This policy paper produced by FEBEA discusses the complex nature of “social impact” as positive or negative changes resulting from interventions in the lives of individuals, groups, or communities. Recently, there’s a growing demand for evidence of such impacts, with an increasing focus on social impact measurement in public policies. However, the text notes that the current discourse may sometimes twist the purpose of social impact practices, turning them into requirements rather than thoughtful processes.
The policy paper aims to explore the background, challenges, and ethical finance’s approach to social impact and measurement. The overarching theme is that creating a positive impact should be an integral part of an organization’s structure. The paper concludes with recommendations for policy and action in the context of social impact. Read them if you want to see what ethical financiers in Europe recommend!