Beyond Profit Vs. Purpose: Transactional-relational Practices in Impact Investing

This study explores how impact investors manage the inherent tension between generating financial profit and achieving social purpose. Moving beyond a simplistic dualism, it investigates the “transactional-relational” practices that firms use to embed their social mission within their investment processes. Through qualitative research, the paper reveals how investors build deep relationships, conduct purpose-aligned due diligence, and provide post-investment support to ensure both financial viability and social impact are achieved. It highlights that integrating profit and purpose is a dynamic, ongoing process of negotiation and practice within the investment relationship.

Author(s) :

Suwen Chen, Richard Harrison

Yes

Get in touch with authors

No ratings yet

Rate this article

Yes

Key topics

Governance & partnerships, Innovative Finance/ Blended Finance

Also found in

Share

Join Our Newsletter

Explore More Articles

In this age of AI, India’s Women Are Being Left Behind inSTEM and Skilling

‘In Fact’ is a quarterly newsletter by ISDM DataShakti. ISDM DataShakti, powered by Capgemini, is a pioneering single-window SDG data platform that makes SDG data easily accessible to social sector professionals like you, so you can focus on creating change on the ground.
Blog

An Urgent Call for Digital Literacy

‘In Fact’ is a quarterly newsletter by ISDM DataShakti. ISDM DataShakti, powered by Capgemini, is a pioneering single-window SDG data platform that makes SDG data easily accessible to social sector professionals like you, so you can focus on creating change on the ground.
Blog

Why India needs to start washing its hands more

‘In Fact’ is a quarterly newsletter by ISDM DataShakti. ISDM DataShakti, powered by Capgemini, is a pioneering single-window SDG data platform that makes SDG data easily accessible to social sector professionals like you, so you can focus on creating change on the ground.
Blog

Double trouble: Why India urgently needs policies to address the challenges of bothits youth, and elderly population

‘In Fact’ is a quarterly newsletter by ISDM DataSights. ISDM DataSights is a pioneering single-window SDG data platform that democratises data access for the social sector, developed by the Indian School of Development Management (ISDM), and powered by Capgemini.
We use essential and analytics cookies to operate this website and understand how visitors interact with it. As this site also functions as a login identity provider (IDP) for other ISDM portals, some cookies are necessary to enable secure authentication. By continuing to use this site, you consent to our use of cookies.