Concepts

Many of the concepts in our field are evolving rapidly, so we want you to use this page as a forum to define and discuss them. Please feel free to get involved in the conversation.

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Blended Value

Working Definition

The idea that the value created by an organization is fundamentally indivisible. Thus, one cannot speak of simply "economic value", "social value" or "environmental value"—these quantities are simply parts of one essential value.   From the book b...

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Capital Investment

Working Definition

According to Investopedia, capital investments are "funds invested in a firm or enterprise for the purposes of furthering its business objectives." This could include acquisition of fixed assets such as manufacturing plants and machinery that is expe...

Enterprise

Working Definition

An enterprise is an organization of people, money, and expertise coming together to create something of value— typically goods and services. Sometimes the value being produced has a market demand with a high enough dollar value to allow that enterp...

Examined Portfolio

Working Definition

An "examined portfolio" is one that has been examined for its social performance (whether intended or actual, and understanding the limitations of currently available social impact data). For foundations, examining our portfolios is an extension of f...

Fiduciary Duties: Care

Working Definition

The fiduciary duty of care is the responsibility of the fiduciaries of an enterprise (that is, its directors and officers) to act in the same manner as a reasonably prudent person in their position would. This legal obligation is satisfied if they ex...

Fiduciary Duties: Loyalty

Working Definition

The fiduciary duty of loyalty is the responsibility of the fiduciaries of an enterprise (that is, its directors and officers) to act without personal economic conflict and to keep private the organization’s confidential information. 

Fiduciary Duties: Obedience to Mission

Working Definition

The fiduciary duty of obedience to mission is the responsibility of fiduciaries of an enterprise (that is, its directors and officers) to ensure that the mission is being fulfilled and that their material actions are consistent with the mission and v...

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Good Job

Working Definition

Heron defines a good job as employment that ameliorates poverty; specifically, it is employment that facilitates reliable and stable access to basic goods and services, usually through wages and benefits. What constitutes a "good job" from the point ...

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Impact Investing

Working Definition

All investing is impact investing. All enterprises, regardless of tax status, produce both social and financial results on a spectrum from positive to negative, including neutral. The financial and social performance of enterprises is measureable and...

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