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This article explores the concept of blended value in investment strategies that prioritize both societal and financial returns. It analyzes various models, including socially driven businesses, revenue-generating social enterprises, and traditional charities, highlighting the potential for sustainable practices that achieve societal impact while also delivering financial profitability. We examine how social purpose organizations (SPOs) can effectively balance these goals and the significant role of corporate social responsibility (CSR) in supporting mission-driven initiatives.
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Investment spectrum Primary driver is to create societalvalue Primary driver is to create financial value ‘Blended’ societal and financial value SOCIAL PURPOSE ORGANISATIONS [SPO’s] SociallyDrivenBusinesses Revenue-generating Social Enterprises TraditionalBusiness Charities TraditionalBusiness SociallyDrivenBusiness Charities Revenue Generating Social Enterprises Financial return Possible societal return Societal return No financial return Potentially sustainable >75% trading revenue CSR Company Breakeven all income from trading Profitable surplus reinvested Grants only;no trading Trading revenue and grants Company allocating percentage to charity Mainstream Market Company Profit distributing socially driven Impact First Finance First Impact Only Grant making Social investment “Impact” investment Venture Philanthropy Source: shærpa and EVPA