Social Enterprise And Increasing The Overall Well-being Research Paper

Social Enterprise And Increasing The Overall Well-being - Research Paper Example From the point of view of asset management, a social enterprise can increase the overall diversification of the portfolio while at the same time add more ethical trading and investing philosophy into the overall portfolio management also. It is generally believed that portfolio managers may have to only invest in the commercial entities to generate more value for their clients. Overall risk diversification and return strategies are therefore often tailored according to the dynamics of how a for-profit business actually operates and generate more value for the portfolio managers. Non-Profit wealth creation through social enterprise is viable and sustainable activity and can increase the overall well-being of the society while at the same time allowing asset managers to actually diversify their risks and also add more ethical investing and portfolio management orientation to the whole process of asset management. (Field, 2014) This paper will be focusing on understanding the impact of non-profit wealth creation on the overall portfolio risk and return. This paper will further add on to whether the non-profit wealth creation will actually add more ethical orientation to the portfolio management or not. The overall concept and idea of a social enterprise existed for long, however, it has recently gained more momentum with large organizations such as Dannon entering into joint ventures to form social enterprises. A social enterprise’s focus is on the use of commercial strategies and tactics to achieve more value and improvement in the human and environmental well-being. A social enterprise’s main objective, therefore, is not the maximization of the shareholders’ value or wealth but to help improve the environment and the human life.