December 21, 2020 | Documents

IMD’s Professor and E4S member Vanina Farber and Dr. Peter Wuffli, founder of the elea foundation, offer practical advice in their new book on how inclusive capitalism can address absolute poverty.

Impact investing has become mainstream. The desire to link investments to social goals is no longer a buzzword for do-gooders, but a daily reality for industrial companies, international banks, insurers and fund managers. Yet as globally active companies find themselves increasingly confronted by demands for greater probity and proof they are good corporate citizens, the requirements for valid environmental, social and governance (ESG) policies have spiralled.

The authors argue that, instead of a binary choice between Bad Business or Good Society, we need ‘inclusive capitalism’ – an impact-orientated capitalist philosophy that taps into growing international interest in social entrepreneurship and impact investing. elea started with an initial 20m CHF foundational capital from Peter’s family, and since then, raised significant additional philanthropic capital from entrepreneurial families, foundations, and companies. After 15 years of experience, elea’s track record shows how private capital can help impact entrepreneurs realize their potential.

The elea way demonstrates how social entrepreneurship and impact investing can go hand in hand and contribute to a more inclusive capitalism, creating innovative solutions to global challenges, as E4S is equally committed too.  

Find out yourself in the short videos below about the authors’ motivation and innovative approach to philanthropic impact investing.

About the book & authors:

The elea Way: A Learning Journey Towards Sustainable Impact.

Vanina Farber, PhD, is an economist and political scientist with twenty years of teaching, researching, and consultancy experience. She holds the elea Chair for Social Innovation at IMD. Previously, Vanina was Dean of the Graduate School of Business and Associate Professor at Universidad del Pacífico in Peru.

Peter Wuffli, PhD, is a senior leader and entrepreneurial philanthropist. He is the Founder and Chairman of elea Foundation for Ethics in Globalization and the Honorary Chairman of IMD. Previously, Peter was a partner at McKinsey & Company, the CEO of UBS Group, the Chairman of Partners Group, and of IMD. In 2015, he published the book Inclusive Leadership.

What was your motivation to go into philanthropy after decades in consulting and banking?

Why impact investing, how has it started and what was your ambition?

How do you see this space evolving, and what are major challenges? 

How is impact investing defined in academic terms, and how is it applied in elea ?

What are your recommendations for readers, entrepreneurs, investors, business leaders, scientists ? 

Vanina Farber, IMD

Peter Wuffli, IMD