Voluntary and leveraged social investment

In addition to contractual obligations, companies make voluntary investments within the framework of their social responsibility and sustainability policies. Specifically, the industry makes two types of investments. On one hand, voluntary investments and on the other hand, investments leveraged with third parties. During 2016, the voluntary and leveraged investment was $99 billion.

As can be seen, the social investment figure for 2016 was the lowest in the last five years. Undoubtedly, the impact generated by the decrease in investment has an effect not only on the linkages derived from the development of investment projects but also on the indices of social progress and quality of life of the communities. For this reason, it is necessary that resources are leveraged in the territories both with departmental or national entities and with other economic sectors present in the municipalities to promote a greater number of social investment projects.

Looking in detail at the investment in 2016, it can be observed that in the departments of Meta, Casanare, Arauca, Boyacá, La Guajira, and Santander, $75 billion was executed in projects.

Voluntary social investment.

In 2016, of the $87 billion, nearly $24 billion was executed in the development of productive projects as one of the strategies that allow diversifying local economies through productive linkages. Likewise, $15 billion was invested for institutional strengthening, $13 billion for the construction or improvement of housing, $11 billion for the strengthening of ethnic communities, and the remaining $24 billion in projects aimed at improving leadership skills, education, and supplier development, among others.

This investment was made in the departments of Meta, Casanare, Arauca, Boyacá, Putumayo, Huila, Tolima, Santander, Cundinamarca, and Bolívar, where 78% of the voluntary social investment in 2016 was concentrated.

 Social investment leveraged with third parties.

Regarding the voluntary social investment leveraged with third parties, in 2016 this investment exceeded $11 billion. Although it has been the lowest investment in the last five years, it reflects the interest of companies in leveraging resources to promote the development of projects. Companies leverage resources with departmental, local authorities, and national entities such as Prosperidad Social and the Ministry of Agriculture, among others. Similarly, resources were managed with multilateral organizations such as the United Nations and bilateral support.

These resources, like voluntary investments, were mainly made to promote productive projects, housing improvement, and education. Due to the focus of these projects that are financed by third parties, the investment is concentrated in departments such as La Guajira and Meta, where the aim is to overcome poverty and promote social progress.

As a result of the development of voluntary and leveraged social investment, in the last year, 734 thousand people across the country benefited. The largest number of beneficiaries were in Casanare, Huila, and Meta.