Roundtable “Social Investment Market: International and Russian Practices” Held in Moscow during the International Social Business Day

Today understanding that social investing is beneficial both for societal development and sustainable business growth is definitely gaining ground. On June 24, 2014 in Moscow, the Financial Corporation URALSIB, the Russian International Affairs Council and NCO Evolution and Philanthropy in partnership with the European Venture Philanthropy Association held a roundtable on Western and Russian practices in social investment during the International Social Business Day in Russia.

Today understanding that social investing is beneficial both for societal development and sustainable business growth is definitely gaining ground.  

On June 24, 2014 in Moscow, the Financial Corporation URALSIB, the Russian International Affairs Council and NCO Evolution and Philanthropy in partnership with the European Venture Philanthropy Association held a roundtable on Western and Russian practices in social investment during the International Social Business Day in Russia. 

According to RIAC Director General Andrey Kortunov, social investing has already become intrinsic to company business strategy, not because of a formal commitment to human values within the love-thy-neighbor paradigm but rather due to creating an encouraging social environment for enterprises. In the long run, the resultant feedback improves business and optimizes distribution of wealth, making the pattern fairer.

As underlined by EVPA Market Development Director Cristina Umani, international practice proves that venture philanthropy and social investments do strengthen socially-orientated organizations through financial and non-financial support in view of effective reforms, the final goal being concrete social benefits, i.e. substantial and sustainable changes in the entire society.    

Founded in 2004, the EVPA has emerged as an association of organizations aimed at disseminating venture philanthropy and social investment in Europe, its goal being targeting social investors, venture philanthropists and funds at application of tools helpful in attainment tangible social effects. 

URALSIB Vice President Alexander Tolkachev shared his experiences in building a socially responsible business: “As far as finances are concerned, we see out task in creating and advancing attractive financial products with a major social component. By engaging the principles of social entrepreneurship, business proves to be able to handle social problems and obtain sustainable results. A socially-orientated business is invariably more innovative and credible and thus more attractive for investors.”

Natalia Poppel, Head of Corporate Social Responsibility Department at Severstal said that social investment is a strategic principle of her company development, implemented through a dialogue with local communities, joint projects and other schemes.

At the same time, Russian leaders in corporate social responsibility do have a lot of room for expanding their social investing exploits. In other countries, social investors do not confine themselves to financing but also spend their time, intellectual and other resources in long-term partnerships within social projects. According to Cristina Umani, large corporations may offer pro bono services including professional instruction on the basis of in-house competencies and intellectual and information resources for tackling socially meaningful tasks.

An EVPA survey conducted in partnership with western agencies has shown that financial support on behalf of socially-oriented organizations by way of venture philanthropy and social investing keeps growing, having reached a total of 2.5 billion euro in 2011.

The event participants, among them representatives of Russian big business, government, corporate and private foundations and academia, stressed that an open dialogue with foreign counterparts gives rise to networking and introducing innovations in the practical activities of companies engaged in social investing.

The event has been the first stage of a long-term initiative, one of its components meant as forming a community of social investing experts.

Summing up the discussion, Olga Yevdokimova, the Evolution and Philanthropy Director, emphasized: “Meetings that put together business and society through the prism of social investing expand the very notion of social investment, while application of best practices in venture philanthropy and social investment in Russia will surely help raise the innovation culture for solving the societal problems.”

Reference

Financial Corporation URALSIB is a major Russian finance group offering the entire spectrum of financial services including retail and corporate banking products, investment and banking services, insurance, leasing, brokerage and custodial services, and assets and wealth management. Signee of the UN Global Compact and member of the IIRC, URALSIB has been reporting sustainable development to the GRI standards since 2004.

Russian International Affairs Council is a noncommercial partnership uniting key participants of Russian foreign policy community, among them 117 individual members, 11 major Russian companies and 10 universities. Established by Russian President’s decision, RIAC was launched in 2011 and has grown into a key Russian think tank on international issues engaged in analytics, education and close cooperation with Russian foreign policy institutions.

Board of Trustees Chairman – Yevgeny Primakov

President – Igor Ivanov

Director General – Andrey Kortunov

Program Director – Ivan Timofeyev

NCO Evolution and Philanthropy is the Russian branch of the same-name British company, specializing in dissemination of best practices in reporting and transparency, fundraising, resource mobilization, and NCO efficiency assessment. The company is implementing initiatives aimed to integrate Russia in the global civil society and renders support to local foundations in promoting charity at the regional level.

Roundtable “Social Investment Market: International and Russian Practices”