The Purpose of Capital: Elements of Impact, Financial Flows and Natural Being by Jed Emerson is a truly unique exploration of how investors may act with deeper consideration of the meaning of money, connecting how we think about finance with how we think about our lives, world, and ultimate personal purpose and impact. Having produced seven books on the “how” of social entrepreneurship and impact investing, Emerson now turns attention to the “why,” placing investing within historic and philosophical context and grounding impact investing within a more complete consideration of why we should invest in system change. The book explores the historic roots of our understanding of capital, investing, and wealth management, connecting centuries of reflection across cultures and traditions to lessons that may benefit investors today.
Why it matters: Pur focus on investing as finance alone has taken us down the wrong path—and even investors seeking to “do well and do good” have fallen prey to the notion that financial return is the main driver for creating impact in the world. By not pursuing deeper exploration of capital’s purpose, we leave extra-financial value on the table, missing opportunities to fully integrate purpose with profit while falling short of our potential to benefit a broader set of stakeholders, including the environment, communities, and our own personal development. The book details how the true purpose of capital is not simply to generate more capital but to serve as fuel for individual freedom within the context of community and Earth, offering the potential to transform ourselves as investors and individuals.
