Social investor FAQs

How do I go about investing in social business?

Individuals may invest directly in public and private companies. Some of the social businesses on our site may be looking to raise capital through share issues or financing rounds.  See our companies looking for capital page here. Another possibility is to invest in a socially responsible investment (SRI), green, or ethical fund (for example RBC Jantzi Funds). This may give you exposure to a range of social businesses through a fund management house. Individuals are advised to check the investment strategies, screening criteria, and performance of all funds prior to an investment decision or seek advice from a qualifies financial advisor.

Before you invest, it is advisable to decide what you are looking for from a social investment, in terms of financial and social returns. Some investors are more interested in environmental stewardship and some in development goals, for example. Some social businesses will offer a greater potential for financial returns.

ClearlySo Canada hosts regular "Investor speed dating" events. Please check out our events page for our next speed dating event.

Where can I learn more about social finance in Canada?

Check out our friends at socialfinance.ca. Here you can find useful resources including their regularly updated blogs and current events.

What actually is Socially Responsible Investment (SRI)?

"Socially responsible investing (SRI) integrates environmental, social and governance (ESG) performance research into decisionmaking. In the last decade, SRI has evolved from negative   screens to analysis that better informs investment strategies. In fact, there has been tremendous growth in awareness among mainstream investors that are beginning to recognize that ESG factors can be material to financial performance. Unlike traditional social investors, the mainstream views ESG factors through the single lens microscope of investment risk. Through this period of extraordinary growth, one constant has remained. Social investors continue to view the world through a dual lens microscope. On the one hand they are interested in competitive bottom line returns. But they want to achieve these returns within the framework of personal values or organization mission. During the recent financial crisis, Canadian investors maintained their interest in SRI, which is illustrated by an increased participation in mechanisms that strengthen SRI such as the Carbon Disclosure Project (CDP) and the United Nations backed Principles for Responsible Investment (PRI). In 2009, there were more than 15 new signatories to these initiatives."

- Michael Jantzi, CEO Jantzi Sustainalytics

What actually is a social business?

Click here for our full definition.

How does social business fit in with CSR?

Large corporations practicing Corporate Social Responsibility (CSR) are NOT social businesses.  This is because their primary objective remains financial and their CSR activities, socially beneficial as they may be, exist to serve the primary objective (which is financial), because of stakeholder demands from staff, customers and shareholders and others.   Social businesses are businessess that have twinned key objectives (of equal importance), one financial and one social.

Are renewable energy companies social businesses?

Environmental businesses are the trickiest to define although we certainly include them in the broad category of social business.  This is because everything they do serves Social, Environmental and Ethical (SEE) objectives—an example being renewable energy firms.  Their growth engenders the replacement of a type of energy production that pollutes our environment with one that is less harmful.  Therefore, even if the management of such firms exists simply to maximise profits, the SEE mission is so well integrated into the operations of the company that we consider them social businesses.  

Are pharmaceutical companies social businesses?

All businesses in the health sector perform an obvious social role, whether it be providing healthcare or developing drugs to cure disease.  While pharmaceutical companies are obvious examples , the key is in their primary motivation. Social businesses put at least an equal or greater emphasis on their social purpose. Every business that we have included on this site has been assessed on an individual basis to ensure that they fit within our definition.