Social investment - 360impact.ch, Sustainability for business and society

Social investment tools

We developed 2 social investment tools enabling strategic and sustainable partnerships between companies, social ventures and social investors, from the development of a social investment approach to the sourcing of the right social venture or entrepreneur.

Social investment requires a multi-stakeholder approach capable of addressing critical issues. Moreover, this approach must take into account the individual profiles of the persons concerned and the financial resources available.

Therefore, we developed the following dedicated social investment tools:

  • A social investment approach to create bridges between companies, social ventures and social investors - 360tool 4
  • A matchmaking approach to source the right social venture - 360tool 5

Align your strategy and your social investment – 360tool 4

We assess a company potential social investment profile to evaluate how a business case for social investment can be embedded within a company culture.

We develop strategies mapping out a company framework for societal and business value creation along the following steps:

Define a corporate social purpose

Together with your company, we develop a materiality matrix and evaluate its influence on society. We define a clear social purpose aligned with the UNGC and SDGs and gain insight into it through stakeholder engagement and theory of change.

Draft a company business case and approach

Companies can adapt their business models to combine social and business benefits while leveraging their core capabilities to achieve a shared value social impact strategy.

Each business case is specific depending on a company’s social investment objectives from new market development incentives, to fostering innovation, championing intrapreneurs and skill based employee volunteering, managing risks and building relationships with the region, enhancing reputation or contribution to corporate responsibility and SDGs.

A combination of the following approaches can be implemented:

  • Innovative financing mechanism approach: Companies taking equity stake in social ventures or developing social venture funds.
  • Supply chain approach: Procurement from social ventures.
  • Last mile approach and new product development: Companies gaining insight on targeted BOP markets through partnering with social ventures. Companies customizing their products for low income populations.
  • Incubation approach: Contributing to business accelerators to grow social ventures.
  • Social innovation approach: Concentrating on tech social ventures and harvesting social venture ideas.
  • Advocacy approach: Selecting social ventures as advocacy relay on targeted issues.

Companies will develop a social investment approach through models balancing commercial and society returns.

Integration of social purpose within a company culture is key (identification of internal social intrapreneurs, mobilisation of core corporate competencies, leverage of existing internal processes etc.) as engagement with external stakeholders to build strategic alliances.

Measurement of impact

Measuring the impact of the strategy shows how much social change is needed to unlock business value.

Metrics are established and progress is tracked to assess the shared-value produced – see 360tool 6 – Impact measurement.

Find the right social venture through matchmaking – 360tool 5

Our matchmaking approach (sourcing social entreprises for companies and social investors) and deal sourcing is collaborative – a variety of channels and partners are mobilized.

Some of the questions we ask ourselves when we source social ventures are typically: what are a company, social venture or social investor needs and objectives, what is a social venture stage, what are the skills needed, the market approach, what are the financing needs and instruments (grant, debt, equity, blend?), what sectors of intervention and geography/BOP communities are we considering?

Impact measurement plays an essential role during the due diligence process as social impact projections build a stronger case for future investors and partners.

The theory of change needs to be articulated to build understanding around shared impact goals.

Our impact value chain – see 360tool 6 – Impact measurement – is instrumental during this phase of due diligence to assess whether social interests are aligned between companies, social ventures and social investors.

Due dilligence

360impact.ch, Sustainability for business and society

1. Product & services

Review of products and services in terms of social innovation

We perform a social and environmental due diligence

360impact.ch, Sustainability for business and society

2. Market analysis

Scope and scalability, potential societal impact (sustainability, local capacity building, good governance)

360impact.ch, Sustainability for business and society

3. Finance

Current financial statements, projections, key financial and societal performance indicators

360impact.ch, Sustainability for business and society

4. Venture

Set up the management team and governance; macro and micro risk analysis of the venture environment

360impact.ch, Sustainability for business and society

5. Exit strategy

Make sure the social investment also comes to an end and produces social, environmental and financial benefits

Interested in a positive impact for your company and society?

Let’s start a conversation!