13 Socially Responsible Careers in Finance

  If you're interested in a financial career, you might be curious about how   your interests can lead to reconciliation between your job and your belief   system. Social finance might open the door to several solutions for your   dilemma. While social financing might seem new, it's been around since the   first individual took a stand against profit at any cost. A Quaker would no   more   finance   slavery before the Civil War than a   conscientious objector would   finance war machines today.

  Before you have an epiphany about your career goals, you might want to learn   more about the various facets within social financing, the career   opportunities that are open to you, and the education you may need to pursue   your dreams.

  Social Finance Defined

  Social finance means that financial instruments are used to promote social   goals. Financial instruments used to accomplish these goals include credit,   savings, investments, and loans, among other devices. These tools help the   poor to cope better with risk, take advantage of income-generating   opportunities, to organize and to have a voice. These tools also incorporate   personal values and societal concerns with investment decisions, where   individuals or groups hope to support sustainable business efforts.

  Social finance has, historically, belonged to governments and charitable or   religious organizations; however, with a focus on global warming and with news   about difficulties encountered by individuals in underdeveloped countries, the   private sector has become involved in this specialized field. While some   businesses and individuals seek to use funds for philanthropy, others want to   contribute with an eye to profit.

  So, while the social goals may seem similar among most social financiers,   intents behind those goals may vary widely. For instance, a public corporation   and a private individual both may want to support lower income populations.   But, the corporation might want to eliminate poverty to create a new consumer   pool for their products while the individual might work toward the same goal   to support a belief in social equality.

  Some Social Finance Careers

  If you're interested in financial matters, you already know that markets have   integrated to a degree, and that this integration - or globalization - means   that various countries have become more interdependent. Financial capital is   flowing into pre-emerging and emerging markets, where these funds help   individuals and communities meet social needs.

  Social finance careers have expanded to the point where you can attend a   school in London that focuses solely on   social entrepreneurship. Whether your interests lie in a nonprofit or for   profit participation in this specialized industry, you might wonder where your   opportunities lie. Some social finance positions might include:

  Community Investor: The community investor works with other   individuals to gather, oversee, and direct capital to community investment   opportunities in local or regional areas or abroad. The communities in   question usually have been under-served or overlooked by ordinary financial   services. You can learn about community investing and some organizations   involved with this outreach at the Social Investment Forum's   Community Investing   Center.

  Usually, community investors report to a board of directors and, ultimately,   to the shareholders of a company that organizes investing efforts. But, you   can work toward becoming a   venture capitalist   who focuses on community potentials rather than on new businesses. Or, you can   find a place within various organizations or on their boards.

  Micro-Financier: Community investors can also become   micro-financiers, a role that is very similar to the venture capitalist but   that doesn't demand return on investment in all cases. This individual seeks   to provide impoverished individuals or communities with the means to invest or   borrow money for business or community development. Usually these financial   transactions eliminate the need for collateral, and they carry smaller than   average investment requirements.

  The micro-financier may work solo or for companies that range from financial   businesses to non-governmental organizations (NOGs). As a solo investor, you   can also become involved with opportunities provided by   micro-finance   networks that focus on helping individuals as diverse as your own family   members to unknown individuals in developing countries.

  Nonprofit Sector: The nonprofit sector is, perhaps, the most   traditional arm of the social finance network. When you work for a nonprofit   organization or private foundation, you'll usually report to a board of   directors or trustees, depending upon that organization's legal structure. The   nonprofit sector is diverse, as it ranges from interests in the arts to animal   rights.

  The nonprofit sector is also the most diverse when it comes to opportunities.   While some individuals are content to volunteer for nonprofit efforts, you can   also seek a career as an executive or work as a freelance grant writer or   project coordinator. The freelance positions may allow you to satisfy your   desires to provide help for various organizations and still pay the rent.

  Social Entrepreneur: Unlike venture capitalists, social   entrepreneurs provide innovative solutions to difficult social problems   usually without seeking personal profit. This entrepreneur is similar to the   business entrepreneur in that he seeks to build something out of nothing with   creativity and ambition. Social entrepreneurs, however, see people or   communities in need rather than new businesses as their untapped markets.

  Social enterprises include businesses that measure success by profits and by   community benefits. With that said, a career as a social entrepreneur could   combine the characteristics of altruistic nonprofits with for-profit   micro-financing to create a hybrid social financing opportunity. The   individuals involved at both ends often define whether the opportunity is   for-profit or nonprofit, but in all cases the project usually helps to improve   a community's social situation.

  What to Expect

  If you're already drawn to a   financial career in   accounting, investing, research, trading, banking or other areas, then you   know the specific thrills you gain from your interest(s). If you want to   incorporate a social angle to your career objective, you will also need to   expand your skills and experience through education and work. You can expect   to gain the following:

  Interdisciplinary Skills: You will gain skills across   disciplines, as you may need experience in other fields other than financial   management. Sociology, anthropology, political science, and other studies that   are listed under social sciences or   humanities   will help you reach your goals. You can also focus on technological,   environmental, or leadership facets to social financial careers. Your   interdisciplinary needs will depend upon whether you want to focus more on   social or financial aspects within this field.

  Leadership Opportunities: Social financing is a means to   create innovative ways to improve social environments, and this field needs   creative leaders who can take the initiative in many situations. Social   financing does focus on money, but that's only half the equation. The "social"   aspect requires individuals who can identify unusual resources beyond money   that can be used to improve an individual or community situation.

  So you can write grant proposals for projects, or you can search for   alternatives to funds to resolve a problem. Or, you can donate enough money to   sit on an organization's board, or you can donate your time and energy to   achieve the same objective.   Business leadership   skills like those found in organizational, nonprofit, or project management   can open doors to many opportunities.

  Flexibility: Careers in social financing currently may be   definitive or broad and fairly undefined. You many find a way to travel the   globe, or you may seek a situation where you're alone and surrounded by books   and archival materials. Since this field is growing, however, you may find   that your job will demand a little of both worlds and more. This flexibility   is part of what many social finance employers seek, as their volunteers and   employees often wear more than one hat.

  An ability to flex with a situation is also defined as "creative" and   "innovative," especially when unexpected situations are met with little   complaint. A flexible situation can also be meaningful, as a job within the   social finance sector is well suited to people who want to use their skills,   talents, education, and money to bring about social change.

  Global Knowledge: Even if you end up in a back office   surrounded by social financing accounting books, you will learn much about how   people live in other communities around the world. This global knowledge   contains many advantages for a person who seeks to move up the social finance   career ladder, or for the individual who eventually wants to become a social   venture capitalist or entrepreneur. Without knowledge about politics, cultural   influences, and other objectives that influence community development, the   social financier will waste time, skills, and money.

  In addition, globalization requires specialized knowledge on how countries and   communities become interdependent. Whether or not you approve of   globalization, the trend toward interdependence is in motion. Your can use   your participation in a social financing career to support your beliefs.

  Where to Begin

  If a career in social financing intrigues you, you might want to conduct more   research and you'll definitely want to try this field on for size. Your focus   can include local volunteerism, online reading, further education, and   conversations with individuals who work in the field.

  Begin with Volunteerism: If you want to learn more about how   "social" connects to "finance," you can volunteer to work with a nonprofit   organization. Not only will you gain experience on the ground, you'll meet   individuals who can help point you in a career direction. You can also expand   your horizons to work in other regions as well. You can find nonprofit   volunteer and career opportunities online through sites like the   Nonprofit Career Network or   Idealist.org.

  Find Other Social Financiers: When you link up with other   like-minded individuals, you can learn more about what to expect in your   career aspirations. You can find these individuals locally or online through   sites like the Social Edge or   Changemakers.net. If you plan to head   in the venture capitalist direction, you can find like-minded individuals at   the National Venture Capital   Association. While the individuals within this organization might not   participate in social financing, they can help you gain knowledge about this   investment field.

  Expand Your Education: Even if you've accomplished a doctoral   degree, you can always learn more. Think about expanding your education to   achieve the cross-disciplinary expectations required by this industry. You   might consider that school in London, or you can find similar courses in   social entrepreneurship at   Duke University or at   Stanford.   You can also take it upon yourself to learn new languages, financial skills,   social sciences, and about environmental issues.

  If you feel you can't take the time or money to expand your education in a   campus or self-learning environment, then plan to join an organization at the   ground floor or as a volunteer. Sometimes experience can count for credits in   a later educational endeavor, and it always counts toward a career move when   others see your participation in action or on your resume.

  All social finance organizations need financial personnel. From the   Red Cross to   Greenpeace to other   social organizations, you can find a niche that best fits your current   financial skills and social goals. If you prefer to work in investments, you   can learn from socially responsible funds and other investment opportunities.   Sites like Social Funds or the   Social Investment Forum can offer   opportunities to learn about investments that range from green initiatives to   funds that support minority groups. You'll also learn more about the   organizations that offer these funds and investment opportunities. At the very least, consider making small changes in your organization, such as hosting your website with a green hosting provider.

  No matter your direction once you get your feet wet in this field, you may   learn that financial opportunities don't always lead to gluttony, lust, and   depravity. Nor will they all lead to living without the needs vital to   survival. Whether you lean toward nonprofit or for-profit careers in social   financing, you can find an area that needs your support and interest. You may   find that your new career will help you "do good" and do well.