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Value, Values, and Valuation: The Marketization of Charitable Foundation Impact Investing

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  • Kirsten Andersen

    (University of Illinois at Chicago)

  • Rebecca Tekula

    (Pace University)

Abstract

Based on an abductive analytic study, we examine financial and social value incorporation in the multi-valued market of impact investing. This paper draws on interviews with investment professionals in 54 charitable foundations, intermediary and field building organizations in the impact investing market, to compare market objectives with practice, and to determine whether social and financial values are incorporated, thus producing ‘returns’ of both types through market exchange. We find unincorporated valuation is apparent at both the market level and for several types of investors in contrast with the incorporated or even integrated valuations of other investors. This demonstrates that rather than incorporating logics in a binary or hybrid way, valuation in the moral market of impact investing occurs in a multiplicity of ways and on different levels of the market, depending on a variety of factors including adherence to traditional financial market standards and market design and maintenance.

Suggested Citation

  • Kirsten Andersen & Rebecca Tekula, 2022. "Value, Values, and Valuation: The Marketization of Charitable Foundation Impact Investing," Journal of Business Ethics, Springer, vol. 179(4), pages 1033-1052, September.
    • Handle: RePEc:kap:jbuset:v:179:y:2022:i:4:d:10.1007_s10551-022-05159-1
    DOI: 10.1007/s10551-022-05159-1
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    References listed on IDEAS

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    2. 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.
    3. 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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