Social Impact Has Value. Are You Capturing It?
The first step for your business is “to understand what impact you are having and be able to articulate it.” Start with ImpactPHL’s new Investable Impact Toolkit.
What is the purpose of business?
Many will suggest that the purpose is to create value. Traditionally that means creating a product or service that customers will pay for and selling it for more than it costs you to make.
Impact entrepreneurs know there is more to value than that alone.
There is a new economy accelerating in the Philadelphia region. People are thinking more about the positive and negative social and environmental impacts of their business and investment decisions. Impact investing is accelerating that trend. The direct impact of a product or service on our lives is easy to see.
The financial return on our investment may be relatively straightforward to calculate. But a new appreciation of value — and respect for social outcomes — is birthing a refreshed version of capitalism. Social impact is no longer the exclusive purview of the public and nonprofit sectors. All investment decisions are expressions of values. Entrepreneurs, investors, and customers have gotten clearer about what is possible and how they can expect and articulate that value. It is a time when investors and customers are more thoughtful in their decisions. It is an opportunity for entrepreneurs to leverage this new version of stakeholder capitalism to help us all to understand the net value businesses create for society.
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