Virtual Stock Game motivates traditional donors to become social investors!!
There is no standard for measuring socio economic impact. Environment organization plants 10,000 trees. How large this impact would be compared to the achievements of other organizations? One environment organization plants 10,000 trees and another one works on recycling in order to preserve 10,000 trees. Which one has more socio economic impact? One environment organization spends $10,000 for planting 10,000 trees while other organization spends $10,000 for improving children’s math performance at developing countries. Which one has more socio-economic impact?
What’s happen if we do not have measurement for socio economic impact? People cannot judge organizations activities objectively. People choose organization based on their preference of organization activities rather than how well organization contributes to the society. Financial consideration would become a secondly issue.
Observable measurement for socio-economic impact would lead: People can analyze organization performance more objectively as people do at financial market. People can know how much their investment can make socio-economic impact through organization activities. Higher focus on social return.
Are there any methods to measure organizations’ performance? Several organizations measure organizations’ performance, such as Evangelical Council for Financial Accountability and BBB Wise Giving Alliance; however, they focus on financial transparency, management commitment, and information disclosure. They do not focus on how much social value organizations create.
Virtual Stock Market could measure organization’s socio-economic impact . Virtual Stock Market is marketing forecasting tool for politic, movie, entertainment, sports, and so on. People buy and sell virtual stock, for example, for movie, based on their analysis. The major purpose for the traders is to maximize their profit by evaluating virtual stock accurately and trading the stock at right price. The price for virtual stocks show the value in real world.
Several websites already use this idea to forecast market. Hollywood Stock Exchange: http://www.hsx.com/ Foresight Exchange: www.ideosphere.com Newsfutures: www.newsfutures.com Iowa Electronic Markets: http://tippie.uiowa.edu/iem/index.cfm
This idea accurately forecast future outcome!! The above graph is the relationship between the final stock price of virtual movie at Hollywood Stock Exchange and the total revenue of movie. Source: Prediction Markets by Justin Wolfers and Eric Zitzewitz.
Virtual Stock Market for social enterprises We create this virtual stock market for social enterprises at Facebook or Liquidnet. The traders use virtual money. So this market is a game. The traders buy and sell virtual stocks based on organizations’ social contribution and maximize their profit. The traders analyze organization’s vision, activities, employees, and business model. Then, they determine organizations’ socio economic impact. The price of virtual stock shows the degree of organizations’ socio economic impact.
Traditional donors to social investors With this simple observable figure, traditional donors are more interested in how well organization create social value. By involving in this game, traditional donors are more motivated to research and analyze organizations’ activities and financial performance objectively. This virtual stock market plays a bridge from traditional donors to social investors.