Back تمويل اجتماعي Arabic 公益金融 Chinese

Social finance

Social finance serves as a middle ground between traditional business, whose main driver is to achieve financial value and traditional charity, whose main driver is to achieve social value.

Social finance is a category of financial services that aims to leverage private capital to address challenges in areas of social and environmental need.[1] Having gained popularity in the aftermath of the 2008 global financial crisis, it is notable for its public benefit focus.[2][3][4] Mechanisms of creating shared social value are not new; however, social finance is conceptually unique as an approach to solving social problems while simultaneously creating economic value.[5][6] Unlike philanthropy, which has a similar mission-motive, social finance secures its own sustainability by being profitable for investors.[7] Capital providers lend to social enterprises, who in turn, by investing borrowed funds in socially beneficial initiatives, deliver investors measurable social returns in addition to traditional financial returns on their investment.[8]

Consensus has yet to be established on a formal definition of social finance due to a lack of clarity around its scope and intent;[9] however, it is said to include elements of impact investing, socially responsible investing, and social enterprise lending.[10] Investors include charitable foundations, retail investors, and institutional investors.[11] Notable examples of social finance instruments are social impact bonds and social impact funds.[9]

Since the 2008 financial crisis, the social finance industry has been experiencing a period of accelerated growth as shifts in investor sentiment have increased demand for ethically responsible investment alternatives by retail investors.[2][3] Mainstream sources of capital have entered the market as a result, including Deutsche Bank, which in 2011 became the first commercial bank to raise a social investment fund.[12][13]

New research in the field calls for increasing the role of government in social finance to help overcome the challenges the industry currently faces, including the struggle to produce desirable returns for investors, high start-up and regulatory costs, neglect from mainstream banks, and a lack of access to retail investors.[11][14] Proponents of social finance argue that until these gaps are addressed, mass participation in social finance will be prevented.[12]

  1. ^ "What is sustainable finance?". The Economist. 2018-04-17. Retrieved 2020-12-14.
  2. ^ a b Shenai, Neil (2018-09-19). Social Finance: Shadow Banking During the Global Financial Crisis. Springer. ISBN 9783319913469.
  3. ^ a b Benedikter, Roland (2011-01-13). Social Banking and Social Finance: Answers to the Economic Crisis. Springer Science & Business Media. ISBN 9781441977748.
  4. ^ Organisation for Economic Co-operation and Development. “New investment approaches for addressing social and economic challenges.” Science, Technology and Industry Policy Papers. By Karen Wilson, 1 Jul 2014, pp. 41-81.
  5. ^ Cite error: The named reference :13 was invoked but never defined (see the help page).
  6. ^ Salway, Mark (2020-10-28). Demystifying Social Finance and Social Investment. Routledge. ISBN 9781317152804.
  7. ^ Canada, Department of Employment and Social Development. Harnessing the power of social finance. 2 May 2013, pp. 10-26.
  8. ^ Baker, H. Kent; Nofsinger, John R. (2012-08-31). Socially Responsible Finance and Investing: Financial Institutions, Corporations, Investors, and Activists. John Wiley & Sons. ISBN 9781118237014.
  9. ^ a b Emerson, Jed, and Nicholls, Alex. “Social finance: Capitalizing social impact.” Social Finance, edited by Jed Emerson, et al., Oxford University Press, 2015, pp. 1-45.
  10. ^ Höchstädter, Anna Katharina; Scheck, Barbara (2014-08-26). "What's in a Name: An Analysis of Impact Investing Understandings by Academics and Practitioners". Journal of Business Ethics. 132 (2): 449–475. doi:10.1007/s10551-014-2327-0. JSTOR 24703550. S2CID 154064908.
  11. ^ a b Cite error: The named reference :0 was invoked but never defined (see the help page).
  12. ^ a b Cite error: The named reference :3 was invoked but never defined (see the help page).
  13. ^ "Deutsche Bank Impact Investment Fund 1". www.db.com. Retrieved 2020-12-14.
  14. ^ Cite error: The named reference :5 was invoked but never defined (see the help page).
From Wikipedia, the free encyclopedia · View on Wikipedia

Developed by Nelliwinne