What is Social Investment? Is it profitable?

Google+ Pinterest LinkedIn Tumblr


There is a growing interest in “Social Investment” as an emerging concept which can be used for the development as a more effective way. This is called as “impact investment”, this implies that spending on societal needs is a long term investment, and it improves economic and social participation. Also, these Investment strengthens people’s skills and capacities over the life course.

According to scholars, the world’s pressing social problems cannot be solved neither by governments, philanthropists nor corporations on their own and impact Investment brings diversity and innovation in funding solutions to societal challenges and by that helps to make the capital market more efficient.

Historical development of the concept Social Investment

This concept can be defined as investments in people in order to empower them either financially, socially or emotionally. Those strengthen peoples’ current and future capacities and support them to participate fully in employment and social life. These are mostly based on education, quality childcare, healthcare, training, employment, assistance and rehabilitation so and so. Not only immediate effects but also have lasting impacts by offering returns over time.

There are positive and negative explanations on the concept of Social Investment
There are positive and negative explanations.

The concept of social investment in the current debate was first proposed by Esping-Andersen (1999; 2002) and Giddens (1998) in search of strategies to encounter new social risks.  In particular, social investments are said to be better than social protection in meeting new risks related to social and economic changes such as the reconciliation of work and life and changing skill demands (Taylor-Gooby 2004; Bonoli 2006; Morel et al. 2012).

In spite of all these pros, some scholars have criticized social Investment. Daniel P. Nolan argues that this concept is not novel, it’s already existing and the different is the way it describes. Jon Kvist criticizes the concept as the results are contested. Further the well-known scholar Oliver Pintelon has mentioned it does not address new social risks directly and establishment of social investment policies cost more money.

You can read about the Concept of Social Capital from here. We talk about more and more academic and societal topics, therefore stay tuned with us.


  1. I’ve been browsing on-line more than three hours today, yet I
    never found any attention-grabbing article like yours.
    It is pretty worth enough for me. Personally, if all web owners and bloggers made just right content as
    you probably did, the web shall be much more helpful than ever before.

  2. Pingback: Socially Responsible Examples from Europe - Impact Investment Policies

  3. Pingback: Do disabled people need an extra protection? Social responsible approach

  4. Pingback: Social Risk Definition in Sociology and Types of Social Risks

  5. Pingback: LOOMRO at Vorumaa Vunki Mano Social Hackathon from 4th April - 6th April 2019. - Loomro

Write A Comment