Start doing the right thing: Indicators for socially responsible start-ups and investors

This paper explores the gap in the literature on social responsibility guidance for start-ups and start-up investors. It begins by evaluating research conducted in two different fields (namely, socially responsible investment (SRI) and responsible research and innovation (RRI)) and how they can guide social responsibility in STEM (Science, Technology, Engineering, Mathematics) start-ups. To do this, we evaluate an industry-standard SRI catalogue of metrics - the Global Impact Investing Network's (GIIN) Impact Reporting and Investment Standards (IRIS+) - and indicators from 12 EC-funded RRI projects. Based on this analysis, we propose a framework of 24 indicators to assess the social responsibility of start-ups and investors. The purpose of our framework is twofold: firstly, to provide clear guidance for start-ups aiming to implement socially responsible behaviours, and secondly, to provide start-up investors with criteria to identify if start-ups are socially responsible. While the indicators are phrased in a prescriptive way for start-ups, they can also be used by investors to identify if start-ups are implementing the indicators in practice.