One of the great opportunities of the 21st century is the realisation of an impact economy: an economy in which work, entrepreneurship, innovation, and technology engender a better world. This requires a market economy that is driven by a wide definition of value and by making positive impact for society at large.
An impact economy harnesses the power of markets and technology for the common good. It enables all to pursue a good life and creates value for every person, now and in the future. An impact economy is sustainable, circular and inclusive and is the best way to achieve the Sustainable Development Goals (SDGs) by 2030.
We need to transition from a financial economy to an impact economy
Unfortunately we are not remotely on track to reach the SGDs. There are still a billion people living in poverty, while we are driving one million species to extinction and the climate out of sync. There is one fundamental reason for this: We currently have a financial economy which is centered around self-interest and which defines value as financial value. Hence, our economic system encourages individuals and organizations to steer on self-interest and ignore their wider impact – ’external effects’ – on society.
In order to maximize societal value we need to redefine value and take into account all stakeholders. In an impact economy value is defined as the creation of long term well-being for people in a balanced way that respects human rights.
The Impact Economy Foundation (IEF) is a non-for-profit organisation and was founded to accelerate the transition to an impact economy. In order to achieve this IEF challenges conventional economic ideas, institutions and interests in order to shape an impact economy. The work of the IEF is based on prior open source work of Impact Institute and True Price.