The Impact of Social Finance: How Companies Can Do Good

[ 0 ] June 29, 2014 |

Global business has evolved tremendously in recent years. An international company that exists in the world today cannot keep its focus solely on profits; “corporate social responsibility” is a fairly new term that companies are building their business on. Corporate social responsibility is the idea that a business should have a good social impact. The concept of social finance allows for companies to have a good social impact and make money.

WATCH as Rebecca Leventhal, director on the Business Development Team at Social Finance, explains the concepts at the 2014 Aspen Ideas Festival in greater detail, and talks about how she collaborates with nonprofits and governments to identify and structure innovative ways to expand evidence-based social service programs:

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Social finance is a type of finance as well as a financial organization. It is a fairly new economical concept that was developed in 2010. Social Finance US is a 501c3 nonprofit organization dedicated to mobilizing investment capital to drive social progress.  The group believe that everyone deserves the opportunity to thrive, and that social impact financing can play a catalytic role in creating these opportunities. The organization is an impact investing socialfinancefirm that belongs to a larger global network of social finance organizations, including countries such as the United Kingdom and Israel.

Leventhal explained that a Social Impact Bond is a public-private partnership that raises investment capital to finance social outcomes. These bonds are similar to philanthropy and government grants in that they provide money towards a cause, however, social impact bonds give the investor a chance to make money whereas the others do not. Although it isn’t the best way to make money if one is to make money purely for profit’s sake, it is a good way for a company to make money while also maintaining good corporate social responsibility.

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Follow all of the wisdom from the 2014 Aspen Ideas Festival on Twitter @AspenIdeas #AspenIdeas, and genConnect on Facebook and Twitter 

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Category: Aspen Ideas Festival 2014

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About Rebecca Leventhal: Rebecca Leventhal is a Director on the Business Development Team where she collaborates with nonprofits and governments to identify and structure innovative ways to expand evidence-based social service programs. Focusing on criminal justice and education [...]
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