Abstract
Social impact investments represent a cultural revolution, as they offer the opportunity to pursue financial and social goals simultaneously. However, Social impact investing market configurations are not evolving equally across national contexts. Therefore, in different contexts, different actors may play the pivotal role to make social impact investments more attractive. The present work, by looking at the Italian context, applies a qualitative methodology to study Foundations of Banking Origin (FBOs). This is a specific category of foundation which is bound by law to work and expand the charity sector. It emerges that the role of these entities, inside the philanthropy system, should develop from “impact facilitators” to “impact generators” in promoting social initiatives. Furthermore, the work sustains the importance of introducing a social impact rating system as a formalized methodology to select and finance the worthiest social project. In this perspective, the definition of a clear social rating philosophy and its correct application in the rating system design and use is a necessary condition to increase the solidity of a social impact assessment model.
Highlights
In recent decades there has been an enormous growth in financial markets that has largely exceeded the value of real industrial production
As described in the previous paragraph, the FFoouunnddaattiioonn ooff BBaannking Origin (FBO) are taking on a more significant role in the social ecosystem passing from grant-maker, which supports non-profit organization (NPO) activities through direct liberal contributions, to policy makers that actively work in support of social business initiatives within of the territory in which they operate
The qualitative analysis has highlighted the pivotal role that FBOs could play in creating both financial and social value simultaneously. They can act according to the traditional provision of money, but they can increase the promotion of initiatives dedicated to the pursuit of social utility and economic goals through a deeper selection of social project thanks to a social rating system
Summary
In recent decades there has been an enormous growth in financial markets that has largely exceeded the value of real industrial production. The present work, by looking at the Italian context, focuses on Foundations of Banking Origin (FBOs), which represent the main operators of philanthropy in Italy. They are 88 private, autonomous and non-profit entities which exclusively pursue social utility purposes, by using the profits deriving from financial investments to contribute to socio-economic development through the financing of social projects. Grounded in the Italian context, it emphasizes the new role of “impact generator” played by the Foundations of Banking Origin It depicts the features, actors and challenges of a social impact rating system, by providing useful insights for practitioners.
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