Impact investors are powerful people and institutions seeking to invest in companies that want to make a positive difference. If companies are driven by purpose, they’re more likely to attract these impact investors.
Limiting investor power:
Companies can limit investor power by issuing two classes of shares, as seen with Facebook. This means that founders hold the reins at the company and can never be outvoted. However, to reform the worst parts of corporate finance and the short-term perspective it encourages, changes in legislation and cooperation between companies are needed.