The impact of investing in social and environmental causes can be measured in many ways. And if you know Raízes, you know that we believe that Private Social Investment (PSI) is extremely important not only for the investing companies but for society as a whole, regardless of the area to which the funds are directed.
A practical example of how social investment has an impact beyond what we can see is in relation to Brazil’s Gross Domestic Product (GDP). According to a study carried out and published in 2023 by the Economic Research Institute Foundation (FIPE) of the University of São Paulo (USP); coordinated by our partner Sitawi and with the support of the Bem Maior Movement, social investments within the Third Sector generate 4.27% of Brazil’s GDP. The figure was the equivalent of R$ 423 billion reais (circa 100 billion USD) in 2022.
The study does not accurately cover sector 2.5, for example, as social businesses like Raízes are called. And so far, little is known about where exactly PSI is directed, although surveys such as BISC and the GIFE Census already help us to get a macro view of this field.
Noticing this lack of data for more specific and in-depth analysis on the subject, we have participated in the collective development of a study that seeks to understand the relationship between Private Social Investment and Tourism in Brazil. It has been carried out in partnership with Turismo 360 Consultoria and Turismo Spot, with methodology from the Laboratory for Tourism and Sustainability Studies (LETS); linked to the University of Brasília (UNB), and support from Fundação Grupo Boticário, ponteAponte, Grupo de Institutos, Fundações e Empresas (GIFE) and Instituto Bancorbrás.
Benefits for society and your business
Investing with purpose brings obvious financial returns, but also returns that are less tangible than money, such as an uptake in reputation. The new generations are increasingly connected to environmental, social, and political causes, and are therefore looking for companies that act in favor of something other than profit.
As defined by GIFE, the PSI’s proposal is to transfer resources strategically, with results, and objectives, showing clear impacts and with the potential to create economically sustainable programs. When structured to meet the country’s needs and in synergy with public policies, it results in effective actions that make a significant contribution to the country, going beyond the financial issue.
In other words, Private Social Investment’s mission is social transformation, an invaluable asset that contributes to socio-economic and environmental development, valuing opportunities and good practices.
Investing in social and environmental causes as a business strategy
Private Social Investment activities are increasingly linked to business strategy, seeking to improve the investments made with socio-environmental demands. In this way, the focus on people and the environment is no longer philanthropy, but actually a strategic investment.
One of the links to the issue in the last decade is the Sustainable Development Goals (SDGs), established by the United Nations (UN) in 2015. We even talked a bit about the new Brazilian SDGs and how they have a total connection with our country, which is so socio-biodiverse, and also with the work of Raízes.
Companies are recognizing that contributing to the sustainable development of society also adds value to their brand and strengthens their relationship with investors and shareholders, who are increasingly attentive to social practices and the ESG (Environmental, Social, and Governance) Agenda.
Investing in social and environmental causes has the power to positively transform the planet and society. By adopting a proactive and responsible stance, organizations can also ensure their competitiveness in the market.
What about you? Do you already know where your company will invest in 2024?
