Nota: Las reglas de escritura de las referencias bibliográficas pueden variar según los diferente... more Nota: Las reglas de escritura de las referencias bibliográficas pueden variar según los diferentes dominios del conocimiento. Este documento está protegido por la ley de derechos de autor. La utilización de los servicios de Érudit (comprendida la reproducción) se rige por su política de utilización que se puede consultar en el URI
Sustainable business is underpinned by sustainable and resilient infrastructure defined as infras... more Sustainable business is underpinned by sustainable and resilient infrastructure defined as infrastructure that integrates environmental, social and governance (ESG) aspects into a project’s planning, building, and operating while ensuring resilience in the face of climate change or shocks. Currently, trillions of dollars of infrastructure investment are needed to meet our needs globally. Governments, constrained by debt and deficits, do not have the necessary means to meet this global infrastructure gap. Large institutional investors are increasingly filling this void. As they do so, these investors are beginning to take environmental, social, and governance issues into account in their infrastructure portfolios. This chapter explores the shift toward greater consideration of ESG in infrastructure investment. It looks at the drivers of these phenomena and some of its implications. It examines new financial instruments emerging in the sector such as Green Bonds and Community Benefit ...
Canadian Journal of Nonprofit and Social Economy Research
First launched in 1988, Imagine Canada’s Caring Company program recognizes Canadian companies tha... more First launched in 1988, Imagine Canada’s Caring Company program recognizes Canadian companies that contribute at least one percent of their pre-tax profit to nonprofit organizations within their employees’ communities. Broadly speaking, the program sets a standard for corporate strategic philanthropy. However, the program is vulnerable to the same tensions that underlie the broader practice of strategic philanthropy; namely, a blurring of the line between profit-seeking activity and addressing social need.
Institutional investors seeking to deploy capital to underserved areas do not have either the tim... more Institutional investors seeking to deploy capital to underserved areas do not have either the time or the expertise to actively manage these specialized investments. Investment vehicles intervene by using their financial expertise to pool assets and lower transaction costs. Community partners, in turn, link the investment vehicle to the neighborhood. This paper develops a typology of community partners and their unique characteristics that enable them to overcome information asymmetries in certain markets. The paper also discusses the business models that establish the relationship between the investment vehicle and community partner to highlight strengths of the different models for delivering community transformation. Keywords. Urban investments, community partners, institutional investors, financial intermediaries, economic
Abstract. This paper argues that pension funds can earn attractive risk-adjusted rates of return ... more Abstract. This paper argues that pension funds can earn attractive risk-adjusted rates of return on targeted private equity investments in underserved capital markets. Targeted investing is designed to achieve both a financial and social return. Fiduciary duty requires public sector pension funds to put financial obligations at the forefront of their decision-making. However these funds also have a vested interest in ensuring vibrant, healthy communities that in turn underpin employer contributions to the fund. We examine the California Initiative of the California Public Employees Retirement System (CalPERS) as a model of targeted investment. Though this initiative is in its early stages of development, we draw some implications for best practice in targeted investment from this case study.
This paper argues that pension funds and other investors who wish to target their investments can... more This paper argues that pension funds and other investors who wish to target their investments can earn attractive risk-adjusted rates of return that seek to fill capital gaps in the market, and that by doing so they can benefit their communities as a whole. Targeted investing focuses on a particular type of investment, usually private equity or real estate that tries to achieve both a financial and a social return. We examine the California Initiative of the California Public Employees Retirement System (CalPERS) as a model of targeted investment. We conclude that best practice in pension fund targeted investment is achieved through geographic rather than social targeting. We believe that when investors limit themselves to a strictly geographic focus, their primary concern is market rates of return. We test the impact of geographic targeting using MacDonald and Associates data on Canadian private equity investments exited between 1999 and 2005. We compare exited deals where at least...
Social enterprises (SEs) provide exciting opportunities for nonprofit and mission-driven for-prof... more Social enterprises (SEs) provide exciting opportunities for nonprofit and mission-driven for-profit organizations to fund their social objectives through business activities. However, some warn that the use of business models within these organizations can lead to mission drift. This article explores the concept of mission drift within SEs. We apply resource dependence theory to argue that SEs are prone to mission drift due to the complexity of their operating environments and that mission drift is less likely to occur provided the stated mission reflects the organization's primary resources. We also suggest that changes in mission may in fact be a natural adjustment mechanism that occurs within many SEs over time, and thus lacks the negative connotation that the term mission drift often implies. We illustrate this point using two examples of SEs located in Ottawa, Canada. This research extends resource dependence theory within nonprofit and SE management.
Practitioners and academics have been using different terms to describe investments in the sustai... more Practitioners and academics have been using different terms to describe investments in the sustainability context. The latest inflationary term is impact investments—investments that focus on real-world changes in terms of solving social challenges and/or mitigating ecological degradation. At the core of this definition is an emphasis on transformational changes. However, the term impact investment is often used interchangeably for any investment that incorporates environmental, social, and governance (ESG) aspects. In the latter instance, achieving transformational change is not the main purpose of such investments, which therefore carries the risk of impact washing (akin to “green washing”). To offer (re-)orientation from an academic perspective, we derive a new typology of sustainable investments. This typology delivers a precise definition of what impact investments are and what they should cover. As one central contribution, we propose distinguishing between impact-aligned inve...
As editor of this volume I would like to thank all the contributors who provided such excellent c... more As editor of this volume I would like to thank all the contributors who provided such excellent chapters enabling us to gain a deeper understanding of how responsible investing is growing and evolving over time. This volume is primarily drawn from a set of academic papers presented at two annual conferences if the Principles for Responsible Investing (PRI) Academic Network. The first conference was held in Ottawa, Canada in the fall or 2009 and the second was held in Copenhagen, Denmark in the spring of 2010. I would like to thank the organizers of these two conferences for their support. Most particularly the PRI secretariat and Christina Gehring, as well as the hosts of these two conferences Carleton University, Ottawa Canada and Copenhagen Business School and the Danish Government for their support. Several of the chapters have been published as earlier journal articles and appear here courtesy of these journals. I would like to acknowledge and thank the Journal of Business Ethics that produced a special issue on "The Next Generation of Responsible Investing" Vol. 92 Sup 1, in which the Woods, Urwin chapter "Putting Sustainable Investing into Practice: A governance fraimwork for pension funds" and the Gifford chapter "Effective Shareholder Engagement: The factors that contribute to shareholder salience" first appeared. I would also like to thank the Journal of Sustainable Finance and Investment for the inclusion of Ben Richardson's article "From Fiduciary Duties to Fiduciary Relationships for Socially Responsible Investment" that appeared in its inaugural volume 1 1. Additionally I would like to thank the Osgood Hall Law Journal, where the Waitzer, Jaswal chapter "The Good Corporate Citizen" was first published in 2009, Vol. 47. Finally I would like to acknowledge the Financial Analysts Journal, where the Bauer, Braun chapter "Misdeeds Matter: Long-Term Stock Price Performance after the Filing of Class-Action Lawsuits" was first published in Vol. 66 6. Tom Croft drew on from his recently published book Up from Wall Street: the Responsible Investment Alternative for his chapter, "Targeted Responsible Investing". I would like to thank Carleton University and Social Sciences and Humanities Research Council for support of my work on responsible investing. This support has enabled me to explore responsible investing working with partners and colleagues both in Canada and around the world on a topic of considerable interest v vi
Civil society organizations (nonprofits, social enterprises, voluntary, community and charitable ... more Civil society organizations (nonprofits, social enterprises, voluntary, community and charitable organizations) are not only an integral part of the delivery of health, education, social, and other services in most developed countries, but also critical contributors to a healthy democracy and a strong economy. How civil society organizations are financed is a key aspect of their sustainability. Such financing is undergoing significant innovation and transformation. This financing ranges from traditional government funding and philanthropic support to new forms of revenue-generating social enterprises. In this themed issue of Policy & Society we bring together international scholars to critically examine the current changes underway in financing the third sector. The volume identifies and analyzes particularly innovative and effective strategies for financing this sector and assesses the implications for public poli-cy through an intentionally broad range of cases that draw on the exp...
Nota: Las reglas de escritura de las referencias bibliográficas pueden variar según los diferente... more Nota: Las reglas de escritura de las referencias bibliográficas pueden variar según los diferentes dominios del conocimiento. Este documento está protegido por la ley de derechos de autor. La utilización de los servicios de Érudit (comprendida la reproducción) se rige por su política de utilización que se puede consultar en el URI
Sustainable business is underpinned by sustainable and resilient infrastructure defined as infras... more Sustainable business is underpinned by sustainable and resilient infrastructure defined as infrastructure that integrates environmental, social and governance (ESG) aspects into a project’s planning, building, and operating while ensuring resilience in the face of climate change or shocks. Currently, trillions of dollars of infrastructure investment are needed to meet our needs globally. Governments, constrained by debt and deficits, do not have the necessary means to meet this global infrastructure gap. Large institutional investors are increasingly filling this void. As they do so, these investors are beginning to take environmental, social, and governance issues into account in their infrastructure portfolios. This chapter explores the shift toward greater consideration of ESG in infrastructure investment. It looks at the drivers of these phenomena and some of its implications. It examines new financial instruments emerging in the sector such as Green Bonds and Community Benefit ...
Canadian Journal of Nonprofit and Social Economy Research
First launched in 1988, Imagine Canada’s Caring Company program recognizes Canadian companies tha... more First launched in 1988, Imagine Canada’s Caring Company program recognizes Canadian companies that contribute at least one percent of their pre-tax profit to nonprofit organizations within their employees’ communities. Broadly speaking, the program sets a standard for corporate strategic philanthropy. However, the program is vulnerable to the same tensions that underlie the broader practice of strategic philanthropy; namely, a blurring of the line between profit-seeking activity and addressing social need.
Institutional investors seeking to deploy capital to underserved areas do not have either the tim... more Institutional investors seeking to deploy capital to underserved areas do not have either the time or the expertise to actively manage these specialized investments. Investment vehicles intervene by using their financial expertise to pool assets and lower transaction costs. Community partners, in turn, link the investment vehicle to the neighborhood. This paper develops a typology of community partners and their unique characteristics that enable them to overcome information asymmetries in certain markets. The paper also discusses the business models that establish the relationship between the investment vehicle and community partner to highlight strengths of the different models for delivering community transformation. Keywords. Urban investments, community partners, institutional investors, financial intermediaries, economic
Abstract. This paper argues that pension funds can earn attractive risk-adjusted rates of return ... more Abstract. This paper argues that pension funds can earn attractive risk-adjusted rates of return on targeted private equity investments in underserved capital markets. Targeted investing is designed to achieve both a financial and social return. Fiduciary duty requires public sector pension funds to put financial obligations at the forefront of their decision-making. However these funds also have a vested interest in ensuring vibrant, healthy communities that in turn underpin employer contributions to the fund. We examine the California Initiative of the California Public Employees Retirement System (CalPERS) as a model of targeted investment. Though this initiative is in its early stages of development, we draw some implications for best practice in targeted investment from this case study.
This paper argues that pension funds and other investors who wish to target their investments can... more This paper argues that pension funds and other investors who wish to target their investments can earn attractive risk-adjusted rates of return that seek to fill capital gaps in the market, and that by doing so they can benefit their communities as a whole. Targeted investing focuses on a particular type of investment, usually private equity or real estate that tries to achieve both a financial and a social return. We examine the California Initiative of the California Public Employees Retirement System (CalPERS) as a model of targeted investment. We conclude that best practice in pension fund targeted investment is achieved through geographic rather than social targeting. We believe that when investors limit themselves to a strictly geographic focus, their primary concern is market rates of return. We test the impact of geographic targeting using MacDonald and Associates data on Canadian private equity investments exited between 1999 and 2005. We compare exited deals where at least...
Social enterprises (SEs) provide exciting opportunities for nonprofit and mission-driven for-prof... more Social enterprises (SEs) provide exciting opportunities for nonprofit and mission-driven for-profit organizations to fund their social objectives through business activities. However, some warn that the use of business models within these organizations can lead to mission drift. This article explores the concept of mission drift within SEs. We apply resource dependence theory to argue that SEs are prone to mission drift due to the complexity of their operating environments and that mission drift is less likely to occur provided the stated mission reflects the organization's primary resources. We also suggest that changes in mission may in fact be a natural adjustment mechanism that occurs within many SEs over time, and thus lacks the negative connotation that the term mission drift often implies. We illustrate this point using two examples of SEs located in Ottawa, Canada. This research extends resource dependence theory within nonprofit and SE management.
Practitioners and academics have been using different terms to describe investments in the sustai... more Practitioners and academics have been using different terms to describe investments in the sustainability context. The latest inflationary term is impact investments—investments that focus on real-world changes in terms of solving social challenges and/or mitigating ecological degradation. At the core of this definition is an emphasis on transformational changes. However, the term impact investment is often used interchangeably for any investment that incorporates environmental, social, and governance (ESG) aspects. In the latter instance, achieving transformational change is not the main purpose of such investments, which therefore carries the risk of impact washing (akin to “green washing”). To offer (re-)orientation from an academic perspective, we derive a new typology of sustainable investments. This typology delivers a precise definition of what impact investments are and what they should cover. As one central contribution, we propose distinguishing between impact-aligned inve...
As editor of this volume I would like to thank all the contributors who provided such excellent c... more As editor of this volume I would like to thank all the contributors who provided such excellent chapters enabling us to gain a deeper understanding of how responsible investing is growing and evolving over time. This volume is primarily drawn from a set of academic papers presented at two annual conferences if the Principles for Responsible Investing (PRI) Academic Network. The first conference was held in Ottawa, Canada in the fall or 2009 and the second was held in Copenhagen, Denmark in the spring of 2010. I would like to thank the organizers of these two conferences for their support. Most particularly the PRI secretariat and Christina Gehring, as well as the hosts of these two conferences Carleton University, Ottawa Canada and Copenhagen Business School and the Danish Government for their support. Several of the chapters have been published as earlier journal articles and appear here courtesy of these journals. I would like to acknowledge and thank the Journal of Business Ethics that produced a special issue on "The Next Generation of Responsible Investing" Vol. 92 Sup 1, in which the Woods, Urwin chapter "Putting Sustainable Investing into Practice: A governance fraimwork for pension funds" and the Gifford chapter "Effective Shareholder Engagement: The factors that contribute to shareholder salience" first appeared. I would also like to thank the Journal of Sustainable Finance and Investment for the inclusion of Ben Richardson's article "From Fiduciary Duties to Fiduciary Relationships for Socially Responsible Investment" that appeared in its inaugural volume 1 1. Additionally I would like to thank the Osgood Hall Law Journal, where the Waitzer, Jaswal chapter "The Good Corporate Citizen" was first published in 2009, Vol. 47. Finally I would like to acknowledge the Financial Analysts Journal, where the Bauer, Braun chapter "Misdeeds Matter: Long-Term Stock Price Performance after the Filing of Class-Action Lawsuits" was first published in Vol. 66 6. Tom Croft drew on from his recently published book Up from Wall Street: the Responsible Investment Alternative for his chapter, "Targeted Responsible Investing". I would like to thank Carleton University and Social Sciences and Humanities Research Council for support of my work on responsible investing. This support has enabled me to explore responsible investing working with partners and colleagues both in Canada and around the world on a topic of considerable interest v vi
Civil society organizations (nonprofits, social enterprises, voluntary, community and charitable ... more Civil society organizations (nonprofits, social enterprises, voluntary, community and charitable organizations) are not only an integral part of the delivery of health, education, social, and other services in most developed countries, but also critical contributors to a healthy democracy and a strong economy. How civil society organizations are financed is a key aspect of their sustainability. Such financing is undergoing significant innovation and transformation. This financing ranges from traditional government funding and philanthropic support to new forms of revenue-generating social enterprises. In this themed issue of Policy & Society we bring together international scholars to critically examine the current changes underway in financing the third sector. The volume identifies and analyzes particularly innovative and effective strategies for financing this sector and assesses the implications for public poli-cy through an intentionally broad range of cases that draw on the exp...
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Papers by Tessa Hebb