Assessing mission drift at venture capital impact investors

Business Ethics: A European Review 26 (3):257-270 (2017)
  Copy   BIBTEX

Abstract

In this article, we consider a recent trend whereby private equity available from venture capital firms is being deployed toward mission-driven initiatives in the form of impact investing. Acting as hybrid organizations, these impact investors aim to achieve financial results while also targeting companies and funds to achieve social impact. However, potential mission drift in these VCs, which we define as a decoupling between the investments made and intended aims, might become detrimental to the simultaneous financial and social goals of such firms. Based on a content analysis of mission statements, we assess mission drift and the hybridization level of VC impact investors by examining their missions and their investment practices through the criteria of social and financial logic. After examining eight impact-oriented VC investors and their investments in 164 companies, we find mission drift manifest as a disparity between the means and ends in half of the VC impact investors in our sample. We discuss these findings and make suggestions for further studies.

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 92,168

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Coming Out of the Investors’ Cave?Harry Hummels - 2012 - Business and Professional Ethics Journal 31 (2):331-348.
Ethical Investing: Ethical Investors and Managers.Richard Hudson - 2005 - Business Ethics Quarterly 15 (4):641-657.
Ethical Investing: Ethical Investors and Managers.Richard Hudson - 2005 - Business Ethics Quarterly 15 (4):641-657.

Analytics

Added to PP
2017-03-13

Downloads
24 (#659,625)

6 months
9 (#314,693)

Historical graph of downloads
How can I increase my downloads?