In recent years, awareness of environmental issues and social investment has grown significantly in Brazil and around the world. Investment in companies committed to the ESG agenda (environmental, social and governance – in free translation) has wonincreasing prominence. ESG addresses factors that go beyond simple financial indicators, such as the company’s impact on the environment and its social responsibility.

Recent studies have shown that adherence to ESG practices can bring competitive advantages to companies, including more efficient risk management and a positive image with consumers and investors. In addition, growing awareness of issues such as climate change and human rights has led more and more investors to look for investment options that reflect their beliefs and values.

In this article, we will address the Social component of ESG and how social investment is a fundamental tool for our future.

Social Investment: the meaning of the “S” in ESG

The “S” in ESG stands for the social issues that a company must consider and address in its operation. Thus, they can include both internal aspects such as employee diversity and inclusion, as well as relationships with communities.

By incorporating a socially responsible approach, companies recognize that social well-being is directly related to business sustainability. In addition, they contribute to the betterment of society, which benefits everyone.

Another important point for companies with social investment is to construct a respected brand. Businesses that commit to responsible social practices generally have a positive image and a strong reputation.

Now that you do understand the importance of investing, it’s time to know how to do it.

How to create a social investment policy

Before starting to make a social investment, you need to think about some factors both to facilitate and to maximize your actions. This is because isolated or non-recurring initiatives end up not bringing the expected results.
Here are some important steps to create a social investment policy:

• Identify the objectives – Before starting, outline the general objectives that you want to achieve. It can be improvement of education, health or some help to the community in which the company is inserted
• Analyze necessities– Conduct research to identify the most pressing challenges in the area you intend to invest in. Each location has different needs.
• Establish Criteria – Selecting projects and initiatives to support can be a tricky task. Consider factors such as alignment with your organization’s goals, social impact, sustainability, transformative potential, and ability to execute.
• Look for partners – One of the main lessons from the social area is that you can’t solve anything alone. Collaboration is essential to maximize results. The Ramacrisna Institute, for example, is among the most respected NGOs in Brazil, with projects in several areas. Click to know more.
• Think long term – a social investment policy is an ongoing and evolving process. Be open to learning from experiences and adapting your strategies. Nothing happens overnight.
• Communicate and share – Share the results and success stories generated through social investment. This transparent communication not only values the work done, but also inspires other people and organizations to engage in similar initiatives.

Get to know the social projects of the Ramacrisna Institute

The Ramacrisna Institute was founded 64 years ago and operates in 11 cities in the Metropolitan Region of Belo Horizonte. Through partnerships, generation of own resources and donations, it develops projects in the areas of leisure, culture, sport, professional courses, educational support and learning for children, adolescents and adults.Among the projects carried out in partnership with companies, we highlight:

• Extending Horizons – carried out in partnership with BrazilFoundation and the city of Igarapé, it aims to professionally qualify adolescents and young people aged 15 to 29, in situations of social and personal vulnerability in Igarapé, promoting the insertion of this group in the job market . Between 2021 and 2022, 681 young people were assisted by the project.
• Building the Future – Sponsored by Petrobras, the project is aimed at children, teenagers and young people living in 3 neighborhoods close to REGAP, in Betim-MG. Through it, thousands of people are benefited. Since 2020, 3,414 people have benefited directly and more than 13,000 indirectly.
• Checkmate– Done in partnership with Vale, the project prepares children, teenagers and young people for life, through practices that unite technology, sport and education.

There are several ways to support Ramacrisna and start a Social Investment plan. You can support the Institute, a specific initiative, or even develop a specific project for your company in partnership with Ramacrisna.

Click here to get in touch with us.