The Role of Impact Inscription in Shaping Moral Markets: Insights from Spain's Impact Investing Sector

Abstract

This study investigates the role of impact inscription in shaping moral markets, with a particular focus on Spain's impact investing sector. By embedding principles, objectives, and values into measurement tools, market practices are transformed to address social and environmental challenges. The research explores five key dimensions: defining moral market boundaries, accounting for social issues, governance structure redefinition, market emergence influence, and the challenges associated with impact washing. Employing a qualitative methodology, the study analyzes data collected over six years through interviews, observations, and document analysis to uncover the mechanisms of impact inscription. Findings reveal that clear boundary-setting, integrated social accounting, adaptive governance models, strategic market growth initiatives, and robust impact measurement frameworks contribute to enhanced trust and legitimacy in moral markets. The study concludes that impact inscription serves as a critical driver for evolving market dynamics, yet challenges remain in standardizing measurement frameworks and mitigating impact washing. Future research should explore these dynamics in diverse contexts using mixed methodologies to broaden understanding and applicability.