This paper examines the different mechanisms used by multinational corporations (MNCs) in Nigeria seeking to make long-term social investments by meeting the critical challenge of improving water provision. Community enterprise – an increasingly common form of social enterprise, which pursues charitable objectives through business activities – may be the most effective mechanism for building local capacity in a sustainable and accountable way. Traditionally, social investments by MNCs have involved either donations to a charity, which then assumes responsibility (...) for delivering social outcomes, or direct management of social investment in-house. These approaches have been criticized, however, for their limited contribution to local capacity building, their focus on short-term outcomes, and the restricted role that they afford to communities. Partnering with community enterprise, provided there is sufficient local capacity to support it, is the most effective mode of governance through which MNCs can manage social investments in developing countries. (shrink)

Social investing, though not yet fully mainstream, has the potential to obtain such status. Questions relating to the future of social investing include the following. (1) What properly falls within the ambit of social investing? Assuming that no single definition of social responsibility is feasible, what then are the limits? (2) What do we need to know about investor psychology concerning social investing? What motivates people to buy socially screened investments and why do they sometimes (...) act inconsistently? (3) How can we improve the measures of social performance? Is it possible to develop GAAP and GAAS equivalents for social reporting? (4) Should social reports by firms be audited? If so, how? (5) What sorts of public policies are necessary to support the social screening of investments? (shrink)

The stock market reaction to two very different corporate social investments is explored. A market model event study methodology is employed using daily stock returns. The results are that the stock market appears to have ignored the 1977 announcement, but rewarded the 1990 event. Future research and possible managerial implications are discussed.

Over fifty years ago, Albert Hirschman argued that dissatisfied consumers could either voice complaint or exit when they were dissatisfied with goods or services. Loyal consumers would voice rather than exit. Hirschman argued that making exit easier from publicly provided services, such as health or education, would reduce voice, taking the richest and most articulate away and this would lead to the deterioration of public services. This book provides the first thorough empirical study of these ideas. Using a modified version (...) of Hirschman's account, examining private and collective voice, and viewing loyalty as a form of social investment, it is grounded on a dedicated five-year panel study of British citizens. Given government policies over the past decade or more which make exit easier from public providers, this is a timely publication for all those who care about the quality of government services. (shrink)

The concept of altruism is used in very different forms by computer scientists,economists, philosophers, social scientists, psychologists and biologists. Yet, in order to be useful in social simulations, the concept altruism requires a more precise meaning. A quantitative formulation is proposed here, based on the cost/benefit analysis of the altruist and of society at large. This formulation is applied in the analysis of the social dynamic working of behaviors that have been called altruistic punishments, using the agent (...) based computer model Sociodynamica. The simulations suggest that altruistic punishment on its own cannot maintain altruistic behaviors. Altruistic behavior is sustainable in the long term only if these behaviors trigger synergetic forces in society that eventually make them produce benefits to most individuals. The simulations suggest however that altruistic punishment may work as a social investment , and is thus better called decentralized social punishment. This behavior is very efficient in enforcing social norms. The efficiency of decentralized social punishment in enforcing norms was dependent on the type of labor structured of the virtual society. I conclude that what is called altruistic punishment emerges as a type of social investment that can evolve either through individual and/or group selection, as a successful device for changing or enforcing norms in a society. Social simulations will help us in better understanding the underlying dynamic working of such devices. (shrink)

Prior to its election to office in 2007, the Australian Labor Party announced a commitment to introduce Trade Training Centres (TTCs) into all Australian secondary schools as an initiative of its Education Revolution. TTCs were proposed as a key element of Federal Labor's education and training policy that aimed to manage future risks to Australia's competitiveness in the emerging global economy and to support school-to-employment transitions for young people. This analysis adopts a governmentality framework to conceptualise the Federal Government's introduction (...) of TTCs alternatively as a key strategy for nationalising social investment politics in Australia. The paper draws on recent Australian policy documents to argue that TTCs are social technologies that work to open up social spaces in and around schools for governing relationships between schools and other community stakeholders, particularly businesses and families. The paper concludes by examining policy implications, including those of social justice, for promoting school community partnerships through TTCs. (shrink)

The United Kingdom is at the forefront of a global movement to establish a social-investment market. At the heart of social investment we find finance – and financialisation. Specifically, we find: a financial market ; a series of financial institutions ; a financial instrument ; and a financial practice. Focusing on the UK, given its pioneering role, this paper first provides a brief history of social investment, tracing its development from the politics of the (...) ‘Third Way’ to the social-impact bond. It then maps the terrain of the social-investment market, explaining the main institutions and actors, and the social-impact bond. Finally, it proposes a framework for analysing the disciplinary logics of finance, which it uses to understand the promise or threat of social investment and the social-investment market. (shrink)