Social business experts Catalyst have developed a new website to promote investment in companies with social, ethical and environmental aims. We spoke to Julia Meek about socialinvestments.com.

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So how did socialinvestments.com come about?

It took two years to develop and ­­­­­­­­grew out of our consultancy and venture capital work at Catalyst – we realised just how valuable the information we’d collected could be to others.. We have a fundamental belief in the social and financial possibilities of the social business sector, but few investors know enough about it to be comfortable putting their money in.

 
Who is the site aimed at?

We wanted to appeal primarily to individual investors. At the moment if you type “ethical investment” into Google you’ll get the great big funds like Jupiter Investment Management. Which is fine, but some people are looking to become more involved, for something with more of a story. There’s a vast range within the sector, from companies that are already paying out huge dividends to those at a much earlier stage. But it’s also a great source of information for businesses or anyone wanting to find out more about social business.

 
How did you define what a social business is?

We tended to take the view that if it looks like a social business, then it is one. Often it’s obvious, but sometimes it’s less so. Pharmaceutical companies, for example, will all claim to be saving lives, but it’s pretty clear that many are about maximising profit rather than social goals. We are working on a set of criteria, so if we come up with a succinct definition, I’ll let you know.

 
What’s the reaction been like so far?

It’s been very positive. People are telling us it’s time someone did this. It’s really the next logical step in ethical consumerism—perhaps even the next step in investment. But there’s all sorts of ways the site could be improved and developed. We want to make it more interactive. A key thing is to find a way of linking investors with suitable companies. It’s a case of talking to people and finding out what they want out of it.

 
How do you think the “credit crunch” is going to affect people investing in the social business sector?

People are wary of investing in anything at the moment, so there could be a quieter time ahead. But the credit crunch was basically the result of people not knowing what they were investing in because of the complexity of the global financial markets. So providing this service shows people they can have a clear knowledge of what they’re investing in and a direct involvement in the social return. I’m hopeful that in the current climate that’s something people will be looking for.

 
So how do businesses get listed on the site?

Just go to www.socialinvestments.com and fill in the form. It’s very easy and won’t take long – you just need to provide a few details and a very short description of your company.