Social Investment – Financial Profit or Public Good

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Social investment is significantly different from conventional investment, which, in the classical sense has commercial and financial gain. The difference between them is manifested in structural approaches, for example, if the starting point for economic investment is correct calculations, withdrawing the invested money and seeing the benefits, the main driving idea for social investment is to have a positive impact on public life and respond to global challenges.

What is the significance of the existence of social investments today and in which directions do we find this type of investment?

Let’s start by emphasizing the fact that social investment does not mean giving up financial gain, of course, commercial considerations are factors to consider in this case as well, although priority is given to the intent for which this investment is made. Therefore, it is a process that is motivated by both social responsibility and financial gain. However, once again, in this case, investors are looking for a minimum financial income, with the advantage of having a goal that assumes the active voice of social and environmental initiatives.

At a time when the world is facing the problems of global warming, climate change, environmental pollution, green space survival, etc., the role of social investment is growing even more and their importance is gaining wider scale.

Due to the focus on these challenges, great resources are invested in the promotion and introduction of renewable energy, reducing emissions, promoting eco-friendly industries and more.

Nowadays, the range of social investments is comprehensive and is developing successfully in many ways. Particular attention is paid to issues such as agriculture, access to health care and education, the empowerment of individual communities, access to civil services, the introduction of inclusive systems, etc., resulting in an improvement in the quality of public life.

Social investments are made by individual and institutional investors and in financial terms about half of them will generate a corresponding profit for the market. This field is becoming more and more popular, many organizations have focused their activities precisely on social values. For example, Invested Development is an investment company that only makes social investments in areas such as mobile technologies, alternative energy sources and agriculture.

Based on the causal explanation of social investment, we can say that unlike private philanthropic acts, such projects can bring long-term positive results, and most importantly, it has a public character, its purpose is to make a universal positive impact in the social and environmental spheres.

Editor’s blog

Source:https://www.investopedia.com/, https://www.investopedia.com/a

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