Reporting terminology around social or community investment can be confusing, with many organizations using the term to refer to philanthropy, charitable giving, corporate social responsibility, community programs and social contributions. Our research confirmed that there is no standard terminology or definition of social investment. The three terms most commonly used by the companies we researched were community investment, social investment and philanthropy.
In this paper, we consider ‘social investment’ to be any investment a company makes to contribute to society that is not primarily motivated by generating a direct financial return.
Having said this, many companies are increasingly aligning their social investment strategies with their business strategies, which can bring indirect benefits to the business such as improved reputation or access to new markets (see Viewpoint, right).
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