The Impact Economy: Balancing Profit and Impact

Schoenmaker, D. (2020), 'The Impact Economy: Balancing Profit and Impact', Working Paper 2020/04, Bruegel.

21 Pages Posted: 7 May 2020 Last revised: 8 Jul 2020

See all articles by Dirk Schoenmaker

Dirk Schoenmaker

Rotterdam School of Management, Erasmus University; Erasmus Research Institute of Management (ERIM); Centre for Economic Policy Research (CEPR)

Date Written: July 8, 2020

Abstract

How can governments and companies be jointly empowered to have a positive impact on the sustainable development goals? The current economic system is largely geared towards increasing economic growth. But this could come at the expense of rising social inequality and environmental degradation.

This paper examines the link between economic system outcomes and corporate sustainability outcomes. We provide evidence that governments and companies can reinforce each other in their pursuit of sustainable development. Sustainable development is based on three pillars: economic, social and environmental. These pillars should be assessed and balanced in an integrated way. An impact economy, in which governments and companies balance profit and impact, is best placed to achieve the sustainable development goals.

Keywords: Economic systems, sustainable development, CSR, institutional investors

JEL Classification: E01, G23, G28, H11, H41, P51

Suggested Citation

Schoenmaker, Dirk, The Impact Economy: Balancing Profit and Impact (July 8, 2020). Schoenmaker, D. (2020), 'The Impact Economy: Balancing Profit and Impact', Working Paper 2020/04, Bruegel., Available at SSRN: https://ssrn.com/abstract=3567026 or http://dx.doi.org/10.2139/ssrn.3567026

Dirk Schoenmaker (Contact Author)

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam
Netherlands

HOME PAGE: http://www.rsm.nl/people/dirk-schoenmaker/

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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