BANK of Scotland chief executive Andy Hornby and other business luminaries are being urged to back a new form of corporate social responsibility based on market principles.
The first Scottish 'venture philanthropy' charity is opening in Edinburgh this week based on an idea imported from the US, which has grown from venture capitalism.
Just as venture capitalists expect returns of up to 30% on their investments, vent
ure philanthropists look for a quantifiable social outcome in return for their time and money. For example, a certain number of homeless people have to be helped off the streets within a set amount of time.
Pilotlight Scotland, which launches at the Bank of Scotland headquarters in Edinburgh on Tuesday, will be the first charity in the country which will operate according to venture philanthropy guidelines. It hopes to encourage top company directors to contribute their business know-how to small charities with incomes of less than £3m, which work to address social disadvantage.
In return, Pilotlight will provide each individual with a measure of how much has been achieved in return for their contribution.
The charity began in London in 2003 and has worked with directors from companies such as KPMG, BT, Mizuho bank and Sainsbury's.
It claims to help 160,000 socially disadvantaged people a year and believes it offers the business community a more measurable and hands-on way of giving back to society.
Pilotlight Scotland will be managed by Angela McCusker, previously a chartered accountant. She said the charity intends to match 38 Scottish charities or social enterprises - companies with social aims - with top Scottish businessmen and women within the next two years. "Pilotlight is a skills-giving model," she said.
