We are focused on forms of investment that aim to raise capital for creating a positive social impact. It’s important to choose a respected fund management firm to handle your hard earned money.
Social investment by banks is done primarily to offer loans and grants to charities and non-profit organisations with a view to bring about a change for the better in the society. Banks are the repositories of huge capital and investments. When the dimension of social responsibility is added to banks’ policies and functions, they can foster a positive impact on the society along with good returns which are beneficial economically, as well.
Banking sector with its wide reach and influence has now taken up the responsibility to deliver innovative financial solutions to address certain social problems and bring about social and economic development.
As the gap widens between the need for social welfare services and what the government can provide, social impact banking is probably our next biggest bet. Growth is optimal only when social and economic development go hand in hand. Therefore, the role of banks is very significant to bring about a social change. The social performance of investment needs to be monitored with the same steam and energy as that of financial performance of investments.
How can banks help in social investment?
- Banks can examine the role of financial services in funding social development and how they in turn can act as catalysts for economic growth.
- Facilitate financial services to organisations that work for social betterment and thereby economically empower the financially and socially excluded sections of the society.
- Set up a central target fund for disbursal of funds for core social projects which require immediate attention.
- Frame innovative policies and set up targets where such big funds benefit the socially impoverished and yield financial returns as well.
Corporate social responsibility and financial returns:
Banks must take the lead in corporate social responsibility by not only looking at distribution of funds, but also consider the aspect of wealth creation and financial returns where social and economic growth can be achieved simultaneously.