Most people are familiar with the terms "socially responsible investing" (SRI) and "environmental, social and governance (ESG) values investments".
There are financial investments and social investments. Financial investments usually look to the highest return given the risk tolerance. Social or ethical investments aim to achieve the best financial return that reflect the non-profit organization's ethos and values and do not run counter to the charity's aims. Mission connected investment has its aim to achieve the best financial return from investments which also further the non-profit's aims. Program Related Investment has as its aim to further the mission of the non-profit and it may also get a financial return.
The modern history of responsible investment may have begun with the Quakers in the 18th century who banned investment in the slave trade. John Wesley in a sermon "On the Use of Money" called on Methodists to avoid investing in industries that harmed the health of workers. In the 20th century the divestment of many ethical investors from companies operating in Apartheid South Africa sparked new interest in socially responsible investment.
Social impact investing is a term that needs further clarification. By accepting the likelihood of a sub-market financial return, will the social investor achieve more "value" with the investment than simply investing for a financial return?"
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