Making Money Matter: The Case for a Social Stock Exchange for the Systems Change
- Colin Campbell
- Dec 11, 2024
- 5 min read
Updated: Feb 8
Imagine being able to invest your money in companies that not only aim to make a profit but are also committed to making the world a better place. Sounds too good to be true? Well, that's exactly what a social stock exchange sets out to do.
Scotland's Rich History of Doing Good Through Business
Scotland's relationship with social entrepreneurship stretches back through centuries of cooperative and mutual aid traditions. From the pioneering work of Robert Owen at New Lanark in the early 1800s to the modern flourishing of community-owned enterprises in the Highlands and Islands, Scotland has consistently demonstrated leadership in social innovation.
Robert Owen's New Lanark Mills represented a revolutionary approach to industrial organisation, combining commercial success with worker welfare through improved housing, education, and healthcare. This model influenced social reformers worldwide and established Scotland as an early leader in purposeful enterprise.
If you've ever visited New Lanark, you've walked through living history and will have witnessed the difference that social entrepreneurship can make. Back in the 1800s, Robert Owen was busy proving that treating workers well and running a successful business weren't mutually exclusive. He provided decent housing, education, and healthcare when such ideas were revolutionary. This wasn't just charity - it was smart business that happened to change people's lives for the better.
The 1970s and 1980s saw the emergence of community businesses in Scotland, particularly in response to economic challenges. In the early part of the 21st century, The Highlands and Islands region became a testament to community ownership, with local people taking control of assets from land to renewable energy projects. Notable examples include:
The Isle of Eigg Heritage Trust's community buyout in 1997;
The Glenwyvis Distillery, Scotland's first community-owned whisky distillery; and,
The Development Trusts movement, pioneering local economic control.
Fast forward to today, and Scotland's spirit of combining commerce with conscience is alive and well. From community-owned wind farms to the world's first community-owned whisky distillery (Glenwyvis - yes, you can actually own a piece of a distillery!) - Scots have been showing the world how to do business differently.
Today, Scotland boasts over 6,000 social enterprises, contributing £2.3 billion annually to the economy. The sector's success stems from supportive government policies, strong networks, and innovative funding mechanisms. This vibrant ecosystem has created fertile ground for the establishment of a dedicated Social Stock Exchange.
The Vision: making the case for a social stock exchange
Having already revolutionised how ordinary people invest through his work with Interactive Investor, Tomás Carruthers is taking on an even bigger challenge. His goal? To create Scotland's very own Social Stock Exchange - a place where anyone can invest in companies that care about more than just the bottom line. Drawing on his experience leading the UK Social Stock Exchange, Tomás Carruthers, together with his team, is working to build something that could change how we think about investing, forever.
Why Do We Need This?
Think about traditional stock exchanges for a moment. They're a bit like high-octane talent shows where the only measure of success is money made. But what if we could have a marketplace that also cares about things like reducing poverty, improving health, education, and protecting our environment?
This is where social entrepreneurship comes in. Social entrepreneurs set up businesses to solve social or environmental problems while still running a sustainable operation. The challenge they face is sometimes called ‘the two-headed llama’ - they need to keep both their mission, and their finances fed, and not pull each other apart.
Traditional investors often push for quick profits, which can force social entrepreneurs to choose between doing good and doing well. It's like being asked to choose between your heart and your head - neither choice feels right.
The Social Stock Exchange Solution
This is where a Social Stock Exchange (SSX) comes in. Think of it as a matchmaking service between companies that want to do good and investors who care about more than just financial returns. Every company listed must be clear about their ‘theory of change’ - basically, their plan for making the world better - and report regularly on how they're doing.
Learning from Experience
The UK tried this idea out in 2013, and it taught us a lot. Companies like Good Energy, which helps people switch to renewable power, and Places for People, which tackles the housing crisis, found a home on the exchange. The pilot showed that people really want to invest in companies that make a difference, it proved that combining profit with purpose isn't just a ‘pipe dream’.
How It Makes a Difference
For Investors
Imagine being able to check your investment returns and see not just how much money you've made, but how many lives you've helped improve. Whether you're investing £100 or £100,000, you can be part of something bigger than just making money.
For Communities
When local people can invest in local projects, magic happens. Scottish communities have already shown this by buying their own land and starting renewable energy projects. A Social Stock Exchange will make this kind of community empowerment much more common.
For Society
By directing money toward businesses that solve social problems, we can tackle big challenges like green energy, biodiversity loss and homelessness while still generating returns. It's like voting with your money for the kind of world you want to see.
The Road Ahead
Setting up a Social Stock Exchange is complex. For example, there are challenges around legal requirements. Then there’s the issue of measuring impact, ensuring companies stay true to their mission, and making sure there's enough trading to keep the market liquid. But with Scotland's rich history of social entrepreneurship combined with modern technology to help, this is an opportunity to create a more prosperous society.
Join the Revolution
Whether you're an experienced investor or just someone who cares about making the world better, the Social Stock Exchange concept offers an exciting opportunity to be part of positive change. It's about making your money work - not just for your pocket, but for people and the planet too.
As Project Blackthorn moves forward with its SSX plans, we’re building on centuries of proving that profit and purpose can work together. In a world facing huge challenges, that's exactly what we need - a way to make sure our investments don't just make us richer but make our world better too.
The journey from Robert Owen's mill to a modern Social Stock Exchange shows how far we've come in thinking about business differently. Now, we're writing the next chapter in this story.
Making Money Matter: The Case for a Social Stock Exchange for the Systems Change is authored by Colin Campbell. Visit our team page for more information.
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