Good to hear news from Tomas Carruthers of the Social Stock Exchange adding to the impact business’ heft overall – two interesting stories around the SIB universe, welcome to today’s SIB News…
Impact Investing And Business Innovation
Blouin News
The ways businesses maximize innovative potential today has taken a predominant position in conversations on the management level. What kind of innovation do we need? What type is currently taking place? Where does it start? Big companies, generally speaking, are trying to be faster and leaner, and are hence innovating and growing. However, customers and consumers aren’t always benefiting from innovation in the corporate sector even if they want to be part of the decision-making process and want their voices to be heard. More and more people want to make sure that their daily decisions – the food we buy, where we buy our clothes or what phone company we should use – are having a positive effect around the world.
During the BCLS panel on “Business Innovation – Rethinking Organizational Design and Culture”, the idea that took center-stage was impact investing – an investment approach intentionally seeking to create both financial return and positive social impact, which is actively measured. Years after the global financial meltdown, greed has lost all its appeal and is no longer acceptable on any level. The moment has come for the emerging investment approach, which many believe has the potential to reconcile key shortcomings in traditional financial markets. This stems from the need of organizations and companies to take new and fresh approaches in businesses.
UK Social Stock Exchange Expansion
Pro Bono Australia
UK’s Social Stock Exchange has announced plans to become a fully-fledged venue for impact businesses to directly raise funds.
Social Stock Exchange said it would launch the only venture of its kind to both unlock access to capital for impact businesses regardless of their size and also offer a secondary market for these investments.
It described the venture as “a pioneering funding platform for impact businesses” – those that have the potential to deliver a measurable social or environmental benefit alongside a traditional financial return.
“Investing for impact is increasingly seen as the way to make financial markets serve the needs of the public, rather than prey upon them. However until now retail investors have been reluctant to get involved as there has been no secondary market in many of these investments, making these investments unsuitable for many,” Tomas Carruthers, CEO of the Social Stock Exchange said.
“The ability to readily buy and sell these holdings ensures investing for impact is no longer just the preserve of the wealthy.”
The Social Stock Exchange flagged its intention to accommodate many different sizes of enterprise and to meet the legitimate demands of investors for regular liquidity events and trading.
It said the principal focus would be on how to make financial markets serve the needs of the public, whilst potentially achieving returns in a socially responsible way.
Launched in 2013 by the UK Government the Social Stock Exchange is designed to connect publicly listed social impact businesses with investors seeking to generate positive impact alongside a financial return.
Its aim is to bridge the information gap between values-based investors and growth businesses that are delivering positive social and environmental impact through their core activities.