Impact Investing and SDG 10: Reducing Inequality Through Ethical Finance managerial framework for inclusive economic development

Abstract

Investing to make a social change has become a revolutionary process of investing in a social good and guaranteeing its sustainability under the financial returns. Such activities in ethical finance practices will enable inclusive economic growth through the fulfilment of the Sustainable Development Goal (SDG) 10 of the United Nations which underlines the reduction of inequality within and among countries, which varies in terms of income, access, and possibilities. In the development of a managerial framework in this paper, impact investing and ethical finance principles are joined in a bid to curtail inequality by embracing inclusive strategies. A review of the existing literature, the analysis of the available models, and the technical design of a systematic approach allow highlighting in the study how organizations, investors, and policymakers can use capital flows to enable marginalized communities, increase financial inclusion, and support the growth of equitable communities. Its use in the inequalities of income distribution, education, healthcare, and digital access is highlighted by results and discussion, as there is the potential of this framework in dealing with inequality. Nevertheless, challenges like non-uniform regulatory frameworks, uneven measures of impacts and limited lines to scale in developing countries are still operating as hurdles. Further studies are necessary to develop uniform measures of social impact evaluation, deeper cross-border cooperation, and mechanisms of transparency underpinned by technology, in order to scale impact investing to promote SDG 10.