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Defining and Conceptualizing Impact Investing: Attractive Nuisance or Catalyst?

Author

Listed:
  • Kai Hockerts

    (Copenhagen Business School)

  • Lisa Hehenberger

    (ESADE - Universitat Ramon Llull)

  • Stefan Schaltegger

    (Leuphana University)

  • Vanina Farber

    (IMD)

Abstract

This introduction to the special issue on impact investing applies the attractive nuisance notion to impact investing. Social sector actors ‘trespassing’ on the playing field of conventional investment markets may not appreciate the risks. We apply the framework of essentially contested concepts to foster fruitful diverse research in this emerging research field. We advance six dimensions (intentionality, additionality, contribution, materiality, measurability and attribution), which we propose allow to describe different sub-clusters of how the term is used in research and practice. For each dimension we identify risks and opportunities stemming from the contested nature and highlight an ambitious research agenda for how future business ethics scholars can help address and foster impact investing. We conclude by illustrating how the papers in this special issue address these challenges.

Suggested Citation

  • Kai Hockerts & Lisa Hehenberger & Stefan Schaltegger & Vanina Farber, 2022. "Defining and Conceptualizing Impact Investing: Attractive Nuisance or Catalyst?," Journal of Business Ethics, Springer, vol. 179(4), pages 937-950, September.
    • Handle: RePEc:kap:jbuset:v:179:y:2022:i:4:d:10.1007_s10551-022-05157-3
    DOI: 10.1007/s10551-022-05157-3
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    2. Cojoianu, Theodor F. & Hoepner, Andreas G.F. & Lin, Yanan, 2022. "Private market impact investing firms: Ownership structure and investment style," International Review of Financial Analysis, Elsevier, vol. 84(C).
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    4. Guillaume Dumont, 2024. "Evaluating the Credibility of Entrepreneurs’ Impact Promises in Early-Stage Impact Investing," Entrepreneurship Theory and Practice, , vol. 48(6), pages 1525-1555, November.
    5. Truzaar Dordi & Phoebe Stephens & Sean Geobey & Olaf Weber, 2024. "New bottle or new label? Distinguishing impact investing from responsible and ethical investing," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(1), pages 309-330, March.
    6. Kaushik, Vineet & Tewari, Shobha & Sahasranamam, Sreevas & Hota, Pradeep Kumar, 2023. "Towards a precise understanding of social entrepreneurship: An integrated bibliometric–machine learning based review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    7. Singaram, Raja & Radu-Lefebvre, Miruna & Gartner, William B., 2023. "Gordian knot uncut: Understanding the problem of founder exit in social ventures," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    8. Kai Hockerts & Cory Searcy, 2023. "How to Sharpen Our Discourse on Corporate Sustainability and Business Ethics—A View from the Section Editors," Journal of Business Ethics, Springer, vol. 187(2), pages 225-235, October.
    9. Syrus M. Islam & Chris Akroyd, 2024. "Control strategies for impactful exits in impact private equity firms," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(4), pages 3419-3442, December.
    10. Nachyła, Pola & Justo, Rachida, 2024. "How do impact investors leverage non-financial strategies to create value? An impact-oriented value framework," Journal of Business Venturing Insights, Elsevier, vol. 21(C).

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