There has been a debate in the world of impact investing as to whether it is necessary to sacrifice social impact for greater financial returns or if there is in fact a positive correlation between social impact and financial returns. This article challenges this two-sided view by presenting a framework for investors to understand the potential of their investments across the returns continuum. The Omidyar Network believes that the opportunity for profitable and impactful investment represents a broad range, only some of which involve this trade off between impact and financial return. Using this framework, investors can understand the financial and impact potential that lies within these markets and make informed decisions about when it is appropriate to invest in lower return opportunities for greater impact and when it is not necessary.
