The ‘Invisible Heart’ of the Market: The Moral Management of Impact Businesses as Exemplary Enterprises

Abstract

This paper discusses the impact businesses, which are based on the premise that it is possible (and desirable) to solve social problems in a profitable way by generating positive social impact. Analyzing one of its privileged devices, the theory of change, and the social accountability for its achievement, I discuss how they seek — and, in part, how they achieve — social effectiveness, that is, moral effectiveness, for their existence and practices. I argue that they are built as exemplary enterprises, which, according to the actors engaged in them, pragmatically demonstrate what can and should be done to solve social problems from businesses.