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

  • January 2020
  • Case Study
  • Publisher : Journal of Business Venturing Insights
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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

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Key topics

Governance & partnerships, Innovative Finance/ Blended Finance

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