The document discusses social investment bonds as a way to distribute resources to disadvantaged communities. It explains that social investment bonds complement government policy on distributive justice by providing an alternative means for corporations to engage in philanthropy. The bonds allow ethical investors to contribute to positive social change and generate cash flow for social programs independent of changes in government policy. They provide a way to balance technical efficiency focused on competition and individual gain with distributive justice aimed at cooperation and equitable distribution of wealth in a community.

1. Page 1 of 2,
7-10-2007, W. de Ruyter; Extract briefing Paper ANF & ACTU ‘Collective Bargaining a Model for the 21st
Century’ Amended Dec 2014 Revised Aug 2015 © Copyright
Social Investment Bonds
Corporate Philanthropy through Technical Efficiency
Précis:- The following describes the role of Social Investment Bonds in the distribution
of resources to the benefit of the disadvantaged by complementing existing Government
policy and practice on Distributive Justice.
Background:- The benefits of commerce are primarily through striking a balance
between;
 Technical Efficiency based on i) competition, ii) and individual gain. Of note
most countries have adopted a capitalist system when applied to commerce. An
inherent trait of capitalism is to concentrate wealth1
 The other side of the pendulum is Distributive Justice based upon i) Cooperation
ii) association. Both are overseen by government.
Within communities the judiciary, spiritual institutions, Non-Government Organisations,
education institutions, professional associations, trade associations and unions have an
important part to play in maintaining this balance in advocating for the equitable
distribution of acquired community wealth. This contributes to social cohesion in our
communities based upon a commitment to a set of shared values.
The process of distribution of community acquired wealth is primarily through
government institutions by the redistribution of Tax and associated charges for the social
benefit of the disadvantaged. The level and rate of distribution is affected by the size and
philosophy of government. A financial instrument contributing to the redistribution of
that wealth is the use of a social impact or benefit bond23
. (Schematic appended p.2)
The Mission of many Non-Government Organizations’ NGO’s to the broader community
operates in a capitalist economy and utilizes corporate entities. An example is described
in the role of Church and Corporation4
. The emerging economic instrument/s related to
Social Investment5
such as the Social Impact or Benefit Bond are financial instruments
attractive to ethical investors wishing to contribute to positive social change. When
established generates cash flow for social good independent of the vagaries of
government philosophy and subsequent policy of the day.
1
http://www.huffingtonpost.com/eric-zuesse/us-is-now-the-most-unequa_b_4408647.html
2
http://en.wikipedia.org/wiki/Social_impact_bond
3
http://www.socialtraders.com.au/sites/www.socialtraders.com.au/files/Les%20Hems%20-
%20Social%20Impact%20Bonds.pdf
4
7-1-13 de Ruyter W. The Role of Church & Corporation
5
http://books.google.com.au/books?id=TuHG8m5zN50C&pg=PA10&dq=social+investment+trust&hl=en
&sa=X&ei=cUiTUa-
FGqe9iAfMqIHwBA&ved=0CDkQ6AEwAA#v=onepage&q=social%20investment%20trust&f=false

2. Page 2 of 2,
7-10-2007, W. de Ruyter; Extract briefing Paper ANF & ACTU ‘Collective Bargaining a Model for the 21st
Century’ Amended Dec 2014 Revised Aug 2015 © Copyright
W de Ruyter Menadue Briefing 19 April 07
Amended Dec 2014 ©
2
Social Investment Bonds
Corporate Philanthropy through Technical Efficiency
Corporation Mission
Maximize Profit $
(Technical Efficiency)
Social
Investment
Bond
Government
Tax & Charges
Community Benefit
Distributive Justice
V’s
Technical Efficiency
Social
Value
Distribution EfficiencyV’sDistributive Justice
Community
Shareholder
KnowledgeMonetizedas
IntellectualProperty
Government policy & practice re
Distributive Justice affected by size
& philosophy of government!