Is there a link between social change investments and performance-based contracts?
Performance-based contracts differ from conventional contracts in the choice of outcomes to be achieved. Payment under such a contract is made only if the desired outcome (improvement, added value, new technology, etc.) is achieved.
Performance-based contracts always consist of two components. One is the donor (financial organization, government, large corporation). It pays for the results of the services you will provide. The other supporting party is a delivery partnership. These are people who have the freedom to innovate and catalyze new approaches.
The benefits of a performance-based contract:
– is more likely to lead to the achievement of results
– creates innovations
– brings together a range of stakeholders to solve problems
– creates a culture of collaborative problem solving to achieve results
Potential areas of application of such contracts:
– combating homelessness
– employment
– refugee resettlement
– health care
– education
This was stated by Amit Shah, Investment Director at Bridges Fund Management, at the FIT for Ukraine: Innovative Investments.
Bridges Fund Management invests in solutions that support the transition to a more inclusive and sustainable economy. This year, the company once again received the title of “Best Company for the World”, being ranked among the top 1.5% of the best B-corporations.
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