An increased interest surrounds the theme of Social Impact Investment from both academics and practitioners. It becomes much more trigger investing on social performance instead of pursuing only financial returns. However, there are not clear-cut definitions and boundaries on this issue. Moreover, little has been talking about the construction of an impact investing portfolio optimization. Thus, this field of research needs to be analysed in deep. With the aim of adding improvements, the paper provides a literature review on the terms around the Social Impact Investments landscape. Furthermore, the paper gradually achieves a methodological framework analysing the crucial metrics for the impact investing decision making: financial return, social impact related to risks. The final objective is to provide a preliminary approach in order to develop a formal model that measures the social impact related to investments taking into account both financial and social risks. Further research will certainly go in the direction of making proofs by analysing the case of “Banca Prossima” that has specific criteria assignments for the non-profit sector.
Keywords: Etica e responsabilità sociale, Social Impact Investments, Impact Investing, Social Impact & Risk Assessment
Figure 1. A comprehensive analysis of the forward-thinking view of social impact related to risk
Table 1. Social Impact Investment’s Terminology related to the most recent and noteworthy literature
