We need to think bigger. We need to embrace the notion that capitalism is one of the most powerful forces on the planet, and if we build and invest in businesses that have an explicit social purpose, we can create sustained funding of a type we've never imagined.
In public policy (and life in general), addressing a dangerous risk is more cost-effective than fixing a problem after it emerges. Yet, most government spending is focused on reacting to problems rather than preventing them.
If one accepts the common Impact definition, then the present Impact discussions and case studies are vastly missing the point. We are focussed on the one small plant, that is pretty, in a massive forest of opportunity.
The truth is, a vast number of those who are invested in the stock market have very little understanding of what they're invested in. They rely on fund managers to buy and sell and only pay attention to whether their portfolio is going up or down.
My father was a 1960s-style left-wing academic quite critical of capitalism. We passed many ideas around our dinner table, but not one of them was the potential benefit of trade and business. Surprisingly, when I left home, it was precisely that idea that crept in sideways.
Businesses have become big players in the production of knowledge. Deloitte and PriceWaterhouse Coopers are exemplar powerhouses of social impact research.
The entire US economy is being held back by the economic limitations of 43.3 million Americans straddled by $1.2 trillion in debt constraining more productive consumption and investment choices.
Early adopters are consumers who aspire to own the newest gadget even if it means paying top price. When it came to a renewable energy plan for our home and automobiles, we were no exceptions.
Let's start with the question of what banks are for. They have the crucial role of determining what use is made of capital. This gives banks both a huge power and a huge responsibility.
Last week, Jim Anderson of Bloomberg Philanthropies and Andrea Phillips of Goldman Sachs shared lessons from their investment in a social impact bond to reduce recidivism at Riker's Island.
It might be the new buzz word of investing, but leading investment advisors say impact investing is here to stay and what's more: it's a model that everyone should be participating in.
While we hoped this therapeutic program would have greater impact for youth, the social impact bond proved to be a highly useful tool.
As technology, human mobility, skills gap, resource scarcity and social issues transform the direction of global business, we cannot continue CSR as a "do good" quotient; we must now pursue and invest in impactful education as untapped possibilities.
According to a recent report by SFI, the total assets under management with a sustainable or responsible investment mandate is approximately 18 percent worldwide. This reflects a 929 percent increase since 1995. Investors are not only looking to eliminate negative impacts from their portfolio, they now want to make a positive impact with their dollars.
For many, Latin America is associated with a laundry list of negatives: drugs, corruption, gang violence and transnational crime. However, our new report Harnessing Social Impact Investing in Latin America, helps to dispel some of these myths.
A growing number of investors and philanthropists see that as a lost opportunity. What if you could put your investments to work in doing good, while still earning a decent financial return? That question is at the heart of a branch of socially responsible investing known as impact investing.