Principles for Social Investment

The Principles for Social Investment (PDF) is an initiative of the United Nations Global Compact to provide an ethical foundation and guidelines for social investment by companies and their foundations, community foundations and private foundations and thereby encourage an integrated, strategic and sustainable approach to improve long-term ‘returns’ to key stakeholders – including populations benefiting from social investment and the investors.

Social investment is the practice of making voluntary financial and non-financial contributions that demonstrably help local communities and broader societies to address the societal priorities of both developed and developing countries. Leaders of corporations and grant-making institutions increasingly recognize the importance of responsible social investment, ensuring not only the optimal impact of their contributions, but also their alignment with broader societal goals.

The United Nations Global Compact Principles for Social Investment (PSI) promote contributions that are purposeful, accountable, respectful, and ethical

By distilling best practices into a set of voluntary principles that guide the ongoing practice of social investment by organizations, the PSI seek to increase the positive impact and scalability of such contributions for the advancement of societies. Forthcoming measurement guidance on the PSI will enable companies and other grant-making institutions to track improvement in their adherence to these principles over time.

With the introduction of the PSI, the UN Global Compact seeks to offer guidance for organizations pursuing responsible social investment practices, including companies and their foundations, community foundations, private foundations and non-governmental organizations.