Terminology

We aim to spur social innovation including modern approaches to philanthropy.

Below are explanations of terms that are often used in the context of the kind of work we do.

What is Corporate Social Responsibility (CSR)?

CSR is often used as a general term describing a corporation´s social acts, from sponsoring a local football team,to the broader understanding of the term, as defined by The World Business Council for Sustainable Development;

«CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large» (WBCSD, 1999. Mallenbaker 2007).

Magma, an online Norwegian magazine about economic and leadership, on CSR: www.magma.no/csr-eller-bedriftens-samfunnsansvar-en-megatrend-vokser-fram

What is Corporate Shared Value (CSV)?

The term Shared Value was coined by Michael Porter, professor at the Harvard Business School. The concept has to do with individual corporations´ strategy. Rather than performing a number of CSR projects in response to social issues, companies that create Shared Value integrate social values in the decisions they make in pursuit of profit. Shared Value celebrates the free market while responding to the needs of communities. It is about how businesses make money rather than what they support if they decide to afford it.

Michael Porter on CSV: http://www.youtube.com/watch?v=z2oS3zk8VA4

The Guardian on Shared Value: http://www.guardian.co.uk/sustainable-business/shared-value-how-corporations-profit-social-problems

Tom Kucharvy´s blog on Shared Value creation: http://beyond-it-inc.com/GKEblog/the-next-generation-of-corporate-social-responsibility-and-corporate-philanthropy.html

What is Social Entrepreneurship?

The term Social Entrepreneurship was coined by Bill Drayton, CEO and Founder of Ashoka. The Center for Social Entrepreneurship at the University of Oslo uses the following definition:

“Social entrepreneurship is to solve social or societal challenges and problems in an innovative and sustainable way. The driving force and primary goal in social entrepreneurship is social value creation, not profit maximization. Income generation is important in order to achieve the main objective, but surplus will generally be reinvested to promote the purpose. Social entrepreneurs are often market oriented and ambitious, using business methods and tools to achieve their social goals. ”

Ashoka on Social Entrepreneurship: http://www.ashoka.org/social_entrepreneur

The UiO Centre for Entrepreneurship: http://www.mn.uio.no/sfe/english/

What is Venture Philanthropy?

Venture philanthropy works to build stronger social purpose organizations by providing them with both financial and non-financial support in order to increase their societal impact. The support can be both in the form of grants and loans as well as private equity. (EVPA) European Venture Philanthropy Association on Venture

Philathropy: http://evpa.eu.com/knowledge-centre/what-is-vp/

What is Impact Investment

Global Impact Investing Network defines impact investments as”investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.”

Global Impact Investing Network on impact investment: http://www.thegiin.org/cgi-bin/iowa/investing/index.html#1

What are Environmental, Social and Governance (ESG) issues?

According to the Financial Times, ESG (environmental, social and governance) is a generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies. ESG factors are a subset of non financial performance indicators that includes sustainable, ethical and corporate governance issues such as managing the company’s carbon footprint and ensuring there are systems in place to ensure accountability.

Financial Times Lexicon: http://lexicon.ft.com/Term?term=ESG

What is Entrepreneurial Philanthropy?

Joseph Schumpeter says in “Capitalism, Socialism, and Democracy” that the function of entrepreneurs is to “reform or revolutionize the pattern of production” in a given field or market.

Philanthropy can be defined as “mobilizing and deploying private resources, including money, time, social capital, and expertise, to improve the world in which we live.”

Put them together and you get Entrepreneurial Philanthropy, reform of the way private resources are mobilized to improve society. Center for the Advancement of Social Entrepreneurship at Duke University on Entrepreneurship in Philanthropy: http://www.caseatduke.org/articles/0805/corner.html

What is Philanthrocapitalism?

Matthew Bishop, American Business Editor and New York Bureau Chief of the Economist wrote the book Philanthrocapitalism together with the economist and writer Michael Green. They have several explanations for the term: “There are a couple of definitions. First, a micro-level definition: it is a new way of doing philanthropy, which mirrors the way that business is done in the for-profit capitalist world.

Entrepreneurs don’t just want to write cheques. They want to be hands on, bringing innovative ideas to scale by investing their time and energy.

Second, philanthrocapitalism describes at the macro level the ways in which capitalism itself can be philanthropic, working for the good of mankind. It is not just that, at its best, capitalism drives innovation which tends to benefit everyone, sooner or later, through new products, higher quality and lower prices.

The winners of capitalism increasingly see giving back as an integral part of being wealthy. More and more business leaders, particularly following the financial crisis, are realising that they need to think long term and play a part in tackling global challenges like climate change.” (http://www.philanthrocapitalism.net/about/faq/)