The Good, the Bad & the Ugly - an exploratory study of impact investors’ perceptions of impact, return and risk.

Abstract: In consumer research, the decision-making process of ethical investors has foremost been studied in the context of ESG- and SR investments. However, little attention has been paid to the new breed of ethical investments; impact investments. Impact investments are characterized by a dual return of financial and sustainable nature, where the consumer invests in an impact organization due to its pro-social, or environmental, beliefs. The impact investor’s investment behavior is however challenged by dimensions such as perceived risk, trust, financial return and perceived consumer effectiveness (PCE), presenting the impact investor with ethical dilemmas. The study at hand presents three themes of impact investors; the Investing Philanthropist, the Experienced Investor and the Indecisive Investor, each showcasing different perceptions of the risk-return-impact continuum associated with impact investments, resulting in a new terminology referred to as perceived impact risk.