Impact Investing: When Social Benefits Are in the Contract

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New Wharton research examines how contracts can be structured differently when investors are trying to make money and make the world a better place. For impact investors, there are two bottom lines, says Wharton Finance Professor David Musto: making money and making the world a better place. Katherine Klein, management professor and vice dean for the Wharton Social Impact Initiative, interviewed Musto about his latest research in the field. His forthcoming paper, “Contracts with Benefits: The Implementation of Impact Investing,” coauthored by Wharton Adjunct Finance Professor Christopher Geczy, Jessica Jeffers of the University of Chicago and Anne Tucker of Georgia State University, examines how social impact can be written into contracts when investors are looking to balance profits with social benefits. *[This feature was originally published by Knowledge@Wharton, a partner institution of Fair Observer.] The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

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