By Mark Jones, CEO ImpactInstitute
Is Jim Chalmers a social impact visionary, or just a very naughty Federal Treasurer?
Chalmers’ essay for The Monthly, ‘Capitalism after the crisis,’ has ignited national media commentary and no doubt done wonders for that publication’s subscriptions. The 6,000 word opus has also made him the proverbial tip of Labor’s arrow.
This metaphor refers to the Albanese Government’s social agenda and its Wellbeing Budget, launched in October 2022. Regardless of your politics it was a defining moment in the history of Australia’s NFP, charity and social sector.
Here was a Federal Government publicly declaring Australia must meaningfully transition to being a nation that values the long-term health and wellbeing of its people and its economy. People and profits.
However, it begged a serious question, particularly for those leading NFPs, charities, foundations and other social sector organisations. Was this just another blast of hot air from Canberra, or would government actually follow through and take action this time?
Clearly the subtext to infer from Chalmers’ wordsmithing is that the government hasn’t given up on its Big Idea – “values-based capitalism.” It’s pushing ahead despite predictable ridicule from the opposition in parliament and accusations from conservative media that it’s an unprofitable way to invest our super funds.
What’s different?
The big question for social sector leaders to consider this time around is, what’s different? Public-Private Partnerships have been around a long time. Some are good, others ineffectual or worse.
Meanwhile, Chalmers is leaning heavily on another complicated model – social impact investing. The Social Impact Investing Taskforce, led by former Macquarie Banker and social impact investing pioneer Michael Traill, has recommended an expansion of impact investment to help solve Australia’s biggest social issues and deliver “ethical, risk-adjusted and long-term” returns to investors.
But we have a long way to go, as John Kehoe writes in the AFR. The UK impact investment market is now worth £8 billion, while our social investment market was just $1.3 billion in 2020.
Key areas of investment focus include safe and affordable homes, disadvantaged children’s education, positive family relationships and health, Kehoe says, all areas of great need in Australia.
Chalmers view is that the right market framework to enable great social impact investment is not yet operational in Australia. But when we get there, it will no doubt involve “an element of partnership.”
And that’s the kicker. Partnership.
Think about your organisation, your team and the partners you rely on to deliver services and run programs that deliver long-term, positive change in the communities you serve.
True partnerships are forged when real people agree to work together towards common social outcomes and organisational goals. Arguably, these partnerships are the essence of what’s needed to create a genuine wellbeing economy. They could also be the seeds of values-based capitalism, whatever that ends up looking like in the future.
What should we do?
So where to next? Aside from running our organisations, what strategies or activities could help bring Chalmers’ vision to life? Here are a few ideas:
- Champion the value of people-centred services.
Social sector organisations clearly understand the issues faced by people and communities. They know what it takes to be truly people-centred and use real-world insights to shape strategies that deliver long-term outcomes. - Do more with less.
More often than not, corporates and governments throw money at problems. Resource-constrained social sector organisations are experts in being creative and innovative. - Model positive partnerships.
Tell the story of your long-term partnerships. Help government and corporate sector leaders understand what it takes to build lasting relationships, stay committed in the tough times, and create shared value.
Ultimately, the complexity of social, economic and political issues facing us in the next 12 months will also demand vision, tenacity and patience.
For our part at ImpactInstitute, we’ve launched the inaugural Social Impact Summit on 3-4 July 2023 to connect social sector, corporate and government leaders around a central theme – Together for Good: Accelerating a fair, just and inclusive Australian society.
It’s our response to what we believe is a unique moment in history. These strange post-Covid social and economic times have created a climate where people are ready for positive change.
It’s not a political agenda, per se. Like everyone, it seems, we want to make a difference. In our world that means fostering partnerships, connecting social impact leaders, and elevating the social impact conversation.
Time will tell, but one thing is for certain. The social impact agenda has finally gone mainstream, and that alone feels like progress.
We’d love you to join us on this journey and sign up to get more information