Review of Citi Impact Investing Fund article by Yutong (Erica) Wu, ESG | Impact Investment Intern, Georgetown University.
My review of Income Inequality, Record Bank Profits and the Citigroup Impact Investing Fund follows.
Business, government, and technology are three forces driving a society's sustainable development forward. Specifically, by providing equity funding to minority and women-owned businesses, Citibank is providing a practical solution to supplement traditional economic tools driven by the public sector, government, and international institutions.
These tools, like income redistribution (tax), regulation, and international initiatives, are no longer enough to eliminate social inequality, particularly income inequality, that are as a result of social division, history, culture, and social stereotypes from last century.
One "side concern" that comes with the growing trend that businesses take responsibility for social or environmental issues is that, instead of focusing on the issue itself, some businesses may treat this responsibility as a marketing tool. This is the reason some people question the "real impact" that businesses - in this case, Citi - could generate.
We believe we need more reliable methods that measure and evaluate the flow and impact of the funds provided by Citi and other financial institutions.
Yutong (Erica) Wu, ESG | Impact Investment | Environmental Sustainability, Master in Public Policy, McCourt School at Georgetown University.