Purpose Impact investment is an emergent field worldwide and it can play an especially important role in Africa. The aim of this study was to examine how impact investors in South Africa manage the tensions between financial returns and social impact. Design/methodology/approach The research was based on 15 semi-structured interviews with key stakeholders in the impact investment community in South Africa to understand the related challenges, trade-offs and tensions. Findings There are two opposing views expressed as to whether the tensions between financial return and social impact result in trade-offs. It is proposed that impact investors embrace this duality and seek to approach it through a contingency and a paradox view. The tensions can be approached by focussing on values alignment, contracting processes, engaged leadership and sector identification. The authors integrate the findings into a proposed framework for effective tension management in an impact investment portfolio. Research limitations/implications This study was limited to selected South African interviewees. It would be valuable to extend the study to other African countries. Practical implications The issue of values alignment between investors, fund managers and investee firms is an important finding for practice. As is the four-part iterative framework for sensing the operating environment, defining impact, organising internally and defining the investment approach. Originality/value This study contributes empirical evidence to scholarship around organisational tensions, especially work in hybrid organisations. It affirms the value of a nuanced application of paradox theory. It examines these tensions through the lived experience of impact investing professionals in an emerging market context.

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Firms face increasing societal pressures to act responsibly towards stakeholders, and community engagement is a key element of this response. While Bowen, Newenham-Kahindi and Herremans (2010) have found that community engagement strategies fall into the transactional, transitional and transformational categories, more research is needed. Nineteen semi-structured interviews were conducted with CSR practitioners, community beneficiaries and external experts across three companies from different sectors and geographically-associated South African communities.Barriers to and enablers of transformational community engagement are identified and compared with points made in the literature. Prominent barriers identified include community expectation; the internal capacity of the company to engage properly with communities; and, according to a new finding in the literature, community educational levels. The most prominent enabler of engagement was relationshipbuilding. Companies with dedicated CSR practitioners are able to engage more in the community. Regulatory dynamics are found to largely determine the differences across sectors. But there is the risk that engagement is symbolic rather than substantive. Eleven higher-order antecedents to transformational community engagement are then identified. A newly developed firm-oriented decision-making model is proposed for moderating these antecedents. The findings in the community and national context provide granular insight into an African operating environment.