Chapter 6 - Private Investors in the Public Interest?

Summary

Although private actors are generally depicted as profit maximizers with little concern for social impact or inclusion, this chapter shows how this assumption can be relaxed with the emergence of private owners with socially oriented preferences. Yet the chapter also acknowledges that such owners may not accept the inherent financial trade-offs in activities with critical service attributes or that target highly vulnerable beneficiaries. Private investors may also misrepresent their social contributions, leading to what is known as the practice of greenwashing. The chapter concludes by reinforcing the importance of corporate owners as ultimate decision makers pursuing and supporting socially oriented strategies that reduce the potential hazards of private delivery.