Greed Gone Good: A Roadmap to Creating Social and Financial Value brings the how-tos of impact finance to a broad- based audience of investors, from the individual to the institutional. Written in an engaging, jargon-free style and loaded with practical advice, it explores the pitfalls and potential of the burgeoning impact revolution―the increasingly widespread belief that business and financial leaders should weigh social value as well as financial value in all of their decisions, to create both a better business model and a better world.
Cheerleaders have written a number of books advocating the magic of impact finance. Greed Gone Good hopes for the magic too, but also believes that an uncritical eye does not effectively advance the cause. We now have 10 years of impact investing history to examine, and not all of it is laudable. We could hold hands and sing Kumbaya in praise of impact finance; or we could employ constructive criticism to figure out what’s gone well and what hasn’t, and how we should move forward more productively. Greed Gone Good focuses on the roadmap―how to reorient and repackage finance and investing in order to deliver on this promise. In particular, it focuses on how to realize the potential of the impact revolution to become a silver bullet against future failures. Green Gone Good will have widespread appeal to investors ranging from individuals and family offices to the world’s largest asset managers and investors.
Author(s): Jane Elizabeth Hughes
Publisher: Routledge
Year: 2021
Language: English
Pages: 202
City: London
Cover
Endorsement
Half Title
Title Page
Copyright Page
Dedication
Table of Contents
Acknowledgments
Introduction: Greed Gone Good
Foreign Aid: There Has to be a Better Way
The Better Way
Notes
1 The Impact of Globalization, Poverty, and Inequality
Bears, Sumo Wrestlers, or Sprinters
What Is Globalization?
Who Likes Globalization?
Globalization: The Winners
Globalization: The Losers
Globalization: The Way Forward
Notes
2 Greed Gone Bad: A Perversion of Capitalism
What Happened at Enron?
A Massive Failure of Corporate Governance
Greed Gone Bad
A Short History of Greed in US Financial Markets
Conclusion: Capitalism Gone Good
Mini-case: Volkswagen
Mini-case: General Motors
Mini-case: Wells Fargo
Notes
3 Greed Gone Good: Reimagining the Model
Creating a Roadmap
Channeling Capitalism Into Good
Funding the Sustainable Development Goals
Connecting Capital Markets to Development
The Elephant in the Room: Returns
The Financial World Buys in
Mini-case: Patagonia
Mini-case: Bombas
Notes
4 Investors: The Driving Force
Sustainable Investing Abounds
Retail Investors
How to Get Started
High Net Worth Individuals and Family Offices
Foundation Investors
Financial Powerhouses: Institutional Investors
Venture Capital and Private Equity
Faith-based Investors
Islamic Investors
Judeo-Christian Faith-Based Investors
Mini-case: TPG, KKR, and Bain Capital
Mini-case: BlackRock
Notes
5 Microfinance: The Seeds of the Impact Revolution
Muhammad Yunus: Microfinance Is Born
Microfinance Goes Viral
The Impact of Microfinance: Does It Work?
Lessons From the Microfinance Sector
Mini-case: Banco Compartamos
Mini-case: SKS
Notes
6 The Revolution Goes Mainstream: Equity Markets…
Impact Equity: From Cookstoves to Amazon
The Promise of Impact Investing
What Is Impact Investing?
Light-bulb Moments
Some of Our Favorite Impact-Based Firms
On the Other Hand…
The New Venture Capital?
Enter the Dinosaurs
Notes
7 . …And Impact Bonds
Bonds Versus Equity: And the Winner Is…
ESG Bonds: Historical and Market Context
Green Bonds
Social Bonds
COVID-19 Social Bonds
Green Bonds Versus Social Bonds
ESG Bonds: All Colors of the Rainbow
Disaster Bonds
Diaspora Bonds
Pay-for-success (PFS) Instruments
Urgent Need for a Robust Social Bond Market
Economic Development Needs
Social Development Needs
Funding Gap
Why Social Bonds?
Investors
Mapping Bonds to the Sustainable Development Goals
Overcoming Obstacles to Social Bond Market Growth
The Way Forward
Notes
8 Sustainable Banking
The Latecomers: Banks
Project Finance: Opportunity and Risk
The Chad–Cameroon Pipeline
The Equator Principles: Still Risk Mitigation
Moving On: Sustainable Banking Opportunities
ESG Lending: Old-Style
Something New: Sustainability-Linked Loans
Full Steam Ahead: The Post-COVID-19 Era
Islamic Banking
Sustainability Is Strategy
Notes
9 Gender-Smart Investing: Are Women the Silver Bullet?
COVID-19 Hits Women
Innovative Finance for Women
A Multiplier Effect: The Business Case for Investing in Women
Creating Women Entrepreneurs
What Is an Empowered Woman?
Patriarchy Is a Powerful Constraint
Microfinance Borrowing Can Exploit and Undermine Women
Is Microfinance Effective in Reducing Poverty Among Women?
Innovative Finance for Women: Microfinance
Looking Forward: Microfinance, Not Microlending
Beyond Microfinance: Supporting Women Entrepreneurs
Goldman Sachs and 10,000 Women
IFC: Banking On Women
IFC + Goldman Sachs
IDB and Other Institutions
Measuring Impact or Counting Heads?
Gender-lens Investing
Examples of GLI: Equities, Bonds, and Notes
Examples of GLI: Calvert WIN-WIN Initiative
Examples of GLI: Women’s Livelihood Bond (WLB)
Examples of GLI: Root Capital Women in Agriculture Initiative
Scope, Scale, and Impact: When Does Innovation Become Transformation?
Notes
10 The Way Forward
Bankers and Bears
A Crisis Is a Terrible Thing to Waste
Build Back Better
The Way Forward: Greed Gone Good
Note
Index
