Why The Struggle: Lost in Translation The idiom Lost in Translation refers to a word or phrase failing to have the same meaning or effectiveness when it is translated into another language. 21 Since its inception more than a decade ago, the Oxford Impact Investing course has begun class by asking executives to define the word equity . The typical cohort represents participants from thirty countries and the majority come with finance and business backgrounds. Depending on their experience—finance or social sector—students’ definitions mirror those below described by the Oxford English Dictionary, describing equity in terms of ownership, finance, and property or social fairness and equality. Finance The value of a company’s shares or the value of a property after debts and charges have been paid. Social Sector A situation where everyone is treated equally and fairly, according to their need. Oxford English Dictionary 22 Aligning and reconciling these perspectives is critically important to make positive impact investments. Wicked Problems are best served through collaboration of diverse perspectives. The terms impact investing or impact economy embody Lost in Translation. Impact can be social, environmental, or financial, and positive or negative. Those who experience impact, whether beneficial or harmful, are most often people and communities most in need. They are at the center of the SDGs’ call to action. They feel the consequences of injustice and inequality and are often fearful about not having their basic needs met. This social side of the impact equation is different from the financial or investment side. Those who speak the language of social impact or social change represent professionals and practitioners from different disciplines or sectors. This may include social and care work, international development, policy, law, humanities, and arts—with changemakers in these areas having experience with the communities being served. Their definition of the word equity is not the same as those working in finance. Impact investing and impact economy straddle both definitions and finding a common language and alignment on impact can be challenging and yet is essential. Recognizing Different Perspectives Developed by Calvert Impact, Figure A represents the Impact Economy spectrum. It is a framework used in the Oxford Impact Investing Programme, and it shows various stakeholders within the impact ecosystem, or what is affectionately called “the plumbing”—the flow of capital to the global communities benefiting from an investment. 168
Ten Years in the Making
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