Stanford Social Innovation Review : Informing and inspiring leaders of social change

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Rolling Corporate Justice

New mechanism allows private investors to back socially responsible startups

 

You want to start a small, socially responsible business that aims to donate its profits to charity. You need to attract investors so that you can grow, generating profit for your cause, but why would anyone want to invest in a startup company that gives away profits? Not only is it a highly risky investment with little promise of return, but an investment in a for-profit company also can't be written off as a charitable deduction.

This was the dilemma faced by John Sage, president...


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