Impact Investments for the Social Economy: Reframing the impact investing phenomenon by evaluating impact investment strategies from a social ecological economics perspective
(2022) EKHS35 20221Department of Economic History
- Abstract
- Social economy organisations are attributed a major role in solving societal and environmental
problems and in implementing social innovations in Europe. These organisations are private
entities running economic activities whose main purpose is to provide goods and services to
their members or the community at large, with profits coming second. Nevertheless, these
organisations are not sufficiently supported, especially from the capital market side. Not all
impact investors, which in principle should be investors with the goal of creating social and
environmental benefit, are strategically aligned with the social economy entities. An identified
reason could be the structurally embedded relationship-to-profit of impact... (More) - Social economy organisations are attributed a major role in solving societal and environmental
problems and in implementing social innovations in Europe. These organisations are private
entities running economic activities whose main purpose is to provide goods and services to
their members or the community at large, with profits coming second. Nevertheless, these
organisations are not sufficiently supported, especially from the capital market side. Not all
impact investors, which in principle should be investors with the goal of creating social and
environmental benefit, are strategically aligned with the social economy entities. An identified
reason could be the structurally embedded relationship-to-profit of impact investors which
refers to their legal distinction in for-profit or not-for-profit. Consequently, the objective of this
research is to critically evaluate the strategic decisions of impact investors paying attention to
their relationship-to-profit and using indicators that assess their compatibility with social
economy entities. This is done to fulfil the aim of distinguishing impact investors according to
their supportiveness towards the social economy. A framework is developed that captures the
influence of the relationship-to-profit on the strategic decisions of impact investors. This
framework is then used as an instrument to test predictions from the theory implementing a case
study approach including four diverse impact investment organisations. The results from
qualitative coding and survey answers indicate that not-for-profit impact investors choose with
almost no exception the strategy that is aligned with the social economy across all dimensions.
On the other hand, for-profit investors compromise on the possible social benefit achieved by
mainly investing in for-profit entities and not being transparent about their profit utilisation
among other less socially beneficial choices. These findings stress the importance of bringing
in the relationship-to-profit as an important indicator when evaluating social and sustainability
impacts. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9091830
- author
- Mayr, Nicol LU
- supervisor
- organization
- course
- EKHS35 20221
- year
- 2022
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Social economy, impact investing, relationship-to-profit, social ecological economics
- language
- English
- id
- 9091830
- date added to LUP
- 2022-06-28 10:14:07
- date last changed
- 2022-06-28 10:14:07
@misc{9091830,
abstract = {{Social economy organisations are attributed a major role in solving societal and environmental
problems and in implementing social innovations in Europe. These organisations are private
entities running economic activities whose main purpose is to provide goods and services to
their members or the community at large, with profits coming second. Nevertheless, these
organisations are not sufficiently supported, especially from the capital market side. Not all
impact investors, which in principle should be investors with the goal of creating social and
environmental benefit, are strategically aligned with the social economy entities. An identified
reason could be the structurally embedded relationship-to-profit of impact investors which
refers to their legal distinction in for-profit or not-for-profit. Consequently, the objective of this
research is to critically evaluate the strategic decisions of impact investors paying attention to
their relationship-to-profit and using indicators that assess their compatibility with social
economy entities. This is done to fulfil the aim of distinguishing impact investors according to
their supportiveness towards the social economy. A framework is developed that captures the
influence of the relationship-to-profit on the strategic decisions of impact investors. This
framework is then used as an instrument to test predictions from the theory implementing a case
study approach including four diverse impact investment organisations. The results from
qualitative coding and survey answers indicate that not-for-profit impact investors choose with
almost no exception the strategy that is aligned with the social economy across all dimensions.
On the other hand, for-profit investors compromise on the possible social benefit achieved by
mainly investing in for-profit entities and not being transparent about their profit utilisation
among other less socially beneficial choices. These findings stress the importance of bringing
in the relationship-to-profit as an important indicator when evaluating social and sustainability
impacts.}},
author = {{Mayr, Nicol}},
language = {{eng}},
note = {{Student Paper}},
title = {{Impact Investments for the Social Economy: Reframing the impact investing phenomenon by evaluating impact investment strategies from a social ecological economics perspective}},
year = {{2022}},
}