The quote expresses skepticism about the effectiveness of impact investing as a means to influence corporate behavior. John C. Bogle suggests that when an investor sells shares to another, it often goes unnoticed by the company itself, making any attempt to communicate social or environmental values through investments feel futile.
Bogle's deeper concern lies in the disconnect between investors' intentions and their ability to convey these intentions effectively within companies. Impact investing aims to drive positive change beyond financial returns, but Bogle argues that the process of buying and selling shares does not necessarily reflect an investor’s ethical stance to those who run the company. He implies that for impact investing to be truly impactful, it needs a more direct way to communicate with corporate leadership about their values and expectations regarding social or environmental issues.
John C. Bogle is a renowned American investment management pioneer and founder of The Vanguard Group, one of the world's largest mutual fund companies. Known as "The Father of Index Funds," he was instrumental in democratizing access to low-cost index funds for individual investors. His insights into the financial industry, including the effectiveness of various investment strategies like impact investing, are highly regarded for their clarity and practicality.
