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Until now, at least 50 parents have been indicted in a mbadive corruption scandal at a higher education institution.Flickr
Yesterday, William E. "Bill" McGlashan Jr., founder and managing partner of the TPG growth fund worth $ 13 billion, was indicted. scandal of elite colleges. He was particularly noted for his dedication in recorded phone calls regarding his efforts to buy a slot at USC for his child for $ 250,000. The tactic used by the leader William Singer was: photoshop the son of McGlashan look like a football kicker worthy of recruitment – despite the fact that his son's high school did not have a football team.
McGlashan has recently gained notoriety as a promoter of impact investments. The Rise Fund, an initiative he co-founded under the aegis of TPG, raised more than 2 billion dollars interventions to combat poverty and climate change around the world.
The fact that McGlashan was a supporter of ethical investing raised a number of profound questions for the sector and the general public. Does the exercise of your uncontrolled privileges in the world make you less ethical – unlike whether your actions are illegal or not? Should ethical investment promoters be held to a higher standard with respect to their personal ethics? Do you need an irreproachable ethic to be a good impact investor?
Having spent 18 years in the impact investing industry, and having interacted with all types of investors, I would argue that impact investors should not be held to higher standards. Investors are and should be required to respect fundamental ethical standards. But these "basic ethical standards" must be considered far beyond simple legal norms.
It is too easy for us to read this story and say, "I would never do something so outrageous or illegal," write lessons on the investment of Impact in general or simply to crush The Rise Fund and the many qualified ethical professionals who: also played a crucial role in its formation. The opportunity here is for all of us to think more critically about how we hold and share power.
Ethics also involves recognizing the way in which those of us who have privileges – whether because of social clbad, race, gender identity, the Sexual orientation or intersections between them – may be complicit in the exploitation of others by fully legal means. Like this New York Times editorial wisely pointed out, rich people have always legally worked the system when it comes to access to elite education – Charles Kushner goes on to make a $ 2.5 million pledge to Harvard at the time of his son, the confession of Jared Kushner, Trump's son-in-law, comes to my mind. This recent case is simply a more extreme version of what we have always known to be true, and what we – the favored clbad of investors generally favored economically – tend to replicate when we make investment decisions with an uncontrolled privilege.
As I wrote in Real Impact, "it is very easy to replicate the mistakes of the past, because the conventional financial system automatically gives us the power – and even the encouragement – to make the wrong decisions." This is perfectly acceptable, and quite legal, to many impacts. investors must celebrate job creation at $ 7.25 an hour, while business owners earn $ 50 on this job, because this salary is "enough for these people". Is it ethical? It is considered reasonable to charge a woman a 300% interest on a micro-credit because her best alternative was that of the local lender at 1,000% …. do ~ 250x on the IPO of the micro-credit provider. Is it ethical? In general, the imbalanced relationship between capital and privilege often leads investors to take advantage of vulnerable people who are desperate for alternatives in a completely legal way. They can even be thanked for doing it.
Conversely, doing what is legal is not always synonymous with doing what is most ethical. Investment is a regulated sector, so all advisors and managers are required to abide by the law, both in their personal and professional lives. The problem I have with regulating impact investment managers and respecting the law is that it limitations our activism and our ability to engage in civil disobedience – as Martin Luther King said in Letters from a Birmingham jail, "we have the moral responsibility to disobey unfair laws. "
Sometimes a little more ethical and a little less unfair, law-abiding, might actually be the best posture for impact investors. Civil disobedience can be crucial as we seek to support front-line communities who literally put their bodies at risk during public events and push the boundaries of society for the way we treat people and the planet. .
I would say that we could ALL be more ethical and, more critically, more effective for impact investors by examining our preferred individual relationships. What are your sources of privilege? What impact do they have on relationships with those you hope to benefit? What are the benefits of financial systems that you might want to give up, to enhance your social impact? What ways can you verify your privilege, especially when it comes to creating investments that add value rather than extracting them from communities?
McGlashen himself noted,& nbsp; "Capitalism is not as immoral as amoral. It must be managed and directed so that we can all know what we are doing when we are creating businesses and investing capital. "I totally agree with him. on this point, and would challenge him – and all of us – to significantly raise the bar in matters of ethics.
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Until now, at least 50 parents have been indicted in a mbadive corruption scandal at a higher education institution.Flickr
Yesterday, William E. "Bill" McGlashan Jr., founder and managing partner of the TPG growth fund worth $ 13 billion, was indicted. scandal of elite colleges. He was particularly noted for his dedication in recorded phone calls regarding his efforts to buy a slot at USC for his child for $ 250,000. The tactic used by the leader William Singer was: photoshop the son of McGlashan look like a football kicker worthy of recruitment – despite the fact that his son's high school did not have a football team.
McGlashan has recently gained notoriety as a promoter of impact investments. The Rise Fund, an initiative he co-founded under the aegis of TPG, raised more than 2 billion dollars interventions to combat poverty and climate change around the world.
The fact that McGlashan was a supporter of ethical investing raised a number of profound questions for the sector and the general public. Does the exercise of your uncontrolled privileges in the world make you less ethical – unlike whether your actions are illegal or not? Should ethical investment promoters be held to a higher standard with respect to their personal ethics? Do you need an irreproachable ethic to be a good impact investor?
Having spent 18 years in the impact investing industry, and having interacted with all types of investors, I would argue that impact investors should not be held to higher standards. Investors are and should be required to respect fundamental ethical standards. But these "basic ethical standards" must be considered far beyond simple legal norms.
It is too easy for us to read this story and say, "I would never do something so outrageous or illegal," write lessons on the investment of Impact in general or simply to crush The Rise Fund and the many qualified ethical professionals who: also played a crucial role in its formation. The opportunity here is for all of us to think more critically about how we hold and share power.
Ethics also involves recognizing the way in which those of us who have privileges – whether because of social clbad, race, gender identity, the Sexual orientation or intersections between them – may be complicit in the exploitation of others by fully legal means. Like this New York Times editorial wisely pointed out, rich people have always legally worked the system when it comes to access to elite education – Charles Kushner goes on to make a $ 2.5 million pledge to Harvard at the time of his son, the confession of Jared Kushner, Trump's son-in-law, comes to my mind. This recent case is simply a more extreme version of what we have always known to be true, and what we – the favored clbad of investors generally favored economically – tend to replicate when we make investment decisions with an uncontrolled privilege.
As I wrote in Real Impact, "it is very easy to replicate the mistakes of the past, because the conventional financial system automatically gives us the power – and even the encouragement – to make the wrong decisions." This is perfectly acceptable, and quite legal, to many impacts. investors must celebrate job creation at $ 7.25 an hour, while business owners earn $ 50 on this job, because this salary is "enough for these people". Is it ethical? It is considered reasonable to charge a woman a 300% interest on a micro-credit because her best alternative was that of the local lender at 1,000% …. do ~ 250x on the IPO of the micro-credit provider. Is it ethical? In general, the imbalanced relationship between capital and privilege often leads investors to take advantage of vulnerable people who are desperate for alternatives in a completely legal way. They can even be thanked for doing it.
Conversely, doing what is legal is not always synonymous with doing what is most ethical. Investment is a regulated sector, so all advisors and managers are required to abide by the law, both in their personal and professional lives. The problem I have with regulating impact investment managers and respecting the law is that it limitations our activism and our ability to engage in civil disobedience – as Martin Luther King said in Letters from a Birmingham jail, "we have the moral responsibility to disobey unfair laws. "
Sometimes a little more ethical and a little less unfair, law-abiding, might actually be the best posture for impact investors. Civil disobedience can be crucial as we seek to support front-line communities who literally put their bodies at risk during public events and push the boundaries of society for the way we treat people and the planet. .
I would say that we could ALL be more ethical and, more critically, more effective for impact investors by examining our preferred individual relationships. What are your sources of privilege? What impact do they have on relationships with those you hope to benefit? What are the benefits of financial systems that you might want to give up, to enhance your social impact? What are the ways to verify your privilege, especially when it comes to creating investments that add value rather than extracting them from communities?
McGlashen himself noted, "Capitalism is not as immoral as amoral. It must be managed and directed so that we can all know what we are doing when we are creating businesses and investing capital. "I totally agree with him. on this point, and would challenge him – and all of us – to significantly raise the bar in matters of ethics.
