Money has the power to destroy, but it can also be an incredibly effective tool for social change. Impact investing – the support of social and environmental projects with a financial return – has become a hot topic on the global stage; poised to eclipse traditional aid by ten times in the next decade. And it has the potential to completely restructure the global economy, making social and environmental responsibility integral to how we move money through society, rather than an afterthought.
In her book REAL IMPACT: The New Economics of Social Change, Morgan Simon argues that impact investing will do a lot of good – if we can get it right. An impact investor with 17 years of experience who has influenced over $150 billion from endowments, families, and foundations – who also manages funds for members of the seventh wealthiest family in America – Simon sees warning signs that impact investment is at a crucial turning point. As investors focus on growth and acceptance, it’s actually in danger of replicating the same mistakes of traditional charity and finance that impact investment was designed to correct. And without the right guiding principles, it has the potential to do more harm than good
On today’s show we talked with Author Morgan Simon about her book Real Impact - The New Economics of Social Change.
Morgan Simon is a widely recognized leader in impact investment who builds bridges between finance and social justice. Over the past seventeen years, she has influenced over $150 billion from high-net-worth individuals, foundations, and endowments. She supports Pi Investments and the Libra Foundation, and is also co- founder and chair of the nonprofit Transform Finance.