Bridging the gap between insight and impact

The inaugural State of Social Impact Report found that while many Australians think of their country as egalitarian, the nation faces the stark reality of growing inequality and persistent poverty.

The trend is being exacerbated by factors such as the rising cost of living, job insecurity and disparities in access to education and healthcare.

“In 2023, there is a growing realisation that systems designed to deliver 'trickle down' shared prosperity are instead fuelling the inequality gap – at unprecedented levels,” the report states.

Compiled by social impact venture the Impact Institute, the report combines third party research with insights from attendees at the Social Impact Summit held in July.

Impact Institute CEO, Mark Jones said the report was intended to “spark dialogue and advocate for meaningful change” while also providing practical recommendations for tackling shared social challenges.

“Our hope is that we will inspire conversations that will move us forward on this journey,” he said.

The report highlighted data from the 2023 Actuaries Institute study Not a Level Playing Field which showed that the highest 20% of income earners in Australia have six times more disposable income than the lowest 20%.

The same research also revealed that the wealthiest 20% of Australian households own 230 times more in net assets than the lowest 20%.

Royden Howie, head of advisory at the Impact Institute, said the growing awareness of inequality, poverty and entrenched disadvantage underscored the urgent need to address these disparities to ensure a more equitable society.

“We’re approaching 30 years of economic growth in Australia disrupted only by covid, yet persistent intergenerational disadvantage exists,” he said.

“My challenge to all of us as we look at the state of social impact, is how can we all be putting more back in, in investment in people and community than we’re taking out?”

The report identified three further social trends defining Australia:

• The wellbeing economy: a “paradigm shift” which is seeing policymakers, businesses, and communities recognise the importance of prioritising wellbeing over a traditional narrow view of economic growth, encapsulated by the federal government’s Measuring What Matters statement.

• Corporate efforts in Environmental, Social and Governance (ESG": an acknowledgement by corporate entities that they have a role to play in fostering social impact, beyond generating profits by integrating social responsibility into their business models and addressing issues such as diversity and inclusion.

• Building constructive dialogues: an acknowledgment that effective change can only begin with open, respectful, and informed conversations, particularly when it comes to addressing entrenched disadvantage.

The report found that the pursuit of a more equitable and socially responsible society has never been more critical.

“Australians are increasingly aware of rising inequalities, social disadvantage and ineffective systems that harm people and communities – and they want change.”

The report said there was a collective expectation in the community that organisations of all descriptions would address shared social challenges, and the community wanted more radical and meaningful action from government.

“Within this context, social impact is emerging as a concept to understand and frame all initiatives designed to address social inequalities, foster human rights and improve the lives of all Australians.”