On this episode of More than Money, guest speaker Amit Bouri, CEO and co-founder of the Global Impact Investing Network (GIIN), began his career as an impact investor. Impact investing--like general investing--gives clients a financial return while also supporting companies that are making positive, social and environmental impacts.
This style of investing sparks the age-old debate between shareholder primacy and stakeholder theory. Shareholder primacy theory states that a company--simply by being successful and returning profit to shareholders--is socially responsible. Stakeholder theory, however, demands that a company must give back to all of those they impact: from shareholders to employees, the community, customers, etc.
Which theory resonates with you more? Does impact investing appeal to you? Is it our responsibility, as a member of society, to invest in companies that explicitly try to benefit greater society?
Let us know in the comments below!