Toby Eccles: Invest in social change

TL;DR

The speaker introduces the concept of a social impact bond, a new business model for social change that aims to reduce re-offending rates among ex-convicts in the UK.

Transcript

I'm here today to talk about social change, not a new therapy or a new intervention or a new way of working with kids or something like that, but a new business model for social change, a new way of tackling the problem. In Britain, 63 percent of all men who come out of short sentences from prison re-offend again within a year. Now how many previou... Read More

Key Insights

• 🏢 A new business model for social change called the social impact bond is being used to tackle social issues, such as reducing re-offending rates among prisoners.
• 💰 The social impact bond allows the government to create contracts with investors, who only get paid if the program is successful in achieving its goals, saving the government money. ⏰ One challenge with social impact bonds is that it can take a long time to measure the outcomes, so there is a need to raise money from socially motivated investors to fund the program.
• 🌍 Socially motivated investors are interested in investing in initiatives that provide social good, and the social impact bond model allows them to do so while also making a return on their investment.
• 🔒 The Ministry of Justice can try out new programs with the social impact bond model without the risk of paying for unsuccessful initiatives, and investors have the opportunity to invest in social change and make a reasonable return.
• 📈 If successful, the social impact bond model can not only improve outcomes and save money for the government, but also provide evidence for the effectiveness of service providers and encourage wider investor participation.
• 🔁 The social impact bond model can be applied to various areas, such as working with children in care, homelessness, and youth employment and education, to improve outcomes and reduce costs.
• 💡 The social impact bond model brings innovation, rigor, flexibility, and partnership to social change initiatives, allowing for testing of new ideas, data-driven decision-making, program adaptation, and collaboration among different sectors.
• 🤝 The social impact bond model creates a structure that brings together expertise from the public, private, and social sectors to effectively address social issues and allow for investment in social change.

Questions & Answers

Q: What is the social impact bond?

The social impact bond is a new business model for social change that aims to tackle problems by creating a contract with the government, where they only pay if the program is successful in achieving its intended outcomes.

Q: How does the social impact bond work?

The social impact bond works by raising money from socially motivated investors, who fund a set of services aimed at improving outcomes. If these services are successful in reducing re-offending rates, the government saves money and can then pay investors based on the measured reductions in crime.

Q: What are the benefits of the social impact bond?

The social impact bond offers benefits to various stakeholders. The government can try out new programs without the risk of paying for unsuccessful interventions. Investors have the opportunity to invest in social change and make a return on their investment. Service providers have a chance to provide services, gather evidence for their effectiveness, and demonstrate the value of their work over a longer period of time. Society benefits from fewer crimes and fewer victims.

Q: What are some examples of areas where social impact bonds have been implemented?

Social impact bonds have been implemented in various areas, such as reducing re-offending rates of ex-prisoners, working with children in care, and addressing homelessness and youth unemployment. In Britain alone, there are already 13 social impact bonds, and the idea has gained interest from countries around the world.

Q: What factors contribute to the success of social impact bonds?

Social impact bonds bring innovation, rigor, flexibility, and partnership to the table. They enable the testing of new ideas, require data-driven decision-making, provide the flexibility to adapt programs based on evolving needs, and bring together expertise from various sectors to create social change. These factors contribute to the success and appeal of social impact bonds.

Summary & Key Takeaways

• A new business model for social change called a social impact bond is being used to tackle the problem of high rates of re-offending after short sentences in prison.

• Social impact bonds involve creating a contract with the government where they only pay if a program is successful in reducing re-offending rates.

• Investors can contribute money to fund the program, and if successful, they not only get their money back but also make a return on their investment.