Deepening Impact through a Participatory Due Diligence Process

Abstract

Impact investing can create a disconnect between the needs of the people that an investment means to serve and the intentions of the investor. Based on work carried out in partnership with the Impact Investment team at the Open Society Foundations, this Brief presents emergent lessons for investors conducting their due diligence on prospective deals (both equity and indirect investments) in a participatory manner. The focus is on incorporating the voice of those who impact investment seeks to serve – producers, employees, consumers and other stakeholders in the wider community – within due diligence. A process of structured engagement with these actors through the due diligence process can lead to deeper, more meaningful social impact on the ground.