An Examination of Social Impact Bonds from a Thomistic Viewpoint

Alexander, Jessica

An Examination of Social Impact Bonds from a Thomistic Viewpoint

dc.contributor.advisor	McDaniel, Charles
dc.contributor.author	Alexander, Jessica
dc.contributor.department	Finance.	en_US
dc.contributor.other	Baylor University.	en_US
dc.contributor.other	n/a	en_US
dc.contributor.schools	honors college	en_US
dc.date.accessioned	2020-05-29T12:35:24Z
dc.date.available	2020-05-29T12:35:24Z
dc.date.copyright	2020-05-11
dc.date.issued	2020-05-29
dc.description.abstract	The social impact bond (SIB) is a recent innovation which attempts to bridge the gap between private financial markets and charitable causes. The SIB is a financial instrument intended to raise revenue for a charitable cause while supplying an equitable return for investors. In practice, many SIBs have fallen short of economic ideas of justice expounded by Thomas Aquinas centuries ago. This thesis surveys the St Mungo’s and Goldman Sachs Utah SIBs which were set up with the laudatory goals of reducing homelessness and promoting preschool literacy yet have disappointing results. Both used simple performance metrics to calculate financial payouts which had the effect of reducing people to numbers on a spreadsheet. In particular, the St Mungo’s SIB had little benefit for their homeless clients, while providing an ample return for investors. To Aquinas, these bonds would be deemed unjust because they did not serve their clientele well, and more seriously, lacked “regulated self-control” as they put profits before people. In contrast, the Denver Homelessness SIB is discussed that was set up by the city to reduce homelessness. The payout scheme was simple and unambiguous as the city would pay an amount for each day a “rough-sleeper” was in stable housing. This SIB fulfils the Thomistic ethic by being fair to both its clientele and investors. In all, SIBs can live up to Thomistic virtues, but must be constructed carefully so their charitable aim is not lost by reductionist payout methods.	en_US
dc.identifier.uri	https://hdl.handle.net/2104/10929
dc.language.iso	en	en_US
dc.rights	Baylor University projects are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. Contact libraryquestions@baylor.edu for inquiries about permission.	en_US
dc.rights.accessrights	Worldwide access	en_US
dc.subject	An Examination of Social Impact Bonds from a Thomistic Viewpoint	en_US
dc.title	An Examination of Social Impact Bonds from a Thomistic Viewpoint	en_US
dc.type	Honors Thesis	en_US