Investing with Impact: Why Finance is a Force for Good

by Jeremy Balkin

Investing with Impact: Why Finance Is a Force for Good outlines the roadmap to reinvigorating a skeptical public and demoralized financial services industry by making the case that, contrary to popular misconception, finance is not the cause of the world's problems; in fact, it can provide the solution. Author Jeremy Balkin presents the case that the finance industry can improve the state of the world by positively influencing the allocation of capital. Investing With Impact explains the methodology of Balkin's 6 E Paradigm, opening the toolbox to this revolutionary framework for the first time. In so doing, Balkin expands the impact investment universe, enabling mainstream capital to flow where opportunities generate positive investment returns and have demonstrable social impact. Described by the Huffington Post as the "Anti-Wolf of Wall Street," Balkin is challenging the status quo on Wall Street by leading the intellectual debate embracing the $1 trillion frontier impact investment market opportunity. The book demonstrates conclusively that, if we can change the culture in finance, we can change the world for the better.

208 pages, Hardcover

First published May 19, 2015

Reviews

[bladenomics · Rating 3 out of 5]

The final chapter speaks of 6E valuation model for evaluating businesses making an impact. I'd skip all the chapters preceding and directly go here. The six factors of evaluation being -

1. Economics - intrinsic value
2. Employment - scale of opportunities generated by the business
3. Empowerment - diversity and inclusivity in senior management and staff.
4. Education - learning opportunities for staff
5. Ethics - companies core values for staff and execs
6. Environment - life cycle costing , sustainability reporting etc.

I'm curious if there are reporting standards for these factors or if there is any reporting at all for the secondary market investors to use and evaluate companies.

But for VCs and lenders, 6E model is a good start if they choose to patronise socially responsible businesses, which I think they should.

[Sakib Ahmed · Rating 2 out of 5]

Capitalism is often blamed for causing many of the world’s problems. Its detractors claim that it encourages an endless hunt for higher returns, which leads to ethically problematic investments and a general disregard for humanity. At the same time, we all know money can do good in the world. Few complain when money is used for philanthropy or invested in new infrastructure or education.

Finance can be a positive force when used correctly. Impact investing, which generates profitable returns while simultaneously benefiting society, is just one way to invest ethically. Socially conscious investors should look at social bonds and closely investigate potential companies to make sure they have society's best interests at heart.

[Justin · Rating 4 out of 5]

Solid read on the state and case for investing in conscious companies. While it does cover some larger national and global economic impact, I think it would benefit from pairing with socio-economic study on the benefits that conscious business has and the need to promote the growth of ethical business to develop a stronger economy. Quick read and would recommend.

[Loan Cookies · Rating 3 out of 5]

(Sum) This book is, honestly, ok. It just makes me feel like it's not my day for fishing books since 3 books so far do not serve my need. This book is encoraging investors to put their money into social-impact place, not just for financial profit. I right now do not have any spare, so this book is way too unrealistic.

[Ana Pimenta · Rating 2 out of 5]

Some facts are not accurate while the author expresses the same idea several times (very repetitive). I do not recommend it.

[Joseph D Foresi · Rating 3 out of 5]

It was a good intro to Impact investing, but fell short of making it overly compelling.

The book needed a little more substance and detail specifically around the parameters for 6E.

[Rebecca · Rating 4 out of 5]

Balkin explains that millennials are shrewd enough to know that 1) politicians are ineffectual and dont care about their constituents and 2) private money talks and business leaders care very much for their customers. Thus millennials have high expectations for how they use their money and hold business leaders to a super high standard. If our money is not going to affect a positive social outcome, well take it elsewhere and we apply this to brand loyalty just as much as we apply it to financial investing, be it 401(k) or otherwise. Some of the investment products described in the book are fairly esoteric, relatively under researched and likely unsubstantiated, but the premise is good. Go millenials!

[Florence Muchori hull · Rating 5 out of 5]

I work with the author, what a brilliant mind.