All investing is really impact investing
because it has an impact on our future
in one way or another – for good or not
so good.
On the day that Lehman Brothers
collapsed, we got word from one of our
micro finance funds in Gambia that they
were returning 28 percent so the contrast
was incredible. With the Skoll Foundation
we do these things called PRIs (Program
Related Investments) and often these
investments are as good, or better, than
the traditional type of investing one does.
With Capricorn we invest in a number
of companies that are oriented towards
social good. The reason why investing
in this idea makes sense is because you
are investing into a growing consumer
sentiment and awareness about these
things. In the long-term, just by the
definition of sustainable, these things will
probably be around when others are not.
Measurement is important – like
any kind of investment, you need to be
ruthless about what you are trying to
achieve. It’s more difficult to measure
a social return on investment but if you
set out with some metrics in mind, you
are better able to assess how you’ve done and they provide an
important benchmark.
There’s a different conversation going on around investment
right now, than there was, say, two years ago, when it was all
about riding the financial engine. The financial collapse over the
last few years has got people thinking about how sustainable that
model is and my experience has been that businesses rooted in
addressing the bigger social issues do in the long-run outperform
those that aren’t.
“Measurement is important – like any kind of
investment you need to be ruthless about what
you are trying to achieve... if you set out with
some metrics in mind you are better able to
assess how you’ve done.”
Q. How do you see social enterprise evolving and what role do you believe it can play in
address [