact investing refers to the process of evaluating the impact of the potential investments, as well as the risk and return. Much weight is added to the socio-economic impact of investments. Whilst focus is placed on positively impacting social or environmental issues, investors also look to the removal of investments considered harmful to the environment and the development of social, environmental and governmental parameters. The next step from this is to apply investment MONEY towards solving the problems facing society.
Many investors will now only support a fund that invests in companies or brands that tackle social issues. The term is often used to describe an angel investor who actively funds charities and businesses who are starting out in this field. Investments often focus on technology companies that are working on solving problems or could focus on environmental impact. Impact investing is also known as social impact investment. Over recent years it has become apparent to many investors at all levels that putting money into a company that creates a positive impact does not mean lower returns. The more impact these companies create, the more profit they make. And that goes back to the impact investors. Research shows that businesses focused on positive impact are actually more sustainable over the long term. Over the years, it has become apparent to investors at all levels that Profit and ‘good’ are not mutually exclusive, putting money into a company that creates a positive impact does not mean lower returns.
why create impacting.org?
The concept is simple. To bring together like-minded thought leaders, industry experts and innovative thinkers under a united banner: impacting.org. This site will create a platform for posting cutting-edge ideas, debate and converse around all things to do with social innovation and impact investing. Content authors will be from every corner of the globe, bringing their unique and valuable insights into a cohesive environment.