Framework for Assessing the Integration of Ethics in the Design of Impact Investment Ventures

Abstract

Impact investment ventures are growing in the modern economy. However, the recent failures of some impact investment ventures are a cause for concern. Unfortunately, our concern about the ethicality of these kinds of social exchanges seem to emerge when it is too late. Namely, we become concerned about lack of ethics when a venture has failed or is collapsing. A better approach would be for us to have a means to proactively assess and improve the degree to which the arrangements and practices of a social exchange meet ethical standards. Whereas much work has been done to equip social ventures to evaluate their impacts, little work has been done to create frameworks that could be used to assess the degree to which social exchanges integrate ethical practices in their designs. This paper proposes such a framework. For illustration purposes, the proposed framework would also be used to evaluate the One Acre Farm, an impact investment venture in Africa.