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