Bringing the private capital into the public (public) good is a very desirable situation. It can also be said to be the core value of "impact investment". How to integrate capital markets more effectively and invest in projects that are beneficial to society and the environment. If the traditional capitalist thinking is applied, it will be very difficult, because under the consideration of shareholders' interests first, making money is the most important task of enterprises, and those "externalities" caused by manufacturing, such as environmental pollution and labor rights and interests As long as the law does not control the violation of the law, companies usually turn a blind eye. Fortunately, this profit-oriented business model that pursues linear growth has gradually been criticized by the market. With the rise of sustainable development (SDG), CSR and ESG, more and more companies have begun to focus not only on making profits. , but also to take social responsibility.
So that "good deeds" can also "get rich". Of course, the so-called social entrepreneur is still not the same as an enterprise with social responsibility, and naturally it is also different from "non-profit organizations", "non-governmental organizations" and "charitable groups" that have long relied on government subsidies and donations from the outside world. Essentially number list completely different. Whether it is a social enterprise or a company that incorporates CSR/ESG, at least financially, it has to pay for itself and be self-sufficient. In order to solve social and environmental problems, it is necessary to use corporate means and innovative business thinking to create a model that can operate sustainably (or at least make ends meet). Instead of relying on the "goodwill of the rich", what are the characteristics of social impact bonds? This concept is actually not new.
As early as 1997, the authority of sustainable development, British scholar John Elkington proposed the triple bottom line (Triple Bottom Line). Operating profit (economic side), social responsibility and environmental responsibility. Since we are thinking from the perspective of "business management", we certainly hope to rely on the power of the huge capital market, rather than NGO/NPO relying on the "goodwill of the rich" to survive with difficulty. Imagine that the global capital market is as high as trillions of dollars (including equity and debt). If a certain percentage can be allocated to impact investment, can it help more people? Not only can it serve those areas that traditionally government departments and social welfare are difficult to extend, but also have the opportunity to establish a problem-solving business model from the perspective of social innovation.