LP-752: Social Benefit Investment Policy

Abstract

Lux Vision Fund treats social benefit as the creation of real economic mobility—jobs, skills, income stability, access, and safety—paired with protections against exploitation. We invest in projects that create meaningful opportunity and build resilience for people and communities.

Principle: Opportunity, dignity, and resilience.

Motivation

Social impact claims are frequently superficial—counting jobs created without assessing quality, or claiming "financial inclusion" while enabling predatory lending. Traditional impact metrics often miss exploitation, precarity, and the lack of real economic mobility.

This policy establishes:

1. Quality over quantity - Living wages and durable skills, not just job counts
2. Protection against exploitation - Explicit anti-exploitation requirements
3. Economic mobility - Measurable pathways to financial stability
4. Community resilience - Building long-term capacity, not dependency

What Qualifies as "S-Aligned"

1. Quality Livelihoods

Jobs that pay reliably and build durable skills:

Requirement	Standard
Living wage	At or above living wage for location
Pay reliability	On-time, predictable payment
Skills development	Training and growth pathways
Job quality	Safe conditions, reasonable hours
Benefits	Appropriate for employment type

2. Access Expansion

Lower barriers to participation:

Access Type	Examples
Financial access	Banking, credit, payments
Training pathways	Education, certification, skills
Affordable services	Healthcare, housing, utilities
Digital access	Internet, devices, platforms
Information access	Knowledge, resources, networks

3. Resilience Building

Reduced volatility for households and communities:

Resilience Factor	Measurement
Income stability	Reduced volatility in earnings
Fewer predatory fees	Transparent, fair pricing
Faster pay	Reduced time to payment
Safety nets	Access to insurance, savings
System reliability	Uptime, consistency

4. Safety and Rights

Protection against harm and exploitation:

Protection	Standard
Privacy	Data minimization, consent-based
Fair practices	No deceptive design, clear terms
Human oversight	For high-stakes decisions
Grievance mechanisms	Clear paths for complaints
Non-discrimination	Equal treatment across groups

KPI Framework

Employment KPIs

Metric	Unit	Target
Jobs created	Count	Project-specific
Jobs retained (90-day)	%	>80%
Jobs retained (180-day)	%	>70%
Jobs retained (365-day)	%	>60%
Living wage compliance	%	100%

Compensation KPIs

Metric	Unit	Target
Wage floor	$/hour or equivalent	≥Living wage
Pay reliability	% on-time	>98%
Benefits coverage	% of workers	Project-specific
Pay equity	Ratio	<1.2x gap by demographic

Training & Development KPIs

Metric	Unit	Target
Training completions	Count	Project-specific
Certifications earned	Count	Project-specific
Internal mobility	% promoted/moved	>10% annually
Skills progression	% advancing levels	>20% annually

Access Expansion KPIs

Metric	Unit	Target
New banked users	Count	Project-specific
Service penetration	% of target population	Project-specific
Cost reduction	% vs. alternative	>20%
Time saved	Hours per user	Measurable improvement

Safety & Rights KPIs

Metric	Unit	Target
Incident rate	Per 1,000 users/workers	Declining trend
Grievance resolution	Days to resolution	<30 days
Privacy compliance	% consent rate	>95%
Discrimination incidents	Count	Zero tolerance

Eligibility Criteria

Minimum Requirements

Criterion	Requirement
Living wage commitment	All jobs at or above living wage
Training investment	Documented skills development
Safety standards	Clear safety protocols
Privacy compliance	Data protection practices
Grievance mechanism	Accessible complaint process

Preferred Characteristics

Characteristic	Scoring Bonus
Excluded populations focus	Targets underserved communities
Paid pathways	Apprenticeships, entry roles funded
Community ownership	Workers/users have ownership stake
Local hiring	Priority to local workforce
B Corp or equivalent	Third-party social certification

Red Flags (Requires Deep Diligence)

Flag	Concern
Gig-only workforce	May lack stability and benefits
High turnover	Job quality concerns
Contractor misclassification	Labor law issues
Data-extractive model	Privacy and exploitation risk
Predatory pricing	Hidden fees, deceptive terms

Enforcement

Hiring & Training Covenants

Projects accept measurable commitments:

Covenant Type	Example
Hiring targets	X% from target communities
Training investment	Y hours per employee annually
Promotion targets	Z% internal advancement
Wage floors	Minimum compensation levels

Paid Pathways

Apprenticeships and entry roles are funded as part of project budgets:

Pathway Type	Structure
Apprenticeship	Paid training with job guarantee
Entry role	Funded first 6-12 months
Reskilling	Transition support for displaced workers
Certification	Funded exam and prep costs

Privacy-Preserving Verification

We prove outcomes without exposing personal data:

Method	Application
Zero-knowledge proofs	Verify employment without revealing identity
Aggregated statistics	Report totals, not individuals
Anonymized samples	Audit without full data access
Methodology attestation	Third-party verifies approach

Consequences

Situation	Action
Covenant breach	Remediation plan required
Persistent wage issues	Tranche withheld
Safety incident	Investigation, corrective action
Rights violation	Investment review, potential termination

Reporting Requirements

Quarterly Updates

Element	Requirement
Employment dashboard	Jobs created, retained, demographics
Training metrics	Completions, progressions
Access metrics	New users, cost savings
Incident log	Any safety or rights concerns

Annual Deep Report

Section	Contents
Impact assessment	Full S-pillar evaluation
Beneficiary analysis	Who benefits, how much
Wage analysis	Compensation vs. benchmarks
Training outcomes	Career progression data
Lessons learned	What worked, what didn't

Public Disclosure

Disclosure	Location
Jobs impact	Annual fund report
Wage commitments	Public covenant registry
Access expansion	Project-level reporting

Special Provisions

Technology Projects

AI and automation projects must address:

Consideration	Requirement
Job displacement	Transition support for affected workers
Augmentation focus	Enhance humans, not just replace
Bias mitigation	Fair treatment across demographics
Human oversight	For consequential decisions

Financial Services Projects

Fintech and financial access projects must:

Requirement	Standard
Fee transparency	All fees disclosed upfront
No predatory products	Responsible lending standards
Financial literacy	Education with product
Accessible design	Works for underserved populations

Platform & Marketplace Projects

Multi-sided platforms must:

Requirement	Standard
Worker protections	For gig workers on platform
Seller protections	For merchants on marketplace
Fair algorithms	Transparent, non-discriminatory
Dispute resolution	Accessible, fair process

Related LPs

• LP-750: Lux Vision Fund ESG Investment Framework
• LP-751: Environmental Integrity Investment Policy
• LP-753: Governance & Ecosystem Architecture
• LP-900: Impact Framework & Theory of Change
• LP-920: Community Development & Grants
• LP-930: Financial Inclusion Metrics

Changelog

Version	Date	Changes
1.0	2025-12-17	Initial draft

Copyright

Copyright and related rights waived via CC0.