Greening the Green: Socially Responsible Careers in Finance

The Next Generation of Fireworks May All Be Green

By GreenBiz Staff
Published: July 2, 2009

OAKLAND, Calif. -- Despite being a centerpiece of celebrations the world over, fireworks displays often release toxic chemicals into the environment; researchers are developing a new generation of fireworks that shine as bright but leave less of an impact.

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Coca Cola to Put Fuel Cells to Work at N.Y. Bottling Plant

By GreenBiz Staff
Published: July 2, 2009

ELMSFORD, N.Y. -- Coca Cola signed a 10-year contract with UTC Power that will bring two fuel cells to a southern New York bottling plant, where they will produce enough heat and energy to satisfy nearly a third of the facility's needs. The state of New York also provided $2 million for the project.

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World's Largest Cement Firms Slow CO2 Emissions Despite Production Growth

By GreenBiz Staff
Published: July 2, 2009

GENEVA, -- Efforts by the world's leading cement companies knocked down carbon dioxide emissions from the industry’s manufacturing process by 35 percent even while production climbed by 53 percent, according to a new report by the World Business Council for Sustainable Development’s Cement Sustainability Initiative.

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By Jimmy Atkinson
Published August 1, 2007

If you're interested in a financial career, you might be curious about how your interests can lead to reconciliation between your job and your belief system. Social finance might open the door to several solutions for your dilemma. While social financing might seem new, it's been around since the first individual took a stand against profit at any cost. A Quaker would no more finance slavery before the Civil War than a conscientious objector would finance war machines today.

Before you have an epiphany about your career goals, you might want to learn more about the various facets within social financing, the career opportunities that are open to you, and the education you may need to pursue your dreams.

Social Finance Defined

Social finance means that financial instruments are used to promote social goals. Financial instruments used to accomplish these goals include credit, savings, investments, and loans, among other devices. These tools help the poor to cope better with risk, take advantage of income-generating opportunities, to organize and to have a voice. These tools also incorporate personal values and societal concerns with investment decisions, where individuals or groups hope to support sustainable business efforts.

Social finance has, historically, belonged to governments and charitable or religious organizations; however, with a focus on global warming and with news about difficulties encountered by individuals in underdeveloped countries, the private sector has become involved in this specialized field. While some businesses and individuals seek to use funds for philanthropy, others want to contribute with an eye to profit.

So, while the social goals may seem similar among most social financiers, intents behind those goals may vary widely. For instance, a public corporation and a private individual both may want to support lower income populations. But, the corporation might want to eliminate poverty to create a new consumer pool for their products while the individual might work toward the same goal to support a belief in social equality.

Some Social Finance Careers

If you're interested in financial matters, you already know that markets have integrated to a degree, and that this integration -- or globalization -- means that various countries have become more interdependent. Financial capital is flowing into pre-emerging and emerging markets, where these funds help individuals and communities meet social needs.

Social finance careers have expanded to the point where you can attend a school like the School for Social Entrepreneurs in London that focuses solely on social entrepreneurship. Whether your interests lie in a nonprofit or for profit participation in this specialized industry, you might wonder where your opportunities lie. Some social finance positions might include:

Community Investor: The community investor works with other individuals to gather, oversee, and direct capital to community investment opportunities in local or regional areas or abroad. The communities in question usually have been under-served or overlooked by ordinary financial services. You can learn about community investing and some organizations involved with this outreach at the Social Investment Forum's Community Investing Center.

Usually, community investors report to a board of directors and, ultimately, to the shareholders of a company that organizes investing efforts. But, you can work toward becoming a venture capitalist who focuses on community potentials rather than on new businesses. Or, you can find a place within various organizations or on their boards.

Micro-Financier: Community investors can also become micro-financiers, a role that is very similar to the venture capitalist but that doesn't demand return on investment in all cases. This individual seeks to provide impoverished individuals or communities with the means to invest or borrow money for business or community development. Usually these financial transactions eliminate the need for collateral, and they carry smaller than average investment requirements.

The micro-financier may work solo or for companies that range from financial businesses to non-governmental organizations (NOGs). As a solo investor, you can also become involved with opportunities provided by micro-finance networks that focus on helping individuals as diverse as your own family members to unknown individuals in developing countries.

Nonprofit Sector: The nonprofit sector is, perhaps, the most traditional arm of the social finance network. When you work for a nonprofit organization or private foundation, you'll usually report to a board of directors or trustees, depending upon that organization's legal structure. The nonprofit sector is diverse, as it ranges from interests in the arts to animal rights.

The nonprofit sector is also the most diverse when it comes to opportunities. While some individuals are content to volunteer for nonprofit efforts, you can also seek a career as an executive or work as a freelance grant writer or project coordinator. The freelance positions may allow you to satisfy your desires to provide help for various organizations and still pay the rent.

Social Entrepreneur: Unlike venture capitalists, social entrepreneurs provide innovative solutions to difficult social problems usually without seeking personal profit. This entrepreneur is similar to the business entrepreneur in that he seeks to build something out of nothing with creativity and ambition. Social entrepreneurs, however, see people or communities in need rather than new businesses as their untapped markets.

Social enterprises include businesses that measure success by profits and by community benefits. With that said, a career as a social entrepreneur could combine the characteristics of altruistic nonprofits with for-profit micro-financing to create a hybrid social financing opportunity. The individuals involved at both ends often define whether the opportunity is for-profit or nonprofit, but in all cases the project usually helps to improve a community's social situation.