Bias in Impact Investing
SPARQ faculty co-directors Jennifer Eberhardt and Hazel Markus hosted a SPARQ Research Clinic with a diverse group of faculty, investors, and professionals focused on the role of bias in impact investing. Impact investing refers to investments that generate social and environmental impact, in addition to financial returns.
At the clinic, the group discussed the following questions:
- How might certain racial cues (e.g., names, body language) trigger bias toward minority entrepreneurs among venture capitalists?
- How can we measure this bias, if it exists, and what can we do about it?
- What is the lost financial opportunity that bias creates?
- Are impact investors more or less likely to hold bias relative to traditional investors? How might their biases differ?