THEP R AC T IC EOF

PURPOSE
Exploring Elements of Life,
Meaning, and Impact
BON N Y MOE L L E N BROC K
andJ E D E M E R SON

A C ompa ni on toTh e P u r p o s e o f C a p i ta l : E l e m e n t s o f I m pa ct , F i n a n c i a l F l o w s , a n d N at u r a l B e i n g

CON T E N T S{{{
FOR E WOR D

THE GREAT PAUSE. . .................................................................. 1
INTRODUCTION

BEGINNINGS............................................................................. 5
SECTION ONE

IS THIS WHAT WE WANTED? . . ................................................. 7
S E C T ION T WO

FROM IGNOR ANT TO MUTUAL IMPACT. . ...............................14
SECTION THREE

HUMANITY AND SELF. . ...........................................................19
SECTION FOURFROM DUALISM TO CONNECTION........................................ 30
SECTION FIVE

TRUTH AND TIME.................................................................. 40
SECTION SIX

FAITH IN FINANCE , SCALE , AND PROPERTY....................... 49
SECTION SEVEN

THE PURPOSE OF CAPITAL AS FREEDOM..............................59
SECTION EIGHTPURPOSE AS PROGRESS, PRESENCE AS VALUE ..................... 71

The Practice of Purpose:
Exploring Elements of Life, Meaning, and Impact
Copyright © 2020 by Bonny Moellenbrock and Jed Emerson
Published by Blended Value Group Press
Design and Layout by Domini Dragoone
Art and Illustrations by Dana SmithCurrency images: Pound Sterling notes © Bank of England,
used with permission; Euro notes © Central European
Bank, used with permission

This guide is offered as a complimentary supplement to:
The Purpose of Capital: Elements of Impact, Financial
Flows and Natural Being, published in 2018 by Blended
Value Group. While you are free to make use of andreproduce this material for teaching, workshops andpersonal/group reflections please do not alter the content
or share without attribution to the authors. In addition,
for complete image credits, please see page 309 “Image
Credits” in The Purpose of Capital.
ISBN: 978-1-7324531-2-8

FOR E WOR D{{{{{{{{THE GREAT PAUSEW

E HAD INTENDED TO RELEASE THE PRACTICE OF PURPOSE: EXPLORING ELEMENTS OF LIFE, MEANING AND IMPACT IN MARCH OF 2020, BUT AS WE FINALIZEDTHE TEXT OUR WORLD WAS LITERALLY TURNED UPSIDE DOWN.

A virus that started in one part of the planet spread around the world. The rolling wave of infection

forced us to shelter in our homes, bringing the economy to a screeching halt and breaking us all out of

the rut of routine.

The experience of watching the virus extend across the vastness of the globe while our personal worlds

became smaller and smaller pushed many of us to reflect upon how we have been living our lives, call-

ing into question:• The perceived urgency and importance of our work.
• Our understanding of what is “essential”—financially, economically, and interpersonally.
• The assumptions we held concerning material wealth and personal identity.
• The idea we might pursue our goals and ambitions separate and apart from those ofneighbors and ecosystems.

• The way we had thought about economics, community, family, and, in many ways, notsimply our daily, economic lives, but of life itself.

Some have responded as they did in the last financial crisis, with a doubling down, a renewed commitment to the path they were already taking. We must first defend us! Raise the drawbridge, as it is only
our nation, state or community that matters!

Some companies and politicians1 have taken the crisis as an opportunity to promote and lock in theiragenda of exploitation and environmental destruction to their own benefit, as others were dazed andconfused with regard to the order of the day.2

And if one listens to the mainstream press, one might think that all that matters is how we get back towhere we were - how do we return to “normal”?

Yet others have realized the disruption brought by the virus—even with its profound pain andconfusion—may be something of a gift to us. COVID-19, by stopping all that was, gives us a unique

moment to reassess our direction, and chart a new path forward—away from the destruction of theplanet and our selves, toward a renewal, a reengagement with first principles, a reconnection of ourlives with what we each might believe is what truly matters, regardless of the specific words and prac-

tices with which we describe it.

There is certainly no shortage of ideas for what this moment may mean for the future of our world.3 For
some it is an opportunity to do capitalism differently,4 while for others it is an opportunity to completely

redesign our economic and social systems.5 Daniel Christian Wahl describes it as an opportunity for a“phase shift” in our thinking and action.6 Others see in the breakdown of the current, global economic
system opportunities to build greater local resilience in our food and energy systems.7 And still others

have offered visions of how that world will be different8 or proposed the central principles by which wemight embrace its reconstitution.9

But before moving forward to rebuild our world there is an opportunity we need to avail ourselves of:

The opportunity to simply stop
For those of us not on the front lines working to address the immediate crisis of the virus or deemed

essential workers, our response to the pandemic has placed us in a position between action and inac-

tion, between thought and deed, between being and becoming. In the face of the pandemic we must, ofcourse, act—there are people who are ill, people in need of food, people in need of income with which

they survive and without which they may end up financially destroyed and homeless—and yet we arealso called to be still, to stay home, to do nothing in order to later be well enough to do something, torebuild, to help heal our collective break, to renew not only our own selves, but our families, commu-

nities and world.

How many of us will truly take the opportunity to do just that? To reassess our understanding of who
we are and how we connect? To reengage with the reality of inter-connectedness and reflect upon the

many and profound links between Self and Other, to appreciate yet again there is no separation, butrather we are one not simply in a metaphysical or spiritual sense but in reality, in the very real terms
F O R E WO R D : Th e Gr e a t P a u s e• 2

of how we are in the world, physically. As Robert Gilman said in a recent conversation, From the pointof view of the virus, we are all one body. There is no private salvation, and wealth offers only temporary
respite from the reality of our interconnection.

Out of this pause, may there come a new appreciation for how we might use our money, our capitaland our resources to attain new ends in new ways more consistent with that about which we truly care;our health, to be sure, but also our relations with family and friends and neighbors, our connections

with all animals and Earth, our connection with our own Self, for, after all, it is most likely this virus

was birthed in a market, a place of traditional trade where we exercise humanity’s presumed dominion
over nature.

While this moment has been described as The Great Shut Down, as I and others have observed, perhaps it may come to best be described as The Great Pause; in our context, the pause point at which
millions of people the world over were forced to stop their lives as they knew them, step back to sit andreflect upon the nature of those lives, the structure of our economic order, and the relation of our selveswith each other and the natural world. As some have asked, what if the virus “is the medicine” we seek
to heal our planet?10 What if all this silence could help us live a better life?11

This is a moment of pause that is truly pregnant with possibility. As the Buddhist Economist, Ernest
Ng, writes:

These risks [of COVID-19] can perhaps be best understood from a Buddhist perspective: are
we brave and wise enough to rebuild trust, conquer the fear inside us, and reprioritize what

is most valuable to us? Hence, instead of giving up our freedom and social and moral capitalfor protection, could we be truly fearless and free. Instead of needing to worry about survival,

we can spend quality time with one another—united together in the pursuit of somethinguniquely precious to humankind and the ecosystem?12

Yet we must also acknowledge that it does not require a global pandemic to take the opportunity topause. This guidebook is offered as a tool to assist you in making the most of your own pause, however
and whenever you experience it.

Perhaps it is how you come out of The Great Pause offered by this global pandemic.
Perhaps it is the pause created by your receipt of an inheritance or new position of fiduciary duty which

forces you to step back to reassess what is possible and what your own role might be in advancing thatpossibility into reality.

Or perhaps it is simply where your own life has brought you at this time; looking, questioning andsearching for more than what you may have understood to this point.

F O R E WO R D : Th e Gr e a t P a u s e• 3And while we do not know the ultimate impact of his death, as we complete this project comes word ofGeorge Floyd’s death at the hands of local police and the rise of community voice demanding justice for
not only him, but for hundreds of others. As thousands around the globe mobilize to create a more justworld, the need for personal reflection and change comes in concert with the need for social, politicaland economic change as well. At the same time we step up to act, we must step back to reflect upon

how we must now remake our world and our very selves.

However you came to this moment, we wish you the very best in your reflection. This guidebook isoffered as a tool, a set of questions to assist you in gaining a deeper understanding of what matters mostto you. We hope it is helpful in your process of reconnecting, of going deeper, of taking a break fromyour life in order to more clearly see what you seek and how best to pursue your goals for your self, yourcommunity and our world.

JED EMERSONBONNY MOELLENBROCK

1. See April 1, 2020, Grist: Trump is sneaking environmental rollbacks past a nation in quarantine. https://grist.org/politics/
trump-is-sneaking-environmental-rollbacks-past-a-nation-in-quarantine/

2. There are many examples of companies moving to enact regulatory or other roll backs that would advantage their business—busi-

nesses that in many cases were already contributing to environmental and social destruction. Please see: https://www.theguardian.

com/business/2020/mar/27/carmakers-accused-of-using-covid-19-weaken-environmental-laws?CMP=twt_a-environment_b-gdneco

And also: Companies using the crisis to roll back Environmental regulations.
https://www.ft.com/content/38a17325-6689-4535-bd93-1c9f67eb8f37

3. See Politico, March 19, 2020: Coronavirus will change the world permanently. Here’s How. https://www.politico.com/news/

magazine/2020/03/19/coronavirus-effect-economy-life-society-analysis-covid-135579?f bclid=IwAR0xwRfseqi_ZtmqGehuyzt6as_
QRqJFL6UVqQo2To247fcZHsG6W4TsLDI

4. Guardian, March 18, 2020, Opinion, The Covid-19 Crisis is a chance to do capitalism differently. https://www.theguardian.com/
commentisfree/2020/mar/18/the-covid-19-crisis-is-a-chance-to-do-capitalism-differently

5. ImpactSeed, March 13, 2020: Capitalism 1.0 suffered a virus crash. What’s the system upgrade? https://www.impactseed.org/news/
capitalism-1-0-just-suffered-a-virus-crash-whats-the-system-upgrade/

6. Medium Post, Daniel Christian Wahl, March 11, 2020, The Phase Shift Has Arrived! The Pandemic as a Catalyst for Transformation. https://medium.com/age-of-awareness/phase-shift-has-arrived-who-declares-pandemic-83da330fdc5d

7. Th
 e American Conservative, March 25, 2020, Gracy Olmsted, Our Monoculture Food System is a Potential Pandemic Calamity.

https://www.theamericanconservative.com/articles/with-grocery-shortages-resilient-places-support-local-agriculture/?utm_content=buffer49580&utm_medium=social&utm_source=facebookcom&utm_campaign=buffer&f bclid=IwAR3NvVkaaEiXXibRuSdPjAxmWz_CgrJ7HVJhPPwOD7sHRFgWEKgil4lSa_8

8. Medium Blog Post, Henderson Institute, March 15, 2020: How Will Things be Different When Its all over? https://bcghendersoninstitute.com/how-will-things-be-different-when-its-all-over-513900bf b0af

9. Michael Shuman: Blog Post, Comparative Resilience: 8 Principles for Post-Covid Reconstruction. http://michaelhshuman.
com/?p=456

10. Julia and Howard, Heartwards Sanctuary, March 13, 2020, What if the Virus is the Medicine. https://www.heartwardsanctuary.
org/post/what-if-the-virus-is-the-medicine

11. Michael Gerson, Washington Post, March 23, 2020, When it comes to the end of our energies, the universe will hold us. https://www.washingtonpost.com/opinions/can-all-this-silence-help-us-live-a-better-life/2020/03/23/264cd788-6d3d-11ea-a3ec-

70d7479d83f0_story.html

12. Ernest Chi-Hin Ng, Buddhist Door, March 27, 2020, Pause and Reflect: Humanity from Illness into Wellness, https://www.buddhistdoor.net/features/pause-and-reflect-humanity-from-illness-into-wellness

F O R E WO R D : Th e Gr e a t P a u s e• 4

I N T RODUC T ION{{{{{{{{BEGINNINGSM

ANY OF US ARE CHALLENGED BY THE ROLE MONEY PLAYS IN OUR LIVES TODAYAND THE IMPACT OF THE GLOBAL, CAPITALIST FINANCIAL SYSTEM ON SOCIETY

AND ENVIRONMENT. FROM WEALTH DISPARITY, TO ECONOMIC UPHEAVAL ASSOCIATED

WITH ACCELERATING TECHNOLOGICAL CHANGE, TO THE CLIMATE CRISIS AND POLITICAL POLARIZATION AND INSTABILITY AROUND THE WORLD, WE ARE CONFRONTEDDAILY WITH SIGNIFICANT AND GROWING CHALLENGES; FINANCIAL CAPITAL PLAYS A
CRITICAL, IF NOT CENTRAL, ROLE IN ADVANCING, SUSTAINING OR ADDRESSING THEM
ALL. AS A RESULT, OUR INDIVIDUAL AND COLLECTIVE UNDERSTANDING OF THE PURPOSE OF CAPITAL, AND THE CAPITALIST SYSTEM ITSELF, IS BEING QUESTIONED FROMMULTIPLE PERSPECTIVES.
Jed Emerson, a pioneer in the theory and practice of the field now known as impact investing, hasspent decades exploring how money may be used to generate more than financial returns. In 2000, Jed

introduced his concept of “Blended Value,” which is the idea that value is fundamentally whole andnon-divisible, consisting of component parts of what is social, economic and financial; and that thisvalue is present in both organizations and capital. This vision has inspired many to pursue a more holistic approach to the use of capital and management of organizations.

In 2016, as impact investing gained increasing traction in the financial mainstream, Jed took a step
back, embarking on a 3-year journey of reading, exploration, and reflection to dig even deeper on therole of capital in our lives. The concept of blended value acknowledges the fundamental wholenessof value, but how did we get divided in the first place? How was it that we came to think we mightadvance economic value in the absence of consideration of social and environmental value? Where did

the dualistic idea that one had to choose between nonprofit and for-profit, grantmaking and investingor, quite simply, doing well or doing good, originate? His book, The Purpose of Capital, shares this expe-

rience and reflection, with the goal of inspiring others to undertake a similar journey.

This guidebook, The Practice of Purpose: Exploring Elements of Life, Meaning and Impact, is offered as acompanion to The Purpose of Capital, distilling the ideas discussed and helping readers step back andreflect on the role capital has played—and continues to play—in our own lives and society, and the role

capital might play, if integrated with purpose, to create deeper meaning and positive, mutual impact.

Each section in this guide identifies key concepts in the text and provides questions to reflect upon
individually and/or discuss with a friend or group engaging in this process together. While in general

this document mirrors the chapters of the original book, we have opted to consolidate some chapters

into single sections we feel allows for better flow in exploring the concepts presented in the book. This

guide includes extensive quotes from the original book, The Purpose of Capital, and these quotes arefollowed by page number references to the hard copy version of the book. If you are working from thedigital version of the book, please simply enter a few key words from the passage into the search fieldof the ebook to find the citation, since the ebook copy of The Purpose of Capital does not include page

numbers. Quotes in the guidebook which may be from non-Purpose of Capital sources will have a foot-note citation for the reader’s reference.

We encourage you to use this guidebook to help you dive in and wrestle with these concepts and ideas,
coming to your own understanding of capital’s purpose in your life and our society. While we aim forthis guide to be helpful in understanding the larger text, it is not meant as a replacement for the original book. Indeed, we hope it will inspire you to dig more deeply into The Purpose of Capital as well as

the many original sources and references included in the book (and those discovered on your own!),
especially where the ideas particularly intrigue or challenge you.

We also hope you will be inspired to discuss these ideas and your reflections with others, whether afriend(s), colleagues, a book group, a church group or an impact investing study group, casually orwith deliberate process. We sincerely believe these conversations and resulting actions are necessary to

shift from a society in the service of capital to one that realizes financial capital’s potential as a tool for

attaining our broad goals of life and meaning.

I N T RO DUC T ION : B e g i n n i n g s• 6O pening Q uest ion sfor Ref lect ion{{{
A S YOU B E GI N T H I S JOU R N E Y, TA K E S O M E T I M E T O C ON S I D E R :∞∞ What brings you here—what makes you want to explore the purposeof capital?

∞∞ How would you describe your financial status in the context of mainstream
expectations and measures? How is the current system “working” for you –or not?

∞∞ How would you describe your relationship with money? What feelings arise
when you think about it—stress, satisfaction, frustration, accomplishment,
guilt, pride, other emotions?

∞∞ What key questions or hopes come to mind for you as you start this process?

I N T RO DUC T ION : B e g i n n i n g s• 7

SEC T ION ON E{{{{{{{{IS THIS WHATWE WANTED?

W

E HAVE BECOME SEPARATEDFROM CAPITAL AND ARE NOWAT ITS SERVICE, AS OPPOSED TO ITSERVING US, WHEREIN OUR RELATIONWITH CAPITAL COMES TO DEFINE OUR
UNDERSTANDING OF SELF, OUR VALUERELATIVE TO OTHERS, OUR HAPPINESS AND PERSONAL SATISFACTION,
OUR PROSPECTS WITHIN THIS SOCIETY,
AND THE FUTURE PROSPECTS OF OUR
CHILDREN. (P. 1)

OV E RV I E W{{{
In Chapter 1, Why Care About the Purpose of Capital?, Jed makes the case for an exploration ofcapital’s purpose and introduces concepts that will be explored further in following chapters. He recognizes how “human societies are now dominated by financial capitalism” and the implications of that
dominance, reminds us that financial capital is a social construct, discusses his evolving understandingof purpose through his life and pursuits, and reflects on the value found in questions and exploration,rather than in the answers.

GOA L S FOR T H E R E A DE R{{{∞∞ Understand why this inquiry is relevant∞∞ Become aware of mainstream America’s cultural (and your own culture’s)
assumptions and values around financial capital and ways of knowing∞∞ Ref lect on the role that capital plays in your own life, especially how it cancreate or detract from meaning

S E C T ION ON E : I s Th i s W h a t We Wa nt e d ?

• 9KEY CONCEPTF I NA NC I A L C A PI TA L I S A S OC I A L CONST RUC T ( P a ge s 1 – 2 )At its core, the notion of capital is itself a social construct and not an objective, economic rule of law

operating beyond our societal bounds. It is a phenomenon that over scores of centuries has been spunout of our consciousness and collective experience, to become its being and force, acting upon each ofus as individuals and all of us as a global village. Over the course of those centuries, many of us havelost sight of the fact that our approach to the nature and purpose of capital may be changed, expanded,refined, and applied in new ways not only in our own lives but within those of our families, commu-

nities, nations, and world. (p. 2)

In many ways, capitalism, and our assumptions around it, have become an invisible frame for how weview and value the world. Within this invisible frame, we have allowed capital to turn the table andbecome the driver and measure of human endeavors. The result is an unsustainable economy that is

operating at the service of capital, generating human and environmental harm. It seems many haveforgotten, or perhaps never even considered, that the concept of capital is actually a social construct,
created by humans as a tool for economic activity, meant to be our servant rather than our master.

Questions for Ref lection

͋͋ What financial assumptions, concepts or beliefs have you absorbed from your family
or upbringing? What experiences or situations shaped those attitudes?

͋͋ What assumptions about economic or financial concepts have you been explicitly
taught, for example in economics, civics, or business classes?

͋͋ How have your experiences influenced your attitudes towards financial concepts? Did
they support or challenge your absorbed or learned assumptions?

͋͋ Have you ever questioned the primacy or dominance of the financial capitalist

system? If so, when and why? If not, what is your reaction to Jed’s questioning of thisdominance in this chapter? Is it challenging and/or does it resonate with you? Why or

why not?

S E C T ION ON E : I s Th i s W h a t We Wa nt e d ?

• 10

KEY CONCEPTT H E PROC E S S OF PU R PO S E : PAT H A N D PR E S E NC E ( P a ge s 3 – 16 )We do not have to accept the definition of capital’s purpose as developed in the last four centuries andwhich we have enthusiastically bought from Wall Street’s firms of finance. The purpose of capital isabout more than monetizing the economic opportunity represented by the mainstreaming of interest in

sustainable, responsible and impact investing. The quest to discern the real purpose of capital is about

each of us going deeper. That is, to seek to explore what capital is, the elements which make up its con-stitution and how we may work together to realize financial capital’s potential as a tool for attaining
our broad goals of life and meaning (p. 2)

Jed argues that the way forward will not be found by blindly following experts or waiting for academia
to determine the answer, but by first learning about the ideas and practices of those who have gone

before (these ideas are not new!) and taking time to identify our own vision of impact to guide ourefforts. With that awareness, we can move forward, engaging thoughtfully in the practice, and adjust-ing as we go and learn. Jed calls this a (continuous) Cycle of Being and Becoming:

1. V ision of value(material and extramaterial
elements; personal purpose anchoredin community purpose)

4. Inquire, listen,learn, reflect

CYCLE OF BEING
2. Design an
AND BECOMING 		 integrated strategy

3. Execute the strategy

Such an ongoing, cyclical process takes effort and commitment, as it is contrary to much of Westernculture’s linear perspective on time and progress. We have been acculturated to focus on the future,assuming everything is moving on an upward trajectory, driven forward in time by our own efforts,

toward a new and better answer. Western culture in general, and the business world in particular, tends
S E C T ION ON E : I s Th i s W h a t We Wa nt e d ?

• 11

to value youth, innovation, action, material evidence, and answers over wisdom, reflection, personal
experience, intuition, and deep inquiry into the fundamental questions of our lives. In doing so, welose important sources of knowledge and inherently discount the perspectives of those not versed in the
logical, numbers-focused language of business.

Questions for Ref lection

͋͋ Pause for a moment and think about Jed’s suggestion to reflect and develop a visionof value before acting. How does that make you feel? Anxious? Impatient? Relieved?

Other? Why?

͋͋ In your experience, which does your workplace or community value more (or does it
value both equally?):• Innovation or tradition?

• Expertise or inquiry?

• Youth or wisdom?

• Logic or intuition?

• Action or reflection?

• Theory or experience?

How have these preferences been helpful to your goals or efforts? How have they not

been helpful to your goals or efforts? Can you think of examples or imagine how bal-

anced use of these qualities would enhance your efforts?

S E C T ION ON E : I s Th i s W h a t We Wa nt e d ?

• 12

KEY CONCEPTT H E I M PAC T PA R A DOX ( P a ge s 16 – 3 5 )There is a central challenge in this effort to “ do well and do good” in that at its core is a commitment
to making use of the very financial tools that have failed to create a just, equitable and sustainable
world in the pursuit of creating a more just, equitable and sustainable world. (p. 16)

The oft-cited Albert Einstein quote, “We can’t solve problems by using the same kind of thinking weused when we created them,” is quite relevant here. Yet the use of financial tools to address non-finan-cial goals is the very premise of impact investing. How do we manage this paradox? This process ofinquiry on the purpose of capital and its use as a tool, and ongoing reflection and course-correction, is

critical if we are to have true impact, and not simply engage in “impact-washing” while perpetuating

the financial system’s existing inequalities and abuses.

Questions for Ref lection

͋͋ Think of a situation when your work or time has been in service of financial capitalor the goal was financial capital alone. What did this look like? Who and what

did it involve? What did this feel like? How did this impact you, your family, yourcommunity? Be as descriptive as possible.

͋͋ How have you used or benefited from the use of financial capital as a tool for creating
meaning in your life? What did this look like? Who and what did it involve? What

did this feel like? How did this impact you, your family, your community? Be as
descriptive as possible.

͋͋ How would you like to change your notions of capital’s place in your life?

S E C T ION ON E : I s Th i s W h a t We Wa nt e d ?

• 13

SEC T ION T WO{{{{{{{{FROM IGNORANT TO
MUTUAL IMPACTA

T ITS CORE IMPACT INVESTINGIS NOT ABOUT LOOKING FROM

THE INSIDE OUT—FROM YOUR OWNPERSPECTIVE, PRIORITIES AND PLANS
FOR YOUR FINANCIAL GOALS ANDOBJECTIVES, AND THEN TO THE TIME

WORN

AND

PREDICTABLE

MENTSTRATEGIES,INVEST-TACTICSANDPRACTICES YOU USED TO BELIEVE IN.
IMPACT INVESTING IS ABOUT STEPPINGBEYOND WHAT YOU TODAY BELIEVE
TO BE TRUE OF YOUR WORLD AND OUR
SOCIETY TO EMBRACE A HOLISTIC, HISTORICALLY AWARE, CATHOLIC, CATALYTIC PERSPECTIVE OF OUR FUTURE
LIFE

AND

ITS

MEANING…IMPACTINVESTING IS ABOUT THE FUTURE POTENTIAL FOR CHANGE IN THE WORLD, IN COMMUNITY IN CAPITAL AND, FINALLY—IF YOU ARE LUCKY—IN YOU. (P. 41)

OV E RV I E W{{{
In Chapter 2, On Impact: From Ignorant to Mutual, Jed discusses Ignorant Impact—the good or bad
impacts of our capital that happens without intent, or with misguided intent, and the resulting importance of humility in impact investing efforts. He explains Other Impact—our efforts to invest in waysthat positively benefit others, and the types of Other Impact—Broad, Deep, and Mutual—that reflect
our level of personal engagement and transformation in our impact investing efforts.

GOA L S FOR T H E R E A DE R{{{∞∞ Appreciate that all capital has impact∞∞ Understand the different types of impact: Ignorant, Broad, Deep,and Mutual∞∞ Understand that Mutual Impact creates a link of the Self with the Other,benefitting both, creating a new relationship and understanding of
our connectivity

S E C T ION T WO : Fr om I g n or a nt t o M ut u a l I m p a c t• 15

KEY CONCEPTIGNOR A N T I M PAC T TO I M PAC T I N V E ST I NG ( P a ge s 3 7 – 4 2 )We act with passion and conviction and believe what we do is right, correct and moving us collec-

tively forward in the proper direction, yet most often we act with no meaning ful consciousness of the

lives and realities lived by those we profess to care about, those about whose lives we claim to be com-mitted. Sometimes it is only after the fact when we look back and cringe—it is only after our actions

that we can see how incredibly misguided we were—if we are lucky and that is all it was. (p. 40)

Jed asserts that all capital has impact, whether we are intending it to or not, and that negative impact,
and even much positive impact of our capital “results as a function of this ignorance—not because ofour deliberate and insightful strategy” (p. 39). Even our good intentions and best efforts for positive

impact may be misguided and ignorant of their actual impact. Thus, a key component of the impact
investing journey is to operate from a position of greater humility, realizing there is a limit to what

we can know and understand. In this humble stance, we may also be more open to learning fromothers, and allowing these experiences to change our own views and understanding of our connec-

tion to the world.

A critical relationship to be considered is the relationship between Self and Other. Other may beunderstood as residing beyond or outside our Self, family, community or circle of concern or influence.

The impact investing journey involves a change in ourselves and our understanding of our relationshipwith the Other, as much as a change in our money management strategies.

Questions for Ref lection

͋͋ Humility is not a trait associated with mainstream business, political, or social media

culture. How do you react to Jed’s counter-cultural assertion of the need for humility?

How would greater humility change your goals, efforts, or approaches?

͋͋ Mainstream business and economics tenets place clear boundaries on spheres ofconcern or responsibility. Jed’s focus on expanding our notion of Self in relation to

the Other challenges these tenets. What is your reaction to this challenge?

͋͋ Can you think of a situation when you or others acted with all the best intentions

and then saw in hindsight those efforts were misguided or had unanticipated negative

ramifications? How did your perspectives, beliefs, experiences (or lack thereof)S E C T ION T WO : Fr om I g n or a nt t o M ut u a l I m p a c t• 16

contribute to this outcome? Did you change your strategy or approach as a result?

Why or why not? Did this experience change your perspective and understanding ofyour relationships? How?

KEY CONCEPTOT H E R I M PAC T: B ROA D, DE E P A N D M U T UA L ( P a ge s 4 2 – 51)
Broad Impact is the impact a vaccine initiative has, while Deep Impact is a community program

housed within that overall health and wellness public policy and infrastructure initiative. Mutual

Impact combines the two with your meaning ful engagement in the process, both at a strategic andservice delivery level, so that you open yourself up to becoming transformed as much as those you seek

to have impact upon. (p. 46)

Jed introduces three ways we can think about impact in the context of our relationship with the Other
and how we relate to the subjects of our impact interests. Broad Impact affects many for the better, like

supporting vaccination efforts in the example above, but does not involve a personal relationship withthe beneficiaries. Impact investing efforts in the public markets are of Broad Impact, as are incidental
benefits generated by businesses without specific intent.

Deep Impact is more focused, such as support of a particular health clinic that is distributing those vaccines and also providing additional, on-going care to a community. Deep Impact is “a strategic effort

to raise up, nurture and cultivate” (p. 49) value creation that benefits communities of interest. Yet while

creating “deeper” impact than Broad Impact, it still does not necessarily require greater engagement or
relationship building on your part.

Mutual Impact occurs when you become meaningfully involved in the process, such as engaging on along-term basis with a health clinic, so that you create relationships with those previously perceived as

separate from your Self and therefore viewed as the Other. Over time, these relationships open yourself
up to transformation as well. As Jed asserts, “Mutual Impact is attained when the separation between

Self and other dissolves and one sees the integral nature of our relationships with each other and theplanet, our resources and our ultimate outcome.” (p. 51) In Mutual Impact, we are beneficiaries as well,and experience a broadening of our boundaries of Self. We realize that by investing in the Other, we

profit our Self, as well.

S E C T ION T WO : Fr om I g n or a nt t o M ut u a l I m p a c t• 17

Questions for Ref lection

͋͋ What types of Broad Impact efforts are you/have you been passionate about or
contributed to?

͋͋ What types of Deep Impact efforts are you/have you been passionate about or
contributed to?

͋͋ Have you experienced Mutual Impact efforts? What was that like? What did you

learn? How did you change? Did your perspective or understanding of the situation
change? Were there impacts beyond what you hoped for or anticipated?

͋͋ When you reflect upon your life and transitions, can you see periods where you weremore engaged in Broad, than Deep or Mutual Impact? Are these exclusive or can one
move between various types of impact at various points in a day or in a life?

S E C T ION T WO : Fr om I g n or a nt t o M ut u a l I m p a c t• 18

SEC T ION T H R E E{{{{{{{{

HUMANITYAND SELFA

CENTRAL QUESTION IN MY INQUIRYHAS REVOLVED IN ONE FORM OR

ANOTHER AROUND SEPARATION AND
DUALISM; NAMELY, HOW IS IT THAT WE
HAVE COME TO VIEW OURSELVES AS SEPARATE FROM EACH OTHER, THE OTHER,
NATURE AND IN SOME WAYS, SEPARATEFROM OUR EXPERIENCE OF LIFE ITSELF?...

…This is key in that within our understandingof this question lies our future ability to think

more holistically, to work collaboratively, tomake more compelling decisions regarding our

relationship with the Earth, to manage orga-

nizations and capital with an eye toward thecreation of economic, social and environmental

value, and, again, to advance what I’ve referred to as Blended value. If we do not understand how wecame to operate in a world of parts, how might we ever come to live in the world on a more sustainable,

holistic basis? An inner reflection, then, becomes an external inquiry seeking to comprehend something of how we first came to think of ourselves as being separated from all else in our world. (pp. 71-72)

OV E RV I E W{{{
In Chapter 3, Humanity in Context of Self: Key Stages of Our Journey, Jed reviews the historic eras ofhuman social and intellectual development and how they have influenced worldviews and perspectives
on the purpose of capital. He insists that we must understand this past and the need for vision andpurpose to guide our use of technology if we are to achieve our impact goals.
In Chapter 4, Bookends of History: The Axial Age, The Anthropocene, and Art, Jed dives deeper
into two critical eras, the emergence of our concept of a separate self, and the implications of that consciousness. He also discusses the importance of both experiential and intellectual knowing, and how
all of us, not just “experts,” need to be engaged to successfully address our challenges. He proposes thatan integrated inquiry—including learning about past approaches, acting and reflecting on our own
experiences, as well as intellectual analysis—is needed to create a new capital paradigm. He asserts theimportance of humility in our efforts, and the insight and solace to be found in art as we continue on
this journey.

S E C T ION T H R E E : Hu m a n it y a n d S e l f• 20

GOA L S FOR T H E R E A DE R{{{∞∞ Appreciate how our current perspectives are a result of social, economic,
political, and intellectual developments through history∞∞ Understand how we came to operate in a world of parts, and how thisunderstanding is important to understanding the purpose of capital and amore sustainable way of life∞∞ Recognize the need to put vision and purpose in the lead of impact investing,rather than current norms and accepted practices∞∞ Understand the role of experience and integrated inquiry in creating a newcapital paradigm∞∞ Appreciate how we can gain humility, perspective, and wisdom from anunderstanding of our place in glacial time and from art

S E C T ION T H R E E : Hu m a n it y a n d S e l f• 21

KEY CONCEPTK E Y STAGE S OF OU R JOU R N E Y A N D T H E
E M E RGE NC E OF A S E PA R AT E S E L F ( P a ge s 5 3 – 5 6 , 71 – 7 7 )We need to study the broad social history of economics—not simply the history of capitalism and modern financial, Chicago-school economics—if we are to understand the place in which we now findourselves and, more importantly, see the direction and course we must now set with an evolved appre-

ciation of the social construct we call capital and the practices we now brand impact investing. (p. 58)

Jed finds Karen Armstrong’s six stages of human history particularly helpful in considering how wehave developed the meaning of capital:

The Paleolithic Period (20,000 to 8,000 BCE)

The Axial Age (800 to 200 BCE)

The Neolithic Period (8,000 to 4,000 BCE)

The Post-Axial Period (200 BCE to 1,500 CE)

The Early Civilizations (4,000 to 800 BCE)

The Great Western Transformation(1,500 to 2,000 CE)

Notably, intensive agriculture emerged in the Neolithic Period,
creating food surpluses that enabled the emergence of social strata
and ruling classes that controlled that surplus, amassing wealthand influence.

The Axial Age (800 to 200 BCE), emerged out of a period of

increasing urbanization, new social orders and spiritual insecurity,and saw the rise of the merchant class, market economies, andfour influential religious/philosophical systems: Confucianism

and Taoism in China, Buddhism and Hinduism in India, Mono-theism in the Middle East, and Greek rationalism in southern Europe. In this context, the concept of

the Self, as separate and apart from either the gods or tribe or the natural world, emerged across mul-

tiple cultures and contexts.

With this concept of Self “our understanding of personal responsibility and the potential for salvation went from something our tribe advanced collectively to something we were each accountable

for and in control of ” (p. 76). While the Axial Age religions then stressed the Self ’s responsibility

to Other and the importance of compassion and care, this concept still separated us from our fellow

human beings and the natural world, allowing for “the idea that an individual could possess parts ofthe planet or its resources.”

S E C T ION T H R E E : Hu m a n it y a n d S e l f• 22

The notion of separation took a significant step forward during the Enlightenment of the 18th century,

which came after Descartes’ mind/body and material/spiritual dualism, and remains the basis of “current thinking regarding the nature of reality and, therefore economics” (p. 75), and the notion that

financial and social impacts of investments can and should be considered separately—a concept now
considered a given.

Questions for Ref lection

͋͋ We usually learn about these social and philosophical developments as given historicalfact and advancements. Have you ever questioned how these social and philosophicaldevelopments influenced how we now perceive the world and our place in it? If so,

what inspired that questioning? Did you share these questions with others? Why or
why not? If so, what answers or reactions did you receive?

͋͋ How do you react to Jed’s discussion? Are you resistant? Intrigued?
͋͋ Can you think of other ways that our understanding of how the world works thenfilters what we perceive and believe?

KEY CONCEPTE F F EC T I NG C H A NGE : PH Y SIC A L T EC H NOLOGY,
SOC I A L T EC H NOLOGY A N D V I SION ( P a ge s 5 6 – 5 8 )Physical technologies and social technologies] must coevolve…there is a constant interplay between
what we may be able to do and what we understand as the meaning and purpose of the tools wecontrol. It is we who choose how to apply the means” (p. 57)

Richard Nelson, an evolutionary economist at Columbia University, explains that two types of technology are needed for developmental change: physical technologies, such as steam engines and micro-chips,
and social technologies—the “soft” tools we use to mobilize people to act and to influence how thephysical technologies are used. To generate the best outcomes, Jed stresses that our values and beliefs
must lead our use of technologies. The Protestant Reformation provides a relevant example:

S E C T ION T H R E E : Hu m a n it y a n d S e l f• 23

“The state of the church could not be changed through faith and a new vision alone but required

new legal norms and practices and laws by which the Reformation could be managed and take root.

However, it was not the attorneys, the functionaries of the new rules, who were in charge. They weredirected and held accountable in their work by Martin Luther who held clear on his purpose and vision.

In the same way, asset owners and financial activists must see clearly the purpose of capital lest we

default to our traditional, extractive practices of investing and see our work taken hostage by institu-

tions of finance seeking their own benefit.” (p. 57)

Strategies and methods are important, but it is the vision and understanding of being able to structure
and use capital in a different, holistic manner that is the critical innovation. Without this inquiry, we

will always be led and limited by existing norms and practices.

Questions for Ref lection

͋͋ Consider how your culture adopts technology. Is it assessed according to values or
purpose? Have you experienced or can you think of cultures that have a different
approach to technological adoption?

͋͋ Think about how you react to new technologies. Are you an “early adopter” or moreof a “laggard”? How do social technologies influence your own adoption of physicaltechnology?

͋͋ What directs your understanding of the purpose of capital now? Are you led by aclear purpose or vision or by current norms? If you are led by a vision, what inspired

that? How are you held accountable to it?

S E C T ION T H R E E : Hu m a n it y a n d S e l f• 24

KEY CONCEPTT E L EOLOGY, C AUS AT ION A N D PU R PO S E ( P a ge s 5 9 – 6 7 )In addition to the dualistic concept of self that separated us from the Other and the natural world, theEnlightenment and the initial framing of philosophy introduced another paradigm change. Prior tomodernity, teleology—the concept that “processes tend to develop toward ends or purposes,”1 usually

divinely ordained—was the predominant view.

With the Enlightenment this shifted to a view of material and efficient causation, with the humanmind and its perception the sole source of understanding of purpose and cause. While the move awayfrom divine predestination has its benefits, Jed submits that the notion of material causation has had
several important implications for our understanding of reality and our purpose:

1. It formalized the movement toward separating our understanding of Self from

Other, asserting that anything we cannot understand or define does not indeed exist
or is outside the realm of demonstrated reality. This makes it possible for us to haveconcepts such as ‘externalities’ wherein we can think aspects of corporate or financial

performance which do not appear within our calculus of relevant costs do not exist,
or are for the government or vague “others” to bear.

2. It makes it possible for us to think of economic value as objective, measurable, andrational, while social value is a subjective good, not measurable or rational.

3. It leaves unanswered a host of questions concerning deeper meaning purpose and self—
we focus on the measurable mechanics of investing, but leave questions of purpose to
individual faith, taste, or perspective and thereby not in the corporate equation.

The problematic nature of these implications is now evident, as even science itself is demonstrating that
we are intricately connected with all things, physically as well as socially.

Thus, in moving forward, we need to bring a thoughtful reflection of purpose actively into our consideration; we must normalize it as a relevant question to our discussion of capital. What is the purpose ofcapital in our lives? What is the purpose of our lives in relation to those we aim to help? Fortunately,

we are beginning to see these questions being considered; most recently with the Business Roundtable’s August 2019 Statement on the Purpose of a Corporation, which states that companies should bemanaged for the benefit of all stakeholders—customers, employees, suppliers, communities and share-

holders—not just shareholders alone.

1. Maxwell, Grant, The Dynamics of Transformation: Tracing An Emerging World View. Persistent Press: Nashvillle, TN, 2017. P. 21

S E C T ION T H R E E : Hu m a n it y a n d S e l f• 25

Questions for Ref lection

͋͋ How have you considered the purpose of your life to-date? What influences or informs
your understanding of your own purpose? Religion or spirituality? Other influences?

͋͋ Have you thought of money and capital as outside of those concerns? In what ways

has your understanding of purpose influenced your engagement with capital to-date?

How is this understanding changing?

KEY CONCEPTA N T H ROPOC E N E A N D A “DE E P T I M E ” PE R SPEC T I V E ( P a ge s 7 7 – 8 5 )I’ve long felt that what has been lacking in so much of our current discussion regarding impact

investing and our approach to understanding the nature and purpose of capital has been an informed

critique of capitalism itself—and by informed, I mean informed by a perspective not grounded within
capitalism and all its inherent assumptions, but rather something that sought to look from the outside

in as opposed to beginning with our cultural framework regarding capital and capitalism as its jump-

ing off point. What is needed is a new way of understanding economics, earth and our global humancommunity—a new paradigm. (p. 85)

Jed also discusses a proposed description of our current age—
the Anthropocene, which reflects the unprecedented influenceof human beings on the physical world. While the specific dateof its beginning is debated, our influence certainly became more

profound with the Industrial Revolution of the 18th century, andhas only accelerated since the rise of modern, financial capitalism in the 20th century.

Thinking about our place in geologic ages, or “deep time,” asopposed to our more typical 24-hour news cycle, is an importantpart of gaining a new, non-human-centric perspective. Taking alonger view helps us step back to see how our human-created sys-

tems influence our beliefs and ways of living, and reminds us thatthese systems and beliefs aren’t natural law. They are just the latest,
S E C T ION T H R E E : Hu m a n it y a n d S e l f• 26and changeable, way some humans are operating in and influencing the world. It helps us realize we

can choose to reassess our assumptions, question the status quo, reflect on our purpose and place, andpropose and embody new ways of being in the world.

Questions for ref lection

͋͋ How does thinking about our place in a continuum of deep time make you feel? Does
it inspire you to engage in creating the systems for a new era? Does it make you feelinsignificant? Both?

͋͋ In what ways do you think our current lifestyle and approach to economics

contributes to the climate crisis? If we embraced and expanded a more holistic

understanding of the purpose of capital, what elements would it have to include inorder to alter future impacts on the Earth?

͋͋ In what ways are social justice issues linked to the climate crisis? How do these links
influence potential solutions we might advance?

KEY CONCEPTH U M I L I T Y A N D PR E S E NC E I N T H E C R E AT ION
OF A N E W C A PI TA L PA R A DIGM ( P a ge s 8 5 – 9 3 )One must consider whether, in fact, we are not due for a New Axial Age, to move us forward in atransformative manner and better position us to address the profound challenges now before us. Someof that is already underway across the world, in multiple cultural contexts, as new technologies con-nect ever higher numbers of the world’s citizens to share analysis, tell stories and join together in theface of the global social and environmental destruction we have ourselves created… Today’s communi-ties, coming together in person and virtually, hold the potential to integrate our scientific knowledge
with our shared wisdom to position us to take the great leap across the chasm dividing us from eachother and a more promising future. (pp. 92- 93)

Jed closes Chapter 4 with important points regarding the nature of our engagement, humility, andthe importance of art to give us both solace and perspective. He insists that “all members of our
S E C T ION T H R E E : Hu m a n it y a n d S e l f• 27

community be present and engaged” in creating a new economic future, “not simply leading academics,

foundation executives and impact investors, but those stakeholders we seek to benefit from these deliberations and economic innovations.” (p. 88) If everyone is not engaged, we are continuing to operate in

the bifurcated status quo that created, and is most likely to perpetuate, these problems.

As we participate in this effort, we must engage in an integrated inquiry, appreciating the value ofvision, action, humility, reflection, and collaboration. Those focused on the creation of a new theoretical paradigm should also get involved in the trenches so their work and new perspectives may

inform their vision. Those inclined to jump directly into strategies and action should also pause toconsider the vision they are working toward, and reflect to integrate learnings as they act. Thosewith resources who are inclined to focus on extensive research or insist on evidential proof before
acting should step in and actually invest in some new innovations to learn from experience as well as

research. And all need to realize these efforts are not new; they should learn about the work of those

who have gone before, and engage with humility as they proceed, sharing both failures and successes
to move our common goals forward.

Finally, Jed shares examples of artist collaborations in which he found both solace and perspective.

Through creating and experiencing art, we express our hopes and fears, joys and laments. Art helps ustranscend the dualistic status quo, experience other perspectives, and reminds us of our place in the

broader scheme of things—all of which can inspire new ideas and alternatives. As Jed stresses in thequote above, art reminds us that we are not the end of history, but living in the midst of another Axial
age, driving another paradigm change.

Questions for Ref lection

͋͋ Think of a social cause or issue that you care about. Is it common for the subjects or

beneficiaries of efforts to address the issue to be involved in the strategy development

or leadership of philanthropic or impact investment efforts? Why or why not?

͋͋ Do you tend to act primarily on your own volition or defer to experts? Can you
think of examples when over-reliance on experts has been a problem in yourlife or work? Or when the experience or contribution of “non-experts” has been

helpful and/or invaluable?

͋͋ Can you think of times when inexperience and lack of expertise damaged the process
or outcome of work in which you were engaged? Should we seek a balance here or is

the role of valued expertise appropriate?

S E C T ION T H R E E : Hu m a n it y a n d S e l f• 28

͋͋ Are you more inclined to focus on theory, act before reflecting, succumb to “analysis
paralysis,” or something in between?

͋͋ Did your exploration into impact investing start with theory, research, an investment,
or a mix? How was your approach helpful? How was your approach problematic?

͋͋ What have you learned from your impact investing inquiry to date? Have you learned
from others’ experiences? What experiences have been most helpful in your own

process? Have you shared insights, success, or failures with others? Why or why not?

͋͋ Explore some of the artistic initiatives Jed mentioned—the Dark Mountain Project,

Living Earth—how does their work make you feel? Does it change your perspective?
Inspire you? Depress you? Give you new ideas?

S E C T ION T H R E E : Hu m a n it y a n d S e l f• 29

SEC T ION FOU R{{{{{{{{FROM DUALISM TO
CONNECTIONW

E MUST PAUSE IN OUR SEEMINGLY ENDLESS EFFORTS TO

MEASURE, DEFINE, FRAME NEW STRAT-EGIES AND EMBRACE NEW DEFINITIONS TO LET GO, STEP BACK AND
RE-CONCEPTUALIZE THE TASK BEFORE
US WITHIN A BROAD, NEW FRAMEWORKOFCOMPREHENSION,KNOWLEDGE,WISDOM, AND AWARENESS. WE MUST
SEEK TO GO EITHER DEEPER BELOW
OR RISE HIGHER ABOVE OUR DUALISM
AS PRESENTED IF WE ARE TO BE STILL,FULLY PRESENT AND WITH THAT
WHICH IS THE COMPLEX AND NATURALSUBSTANCE OF OUR LIFE AND LIVING.
IT IS OUT OF THIS SUBSTANCE WE WILL FIND THE TRUE NATURE OF VALUE, BEING, AND
THE PURPOSE OF CAPITAL IN OUR LIVES AND WORLD. (P. 115)OV E RV I E W{{{
In Chapter 5, Value Liberation from the Trap of Dualism, Jed describes the emergence of dualism
despite the historic predominance, and ongoing recognition of, a non-dualistic worldview. He discusses the integration of values and value into socio-political agendas and how economic value is linked
with political goals. He also considers the inherent dualistic tendencies of words and specializations
and how they further reinforce a dualistic worldview.
In Chapter 6, Nature is Not the Other, Jed focuses on our dualistic view of Nature, reviewing thehistory, drivers, and implications of our perceived separation from Nature, despite our actual interdependence. He stresses we cannot rely solely on technological and process fixes for environmental
abuses; impact investing requires us to change our relationship with Nature to one that acknowledges
our interdependence.

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GOA L S FOR T H E R E A DE R{{{∞∞ Understand the emergence of dualism and the social and political drivers of
this worldview∞∞ Recognize the historic predominance and ongoing recognition in the Eastand West of an integrated worldview, despite its suppression∞∞ Recognize the reality of connection, regardless of worldview, and thegrowing awareness of this reality, both socially and scientifically∞∞ Understand the limitations and inherent dualistic tendencies of words andspecializations and the resulting importance of focusing on the “why” rather
than the “how”∞∞ Understand the history and drivers of our perceived separation of humans
from Nature∞∞ Consider how we must not just search for technological and process fixes forour environmental abuses, but acknowledge our interdependent relationshipwith nature

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KEY CONCEPTDUA L I S M , VA LU E S A N D VA LU E ( P a ge s 9 5 – 10 8 )“This dualistic outlook is not so much the product of the rational as the abuse of the rational—due to amechanism of abstract separation imposed on reality—and reason itself may be called upon to questionand correct it.” — Giles Hutchins, The Illusion of Separation, p. 35

For most of human history, humans did not separate sacred and profane, humans from Nature, or

economic and social components of value. As discussed in the previous chapter, one period of separa-tion of Self from God and Other emerged in the Axial Age. Thales, the “first philosopher,” delineated

Being from Becoming around 600 BCE. This separation continued to advance with the emergence ofChristianity, the Reformation, and the Enlightenment, with Descartes’ conception of a mechanistic
worldview that separated humans from Nature and mind from body.

The simultaneous emergence and growth of shareholder capitalism further established this dualistic mindset in Western society. Jed reminds us that our values “weave into, through, and define
our understanding of economic value,” so from the beginning of capitalism “we see the integrationof economic with political (an extension of social) interests.” With economic interests perceived

as equivalent to state interests, political power was used, in policy and warfare, to advance eco-nomic interests. Given the dualistic view that separates economic from social and environmental

value, government has often acted to “support private gain and commerce over action to advance thebroader, social interest of the majority.” (p. 101)

The dualistic mindset also influenced the conception of capitalism’s responsibility to society. While

perceptions of businesses’ social responsibility have changed over time, Milton Friedman’s dualistic
declaration—that maximizing shareholder value is the only social responsibility of business—has been

considered nearly sacrosanct by the business community for the past fifty years, driving the separationof social and environmental value from consideration in economic value.

Despite the dominance of a dualistic worldview, an integrated view has been present and persistent
all along. Descartes’ peer philosopher Baruch Spinoza insisted that “Man [sic] is a part of Natureand must follow its laws, and this alone is true worship.” Even Adam Smith, the founder of capital-

ism, had a broader view of business responsibility than today’s Friedman adherents. Today, advancesin scientific understanding, interest in impact investing, and the pressures of climate change andsocio-economic inequality have all helped to bring a more non-dualistic perspective back to the fore.

As Jed states:

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• 33

Fiduciaries, whether corporate or financial, in fulfillment of theirduties, must act to optimize value on an integrated, holistic basis

even if those managing the firms in which they invest might plead

ignorance or an inability to control aspects of firm performance

traditionally believed to be external to the firm’s interests. Those
who do not advance over this hill will run the risk of leaving

value on the table as well as under appreciating a host of factors

standing outside our traditional calculus of risk and return which
does not consider off balance sheet components of social and envi-

ronmental risk and opportunity. Over the long term, such factors

have shown themselves to be material to the firm, effecting thecompany’s potential for market performance and the generation of financial return. Increasingly, we

see how firms not moving to take such off-balance sheet risk into account carry legal, operational, andmarket labilities that will, in time, affect their ability to thrive within fully global and hyper competitive markets across the world. (p. 106)

Questions for Ref lection

͋͋ Milton Friedman insisted the only social responsibility of business is maximizing
shareholder value, and that considering the concerns of other stakeholders (thecommunity, workers, the environment) would be an inappropriate use of a firm’s

resources. Have you been an adherent to this widely accepted assertion? Why or why

not? If your opinion has changed over time, when and why did it change? Has thisinquiry impacted your opinion? If so, how?

͋͋ In August 2019, The Business Roundtable, an influential association of CEOsof the largest companies in the United States, released a statement “modernizing

its principles on the role of the corporation,” with signatories stating they “sharea fundamental commitment to all of our stakeholders.” Read the statement here:

https://opportunity.businessroundtable.org/ourcommitment/. What motivated thisstatement? How are the motivations related to current social and political issues andinterests? How does it, or does it not, address the issues Jed raises?

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KEY CONCEPTT H E L I M I TAT ION OF WOR DS A N D SI LO S ( P a ge s 10 8 – 117 )How we describe and promote values (or at another level, value) is the real challenge in that once one
puts metrics and words around any effort to describe and define value(s), one is immediately awareof the limitations of language to explain what is in many ways ephemeral and intangible yet still

extant. (pp. 108-109)

As Jed states, “the long-term impact of dualism has been to underscore and place a bold mark beneaththose elements of identity and consciousness that serve to separate us from the Other as opposed to thosethat move us toward a deeper appreciation of our connections.” (p. 109) As noted in the quote above,

words are part of this challenge. The language of business and finance assumes a bifurcation of value—
the accepted notion of “economic value” does not include social and environmental considerations.

With the values separated in words, our culture and political environment then tends to turn themagainst each other, assuming they are inherently in conflict or assigning virtue to one or the other.

Depending on one’s place and perspective, the financially-oriented capitalist may either be a greedy
thief or a “selfless servant of the common good.” This dualistic rhetoric makes the integration of values
an even greater challenge.

The silo allows us to focus and attain expertise yet then becomes the well shaft that traps us below thesurface of the earth. Well shafts allow us to see a portion of the sky but not its complete horizon or possibilities beyond the limited diameter from which we peer upward. (p. 113)

Just as language is necessary but has limitations, the dualistic development of boundaries is, at the sametime, invaluable and problematic. “Operating within walls and silos allows focus, specialization anddevelopment of unique skill sets…this functions well in the short run as one seeks to focus and create but is limiting in the long-run as

one ultimately must evolve to transcend the wall and its definition, its

frame of reality” (p. 113). Operating

within our own silos of expertise,with our own language and perspective, it becomes harder to findcommon ground and easier to accept
separation as reality.

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• 35

“The trick,” Jed asserts, “is to manage ourselves and our processes in a manner that first balances andthen integrates these seemingly separate aspects of the self and society in a consistent and consideredmanner” (p. 110). This requires us to “rediscover our peripheral vision, recapturing our original ability

to live not just outside the box, but simultaneously see, think, and feel beyond the box of our current
circumstance” (pp. 113-114). And from there we must focus more on the “Why?,” which links us to thegreater whole and helps us find common ground.

Questions for Ref lection

͋͋ Jed quotes Korzybski: “The map is not the territory; the word is not the thing.”

Describe a time(s) when words limited your ability to describe an experience, feeling,or thing.

͋͋ How has language effected your ability to learn about or engage in impact investing?
Have you been frustrated or confused by financial terminology or by impact
language? Are you daunted or intrigued by this “foreign language?”͋͋ Do you have, or are you developing, a particular area of expertise? How does thisenable you to provide value to society? How does it shape your perspective? How has

it changed your broader views, if at all?

͋͋ What can your area of expertise contribute to the impact investing conversation? In
what areas of expertise do you need to rely on others?

͋͋ Think of a situation where you have had to work with someone outside your area ofexpertise or experience—someone who “spoke a different language,” either literally or

figuratively. How did it go? Were you able to find common ground? If so, how?

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KEY CONCEPTNAT U R E I S NOT T H E OT H E R ( P a ge s 119 – 12 8 )“Separation is not an ultimate reality, but a human projection, an ideology, a story…It is a story of
the separation of the human realm from the natural, in which the former expends and the latter isturned progressively into resources, goods, property, and ultimately, money.” —Charles Eisenstein,

Sacred Economics, p. 2

Jed discusses humans’ relationship with Nature at two levels. First, as a profound case of dualistic“Other-ing,” as we consider ourselves separate from Nature and view the natural world as a source ofresources for our use, regardless of impact and in denial of our actual interdependence. “We enter

our relationship with the Earth as the ultimate Other upon which we walk and move to deconstruct according to our will. In this way, we express our separation from self and Other through thedestruction of the Earth from which we feel ourselves to be distinct despite our being integral withit, our rising from and being shaped by its forces and resources, our interior landscape connectedwith exterior landscape” (p. 121).

Second, Jed considers our relationship with Nature as a metaphor for businesses’ relationship with
communities, markets, and societies—the ecosystems that give it life. “The firm does not create its

value solely as a function of its management and operations but rather as an outcome of how it operates in the world, takes resources out of the world and is advanced through the policies, values, andenergy offered it from that world” (p. 123). Just as our own health and survival is dependent on thenatural world, “the fundamental health and wellness of the firm is interwoven with the long-term

health and wellness of its employees, communities and various non-financial stakeholders” (p. 125).
In the United States, the experience and perception of Nature’s abundance and role as fuel for progress has been central to cultural, political and economic development. The concept of an expansive,“wild frontier” allowing people to move on to new land when the current place was fully utilized or

despoiled, allowed our economy to be framed with minimal consideration for long-term consequences. 2 With the closing of the “frontier,” conservation became a greater concern at the turn of the 20th

century, and when we could not move to escape the effects of pollution, environmental protection

and regulations arose. Yet the original notion of Nature as abundant resource for human needs, withlimited regard for our interdependence, remains at the core of our political and economic culture.

2. The concepts of private property and ownership based on productive use, discussed in Section 6, were also an integral part ofthis framing.

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• 37

Questions for Ref lection

͋͋ How do you personally perceive or experience your relationship with Nature?
͋͋ Jed suggests that as long as we fail to acknowledge the interdependent nature ofhumans with the natural world that supports us, we will also struggle to acknowledge
the business corporation’s interdependence with its ecosystem of communities,

workers and other stakeholders. Do you agree? Why or why not? How do theseparadigms influence each other in your mind?

͋͋ Read the Business Roundtable’s August 2019 statement on the purpose of thecorporation: https://opportunity.businessroundtable.org/ourcommitment/. How
does this statement frame the relationship of the corporation with the naturalenvironment? Which historical view on the human relationship with nature does it
seem to espouse—is nature an interdependent stakeholder or a resource?

KEY CONCEPTNAT U R A L AWA R E N E S S I N OU R JOU R N E Y ( P a ge s 119 -12 8 )It is less through new applications of technology or capital that we will discern our path forward,

than by reengagement with our true nature as humans, a reconnection with our place as beings capable of linking our consciousness with our understanding of place, self, and Nature. (p. 136)

Just as non-dualistic critiques have been present all along,so have critiques of our dominance of Nature. From St

Francis of Assisi’s critique of mainstream Christianity’santhropocentrism to Jean-Jacques Rousseau’s challenge totechnological optimism, to the rise of the environmental

movement in the 20th century and climate activism today,

an alternative narrative insists we recognize our interde-

pendence with the natural world. This interdependent
narrative is increasingly supported by scientific advancesthat reveal profound connections at all levels of life.

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• 38

As our once agrarian-dominated economy shifts to a predominantly urban one, with fewer opportunities for people to engage in regular, direct experience with natural processes, it becomes increasingly
important for us to cultivate this connection with nature. To shift to a non-dualistic paradigm, “wemust pursue a unified approach that finds a place for our grand technologies but at the same time

repositions us within a set of newly reconstituted relations within the larger ecosystems of which weare a part” (p. 136).

Questions for Ref lection

͋͋ Consider and describe your relationship with Nature and natural processes. How doyou experience the natural world on a daily basis? What role does Nature play in yourlife right now? Are there particular experiences that connect you to Nature or remind

you of your reliance on natural processes?

͋͋ Jed asserts we must not solely rely on technological fixes for environmental challenges,
but also change our fundamental relationship with Nature to one that acknowledges

our interdependence. What is your reaction to this assertion? What would this look

like in your life?

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• 39

SEC T ION F I V E{{{{{{{{

TRUTH AND TIMEH

AD THESE COMMUNITY-BASEDENTREPRENEURS OF THE 80S AND

EARLY 90S LISTENED TO THE TRUTHS

OF THE EXPERTS WITHIN EITHER BUSINESS OR THE NONPROFIT SECTOR,
THEY WOULD NOT HAVE ACHIEVED
THE TREMENDOUS INITIAL FAILURESNOR FUTURE SUCCESS THAT CAMEWITH PERSEVERANCE AND EXPERIMENTATION. THEY DISCOVERED NEW
TRUTHS AND BUILT NEW KNOWLEDGE, A POOL OF SHARED LEARNING AND EXPERIENCE THAT ROLLED
INTO WHAT LATER HAPPENED TO BE
CALLED SOCIAL ENTREPRENEURSHIP,MISSION DRIVEN COMPANIES, PURPOSE
DRIVEN VENTURES, IMPACT INVESTING, AND MORE . . .
…And at some future point yet another generation of financial and entrepreneurial activists will comealong, a new crew of community capital collaborators, who will look over the boundary of the highrock walls dividing what will then be our current practice from their generation’s future prospects. This

new generation will peer up that wall built by their elders with their salaryman experts and fund managers. This new generation will scramble up to play on a high line, balancing between what is accepted

as reality and what is viewed as financial folly. They will balance on the line between two possibilities,

traipsing along the top, scaring their elders and bringing new practices to bear upon old challenges
elders like me have given up on. (pp. 158, 164)OV E RV I E W{{{
In Chapter 7, Truth: Experience as Evidence, Jed discusses how we perceive truth and the ways culture,experience and evidence influence this perception. He considers how hierarchical notions of authority
influence truth and suggests that the individual and corporate capitalism have replaced the communityand God as arbiters of truth in mainstream culture. He also reviews the history of the impact investing
approach, stressing how our perception of truth is an ongoing evolution.
In Chapter 8, Demystifying Time and Money, Jed discusses another social construct with implications
for the purpose of capital—our perception of time. In particular, he notes how the linear perception oftime creates the concept of returns, and how these concepts are questionable when we have a broader,
cyclical notion of time.

S E C T ION F I V E : Tr ut h a n d T i m e• 41

GOA L S FOR T H E R E A DE R{{{∞∞ Appreciate the role that experience and stage of development play in our
understanding of truth∞∞ Understand that the “truths” of the marketplace are informed by modern-day
myths that are supported by its institutions and beneficiaries∞∞ Realize the need for us to use the wisdom of the past and our own
experiences to evaluate these modern myths and determine our own
understanding of a dynamic, not static, truth∞∞ Understand how Western notions of linear time and progress impact ourexperiences and perception of value∞∞ Appreciate how the past and future are connected, and how we are a part ofboth, a cyclical continuum

S E C T ION F I V E : Tr ut h a n d T i m e• 42

KEY CONCEPTT RU T H A S A PROC E S S OF VA LU E DI SCOV E RY ( P a ge s 13 9 – 14 7 )The deepest parts of the universe, life on earth, and our selves are not created as much as discovered.

They exist, in point of fact, and it is only we who are playing a form of cosmic catch up to understandwhat truth is and how the truth comes to be manifest for us. Our sense of truth differs in various

ways, at multiple times. This is so not only within the course of our human history but in our individual development. (p. 140)

Jed begins Chapter 7 with the quote above, considering truth as “an intrinsic nature of reality” that ispresent and “waiting to be found.” He reflects on the way his life experiences have caused his percep-

tions of truth to change and evolve, and how his own evolution is linked to broader, shared perceptions.

He then notes how the understanding of truth changed as a result of the Age of Enlightenment, whenits inherent interactive nature shifted to a focus on evidence:“…truth was no longer a dynamic unfolding found through a participatory experiential embodi-

ment of Nature, it became a static truth defined by dissecting an object from its lived-in context andanalyzing it through experiments supported by mathematical logic; this is referred to as the ‘objectification’ of science. By its nature, this objectification is abstract because things are taken out of their

lived-in context, defined through abstract logic and examined through repeatable experiments in con-trolled abstract environments.” —Giles Hutchins, The Illusion of Separation, p. 22

Despite the predominance of evidenced-based approaches to truth-finding, human cultures still relyon people pushing such boundaries or taking a leap of faith on a new approach to move us forward. As

Yuval Noah Harari states:“Such contradictions are an inseparable part of every human culture. In fact, they are culture’s engines,
responsible for the creativity and dynamism of our species. Just as when two clashing musical notes

are played together to force a piece of music forward, so discord in our thought, ideas and values compel us to think, re-evaluate and criticize.”3

Impact investing itself lives in such tensions. As a relatively new approach, its “evidence-base” forfinancial returns was nonexistent, requiring pioneers over the past few decades to take a leap of faithand create new paths that over time became evidence. Impact investing also operates in the margins

between traditional concepts of business and philanthropy and social science—a rich mix of values,

truths, and approaches whose interplay is moving us forward to a more integrated concept of capital.
3 Harari, Yuval Noah, Sapiens: A Brief History of Humankind. Vintage Books: London, 2011, p. 184.

S E C T ION F I V E : Tr ut h a n d T i m e• 43

Questions for Ref lection

͋͋ Think about your life and experiences—can you think of ways your perception oftruth has evolved as a result of your experiences? Why did your perception change?

How did your perception change—was it drastic? More of an evolution? Did it

become simpler or more complex? When you look back, do you empathize withyourself and your prior beliefs? How do you respond to others who hold beliefs
similar to your prior self?

͋͋ Jed notes how the Age of Enlightenment changed how we perceive truth, removing

objects from their contexts and relying on abstract logic and controlled experiments

to define what is true. This scientific method has resulted in significant advances forhumankind. Yet it has had other implications as well. How did that evidence-based

shift effect the perception of the value of experience? How did it influence who is able

to participate in truth-finding? How did it change society’s perspective on the relativevalue of different peoples’ experiences and input?

͋͋ How do you rely on external sources—history, experts, peers, leaders, writers, etc.—
to inform your perception of truth? How do you rely on internal sources—your own

experiences or intuition—to inform your perception of truth? Do you tend to rely on
one more than the other or are they balanced? Have these tendencies been steady, or

have they changed over time?

͋͋ How do you tend to react to the different perspectives of someone in a different fieldor from a very different life experience? Are you intrigued? Annoyed? Frustrated?

Curious to learn more? Have your beliefs changed as a result of being open tolearning about a very different perspective? If so, how?

KEY CONCEPTH I E R A RC H I E S OF T RU T H A N D T H E
COR POR AT I Z AT ION OF M Y T H ( P a ge s 14 7 – 15 6 )The truth, it would seem, is malleable, taking shape out of the pressures we apply to it during our

personal and collective exploration of the questions put before us in the period of our particular life

and time. (p. 149)

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While the Age of Enlightenment brought forward the focus on evidence-based truth, social and political constructs and hierarchies continue to influence the perception of truth. For example, while thepreamble of the Declaration of Independence states, “We hold these truths to be self-evident, that all

men are created equal…”, the social hierarchies of the time ensured that this was understood to apply

only to a subset of men, and definitely not to women. While the perception of this “self-evident truth”

has expanded since, hierarchical notions of authority still influence our perception of truth, as current
disagreements over what constitutes “fake news” attest.

Jed connects this tendency to the medieval concept of the “Great Chain of Being,” a “hierarchy ofperfection” with God at the top, followed by kings and priests, then common men, then women, animals, plants, and so on. Ultimate truth and purity were at the top, and declined down the hierarchy.

Jed suggests we still operate with this notion of an ultimate authority above us, but have replaced God

with the Individual and Free Market at the top—Adam Smith’s “invisible hand” of the market now
seems to be an unquestionable truth, and the corporate message of capital and wealth accumulation is

the guiding myth.

It is within that reality where we surrender our agency and individual sovereignty…to a global

Wall Street of operators and insiders who direct the flows of wealth from here to there, invisibly

wrapping the earth and our own understanding of the purpose of capital within multiple layers of

opaque wealth transfers, in the process smothering the planet and our knowledge of the meaning andultimate goal or our lives. (p. 154)

Questions for Ref lection

͋͋ Think about the authorities that influence your perception of what is true—perhaps
scientists, activists, scholars, business leaders, religious leaders, political leaders,

community leaders, or others. Were you aware of all of these influences and how you
are swayed by them? Is there a hierarchy of influence? How have culture, family orother experiences influenced who holds such authority in your life?

͋͋ Do you agree with Jed that corporate capitalism is a guiding myth of mainstream
Western culture? Why or why not? Are there other, unacknowledged myths that
influence culture and the perception of value?

S E C T ION F I V E : Tr ut h a n d T i m e• 45

KEY CONCEPTE X PE R I E NC E A S E V I DE NC E ( P a ge s 15 6 – 16 5 )Impact investing grew, in part, due to its ability to identify and interest in exploring areas of market
failure, stagnation and turmoil; the known and unknown—places mainstream investors viewed as

too risky, uncertain or dangerous to invest; places where “the market” as traditionally understood had
failed…doing this first began with someone seeing a new truth and believing it might be realized.

This belief represented a leap of faith which had to be taken by those at the tip of the fiscal spear…
willing to see beyond what traditional, mainstream investors misunderstood and wrongly perceived
as unimaginable risk. (pp. 163-164)

Jed closes the chapter with a discussion of the origins of impact investing in the decades and century

before the term was even coined. These efforts began with individuals who first believed in a new truth,and had “a vision of something else, of an alternative route beyond the understood truths of tradi-tional financial capitalism” (p. 157), and then acted accordingly. Some came from community-building
efforts, some from social work and philanthropy, others from mission-driven businesses. In this richintersection they “lived that different truth,” learned by doing, and developed the evidence-base thatbrought the practice to the mainstream.

In doing so, these pioneering actors questioned the assumptions of the existing orthodoxy and forced

conversations on the purposes and possibilities of capital. Over time, this has resulted in enough of ashift in the accepted truth to bring the impact investing concept to the mainstream financial world.

Thus, our “truth” evolves. Neither hierarchical authority, evidence, or experience alone is the best arbiter of truth—rather, truth is best sought by all three interacting:

We should seek truth through evidence informed by experience and the wisdom of prior generations

who we must keep with us, alive and advancing, in the form of their writings, reflections, and cul-tures which we make live as we bring them into our world today… It is in only this way the circle ofprogress has ever turned and it is in only this way the spiral of knowledge will rotate into the future

as it has rotated out of the past. A new truth will slowly emerge, rooted in that past and flowing

to our future; a truth to be accepted, embraced, rejected and ultimately itself renewed yet again…

(pp. 147, 165)

S E C T ION F I V E : Tr ut h a n d T i m e• 46

Questions for Ref lection

͋͋ In this chapter, Jed presents truth as an evolving concept, influenced by tradition andsocial norms, experience and evidence. Are you comfortable with this assertion? Whyor why not?

͋͋ Were you aware of or surprised by the prior, pioneering impact investing activities

Jed discussed? How does learning about the extensive history of the field change yourperspective, if at all?

KEY CONCEPTDE M Y ST I F Y I NG T I M E A N D MON E Y ( P a ge s 16 8 – 18 0 )Without that shift in our Western understanding of the nature of time, we would have had no

development of our present knowledge of the notion of “time value of money” around which we now

structure our lives and loves. (p. 171)

Jed begins Chapter 8 with examples of how we experience time differently at various stages of our life,
with time seeming slow when we are young and seeming to move faster as we age. At his midlife stage,

Jed notes how his perspectives and his priorities have changed, along with the world’s perception of his
own value and role. Thus, he stresses that, like truth, time is not absolute. “It is true: your life negates

those that have gone before, just as those to come will, in essence, be the negation of your own…Withthe right perspective, this process of rolling time, the passages from youth to elder to child, may beviewed as continuous and never-ending.” (pp. 168-169)

Many, indigenous and traditional cultures, in keeping with thisreality, viewed time as cyclical. The Age of Enlightenment, however, “advanced a linear and segmented understanding of time andprogress where the future is disconnected from the past or may beconsidered as mostly separate from it, when in fact history is embedded in our experience of the present” (p. 179).

It is this linear understanding of time that made the concept offinance and financial return possible—the Time Value of Money

S E C T ION F I V E : Tr ut h a n d T i m e• 47concept states that money is more valuable today than tomorrow, and so we set interest rates thatreflect the financial value of money today relative to its potential future earnings and the risk that they

will materialize. “With this connection of time to money, with this valuation of our ideas and energies, with this measure of our real worth, life itself begins to change.” (p. 172) This made it possible forfinancial return to become an end in itself, the measure of value.

Jed discusses the actual relativity of time—from the perspective of physics to spiritual views—and how
understanding this non-linear wisdom of time is liberating:Your understanding of your life, time and presence is real for you—but it is merely a particle or pulse
in a more significant flow of energy, experience and perspective which when taken together make up

the broad arc of history and human experience that simultaneously connects you with past and futureand so, as has been said, one should merely seek to find one’s place within that flow and be here now,
peacefully present and thoroughly grounded in what, for you and in this time, is. (pp. 177-178)

Questions for Ref lection

͋͋ Do Jed’s observations about age’s influence on the perception of time resonate withyou? Where are you in your life span and how does that influence your priorities rightnow? Looking back, can you observe how your priorities have changed with age?

͋͋ Have you ever thought of yourself with the perspective that Jed described—asexisting in a place in time that is part of a bigger, greater cycle of time? How doesthat make you feel? How does it influence your priorities?

S E C T ION F I V E : Tr ut h a n d T i m e• 48

SEC T ION SI X{{{{{{{{

FAITH IN FINANCE,SCALE, AND
PROPERTYT

HIS TRUTH IS IN SOME WAYS BESTSEEN FROM THE PERSPECTIVE OFTHOSE HOLDING ON TO THE FAITH OF
THE OLD CHURCH, SINCE THEIR REJECTION OF ESG MATERIALITY AND IMPACTANALYSIS COMES FROM THEIR SEEINGUS FOR WHO WE ARE: AN EMERGENTSECT PRONOUNCING THE MARRIAGE
OF A NARRATIVE NUMERACY WITH
CAPITAL PERFORMANCE, A CHURCH OF
THE NEW CAPITAL, SEEKING MULTIPLE
RETURNS AND DEEP, SUSTAINED VALUECREATION THAT IS PART FINANCIAL
AND IN GREATER PARTS JUST, EQUITABLE AND REGENERATIVE. (P. 195)

Remember: Impact investing is not regular investing gussied up with an impact patina; it is focusedupon transformation and change as opposed to the simple economics of growth and market domi-nance. Being mindful within a Buddhist practice requires being present and being present requires

being with, engaged and connected to the Other. Compassion in Latin means “to suffer with”—not toengage in “drive by” investing or modified acts of charitable giving and philanthropy. In the context of

impact investing, the relationship we should strive to create together with our investees is not one ofa traditional investor/investee relationship, much less one of distance and disengagement; it is one oftrue presence, connection and “suffering with” one’s entrepreneurs (for God knows, they do sometimes

suffer!) in the course of being fully engaged in the process of blended value creation, of creativity andof bringing transformative ideas to reality, in the form of impact within community and in support ofPlanet. (p. 201)OV E RV I E W{{{
In Chapters 9 and 10, Jed challenges the fundamental beliefs of traditional, financial capitalism. In
Chapter 9, Our Faith in Finance, Jed asserts our relationship to finance is like an unconscious religious
faith, with dogma we are not to question and beliefs that guide our behavior and values. In Chapter 10,
On Scale and the Impact Commons, Jed describes the limitations and problematic issues associatedwith scale and private property. In all cases, Jed reminds us, these are not universal laws but social constructs that influence our beliefs regarding the purpose of capital.

S E C T ION S I X : Fa it h i n F i n a n c e , S c a le , a n d P r o p e r t y• 50

GOA L S FOR T H E R E A DE R{{{∞∞ Understand the extent to which financial capitalism is a faith-based social
construct, not an objective reality∞∞ Understand the implications of this unquestionable faith and how it limits
our understanding of value∞∞ Appreciate the importance of “reforming” this “faith” to include perceptionsof value beyond the quantitative∞∞ Understand the inherent limitations and potential conflict of scale and impact∞∞ Appreciate the importance of intention, relationships, and multiple layers of
impact efforts∞∞ Understand the nature of private property as a social construct, the role itplays in the challenges we are trying to address, and the need to consider
control, as well as use, of property in our impact investing efforts

S E C T ION S I X : Fa it h i n F i n a n c e , S c a le , a n d P r o p e r t y• 51

KEY CONCEPTF I NA NC E A S R AT IONA L FA I T H ( P a ge s 18 3 – 19 3 )Financial capitalism is founded upon an intellectual assent that the ‘numbers don’t lie’ as well as trustin what the numbers profess to tell us. Beyond such agreement and trust, our faith in finance calls

us to the promotion of the true religion of financial capitalism, to seeking the conversion of others toembrace not only the practices of the church but the foundational tenets, values, and confessions of ourfaith in finance. (pp. 183-184)

Jed opens the chapter by establishing the analogy between religious faith and our faith in finance. He

explains that “faith” involves intellectual assent (belief that something is true), as well as trust (relying
on the fact that something is true). We believe that “numbers don’t lie,” and we trust in the meaning

they imply even if other, non-quantitative data do not agree. More money or wealth is believed to bebetter, regardless of other data regarding well-being. For example, in the United States, a growing

GDP renders declining levels of health or happiness irrelevant.

Like religious faith, the “church of finance” has dogmas—more profit is inherently good, privatization is always better, and the free market should be unconstrained. If one questions these dogmas,
one is labeled a heretic, e.g. a socialist or communist. Yet unlike a religious church, where faith isan acknowledged choice, faith in finance is relatively unconscious. Despite the fact that money andfinance are social constructs, “we tell ourselves this faith in numeracy is not faith at all, but the rational
way of the universe” (p. 186).

Another justification of this rational faith in finance is the belief that markets, if not benevolent, areat least amoral; that pursuing one’s own financial self-interest is inherently a neutral behavior. Jed

asserts that this belief is faulty: “…they are operating with reference to their own code of morality,

just not one cloaked in social mores or assumptions that one should take anything other than financial
advancement into account” (p. 191). Yet this system carries its own inherent biases and abuses, andthose of its actors, just as we now know the algorithms influencing our online life carry the inherent
biases of the designers.

The 2008 financial crisis provides a compelling case for the concept of the religious-like faith in finance.

The market crashed when the numbers we believed in were revealed to be false. Trust broken, people pulled their money from the market, banks stopped lending, and institutions failed. Yet even inthis dire situation that displayed the free market’s limitations (and capacity for immorality), some of
the “high priests” in the Treasury Department insisted that considering new regulations or structures

would itself threaten the market:

S E C T ION S I X : Fa it h i n F i n a n c e , S c a le , a n d P r o p e r t y• 52

“This argument exposed the faith-based mechanism undergirding the whole situation without acknowledgment: we cannot even afford to critique the market without turning it against us. The slightest

insinuation of lack of faith in the free market would be a mistake—a mistake that would almost be as

bad as the lack of faith that manifests itself in calling for economic regulations” —Joerg Rieger, No

Rising Tide: Theology, Economics, and the Future, p. 74

Questions for Ref lection

͋͋ How do you react to Jed’s assertion of our “faith in finance”? Do you agree with orresist this characterization? Why?

͋͋ Can you think of other contexts or examples where an unquestionable “faith infinance” was evident but unacknowledged?

͋͋ Are you, or have you been, a believer in this faith in finance and/or its tenets? Why or
why not? Where did this faith (or lack thereof) originate for you?

KEY CONCEPTA R E FOR M AT ION ( P a ge s 18 8 – 18 9 , 19 4 – 19 5 )Jed asserts that “this worship of rational analysis and free, lightly regulated financial markets as a collective expression of that analysis has several implications,” as follows:

1. It blinds us to the real wonder and miracle of numeracy and data…there is anarrative quality to numbers, which allows one to see flows of time and activity…

actually see the story of how organizations operated, how decisions were made, andto what end…when combined with qualitative analysis and reflection, this allows

one to see with greater comprehension than either words or numbers might allow on

their own.

2. We see only half the analysis possible and we are then blind to the rest of the theo-

rem we should apply to our situation… we surrender our life to financial algorithms

and economic calculation as opposed to living on the basis of instructive, quantitative
analysis informed by wisdom, culture and human history (pp. 188-189).

S E C T ION S I X : Fa it h i n F i n a n c e , S c a le , a n d P r o p e r t y• 53

By becoming aware of this unacknowledged, and problematic, faith in finance, we can shift our focus

to faith in value—value that incorporates the significant contributions of quantitative analysis and narrative numeracy, as well as social and environmental considerations that are no less valid despite their
qualitative, rather than quantitative, nature.

[We are] called to the true faith, to use quantitative, rational and grounded analysis to challenges,
inform and infuse our professional insights with a sounder, more fully informed perspective which

integrates evidence and quantitative analysis with—dare I say—thoughtful, intelligent, insightful

wisdom. To do otherwise is to live with financial data as dictate, not input. (p. 187)

Jed calls upon impact investors to “recognize ourselves as members of a new Reformation…a happy
heretical tribe advancing fundamental aspects of our central faith and creating new metrics to explore
its implications and pronouncing a renewed liturgy to celebrate our Eucharist” (p. 195).

We know value is something other than can be described with econometrics or biological measures orphilosophical constructs alone…actual value is something more, something more profound, a thing or

phenomenon, just there, yet not within our grasp. This is a value we may only take on faith—despitewhat the high priests may describe within current doctrine and celebrate in their Eucharist andrelated rituals of Wall Street. (p. 195)

Questions for Ref lection

͋͋ Think about the faiths that influence your life, such as religious or spiritual faith, orother influential beliefs, including your financial beliefs. How do they influence yourdecision-making? In what ways are these influences conscious? Unconscious?

͋͋ Think of a particularly important decision in your personal life. How did you consider
and weigh qualitative factors? How did you consider and weigh quantitative factors?

How did those factors influence each other? How did consideration of qualitative

factors improve the decision (or not)? How did consideration of quantitative factors

improve the decision (or not)? Would the decision have been different if you had only
one or the other?

͋͋ How are qualitative and quantitative factors, respectively, considered in the decision-

making process of your profession, workplace, religious or community organizations?

How does this differ from your personal decision-making?

S E C T ION S I X : Fa it h i n F i n a n c e , S c a le , a n d P r o p e r t y• 54

KEY CONCEPTT H E L I M I TAT IONS OF SC A L E ( P a ge s 19 9 – 2 0 5 )Before the early 1800’s, “there were true economic impulses present in the whole system of loan andinvestment. Then, through the instrumentality of the banking system, these economic impulses began

to change into purely financial ones; and in this process the whole thing became not only impersonal,
but also unnatural. Everything was drawn into the stream of money, as it moved itself along. Our

money business, without any natural or personal subject—that is the end toward which, as the nine-

teenth century drew to a close, everything which had originally been upheld by a personal and naturalsubject was gravitating.” —Rudolf Steiner, Economics: The World as One Economy, p. 122

Another tenet of the faith in finance is the belief in scale as an inherent good—bigger is always better,more efficient, and therefore more effective and profit-maximizing. Scale is even considered to be theholy grail of many whose primary goal is social impact. After all, poverty and other challenges are

significant, so our efforts must be at commensurate scale to address them. Yet Jed asserts that “scale

as a function of grand size may work at odds to attaining quality impact and the creation of sustained

value,” and that one can scale for “either breadth or depth—working to touch millions of lives lightly or
thousands of lives with a greater degree of sustained transformation”—but not both. (p. 200).

Jed discusses two issues associated with scale and impact:
The first is that as organizations “take on higher amounts of capital they then need to begin to makedecisions based not upon what was best for a given enterprise, set of investors or fund but upon theneed to deploy and service the capital they raised…if you take in hundreds of millions of dollars ofinvestment capital and tell your investors you’re going to generate many multiples of financial returnfor them, you then have to manage your relationships with your companies on that same basis” (p. 201).

This results in greater distance between the players, and an inability to develop the close connections
that enable the most productive investment relationships.

The second challenge is related:“It is not that the large funds or wealth management firms are necessarily “bad”… the challenge forthese firms is one of culture, incentive and vision, which are hard to alter once established and understood by advisors, managers, and clients. This refers to how the firm and its various stakeholders

understand issues of the scale and depth of potential impact as well as the degree and nature of finan-cial and other returns generated” (p. 202).

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The necessary intentionality of impact “will be more complex and require all the more focus and discipline on the part of those managing the fund and invested ventures” (pp. 202-203). Since suchcomplexity is much harder to manage, Jed’s concern is that impact efforts will be “watered down”—“some may be tempted to respond to the need to soften the terms of what impact comes to mean, how

deep we care to go in its pursuit and the degree to which we will need to accommodate the existing
economic order to advance our investment agenda as opposed to our working to challenge the baseassumptions and practices of that agenda, the economic order within which it operates and its eco-nomic much less broader philosophical concepts” (p. 204). As that happens, impact investing becomes

just another tool of traditional financial capitalism itself.

Questions for Ref lection

͋͋ Do you agree with Jed’s critiques of scale? Why or why not? Think of examples tosupport your views.

͋͋ In what circumstances do you believe bigger is more effective? In what circumstances
do you think that scale hinders effectiveness?

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KEY CONCEPTT H E I M PAC T COM MONS ( P a ge s 2 0 5 – 213 )“For partisans of capitalism, it is often convenient to pretend that property is some naturally occurring

fact, but it is really a social construction that must be delineated and enforced by the power of the state.

And the very idea that all of the physical and social worlds can be divided up into discrete parts, eachtagged with the name of an owner, is a part of capitalism’s ideological infrastructure that had to bepainstakingly constructed over many years.” —Peter Frase, Four Futures: Life After Capitalism, p. 75

Another foundational tenet of capitalism and financial faith is the notion of private property. Despite
the assumption for many in the West that it is an inherent given, it is also a social construct.

The earth belongs to itself and to all the component members of the community. The entire earth is agorgeous celebration of existence in all its forms. Each living thing participated in that celebration

as the proper fulfillment of its powers of expression. The reduction of the earth to an object simply forhuman possession and use is unthinkable in most traditional cultures.” -Thomas Berry, Deep Ecology for the 21st Century, p. 13

This is not only foreign to most traditional cultures, but considered by many, from Saint Ambrose in

the 4th century to Thomas Berry in this century, to be counter to Western Christian tradition. Nevertheless, by the mid-1800s, the belief that land not in productive use was not owned by anyone, andtherefore available for others to claim and develop became the basis for empirical displacement andgenocide around the world.

As we consider the purpose of capital, it is necessary to reflect on these issues. As Jed asks, “who truly
does own nature and must ownership be viewed solely as it relates to use?... Whose capital is it to begin

with and what economic and political order made it possible for one to amass wealth at the level uponwhich it is aggregated well beyond the living requirements of a single family? Before we can discuss

responsible wealth stewardship or the end toward which we make investment decisions, before we
consider questions of use, we must first consider questions of source, control, and economic dominancewithin a financial system unconcerned with advancing a sustainable world” (pp. 211-212).

Jed suggests “we must rethink our understanding of the concept of ownership and explore various new(and in some cases, traditional) approaches to structuring capital and understanding who may lay claim

to the variety of returns generated therefrom, revisiting our understanding of the Impact Commons,

how we think about the nature of returns and what is owned by the investor, the investee and theCommonweal” (p. 213).

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“Every farmer knows that the hard part is getting the field prepared. Inserting seeds and watchingthem grow is easy. In the case of science and industry, the community prepares the field, yet society

tends to give all the credit to the individual who happens to plant a successful seed. Planting a seed

does not necessarily require overwhelming intelligence; creating an environment that allows seeds toprosper does. We need to give more credit to the community in science, politics, business and daily life.”-Steven Sloman and Philip Fernback, The Knowledge Illusion, p. 213-214

Questions for Ref lection

͋͋ Jed’s critique of capitalism’s foundational private property concepts may be themost challenging of all. Had you previously been exposed to alternative concepts ofproperty—such as a traditional culture’s alternative understanding, or the model ofcooperative organizations that Jed describes? If so, what was your reaction then? How
do you react now to Jed’s discussion in the context of the purpose of capital? Why?

͋͋ In thinking about different concepts of common ownership, what elements areappealing to you? Why? What elements are challenging?

͋͋ Spend a moment thinking about and listing the gifts of nature that you do not pay

for that make your existence possible, and also pleasurable. Could you begin to put aprice on these gifts? Why or why not?

͋͋ Spend a moment thinking about and listing the ways that you benefit from being a

citizen and/or part of a community. Can you put a price on the difference this makes

in your life? Why or why not?

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SEC T ION SE V E N{{{{{{{{THE PURPOSE OF
CAPITAL AS FREEDOMTHE IDEA OF CAPITAL NATURALLYSEEKING ITS HIGHEST USE IS STILLVALID, SAVE FOR THE REALITY THATOUR TRADITIONAL UNDERSTANDING
OF “USE” IS ONLY PARTIALLY CORRECT.
IT IS NOT MERELY HIGHEST AND BESTUSE OF ECONOMIC VALUE CREATIONPOTENTIAL BUT RATHER ITS TOTALVALUE CREATION POTENTIAL. IT MUST
BE PUT TO USE BUT APPLIED IN THE
FULLNESS OF ITS POTENTIAL—NOT
MERELY TOWARD ECONOMIC VALUECREATION. IN THE END, CAPITAL SEEKSTO BE DEPLOYED IN PURSUIT OF ITSHIGHEST POTENTIAL OPTIMIZATION;
AND IN THE THAT WAY TO BE FREE, TO
ENERGIZE FREEDOM. (P. 231)

OV E RV I E W{{{
In Chapter 11, The Gift of Fire: The Purpose of Capital as Freedom, Jed discusses the character of capital and its social foundations, describing a more comprehensive notion of “highest and best use” andstressing the importance of our own motivations. He then challenges us with his own definition of the
purpose of capital as freedom, and its connections to politics and justice.

GOA L S FOR T H E R E A DE R{{{∞∞ Understand how our motivations and goals drive the character of our capital∞∞ Gain a more comprehensive understanding of “highest and best use,” that
includes economic, social and environmental components, as well as
advancement of freedom of self and Other∞∞ Appreciate the centrality of structural change in impact investing

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KEY CONCEPTH IGH E ST A N D B E ST US E ( P a ge s 215 – 2 21)
As taught in business schools the world over, ‘the purpose of capital is to seek its highest and bestuse.’ (p. 215)

Jed opens the chapter by reminding us of the standard definition of the purpose of capital. In traditional terms, seeking its “highest and best use” means “that combination of highest financial return andlowest assumption of risk possible to optimize financial returns” (p. 215).

Within this frame, capital is viewed as a vehicle, or again, more accurately, a transparent social
construct we’ve created as a proxy for a reality we have built in our world; a fact based uponmaterialism expressed in economic terms to the exclusion of social or environmental considerations…
it is a reality understood to be rational, quantitative and objective, while review of social andecological aspects of our world have traditionally been interpreted as subjective, qualitative andfleeting—and therefore existing outside a logical framework of economics and finance—in someways, outside of reason itself. (p. 216)

As previously discussed, this frame depends on the assertion that markets are amoral—they are notinherently good or bad, “they just are.” Yet “the irony in all this is that of the well-known phrase, ‘Mar-

kets function in response to one of two things: fear and greed.’” By and large, the business community

accepts that concept as an unavoidable human inclination and the markets then take on that character.

In this context, “the purpose of money is to be applied to its preservation and growth; any other outcome is a shame and a disgraced result of our entrepreneurial inabilities or fiduciary failures. Within

this mindset, the purpose of capital is to make more capital” (p. 218). And to complete the circularargument, if one questions the notion of an “amoral” market that’s actually being driven by fear andgreed, the defenders will insist acting in one’s individual greedy interest is actually ensuring the “high-est and best use,” and overall public good.

However, if one accepts the idea that capital is itself a neutral substance, void of moral or social
considerations, and if we take as valid the idea that capital only assumes the measure of social

attention we are willing to assign it, then the phrase, “the asset owner is the market” is, in fact,correct and each investor is free to define the character, financial terms and any other parameters ofcapital as she sees fit…Each age is also then free to define the purpose of capital, its highest and bestuse, as it prefers. (p. 219)S E C T ION S E V E N : Th e P u r p o s e of C a p it a l a s Fr e e d om

• 61Thus, it is consistent with the notion of an “amoral” market for market actors to define “highest andbest use” to include social and environmental considerations, as well. To include additional humanemotions and concerns in one’s assessment is no less rational than letting the human emotions of fear
and greed be the only viable drivers.

As we now consider how we are aiming to redefine the purpose of capital in our own time, Jed reminds

us that the broader concerns of impact investors are not new—“the aberration rests not with the past,
but the present. For in the past the purpose of capital was in points of history and within certain

communities broadly understood to be that of service to society, to family, and lastly, to self.” (p. 219).

Judeo-Christian, Muslim, and Buddhist traditions alike emphasize the community and common goodover that of “possessive individualism.” Religion aside, plenty of businesspeople around the world

would agree with the example Jed provides of the businessman who stood up at Davos and insisted

that the tenets of impact investing are “simply the structure and practices of the traditionally privately

held German family firm.”

Questions for Ref lection

͋͋ Were you familiar with the concept of “highest and best use”? If so, what criteria
did you include in its determination? If this is a new concept for you, what isyour reaction?

͋͋ What is your reaction to Jed’s insistence that incorporating other human emotions orconcerns into financial assessment is as legitimate as allowing fear and greed to be theprimary drivers? Does that seem obvious, or do you reject that notion? Why?

͋͋ Think of examples in history, popular culture, or your own experience where businessleaders understood their role to be supportive of the broader community, not justtheir own wealth or that of their shareholders. How do these examples influence yourimpression of impact investing and its potential?

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KEY CONCEPTMOT I VAT ION A N D T H E C H A R AC T E R OF C A PI TA L ( P a ge s 2 21 – 2 2 9 )Our stated intent of “ doing well and doing good” is the place where many now enter the conversationof impact investing. When it was simply a practice of doing well and then doing good, it was an issueof charity and philanthropic giving where the questions were “How much do I need to have before I

have enough to give away? What exactly do I need to give up in order to do something of true value
in the world?” (p. 221)

Impact investors are inspired by the idea that we can “do well” while “doing good,” rather than follow
the path of first maximizing our wealth so we can later “do good” by giving some of it away. Yet in thisnew frame, Jed cautions us to examine our motivations:Those of us who claim a commitment to advancing impact investing—to creating various levels offinancial return together with the generation of diverse social and environmental impacts—need

be quite cautious regarding our base motivations for engaging in this work. We need to understandwhether our motives are genuinely grounded in an interest in generating Mutual Impact on behalfof the Other or is our concern really what Richard Rohr calls ‘ disguised narcissism’ wherein we cloak

our real intent within the garments of concerned impact upon the world when we are only willing topursue impact as long as there is no requirement we alter our expectations, behaviors, or life in our
pursuit of Bonhoeffer’s Cheap Grace or my own notion of Cheap Impact. (p. 222)

On an individual level, is our interest in impact investing merely alleviating our guilt and building ourego, or are we willing to “embrace the opportunity before us to develop a more meaningful engagementwith the wisdom of the world which promises to open us up, to show us what is more real than either
our capital or our present understanding of truth”? (p. 223).

At the institutional level, can the organizations we serve“come to be managed as vehicles of impact, advancing greater justice in the world and not merely acting
as receptacles of capital until we have no option but toengage in change as a result of some personal or institu-

tional crisis of meaning”? (p. 223). In both cases, will weand our organizations work to “reshape the very characterof capital as we know it,” or will we be another versionof charity that avoids the structural change necessary toachieve justice?

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Our motivations matter, because capital, as Jed stresses, “is always in motion, even we think it is not.”The money we deposit into our bank account is not actually sitting at the bank—it’s always moving,always in action, going in and out of loans and deals and fueling action in the world, for better or worse.

And as it does so, it is carrying our motivations, intentions and values.

Under our management, capital seeks to grow in the form of collective acquisition, contribution orconstruction of something new, a newly constituted mass of capital potential now realized, of objects

directed to move, of buildings consisting of various parts previously at rest but now in new locales.

Capital may also act to release humanity to move in new ways, creating yet more experiences of life on
multiple levels, some seemingly at rest and others visibly moving toward the creation of new realities
and forms of being. All this is the result of deliberated, intentional movements of wealth in pursuitof impact and blended value creation, in contrast with our traditional financial pursuit of the static

goals of gold or capital’s simple replication and cancerous growth. This mindset is an understanding of
the purpose of capital as community and impact as opposed to capital as economic growth and tradi-tional, financially driven commerce alone. If, indeed, money reflects merely the nature of those who

own, manage and deploy it, let us default to this vision of living capital as opposed to one of its own
replications, expansion, storage and financial decay on economic terms alone. (p. 225)

Questions for Ref lection

͋͋ Think honestly about your impact investing motivations. What inspired you tolearn more about and/or engage in impact investing? What are your goals? Are you
open to a more profound change in how you think about capital and your relation

to the Other?

͋͋ What is your reaction to Jed’s description of how capital is always in motion,energizing and fueling new things and experiences, and carrying the motivations,

intentions and values of its owners? Think about the capital you own—where is it
circulating? What is it fueling?

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KEY CONCEPTC A PI TA L A S F R E E DOM ( P a ge s 2 2 9 – 2 31)
The Purpose of Capital is to support, augment and energize our freedom to engage in a shared processof continual becoming (p. 229)

In his own statement of the purpose of capital, Jed includes several key elements. The first is the supportof our freedom—“a state of liberation, self-determination and human agency.” Jed adds that this state

is not individualistic. Rather, it includes “a centering of self within the Other as our awareness of deep

relationship—how we are defined by and come to define the Other—puts us in meaningful context ofLife.” (p. 229) Thus, it is a shared process. And finally, it is not a conclusive destination, but on ongoingprocess where we engage with the Other and continually learn and change, always striving for mutual
freedom. What does this look like?

Specifically, the use of wealth is to advance the liberty of those entities through which it courses andthe freedom of those individuals with whom it comes in contact:• At an individual level, it is the freedom of an entrepreneur to create a firm to capture a perceived
community and market opportunity.

• At the organizational level, it is the freedom of a group of individuals to gather and resource
themselves to advance a common goal or objective, to capture a shared vision of value.

• At a more profound level, the purpose of capital is to enable humanity to move toward therealization of its potential on this planet; to be free of poverty, to function in the present

experience of living to support and sustain not only human existence, but to place that existence

within the context of shared systems of optimized human and non-human life. (p. 233)

The goal of impact investing then, is to energize our freedom “to achieve our full potential as individuals and as a community of beings intertwined with the forces of life on this planet.” (p. 230) It isnever an individual striving at the expense of the Other or Nature, but a mutual, ongoing striving that
acknowledges and honors our interdependence.

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• 65Questions for Ref lection

͋͋ Does Jed’s assertion of “capital as freedom” resonate with you? Why or why not?
͋͋ It is a “big” idea—is it specific enough to be a helpful guidepost for you?
͋͋ How would you edit or adjust his statement to better express your ideas of the
purpose of capital in your life?

KEY CONCEPTT H E POL I T IC S OF I M PAC T ( P a ge s 2 3 2 – 2 3 7 )Capital investment is a political act endorsing, supporting, and fueling our present system of financial capitalism as it exists and as it has evolved over past decades…You should not only know what

you own, but own what you know to be the power of your presence as an investor, as an agent of youractions and as a force in the world. (p. 234)

While some argue investing and politics can and should be kept separate, Jed stresses that taking
no position is to endorse the status quo, a status quo that impact investors are specifically trying tochange. Impact investors “believe the current state of the world is not what we want it to be andwe are acting to resist forces promoting and seeking to protect traditional financial capitalism andthe social and environmental injustices upon which it is built and our traditional investing practices
advance” (p. 235).

It’s critical to note that impact investors are not inherently of any particular political party. “The politics
of impact are those of challenge and transformation, of working to attain our true potential to advancea just and sustainable planet to the greatest benefit of human and non-human beings”—an agenda nei-

ther party owns. Jed essentially provides an impact investor manifesto, as follows:
Impact investors seek:• To promote a change agenda - not one of conserving, defending, or maintaining thestatus quo, much less freeing financial institutions to have yet greater advantage overconsumers or liberating companies from regulation of the amount and form of pollution

they can generate to the detriment of our communities and ecosystems.

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• 66• To structure our capital to advance greater individual choice within our communities not support policies restricting the choice of individuals to live their lives and manage

their health decisions as they see fit.

• To expand our understanding of justice to include not simply those who are citizens of
our nation, but those with whom we share our citizenship of the Earth.

• To defend not the unlimited free speech of corporations as “people” but rather thepromotion of truth, scientific and experiential evidence and the real facts upon which wemust base the words we seek to speak freely and use to promote our agenda of justice.

• To protect those not able to stand to protect themselves, whether they are a refugee

family, a line worker in a manufacturing facility or voiceless animals being processed

through factories, wandering in the woods or moving through the world’s rivers andoceans. (pp. 235-236)

In the end, the politics of impact investing is that of putting your assets on the line to finance a neworder, a new world and a new reality…We are called to envision and advance an approach that insome ways will take us back to our historic fundamentals and in others will require we transcend the
dualism of our current political order in the same way we are transcending the dualism of financial
capitalism as we’ve known it these past centuries. (p. 237)

Questions for Ref lection

͋͋ What is your reaction to Jed’s manifesto? What elements do you readily agree with?
Why? What do you struggle with or reject? Why? What would you add?

͋͋ Consider your own political allegiances. How do the tenets or platform of youraffiliation relate to Jed’s manifesto? In what ways does it align? In what ways does it

conflict? What issues does it not acknowledge or consider?

͋͋ Despite Jed’s assertion that investing cannot be apolitical, the impact investing fieldhas, until recently, not been focused on public policy or taking a political stance. How
has this been helpful to the progress of impact investing and/or its goals? How has
this been problematic to the progress of impact investing and/or its goals?

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KEY CONCEPTI M PAC T I N V E ST I NG A S C H A NGE ( P a ge s 2 3 7 – 2 3 9 )Capital may also be a tool that can turn on itself and destroy our traditional understanding of what
wealth is for and how it is to be deployed. The German historian and philosopher, Karl Jaspers,

reflected upon the idea that history is a process of annihilation in that to advance each age had to bebuilt upon the destruction of previous thinking and practice. (p. 234)

If one accepts Jed’s assertion that impact investing is at its core a change agenda, we must also consider

how impact investing “builds upon but deconstructs and then transcends traditional investment thinking and practice” (p. 238). To do so involves learning how to engage in “constructive social change,”defined by John Paul Lederach as “moving relationships from those defined by fear, mutual recrimina-

tion, and violence toward those characterized by love, mutual respect, and proactive engagement…Thatis the challenge: how to move from that which destroys toward that which builds.”4

To do so, Lederach outlines five stages of capacity building, applicable to our development as impact
investors (as well as a human beings in general!):• The capacity to envision oneself in relationship to another;• A willingness to embrace complexity;• An ability to operate within a non-dualistic/non-polarizing understanding of the world;• The capacity to be open to a process of creativity;• A willingness to take meaningful and real risks5
Capital has the potential to catalyze movements in the world in the same way a pebble dropped into
water has the force of its impact upon the surface yet is measured and assessed on the basis of theconcentric circles emanating out form the place of its initial entry into the water…The effort of impact

investors to unleash capital as freedom places that capital within a given point in time—where it is—yet simultaneously connects it with its past and possible alternative futures. (p. 239)

4 Lederach, John Paul. The Moral Imagination: The Art and Soul of Building Peace. Oxford University Press: Oxford, England,
2005, p. 42.

5 Ibid, p. 40.

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• 68Questions for Ref lection

͋͋ What is your reaction to Jed’s assertion that impact investing is a change agenda? Are

you comfortable with that? Do you identify as a change agent, or is that a new role foryou? How does that make you feel?

͋͋ Think about each of Lederach’s five stages of capacity building, above. Which are
new and challenging for you? Which do you feel fairly competent in?

͋͋ Can you think of ways that developing the five stages of capacity building will change

your relationship to capital? Ways that they would influence other aspects of your life?

KEY CONCEPTJUST IC E A S I M PAC T ( P a ge s 2 3 9 – 2 4 3 )With the recognition of the potential purpose of capital as freedom, we may then turn to reflect on our

history and the place of injustice within that history as a precursor to our attaining sustained freedom

within our communities and society…over the centuries we’ve seen time and again wherein the actionof those controlling capital has been to seek more and more significant ways to consolidate, maintainand grow their wealth, at the cost of the poor and the expense of community…[and] a progressive lim-

iting of freedom for the majority of the world’s population…These events are not the natural course ofhuman history, but are the logical outcome of power, control, and wealth consolidation; it is structuraland it is systemic. (pp. 240-241)

Jed closes the chapter with a reflection on justice as it relates to capital - how the consolidation of
wealth by the few results in the limiting of freedom for many. From the shift from common interest to

private land ownership that facilitated the worldwide displacement of indigenous people while consolidating wealth in empirical countries, to today’s climate crisis that is largely driven by wealthy powers

but will ultimately have greater implications on the lives of the poor, capital accumulation has been apowerful driver of injustice.

Much as we might care to decry this reality, in truth, the vast majority of us, of those most likely tobe reading these words—regardless of the absolute size of our net worth—are complicit in this his-

toric consolidation of wealth…The question for those engaged in the management and deployment

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of capital must begin with this reflection on the purpose of capital and from there we may be posi-tioned to explore its implications for a life, for a community and for a planet. (p. 243)

Questions for Ref lection

͋͋ Jed’s connection of wealth accumulation to injustice is counter to the common “to the
victor go the spoils” ethic that is pervasive in many cultures. What is your reaction?

Does this view inspire you? Discourage you? A mix?

͋͋ The reaction of some to this connection of wealth accumulation to injustice is to fault
capitalism as a whole. Do you think our reassessment of the purpose of capital canplay a significant role in “fixing” a capitalistic system? As Jed described in a previous

section, can it be like a stone that creates ripples and influences broader change? Whyor why not? What else has to change?

͋͋ How do you react to Jed’s assertion of the complicity of most readers of this work in
the injustices driven by wealth accumulation? Why?

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• 70

SEC T ION E IGH T{{{{{{{{PURPOSE AS PROGRESS,PRESENCE AS VALUEI

N THE END IT IS ABOUT ADVANCING A CONNECTED FRAMEWORK OFUNDERSTANDING EARTH, OUR SEN-TIENT COMMUNITY, ECONOMICS, AND
SELF THROUGH THE PRACTICE OF A
REDISCOVERED PERSONAL AND SOCIALALCHEMY. THIS ALCHEMY INCLUDESCONSIDERATIONS OF ECONOMICS ANDITS TOOL OF FINANCE, BUT IS NOTITSELF DEFINED BY THEM. THIS TRANSFORMATION BLENDS DIVERSE COMPONENTS OF BEING AND MATERIALITY
TO OPTIMIZE OUR EXPERIENCE OF LIFE
WITHIN THE PURSUIT OF SELF-REALIZATION, SOCIAL FREEDOM AND VERDANT ECOLOGIES INCLUSIVE OF YET NOT DOMINATED BY HUMANITY. IN THIS NEW ECONOMIC ORDER WHICH WE MAY ALREADY SEEMANIFEST AROUND US IN DIVERSE WAYS AND FORMS ACROSS THE WORLD, CAPITALFUNCTIONS AS BUT ONE FUEL FOR THE VIBRANT ALCHEMY OF LIFE. (P. 253)OV E RV I E W{{{
In Chapter 12, Living Impact: Purpose as New Progress, Presence as Our Value Manifest, Jed sharesthe fallacies of progress and growth, two more key tenets of capitalism. He then provides an alternative to the traditional, scarcity-mindset driven notion of progress—an abundance mindset and Deep
Economy that places humanity in the context of a greater whole. He closes with a discussion of therole of presence and restorative justice in impact investing, and a call to act with “humility, opennessand quiet reflection.”

GOA L S FOR T H E R E A DE R{{{∞∞ Consider and question our culture’s assumptions of “progress” andits implications∞∞ Ground awareness in the context of community with obligations andconnections to the Other∞∞ Commit to ref lect on the grounding questions with humility, to actively
listen, and to engage with our investments with intention and presence.

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KEY CONCEPT

FA L L AC I E S OF PROGR E S S A N D GROW T H ( P a ge s 2 4 6 – 2 5 0 )This unbridled faith in technology as progress to solve problems together with our belief the Earthexists to be exploited for human desires and ambition combine to create a dangerous blind spot in

our modern world view and perspective with regard to the planet, our relation to it and the future,

destructive reality we are creating. (p. 248)

Jed opens the chapter by revisiting the notion of “progress” that emerged in the 18th century. The linear concept came to be associated with the development of new technologies and human capabilities,
regardless of their consequences on our well-being. This is exemplified by the typical response to any

variation of Joni Mitchell’s apt phrase, “They paved paradise and put up a parking lot”: “[Sigh] You can’t

stop progress.” We are so blind to this capitulation to economic growth that we will even surrenderparadise, what we are supposedly striving for, in the name of abstract wealth creation.

Rather than allowing culture to determine what technology we adopt (the idea of doing so seems tobe beyond the pale), we allow technology to drive then adapt our culture to technology, for better orworse. Yet this notion of unquestionable progress seems to only apply to technological or quantitative

economic development. There seems to be an assumption that actual qualitative social or cultural

progress is inherently impossible. For example, commercial space flight is an achievable wonder, whileelimination of homelessness is an expensive impossibility.

Another fallacy of this notion of technological progress in regard to resource use is “Jevons Paradox,”
the concept that “increasing efficiency does not lead to less consumption since consumers…simply

use more of the cheaper energy [or other resource] made available by the increased efficiency of pro-duction.”6 For example, washing machines and dishwashers didn’t ultimately reduce the amount oftime we spend washing things; we just increased the amount of items to wash. And any good economist would agree that the availability of more efficient, and presumably then cheaper, energy actually

increases the overall consumption of energy.

The final fallacy that Jed notes is the equivalence of quantitative growth and progress. For example, thehosting of an Olympic games and a devastating hurricane may have the same quantitative impact on aregion’s economy, just as a wedding and a divorce may generate equivalent quantitative economic activ-

ity. Yet all would agree that these are not qualitatively equivalent in societal value or human well-being.

Nevertheless, Gross National Product, the sum of all of these economic transactions, is our primarymeasure of the health of our economy and country.

6 Frase, Peter, Four Futures: Life After Capitalism. Verso press: London, 2016. P. 95

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Growth is not value creation, despite our tendency as a society to conflate the two. And so we willseek continued growth cloaked as progress, unrestrained and ill-considered until we can grow nomore; and the growth we promote will be such that we ill, in the end choke to death, both meta-

phorically and literally. As Edward Abbey said, ‘Growth for the sake of growth is the ideology of

the cancer cell.’ (p. 249)

Questions for Ref lection

͋͋ Do you relate to the traditional notion, “you can’t stop progress?” Do you believe that“progress” of the type Jed describes is indeed inevitable?

͋͋ Think of a time when you, another person, or a community resisted “progress” of thetype Jed describes. Why the resistance? How did you or they resist? How did thebroader culture react? What was the outcome? Why?

͋͋ Can you think of examples of cultures or communities that question newtechnologies, or choose not to adopt them? Why do they do so? How do they do it?

͋͋ What is your reaction to the “Jevons Paradox?” How have new technologies or “laborsaving devices” improved the quality of your life? How have they reduced the qualityof your life?

͋͋ Have you ever questioned the validity of GNP as a measure of economic health? Whyor why not? Are you aware of other measures of economic well-being that incorporate

qualitative elements as well as quantitative ones? What do they measure?

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KEY CONCEPTI N PU R SU I T OF DE E P ECONOM Y ( P a ge s 2 5 0 – 2 5 4 )A better future may not lie in growth at all, but rather in the opposite direction, in progress defined as

smaller size and deeper relationship with each Other and Planet; in progress as measured in a variety
of forms of presence (p. 249)

What is the alternative to this blind adherence to technological and quantitative economic ‘progress’?

“We must reframe our understanding of what sustained growth means as well as our measures of progress. We will only do this via a reconceptualization of our knowledge of economics itself and evolution

above and beyond the current practices of traditional financial capitalism and—by extension—ourknowledge of current impact investing practice” (p. 250).

This begins with an awareness of the dualistic “scarcity” mindset inherent in the current financial capitalist system. “Within a scarcity mindset we are asked to live in fear,” assuming that life is a zero-sum
game. “This ‘either-or’ decision, in this case between scarcity and abundance, but also reflected in thenotion of doing well or doing good, making a grant or an investment, working for a nonprofit or afor-profit, and so on are each logical outcomes of the ancient tension between material and spiritual

purpose, which we carry into today’s modern life and economy.” (p. 250)

Jed suggests that this new, non-dualistic and abundance mindset will be grounded within two principles:
1. The concept that we have obligations to others—beyond our selves, to families,

community, and nation to be sure, but also to Planet and all sentient beings living
upon it.

2. The idea we must value not merely human life, but the diversity and richness ofhumanity in the context of a Living Planet. The purpose of our capital cannot be

our purchasing of freedom for Self and not Other, for Self cannot be made free in
absence of the Other’s liberation. (p. 251)

In this context, the purpose of capital is revealed in our exploration of community, humanity, cul-

ture and ecosystem, each and all woven within an understanding there is no single answer. This is
not a matter of cultural or ethical relativism; instead, we must—with others—explore how vari-

ous responses fit within our time, place and comprehension of the value we are called to create in thisworld. (p. 251)

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Jed describes concepts of Deep Ecology and Deep Economy, where

humanity is not separate, nor the center or dominator, but part of agreater whole. “To be successful in all this, we must place the Earthand other species on at least equal footing with our own good selves

if we are to operate within an evolved understanding of our world
and life. Only then will we have the possibility of bringing theproper conceptual and scientific frameworks to bear upon our current and future problems” (p. 252). In this Deep Economy, capital

is not the driver, but “one fuel for the vibrant alchemy of life.”

Within this understanding of its true essence, capital is simply aform of blood continually moving through an emergent, regenera-tive Deep Economy, converting from one form to another, flowing
through various and diverse organizations, stewarded by various

and diverse temporary asset owners who view themselves as stewards of capital in a continual process of deployment, use, renewal
and endless regeneration. (pp. 253-254)

Questions for Ref lection

͋͋ Have you ever had or witnessed “Deep Economy” in action, where an investment or
economic activity resulted in a comprehensive win-win for all stakeholders? What

was the community’s reaction? Did some still resist or dismiss this experience? Why?

͋͋ What do you think it will take for our culture to shift to one that is more accepting ofan abundance mindset and Deep Economy?

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KEY CONCEPTT H E PU R PO S E OF C A PI TA L A S A JOU R N E Y TOJUST IC E A N D F R E E DOM ( P a ge s 2 5 4 – 2 6 0 )As my inquiry has evolved, I’ve realized we must redefine our understanding of the next step for

impact investing and the evolution of our own understanding of the purpose of capital. Instead ofbasing our sense of progress upon notions of the big investment ideas, ongoing refinement of strategies

for building upon bifurcated notions of doing well and doing good, the organizing of yet additional

impact initiatives and raising yet more massive impact investment funds, I would submit what we
as individuals and as a community that professes to care about the purpose of capital must first do isstop and reflect upon one very basic question:

How are we each called to act to remove injustice and its related barriers to each member of our humanand non-human community and ecosystems attaining sustained freedom in our world? (p. 255)

Jed suggests that there is no one answer to this question. “Rather, the answer is that there are multiple

answers and that, first, we must each commit ourselves to a deeper, more humble practice of living,while affirming that ‘The best criticism of the bad is the practice of the better’… we must accept that
we are each called to play many and diverse roles over the course of our lives, and in this way debatesand discussions regarding the ‘best’ approach to impact or the relative place and role of social enter-

prise versus mission drive, for profit, versus state-sponsored enterprise is that, well, it depends—upon

context, actors, resources, capacity and a host of related factors we many not even see until we’re in the
midst of the new becoming” (pp. 255-256).

Thus, Jed offers “a way of thinking as opposed to a prescriptive outline of what to do” (p. 256). Rather

than continuing our dualistic weighing of doing good versus doing well, or waiting for a concrete,
proven strategy before we engage, he advocates that we move forward with John Paul Lederach’s

paradoxical curiosity, seeking “something beyond what is visible, something that holds apparently contradictory and even violently opposed social energies together.”

Key to this approach is understanding that we must bring both our heads and our hearts to our efforts,

rather than continue to separate our material and spiritual lives. In doing so, we can identify “a poten-

tial source of personal energy and empowerment that may be of benefit simultaneously to self andOther…This is less a call to voluntary simplicity than one of clarity of purpose and first principles bywhich we might better value our worth beyond measures of financial wealth and against those of personal aspiration and vibrant meaning” (p. 258).

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In the end, however we understand it, we each in our own way might benefit from the intentional

integration of theology and spiritualism with science and finance and social liberation with commu-

nity empowerment as the guard rails for moving us toward a new place of blended value realized…

We do all this since our goal is not merely to create impact upon and within the lives of others, but in a
genuine sense to save our selves. Justice is a two-way street, a relationship of connection and engagement rather than a charitable act we perform upon the Other… In doing so we come to be liberated
from boundaries; we come to be free. (pp. 259-260)

Questions for Ref lection

͋͋ In the quote directly above, Jed refers to freedom as being liberated from boundaries
between the Self and the Other—freedom includes a profound connection with the

Other. Have you ever thought of freedom this way? What is your reaction to thatidea? Why?

͋͋ Jed advocates acting, even when we aren’t certain of the strategy, and learning as wego as a crucial element of impact investing practice. Is it easy for you to embrace thisnotion? Why or why not?

͋͋ As noted, Jed is offering a “way of thinking as opposed to a prescriptive outline ofwhat to do.” Is that what you expected or hoped for when you picked up the book?

Why or why not?

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KEY CONCEPTVA LU E M A N I F E ST: PR E S E NC E A N D
R E STOR AT I V E JUST IC E ( P a ge s 2 6 0 – 2 6 7 )Restorative justice places us in a position of exploring our healing and growth simultaneously with thehealing, growth, and opportunity we hope to bring our collaborators and stakeholders. We do this byleveraging capital for more than the generation of only financial returns to us. In this way, our wealthis regenerative not only of environmental or social value but of the personal value we may accrue to thebenefit of our journey or that of our family, community and the greater whole of which we are each a partand through which we many only then come to sit in the presence of transcendent wisdom. (pp. 261-262)

Beyond our own freedom that is connected with the freedom of the Other, “we must also keep in mind
the concept of restorative justice—justice that speaks to our condition and prospects for being madewhole through the process of advancing greater equity in the world and challenging the very systems
which may benefit us, in our role of relative wealth and privilege” (p. 260).

Being an impact investor means going beyond a legalistic approach to impact goals and returns—
after all, “even if we fulfill the terms of our investment contract, injustice is still resident within thecurrent financial capitalist system within which we

operate, a system that allows us to extract economic

value from low-income communities in the nameof the bifurcated construct of doing well and good.”(p. 261) It means engaging in true dialogue with the

Other, being fully present and listening, and being

open to the transformative change that may result.

It also means being willing to challenge structuralissues that are perpetuating injustice.

Thus, impact investing is ultimately “a question of thenature and level of our intentionality, awareness, andability to be present within an investment process as

opposed to being detached managers of one” (p. 263).

Jed stresses that one’s level of assets doesn’t matter—
whether your financial capital is large or small, the pathof impact investing is to “seek to be deeply embeddedin the relationships and networks of both our own andthe Other’s life and communities” (p. 265).

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Jed closes with an acknowledgement of our limits, and the reality that “we will never be able to assess

the full, integrated value of our investments for we can never know what forms of sustained impact we

may generate.” Thus, we must move forward with paradoxical curiosity, engaging in impact investingwith our full presence and “from a place of humility, openness and quiet reflection” (p. 266).

We will never know what wave of energy we convert to a particle that is received as a pulse, many

communities away, many lives down the road. We must sit quietly with the reality of our shortcom-

ings while we open our eyes and minds to take in the full potential of what may be generated by wayof our diverse and many efforts, and through the application of our countless resources and energies…

Our personal purpose must be that of our capital: To create deep blended value through the extensionof living freedom to all beings and elements of the Earth. (pp. 266-267)

Questions for Ref lection

͋͋ In what ways, and with what kind of investments, are you fully present and aware ofyour capital, how it flows, and the impact it is having?

͋͋ How are you currently in relationship with the stakeholders or beneficiaries ofinvestments (whether for-profit or philanthropic investments)? If you do have anexperience of being in deeper relationship with stakeholders or beneficiaries, how hasthat changed your experience? Your perspective on the investment? Your Self? If you
don’t have such relationships, can you think of an opportunity to do so?

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Closing Q uest ion sfor Ref lect ion{{{∞∞ Take time to look back over your question responses and think about all of
the ideas discussed in The Purpose of Capital.
• What were the 3 most significant “a-has”, new ideas, or connections for you? Why?
• What idea(s) were most inspiring or encouraging? Why?
• What idea(s) were most discouraging? Why?
• What idea(s) do you most enthusiastically embrace? Why?
• What idea(s) do you resist or find most challenging? Why?

∞∞ Jed provided several “Purpose of Capital Statements”:• The purpose of capital is to support, augment and energize our freedom toengage in a shared process of continual becoming.

• The purpose of capital is to create deep blended value through the extension ofliving freedom to all beings and elements of the Earth.

What is your purpose of capital? Select or edit one of Jed’s or draft your own.

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∞∞ In the opening chapter, Jed introduced the Cycle of Being and Becoming:

1. V ision of value(material and extramaterial
elements; personal purpose anchoredin community purpose)

CYCLE OF BEING
2. Design an
AND BECOMING 		 integrated strategy

4. Inquire, listen,learn, reflect

3. Execute the strategy

What is your vision of value to guide your own impact investing efforts? Take time toconsider what is important to you—material/quantitative things as well as extramaterial/qualitative things, and to articulate your personal purpose and how it is connected
to community purpose.
After you have developed your vision of value, consider taking time over the coming
weeks and months to design an integrated impact investing strategy—specific steps
you can take to embody your purpose of capital and work toward your vision of value.

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