Academics and practitioners alike have fought for position on the for-profit-to-nonprofit spectrum, and distinction within the charitable-to-concessionary-returns-to-market-rate-returns spectrum. We’ve seen an evolution of its popularity as distinctions between doing well and doing good have dissolved.

However, to gain mainstream adoption, credibility and recognition, we must address its fundamental flaw: Social impact lacks economic orientation.

It is commonly known to refer to entities that benefit the world — i.e., people and planet — in a way that is not purely financial. The thing is, we live in a global economy that doesn’t value these benefits. In one of the foundational and most often cited academic papers to define impact, Greg Dees, writing for the Kauffman Foundation, explained:

READ FULL ARTICLE HERE