Intangible economy : How can investors deliver change in businesses? Lessons from nonprofit-business partnerships

Abstract

Investors traditionally prioritised tangible outcomes (money, land, machinery) in order to protect their financial assets. However, the intangible economy (trust, human resources, information, reputation) that co-exists draws attention to new expectations that request the continuous, active and within the public sphere involvement of investors in order to protect their assets by prioritising intangible resources. The paper argues that investors in intangible outcomes who aim to achieve change in corporations share the same limitations within the financial and non-financial field. The case of Nonprofit-Business Partnerships is employed in order to demonstrate how change can be achieved. The role of investors is crucial in facilitating the shift from the tangible to the intangible economy. Investment in the intangible economy is a mechanism of co-determining the priority of responsibilities in the context of corporate social responsibility