Profit-with-purpose investment is a term, recently coined, to describe the increasingly popular investment strategy of investing in companies whose focus is on positive social or environmental impact as well as profit.
It is important to understand that that profit-with-purpose investments do not favour purpose over profit, but rather profit-with-purpose investors consider the ‘purpose’ side as synergistic with generating profit i.e. a company’s focus on purpose is helpful to their overall focus on generating profit and strong financial returns on capital invested to investors.
As such, profit-with-purpose investment is synonymous with impact investment and socially responsible investment (SRI).