socap 2009: trends, mandates and action steps required for the creation of a robust social capital...
DESCRIPTION
A report on the SoCap 2009 conference to the MaRS Discovery District community. By Tim Draimin, Adam Jagelewski and Jennifer WhiteTRANSCRIPT
SOCAP 2009:
TRENDS, MANDATES AND ACTION STEPS REQUIRED FOR THE CREATION OF A ROBUST SOCIAL CAPITAL MARKETPLACE
Presented by:
Tim Draimin Adam
Jagelewski
Jennifer R. White
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THE MOMENTUM BUILDS....
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White House Office of Social Innovation and Civic Participation
Inclusive participation of capital markets Scale of Social Enterprises Measurement as a means to evaluate social and financial
impact SOCAP and Canada
The industry continues to create structure and measurement systems with the explicit goal of creating an industry of accountable, sustainable and measured social enterprises that invites capital markets involvement
SOCAP 2009
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“WE NEED AN OBAMA!” US INNOVATION IN A CANADIAN CONTEXT
THE MOMENTUM BUILDS....
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White House Office of Social Innovation and Civic Participation Inclusive participation of capital markets Social Enterprises and creation of value Measurement as a means to evaluate social and financial impact SOCAP and Canada
The industry continues to create structure and measurement systems with the explicit goal of creating an industry of
accountable, sustainable and measured social enterprises that invites capital markets involvement
SOCAP 2009
We missed an opportunity.. It’s amazing that the average portfolio is down close to 30% while some microfinance opportunities are average a return of 7%-15% yet investors are going back to the same advisors – WHY?
- Jed Emerson, Uhuru Capital Management
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ATTRACTING INSTITUTIONAL INVESTMENT…THE SUPPLY SIDE
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ATTRACTING INSTITUTIONAL INVESTMENT…THE SUPPLY SIDE
The social capital market has continued to evolve in financial structure and product set, encouraging increased investment but more work is
needed.
SOCIAL ENTERPRISE SPACE
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MARK CHENG ON LEVERAGING PHILANTHROPIC DOLLARS
PLAY VIDEO >
THE MOMENTUM BUILDS....
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White House Office of Social Innovation and Civic Participation Inclusive participation of capital markets Social Enterprises and creation of value Measurement as a means to evaluate social and financial impact SOCAP and Canada
The industry continues to create structure and measurement systems with the explicit goal of creating an industry of
accountable, sustainable and measured social enterprises that invites capital markets involvement
SOCAP 2009
HOW CAN WE BUILD THE DEMAND FOR SOCIAL CAPITAL INVESTMENT ?
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We would be better off as an industry if we rid ourselves of the non profits that do not demonstrate impact; and better off if we rid ourselves of investors that don’t invest in the best possible way for impact
- Kevin Starr, Mulago Foundation
HOW CAN SOCIAL ENTERPRISE ENCOURAGE CAPITAL INVESTMENT? THE DEMAND SIDE
An investment review.. Would you invest in a business or social enterprise that did
not demonstrate results and impact clearly?
Accountable, Measurable Social Enterprises & Failure Current State of Social Sector
What is needed Business Acumen Rigor & Analysis
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DAVID GREEN: A SOCIAL PERSPECTIVE ON BUSINESS ACUMEN
PLAY VIDEO >
THE MOMENTUM BUILDS....
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White House Office of Social Innovation and Civic Participation Inclusive participation of capital markets Social Enterprises and creation of value Measurement as a means to evaluate social and financial
impact SOCAP and Canada
The industry continues to create structure and measurement systems with the explicit goal of creating an industry of
accountable, sustainable and measured social enterprises that invites capital markets involvement
SOCAP 2009
WHAT IS IMPACT AND HOW DO WE MEASURE OUR RESULTS?
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Metrics are the carbon of the social impact ecosystem and the policy environment is the oxygen
- Lucy Bernholz, Blueprint R&D
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IMPACT EVALUATION IS…
Confusing Fragmented Misaligned Uncomfortable
Simple and understandable Outcome focused
Aligned
SOCAP’S RESPONSE: ADVANCEMENT IN THIS COMPLEX SPACE…
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Global Impact Investment Network (GIIN)
Impact Reporting and Investment Standards (IRIS)
Pulse
Outcome Dashboard
Tools and Resources for Assessing Social Impact (TRACI)
B Corp
SROI
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TRADITIONAL APPROACH, NEW LANGUAGE
Investors seek out new opportunities for investments, new ways to cultivate opportunities
Traditional Approach Social Approach
Investor Network GIIN
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TRADITIONAL APPROACH, NEW LANGUAGE
Investment decisions are predicated on the availability of research and information
Traditional Approach Social Approach
Publically held or private service
Publically held or private service
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TRADITIONAL APPROACH, NEW LANGUAGE
And, rating systems
Traditional Approach Social Approach
Morningstar, S&P, Moody’s
IRIS, B Corp
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TRADITIONAL APPROACH, NEW LANGUAGE
Investors rely heavily on the accuracy and completeness of the available information
Traditional Approach Social Approach
Audit and Assurance Audit and Assurance
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TRADITIONAL APPROACH, NEW LANGUAGE
Based on, Standards
Traditional Approach Social Approach
GAAP/IFRS IRIS
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TRADITIONAL APPROACH, NEW LANGUAGE
Investors assume the standards and trust the ratings because the fundamental tools and management systems are in place to collect and report data
Traditional Approach Social Approach
Business management systems (i.e ERP)
PulseTRACI
Outcome Dashboard
CANADIAN DAY CONFERENCE KICK-OFF HOSTED BY
PLAY VIDEO >
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CANADIAN DELEGATION: CURRENT STATE CHALLENGES
PLAY VIDEO >
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CANADIAN DELEGATION: OPPORTUNITIES IN SOCIAL FINANCE
PLAY VIDEO >
WHAT DOES THIS MEAN FOR CANADA?BRAINSTORMING OPPORTUNITIES
WHAT DOES THIS MEAN FOR CANADA? KEY TAKEAWAYS AND NEXT STEPS
Participation is increasing in the emerging social finance movement in Canada
Policy change is critical
Social finance is response to important dynamics of change
Collaboration
Social Task Force
Change – not-for-profit
Change – for-profit
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CANADIAN SOCAP 2009 DELEGATION