What is it about?

Written as an anthology, this book offers perspectives from seasoned (and often bruised from trying) academics, advocates, and advisors. We share both successes and cautionary tales about harm that can occur through uninformed, and often unchecked, social investments, whether philanthropy, impact investing, or traditional finance The role of big finance and technology in social change is rapidly evolving. This book examines why large financial players are entering the social sector through social finance. Drawing on empirical research, the authors analyse the opportunities this new interest and commitment presents as well as the potential harm that can be done to vulnerable people when beneficiaries are not treated as partners and the social needs of people are not placed at the centre of the investment model. This book introduces a ‘Deliberate Leadership’ framework to help big finance tackle problems with no easy solutions. The book also analyses how current technologies (including blockchain) are being used and the benefits and drawbacks of different features of these technologies from the standpoint of the beneficiary and investor. The authors derive a series of insights into the model of technology for social finance and impact investing. Written as a practical book for students alongside a field book based on an action learning methodology, this volume will be useful to those in social finance and impact investing.

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Why is it important?

This book was written to help new social investors do good, avoid harm, and never have to resort to the refrain, “If only we’d known.” It pays particular attention to the potential of money and technology to improve the current and future lives of vulnerable people, and aid the regeneration of our fragile planet. It also provides warning signs of common perils—the things that can go wrong and how to avoid them. Through case illustrations, we discuss ways to measure and be held accountable for positive and negative impacts. We provide examples of successful approaches used by colleagues in finance and technology sectors to address the world’s Wicked Problems and, in some cases, make money doing so. Finally, we hope our analysis helps navigate the ethical decisions investors face when balancing purpose and profit. In the end, while we can’t help everyone avoid all the pitfalls, we hope it will make the path a lot clearer.

Perspectives

Can this book save the planet from wickedly difficult problems? Probably not. But it can be a helpful primer for those using money and technology to achieve the SDGs, while avoiding common pitfalls that can harm the vulnerable people and planet they seek to serve. We recognize how money and technology can work to degenerate rather than regenerate society and the environment, but we also share examples of what works when Big Finance and Big Technology step in to solve big problems, not least through social finance. In doing so, we hope positive impact can be accelerated and deliberate leadership become more widespread. This book draws on our research and empirical case studies resulting from interviews with more than 1500 interviews with social investors in more than 20 countries. These conversations with CEOs working in social investing (philanthropy, impact investing, public funding, intermediary support) in the BRIC (Brazil, Russia, India, and China) to countries in Africa, Europe, and North America. We gathered frank, discerning, and inspiring insights into what works and what doesn’t when using social finance to solve Wicked Problems.

Prof. Robert M Yawson, PhD
Quinnipiac University

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This page is a summary of: Navigating Big Finance and Big Technology for Global Change, January 2020, Springer Science + Business Media,
DOI: 10.1007/978-3-030-40712-4.
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