scholarly journals Impact Investing Strategy: Managing Conflicts between Impact Investor and Investee Social Enterprise

2019 ◽  
Vol 11 (15) ◽  
pp. 4117 ◽  
Author(s):  
Agrawal ◽  
Hockerts
Keyword(s):  
Social Enterprise ◽  
Social Impact ◽  
Economic Value ◽  
Social Enterprises ◽  
Impact Measurement ◽  
Impact Investing ◽  
Industry Specialization ◽  
Social Mission ◽  
For Profit ◽  
The Impact

Impact investing pursues the dual goals of creating socio-economic value for the marginalized, and ensuring net positive financial returns. Impact investing firms achieve their goals through their investments in projects and enterprises which create both social and commercial values. The primary aim of this article is to contribute to our understanding of the process of impact investing, particularly with respect to issues related to aligning impact investing and investee social enterprise goals. The research method employs case-based research methodology. The data consist of six cases of impact investing and their investee social enterprises. In addition, the data involve interviews with experts from the field of impact investing. The findings are that: (1) Social mission plays an important moderating role in the inter-organizational relationship between the impact investor and the investee social enterprise, (2) and an emphasis on due diligence, sector specialization, and communication increases the likelihood of investment while (3) social impact measurement and reporting and frequent engagement increase the likelihood of post-investment alignment. The key contribution of this article is that impact investing (unlike venture capital) is influenced by the ability of its investee to create social value, which plays an important role in the inter-organizational relationship between investor and investee. Furthermore, similar to industry specialization in the for-profit investing, social sector specialization is equally relevant for alignment and returns.

Social Enterprise Law

2017 ◽  
Author(s):  
Dana Brakman Reiser ◽  
Steven A. Dean
Keyword(s):  
Social Enterprise ◽  
Social Enterprises ◽  
Social Entrepreneurs ◽  
Bottom Line ◽  
Social Mission ◽  
For Profit ◽  
Benefit Corporation ◽  
Benefit Corporations ◽  
Contingent Convertible Debt ◽  
Legislative Changes

Social Enterprise Law presents a series of audacious legal technologies designed to unleash the potential of social enterprise. Until now, the law has been viewed as an obstacle to social entrepreneurship, too inflexible to embrace for-profit businesses with a social mission at their core. Legislators have poured resources into creating hybrid corporate forms such as the benefit corporation to eliminate barriers to the creation of social enterprises. That first generation of social enterprise law has not done enough. The authors provide a framework for future legislation to do what benefit corporations have not: create durable commitments by social entrepreneurs and investors to balance financial gains and social mission by putting a speed limit on profits. They show how sophisticated investors need not wait for the advent of these legislative changes, outlining a contingent convertible debt instrument that relies instead on financial engineering to build trust between those with capital and those ready to use it to nurture a double bottom line. To allow social enterprises to harness the vast power of the crowd, they develop a tax regime that would provide crowdfunding platforms the means to screen the commitment of for-profit startups. Armed with these tools of social enterprise law 2.0 and the burgeoning metrics of measuring public benefit, entrepreneurs and investors can navigate even the turbulent waters of exit without sacrificing mission, so that a sale need not mean selling out.

scholarly journals Efficiency in Social Enterprises

2017 ◽  
Vol 4 (2) ◽  
pp. 61
Author(s):  
José Carlos Ballester-Miquel ◽  
Pilar Perez-Ruiz ◽  
Javier Hernandez-Gadea ◽  
Hugo De juan Jordán ◽  
Maria Guijarro García
Keyword(s):  
Social Impact ◽  
Social Economy ◽  
Social Enterprises ◽  
Simple Method ◽  
Social Mission ◽  
The Social ◽  
Public Aid ◽  
Set Up ◽  
The Impact

<p class="Textoindependiente21"><span lang="EN-US">The aim of this article is to offer a review of the impact the different methodologies of analysis have on social enterprises, focusing the study on processes that establish a greater universality based on the degree of success achieved in their social objectives, the social reinvestment of their benefits and their democratic organisation, parameters that should favour the creation of a clear and simple method, as well as adaptable to change. The systematics will allow to establish systems for the measurement of the efficiency of social enterprises, in order to both organise objective procedures of comparison and offer support when applying for public aid derived from European and national funds set up for this purpose. The quantification of the social impact of the companies that constitute the social economy is vital to assess and follow up on their social mission.</span></p>

scholarly journals Corporate governance practices and outcomes in social enterprises in the UK

2015 ◽  
Vol 28 (1) ◽  
pp. 57-71 ◽  
Author(s):  
Walter Mswaka ◽  
Olu Aluko
Keyword(s):  
Social Enterprise ◽  
Social Enterprises ◽  
Content Type ◽  
Social Mission ◽  
The Social ◽  
Depth Analysis ◽  
Governance Models ◽  
The Uk ◽  
Enterprise Governance ◽  
The Impact

Purpose – The purpose of this paper is to explore the growth of social enterprise in the UK in the context of the renewed interest in the creative use of organisations with a social mission to complement public service delivery. Given the impact of globalisation and increased demands for effective social welfare interventions, this paper specifically focuses on the nature and type of social enterprise governance models and how they influence their outcomes. Design/methodology/approach – The study utilises a mixed method approach involving the complementary use of quantitative and qualitative data collection methods. Findings – The paper finds that the way in which the social enterprise governance structure is designed ultimately influences its outcomes. In particular, those with stewardship governance models tend to perform better than those with democratic models of governance. This leads to a conclusion that in the social context of the UK, social enterprise should aim for a paradigm shift in the design and selection of governance models. Research limitations/implications – Comparative regional experiences in other regions or social contexts could enrich our understanding of whether these results are applicable across the board. Practical implications – This paper is of potential benefit to researchers and particularly those designing policies for the governance of social enterprise. Originality/value – The study employs innovative analytical theoretical lenses not normally associated with the social economy, namely agency, stewardship and resource dependency theories to provide a more in-depth analysis of the governance of contemporary social enterprise.

scholarly journals PERCEIVED FACTORS OF SUCCESSFUL SOCIAL ENTERPRISES: THE CASE OF THE STATE ISLAMIC RELIGIOUS COUNCILS AND WAQF LAND DEVELOPMENT IN MALAYSIA

2019 ◽  
pp. 66-75
Author(s):  
Norinah Mohd Ali ◽  
Nurul Shahnaz Ahmad Mahdzan ◽  
Rubi Ahmad ◽  
Abdul Rahim Ahmad
Keyword(s):  
Social Enterprise ◽  
Social Impact ◽  
Public Involvement ◽  
Economic Value ◽  
Land Development ◽  
Social Enterprises ◽  
Maintenance Cost ◽  
Structured Interviews ◽  
Property Development ◽  
The Social

Waqf properties need to be perpetual, irrevocable and inalienable. Even though the social impact is the main objective of waqf creation, it cannot be denied that the economic value is important to help maintain and sustain waqf properties since getting funding for waqf property development is very difficult. Hence, State Islamic Religious Councils (henceforth referred to as the Councils) as waqf trustees are expected to operate as a social enterprise in developing its waqf land. This paper aims to investigate the perceived factors of the current waqf land development practices in each Council that contribute to the Council’s success as a social enterprise. This study employs a qualitative approach where semi-structured interviews were conducted with 22 waqf officers from 14 Councils across Malaysia. The result shows that the Councils operates as social enterprises as they are already in pursuit of the dual mission namely financial sustainability and social purpose. There are nine perceived factors of the current waqf land development practices in each Council that contribute to the Council’s success as a social enterprise: (1) various types of waqf development; (2) sustainability; (3) opportunity; (4) knowledgeable; (5) financing creativity; (6) monitoring; (7) support; (8) public involvement; and (9) human development. The Councils and its waqf land development practices fit the theoretical aspects of social enterprise since the Councils needs to generate enough income from its waqf land development to cover at least the waqf’s maintenance cost.

BloodConnect: enriching lives

2015 ◽  
Vol 5 (5) ◽  
pp. 1-17
Author(s):  
Tripti Ghosh Sharma ◽  
Vishesh Srajan Tyagi ◽  
Laksh Sharma ◽  
Rupayan Banerjee
Keyword(s):  
Social Enterprise ◽  
Social Impact ◽  
National Level ◽  
Social Enterprises ◽  
Social Value ◽  
Multiple Stakeholders ◽  
Potential Donor ◽  
Content Type ◽  
Value Measurement ◽  
The Impact

Subject area Social enterprise, Social entrepreneurship. Study level/applicability PGDM, PGDM Executive. Case overview The case is about the evolution of a unique social organization, BloodConnect, over its journey of four years. Initiated by two Indian Institute of Technology (IIT) Delhi students in 2010, the organization went on to be recognized for making leeway into the hitherto underserved need of blood security in India. The case describes BloodConnect's evolution with respect to different dimensions of blood shortages and the organization's acquisition of knowledge over the years. BloodConnect acted as a facilitator to bring multiple stakeholders, including potential donor segments, beneficiaries, hospitals, government and NGOs, on the same platform to collectively identify solutions, thereby increasing the ownership of each segment toward an issue of importance to the society. While the organization started gaining visibility and was on its way to making its operation structured, it desired to move beyond the confines of Delhi-NCR to raise the movement to the national level, but it was faced with challenges peppered with lack of resources, lack of funds, absence of a permanent leadership and complex dynamics between the multiple stakeholders. Donor dependency for funds and amateur management were the other major impediments for its sustenance. The case brings forth the major challenges threatening the very existence of the organization as it grappled to identify solutions that could provide revenue sustainability without dampening its mission of creating social value. The case is of relevance to social enterprises in the context of a developing nation as most of the low and middle income countries face similar challenges pertaining to blood security. It also brings forth the issues of survival, scalability and the concept of social value measurement. In what are the myriad hurdles faced by start-ups, the traditional metrics might not be enough while measuring the impact created by a social enterprise. Expected learning outcomes To develop an insight into the unique challenges faced by start-up social ventures and options available to them for growth and subsequent consolidation. To enhance the understanding of interrelationship between mission focus, scale of operations, revenue sustainability and social impact. To introduce students to the concept of social value measurement. The students would be able to appreciate the uniqueness of the metrics specific to a social venture. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Introduction

2017 ◽  
Author(s):  
Dana Brakman Reiser ◽  
Steven A. Dean
Keyword(s):  
Corporate Governance ◽  
Social Enterprise ◽  
Contract Law ◽  
Social Enterprises ◽  
Social Mission ◽  
For Profit ◽  
History Of ◽  
The Law

This introduction provides an overview of the challenges social enterprises face in raising capital and briefly describes the authors’ array of potential solutions, grounded in finance, corporate governance and contract law. It argues that to distinguish themselves from conventional for-profit ventures, social enterprises must broadcast their commitment to pursuing a social mission as well as profits. The chapter then explains that, although the law has evolved to accept the existence of social enterprises, it does not offer them a means to prove that they are what they claim to be. The introduction briefly articulates how social enterprise law could make the leap from permissive to protective—the topic the rest of the book will explore comprehensively. It concludes with a roadmap of the remaining chapters, which trace the history of social enterprise law and chart its possible future.

Evaluation in Impact Investing

2022 ◽  
pp. 46-76
Author(s):  
Eugenia Strano ◽  
Alessandro Rizzello ◽  
Annarita Trotta
Keyword(s):  
Impact Evaluation ◽  
Social Impact ◽  
Qualitative Approach ◽  
Impact Measurement ◽  
Impact Investing ◽  
International Debate ◽  
Social Impact Bonds ◽  
Evidence Of Impact ◽  
Evaluation Approaches ◽  
The Impact

The emergence of impact investing over the past decade has been accompanied by an increased interest of practitioners and scholars in the impact evaluation topic, one of the twofold pillars of the such an innovative financial approach. To contribute to the international debate, this study adopts a qualitative approach by obtaining results from a systematic literature review of extant research. This is useful to 1) identify the current existing impact evaluation approaches adopted in the field and 2) derive an empirical analysis in the impact investing sector with a focus on impact measurement in social impact bonds. The study opens interesting insights into recognizing the potential for the whole impact investing field, deriving both from theory and evidence of impact evaluation practices.

scholarly journals Success Factors of Sustainable Social Enterprises Through Circular Economy Perspective

2017 ◽  
Vol 6 (1) ◽  
pp. 17-23 ◽  
Author(s):  
Dumitru Stratan
Keyword(s):  
Circular Economy ◽  
Social Impact ◽  
Success Factors ◽  
Executive Leadership ◽  
Social Enterprises ◽  
Customer Relationships ◽  
Impact Measurement ◽  
Social Mission ◽  
Process Perspective ◽  
Desk Research

Abstract The scope of the research is to find out how social entrepreneurship operations can be modelled within existing business methods using circular economy principles. A literature review was undertaken in order to clarify and find out different opinions regarding circularity and social businesses models. Moreover, the author interviewed managers of different social mission organizations in order to find out the critical factors that determine the sustainability and performances of the organizations. Using the results of the field and desk research, the author suggests the following business model elements to be considered by social enterprises aiming to implement circular economy principles: Desired social and environment vision; Value proposition; Alignment of organizations to the strategy and acceleration of change through executive leadership implication; Financial sustainable perspective: a) to increase financial resources and b) to manage costs; Stakeholders perspective: a) customers segments, b) users, c) employees, d) community beneficiaries, e) channels, f) customer relationships, g) Key partnerships; Internal process perspective: a) processes necessary to use circular economy principles; b) impact measurement and key activities; c) internal and external communication; Resources perspective: a) networks; b) skills on circular principles and social impact; c) information and technologies.`

scholarly journals Conversations about measurement and evaluation in impact investing

2018 ◽  
Vol 6 (2) ◽  
Author(s):  
Amreen Choda ◽  
Mishkah Teladia
Keyword(s):  
Social Impact ◽  
Rockefeller Foundation ◽  
Think Tank ◽  
Impact Measurement ◽  
Financial Return ◽  
Impact Investing ◽  
Development Interventions ◽  
African Experience ◽  
Measurement And Evaluation ◽  
The Impact

In response to the enduring social, economic and environmental challenges facing the African continent and its population, development interventions are evolving to embrace new approaches, new partnerships and new means of achieving impact. One such area of heightened innovation and growing activity is impact investing. Impact investing is defined as investments made with the intention of generating both financial return and social or environmental impact. As this momentum in impact investing grows, a complementary area of activity has started to put down roots in Africa – social impact measurement.Genesis Analytics curated and managed the Innovations in Evaluation strand at the recent African Evaluation Association Conference, convened in Uganda in March 2017. This strand was supported by the Rockefeller Foundation and aimed to ignite conversations between impact investment stakeholders and evaluators focused on the African experience with social impact measurement.This article presents themes emerging from the presentations and conversations within the Innovations in Evaluation strand. The article begins with a brief explanation of the rise of impact investing, globally and within Africa, and then goes on to explain the structure of the Innovations in Evaluation strand. This strand included small group discussions and a think tank, which enabled sharing of ideas and experiences between strand participants. The article, therefore, documents the issues emerging during these discussions, including exploration of the concept of impact measurement and how this understanding differs across stakeholders, the currency of impact measurement and emerging practice.The article concludes with presenting what stakeholders and evaluators need to jointly explore to ensure that the African experience is well represented as the impact measurement movement continues to gain momentum globally.

Using a Social Enterprise Service-Learning Strategy in an Introductory Management Accounting Course

2011 ◽  
Vol 27 (1) ◽  
pp. 187-226 ◽  
Author(s):  
Valentina L. Zamora
Keyword(s):  
Service Learning ◽  
Social Enterprise ◽  
Learning Strategy ◽  
Management Accounting ◽  
Core Competencies ◽  
Social Enterprises ◽  
Problem Solving Skills ◽  
Social Mission ◽  
For Profit ◽  
The Social

ABSTRACT The accounting profession has long called for learning strategies that actively develop students' critical analysis and problem-solving skills in unstructured settings (Accounting Education Change Commission [AECC] 1990), and where learning outcomes map into American Institute of Certified Public Accountants (AICPA) (2000) core competencies. This paper proposes the use of a service-learning strategy in the introductory management accounting course. This learning strategy reflects the Institute of Management Accountants' (IMA) new definition of management accounting as a strategic imperative (IMA 2008), and responds to Rama's (1998) monograph revealing limited examples of service-learning in management accounting. In addition, this paper proposes that faculty work with real social enterprises that sell goods and services for profit and in support of a broader social mission. I argue that relative to working on nonprofit/government cases, working in the social enterprise setting may offer students a more tractable transition from the for-profit examples in many textbooks. I also argue that relative to working on for-profit cases, working in the social enterprise setting may provide students access to proprietary data used internally for managerial decision-making. The pedagogy of service-learning in the accounting curriculum and its relevance to that proposed in this paper is discussed. Generalized service-learning planning documents, examples, adaptations of case study questions, and a responsibility checklist are provided. Implementation guidelines that address key stakeholder barriers to success (Kenworthy-U'Ren 2008) are discussed, and examples of social enterprise service-learning implementations are presented. Post-implementation survey responses from students suggest that the social enterprise service-learning experience positively affected their learning of specific management accounting concepts, issues faced by mission-driven organizations, and how they can uniquely contribute by applying what they learn.

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