How corporate foundations or impact funds can align with their company to maximise impact?
EVPA and Stanford Social Innovation Review (SSIR) have published “The Rise of the Corporate Social Investor”, an article that provides a fresh perspective on how corporate social investors (like corporate foundations and impact funds) can align with their company to maximise impact.
Based on a qualitative study conducted by EVPA, involving 45 practitioners from Corporate Social Investors (CSIs), experts on corporate social investing and inclusive business strategies, four different types in which a CSI and the affiliated company can align have been unravelled:
- Business Alignment is pursued by CSIs that aspire to have a direct positive influence on the company’s social and environmental business practices. CSIs do so by aligning their mission with the company’s purpose or long-term (inclusive) business strategy.
- Industry Alignment is pursued by CSIs that want to advance best practices or set new standards within the company’s entire industry. CSIs do so by aligning their mission or core focus areas with social issues of special concern in the industry.
- Thematic Alignment is pursued by CSIs that want to connect with employees of the company and call attention to societal challenges that exist beyond their business perspective. CSIs do so by aligning their mission or core focus areas with social issues that are materially important to the company.
- Nonmaterial Alignment is pursued by CSIs that want to enhance their ability to operate more effectively, without having to align their mission or core focus areas. CSIs do so by aligning their operations with nonmaterial areas of the business, such as the business’ geographical presence.
To learn more about the individual alignment types, their benefits and challenges, read the article ► here.