Money given by an investor to a company whose aim is to solve a social or ecological problem. Investments can be effected through loans, guarantees or equity – either seed capital (high risk, in the early phases of a company's life) or growth capital (when the venture has matured). In financial markets, loans are called bonds, equity is bought as shares.
The equity of a company, calculated as the value of all assets less all liabilities. Investors are usually private individuals, sometimes via private equity funds as the intermediary.
Open investment funds are a type of financial investment. Money of numerous investors is pooled and invested according to the principles and goals of the fund. Shares of funds can be traded similar to company shares, investors are therefore owners of the funds.
activities advancing society in general in material, spiritual or moral / ethical areas in an altruistic manner (e.g. arts and culture, education, science and research).
a small loan between one and several hundred dollars, given without collateral. Usually, the goal is to support an entrepreneur in a developing country, increasingly in developed markets as well. Are often granted by NGOs or specialist financial service providers.
a company whose goal is to realize a social or charitable goal with entrepreneurial, financially sustainable means. Examples are “Dialog im Dunkeln”, a company that creates jobs for the blind while increasing awareness for interactions with disabled among broad sectors of the population, "Belu Water" that sells premium priced bottled water from the UK in the UK and donates most of its profits to water purification projects in developing countries, or Aravind in India, a chain of eye clinics which treat the poor for free and secure their income from the treatment of richer patients.
- Recommended reading
- Anne-Kathrin Kuhlemann: Stiften, Spenden, Investieren? - Entscheidungshilfe für soziale Geldgeber (August 2010) English coming soon!
- Jamie Hartzell: Creating an Ethical Stock Exchange (August 2007)