Page 1 of 2, 7-10-2007, W. de Ruyter; Extract briefing Paper ANF & ACTU ‘Collective Bargaining a Model for the 21

st

Century’ Amended Dec 2014 Revised Aug 2015 © Copyright

Social Investment Bonds Corporate Philanthropy through Technical Efficiency

Précis:- The following describes the role of Social Investment Bonds in the distribution

of resources to the benefit of the disadvantaged by complementing existing Government

policy and practice on Distributive Justice.

Background:- The benefits of commerce are primarily through striking a balance

between;

Technical Efficiency based on i) competition, ii) and individual gain. Of note

most countries have adopted a capitalist system when applied to commerce. An

inherent trait of capitalism is to concentrate wealth1

The other side of the pendulum is Distributive Justice based upon i) Cooperation

ii) association. Both are overseen by government.

Within communities the judiciary, spiritual institutions, Non-Government Organisations,

education institutions, professional associations, trade associations and unions have an

important part to play in maintaining this balance in advocating for the equitable

distribution of acquired community wealth. This contributes to social cohesion in our

communities based upon a commitment to a set of shared values.

The process of distribution of community acquired wealth is primarily through

government institutions by the redistribution of Tax and associated charges for the social

benefit of the disadvantaged. The level and rate of distribution is affected by the size and

philosophy of government. A financial instrument contributing to the redistribution of

that wealth is the use of a social impact or benefit bond23

. (Schematic appended p.2)

The Mission of many Non-Government Organizations’ NGO’s to the broader community

operates in a capitalist economy and utilizes corporate entities. An example is described

in the role of Church and Corporation4. The emerging economic instrument/s related to

Social Investment5 such as the Social Impact or Benefit Bond are financial instruments

attractive to ethical investors wishing to contribute to positive social change. When

established generates cash flow for social good independent of the vagaries of

government philosophy and subsequent policy of the day.

1http://www.huffingtonpost.com/eric-zuesse/us-is-now-the-most-unequa_b_4408647.html

2 http://en.wikipedia.org/wiki/Social_impact_bond

3 http://www.socialtraders.com.au/sites/www.socialtraders.com.au/files/Les%20Hems%20-

%20Social%20Impact%20Bonds.pdf 4 7-1-13 de Ruyter W. The Role of Church & Corporation

5http://books.google.com.au/books?id=TuHG8m5zN50C&pg=PA10&dq=social+investment+trust&hl=en

&sa=X&ei=cUiTUa-

FGqe9iAfMqIHwBA&ved=0CDkQ6AEwAA#v=onepage&q=social%20investment%20trust&f=false

Page 2 of 2, 7-10-2007, W. de Ruyter; Extract briefing Paper ANF & ACTU ‘Collective Bargaining a Model for the 21

st

Century’ Amended Dec 2014 Revised Aug 2015 © Copyright

W de Ruyter Menadue Briefing 19 April 07 Amended Dec 2014 ©

2

Social Investment Bonds Corporate Philanthropy through Technical Efficiency

Corporation MissionMaximize Profit $

(Technical Efficiency)

SocialInvestment

Bond

Government

Tax & Charges

Community BenefitDistributive Justice

V’s Technical Efficiency

Social Value

Distribution EfficiencyV’sDistributive Justice

Community

Shareholder

Kn

ow

led

ge M

on

eti

zed

as

Inte

llect

ual

Pro

pe

rty

Government policy & practice reDistributive Justice affected by size& philosophy of government!