With the worsening of social inequalities and climate crisis, the role of companies goes beyond profit. They have become protagonists in building a more just and sustainable future. In this context, Private Social Investment (PSI) stands out as a powerful tool for transformation.
What is Private Social Investment (PSI)?
Also known as corporate philanthropy, O Private Social Investment consists of the voluntary and strategic allocation of private resources — financial or otherwise — for initiatives that generate positive socio-environmental impact.
In this logic, the resources allocated in socio-environmental projects are not seen as expenses, but rather as investments that promote the well-being of society and, at the same time, strengthen the reputation, the credibility and ESG positioning of the company.
How to make private social investment
There are different ways for companies to implement strategies ISP:
- Own projects: the company can develop a social or environmental initiative based on its expertise or the territory where it operates;
- Partnerships with civil society organizations: support projects already structured by NGOs, collectives or foundations, strengthening those already working in the area.
It is important to map the territories of operation, understand the main social and environmental indicators and seek synergies with the business values and objectives.
What are the benefits of private social investment for companies?
Implement actions of ISP brings several institutional and strategic returns. Here are some:
- Alignment with ESG: philanthropy is an important ally in unlocking actions in the three pillars — environmental, social and governance;
- Strengthening corporate reputation: consumers and investors value brands with social and environmental commitment;
- Employee engagement: social actions increase pride of belonging and internal engagement;
- Competitive advantage: companies with a structured ISP stand out in an increasingly aware and demanding market;
Private Social Investment in Brazil
Over here, the ISP is present in many companies, but there is still room for growth. According to the GIFE Census 2022-2023, the responding organizations allocated about R$ 4.8 billion to social impact projects in 2022. This number represents an advance in relation to the investment in 2021, which was R$4.4 billion, and points to a growth trend in the sector, even though the peak occurred in 2020, in the context of the pandemic, with R$ 6.1 billion applied — the highest value since the beginning of the historical series.
This increase during the pandemic highlights the potential for mobilization of the private sector in the face ofemergencies, but also exposes the need to consolidate a culture of continuous, structured and strategic private social investment.
How to put Private Social Investment into practice?
THE Sitawi Finanças do Bem is an organization that acts as strategic partner for companies that wish to structure and manage their private social investment projects with a high level of governance, transparency and impact. Through a complete structure of financial, tax, operational, accounting and administrative services, we enable the creation and execution of philanthropic initiatives.
With our specialized management, companies can direct their resources from strategic form, ensuring a positive impact and compliance with legislation. In addition, companies that calculate Real Profit can deduct up to 2% from income tax by investing in philanthropic initiatives, making your social work even more advantageous.
Success story: Cielo Social Impact Fund
THE Sky, a leading payment method company, created the Cielo Social Impact Fund to mobilize and direct financial resources to initiatives that promote environmental conservation and the strengthening a more just society. Furthermore, the Fund is prepared to act in emergency situations and critical events, ensuring an agile response to mitigate negative impacts on customers and members of the Cielo Team.
With administrative and financial management of Sitawi, the Fund is part of Cielo's Strategic Sustainability Plan, structured to ensure the effectiveness and continuity of actions in the long term.
If your company does not yet perform ISP, the time to act is now! Do you want to structure Private Social Investment initiatives with a deep and assertive impact? Sitawi can help! Talk to us and find out how to transform purpose into results.
