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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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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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...

Triple Bottom Line

Working Definition

Traditionally the "bottom line" refers to a business's profits, but a "triple bottom line" enterprise operates using a three-fold measure of success: profit, people and planet. This is a broader framework to measure enterprise success. Enterprises d...

Program-Related Investments

Working Definition

Program-Related Investments, or PRIs, are a special type of investment that foundations can make. By statutory definition, foundations need to make the investment primarily for mission-oriented purposes (as opposed to generate a financial return) and...

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...

Social Impact Bond

Working Definition

A social impact bond, or SIB, is a tool for implementing or scaling social programs. The goal of a SIB is to make the government more efficient in carrying out social programs by having impact investors and philanthropies take on the financial risk o...

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