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Social Impact Bonds and the Perils of Aligned Interests

Author

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  • Florentine Maier

    (Institute for Nonprofit Management, WU Vienna University of Economics and Business, Vienna 1020, Austria)

  • Michael Meyer

    (Institute for Nonprofit Management, WU Vienna University of Economics and Business, Vienna 1020, Austria)

Abstract

Social impact bonds (SIBs) have been welcomed enthusiastically as a new funding tool for social innovation, yet also condemned as an instrument that neglects beneficiaries’ and taxpayers’ interests, opening profit opportunities in the field of social politics for smart private investors. We will shed a more analytical light on SIBs, assuming that, like any contract, SIBs try to align interests between partners with partly converging, partly diverging goals. Thus, it remains mainly a matter of negation, and non-profit social service providers as well as public agencies should avoid particular perils and pitfalls.

Suggested Citation

  • Florentine Maier & Michael Meyer, 2017. "Social Impact Bonds and the Perils of Aligned Interests," Administrative Sciences, MDPI, vol. 7(3), pages 1-10, July.
    • Handle: RePEc:gam:jadmsc:v:7:y:2017:i:3:p:24-:d:104846
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    References listed on IDEAS

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    1. Cooper, Christine & Graham, Cameron & Himick, Darlene, 2016. "Social impact bonds: The securitization of the homeless," Accounting, Organizations and Society, Elsevier, vol. 55(C), pages 63-82.
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    Cited by:

    1. Mario La Torre & Annarita Trotta & Helen Chiappini & Alessandro Rizzello, 2019. "Business Models for Sustainable Finance: The Case Study of Social Impact Bonds," Sustainability, MDPI, vol. 11(7), pages 1-23, March.
    2. Rosella Carè & Francesco Rania & Riccardo De Lisa, 2020. "Critical Success Factors, Motivations, and Risks in Social Impact Bonds," Sustainability, MDPI, vol. 12(18), pages 1-17, September.
    3. Marie J. Bouchard & Damien Rousselière, 2022. "Recent advances on impact measurement for the social and solidarity economy: Empirical and methodological challenges," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(2), pages 253-266, June.
    4. Walker, Thomas & Goubran, Sherif & Karami, Moein & Dumont-Bergeron, Adele & Schwartz, Tyler & Vico, Kalima, 2023. "Mainstreaming social impact bonds: A critical analysis," Finance Research Letters, Elsevier, vol. 53(C).
    5. Scognamiglio, Elisabetta & Di Lorenzo, Emilia & Sibillo, Marilena & Trotta, Annarita, 2019. "Social uncertainty evaluation in Social Impact Bonds: Review and framework," Research in International Business and Finance, Elsevier, vol. 47(C), pages 40-56.
    6. Rosella Carè & Riccardo De Lisa, 2019. "Social Impact Bonds for a Sustainable Welfare State: The Role of Enabling Factors," Sustainability, MDPI, vol. 11(10), pages 1-23, May.
    7. Muñoz, Pablo & Kimmitt, Jonathan, 2019. "A diagnostic framework for social impact bonds in emerging economies," Journal of Business Venturing Insights, Elsevier, vol. 12(C).
    8. Rouault, Julie & Albertini, Elisabeth, 2022. "Reconciling the social sector with external accountability requirements: Lessons from stewardship theory," Journal of Business Research, Elsevier, vol. 142(C), pages 485-498.
    9. Julie RIJPENS & Marie J. BOUCHARD & Emilien GRUET & Gabriel SALATHÉ-BEAULIEU, 2020. "Social Impact Bonds: Promises versus facts. What does the recent scientific literature tell us?," CIRIEC Working Papers 2015, CIRIEC - Université de Liège.
    10. Dyi-Cheng Chen & Der-Fa Chen & Shih-Ming Huang & Mu-Jung Huang & Wen-Jye Shyr & Chien-Fu Chiou, 2021. "Critical Success Factors to Improve the Business Performance of Tea Drink Chains," Sustainability, MDPI, vol. 13(16), pages 1-15, August.

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