The New Gold Standard

Reading between the lines, it seems that the world, while looking for the new gold standard is nervously holding onto the old.

If I expand my view from this article to the entire internet business section and read between the lines, it seems that the world has found the new gold standard but is nervously adopting it a little bit at a time. Nervous because it's new. Adopting it because it's value is clear.

The new gold standard is adopting a sustainable business strategy on a foundation of strong ethics and principle.

http://mobile.nytimes.com/2014/12/07/sunday-review/the-golden-age.html

Why Companies Are Turning To Meditation And Yoga To Boost The Bottom Line

Mark Bertolini, CEO of Aetna says, "profit is not the goal, profit is the output of a mission driven organization that delivers a consistent product to their customers".  Mr Bertolini fuels this mantra with a personal yoga practice, and a company wide yoga offering.  And per the attached article Promega and others are doing the same thing...successfully boosting their bottom line with yoga and meditation.

http://www.huffingtonpost.com/2013/07/11/mindfulness-capitalism_n_3572952.html

Corporations are our role models

Some believe that we choose our parents. If you don't believe that you must certainly agree that we choose the people that we look up to.  Be it a boss, a mentor, a teacher, a friend or perhaps someone famous.  We choose who influences the way we act and how we think.

Every day, in every way we choose to be influenced by the corporations of the world and in turn corporations help to shape the way we act and think.  Today's technology makes that quite obvious...think iPhone, or Facebook, or Google.  Go back 100 years and think Ford.  Now settle into all the less obvious companies that are part of our lives every day.  Perhaps its the company we work for, or the company with which we partner, and its certainly the companies who manufacture and distribute all the stuff we depend on, from food to fun, clothes to cars, travel to technology.

It seems that choosing the companies that shape our lives is as important as choosing a mentor.

Now lets flip the coin.  Do companies realize their position as role model in this world?  Executives must focus their attention on their impact.  Yes, environmental impact is important, as is social impact. But also the realization that they have a more subtle effect on peoples lives, and that through the matrix of commerce, consumption and corporate structure the general population emulates the behavior of those who run the worlds' corporations.

Tweet from Cerulli

9/8/14, 8:10 AM PR Nearly 90% of Managers View Increasing Attention to Environmental, Social & Governance Strategies as Secular Trendbit.ly/1nwF8sl

 

Does our business look like a big dam?

The mythical giant half snake/half fish...Nyaminyami...is what the Tongan people believe is the god and protecter of the Zambezi River basin.  The building of the Kariba Dam in the 60s angered the Nyaminyami who retreated to the dam gorge from where he unleashed his wrath.  The Tonga people have lost their power and identity, many people have died in the building and subsequent floods, to this day the dam's infrastructure is in danger of failing and the economic backlash arguably contributed to crippling the entire "bread basket of Africa"(the country of Zimabawe).

Or...building dams is just bad business.  As a youngster living in war torn Zimbabwe, I was always intrigued by Kariba and since then I've always been intrigued by dams, wondering if they are indeed good or bad.  As this article suggests, they are bad.  They are industrial ventures that are on the other end of the SEA spectrum.  Communities are destroyed, as is the environment and when its all said and done, their financial strength is  model for what not to do in an economics 101 class.  The heavy loans, social and environmental loss are covered in a shroud of corruption, and "energy for the people" marketing.

Big dams is not SEA business and big dam boardrooms should turn their attention to alternatives for the sake of their own sustainability.

http://www.nytimes.com/2014/08/24/opinion/sunday/large-dams-just-arent-worth-the-cost.html?module=Search&mabReward=relbias%3Ar%2C%7B%221%22%3A%22RI%3A7%22%7D

Corporate Responsibility is here to stay...

Because...."The costs to business and society of getting it wrong and the benefits of getting it right are increasingly apparent"

http://www.theguardian.com/sustainable-business/blog/five-trends-corporate-social-responsbility-global-movement 

Introducing the SEA fund

Over $1 trillion is invested in 720 socially responsible (SRI) Funds. That is up from $200 Billion in 260 SRI funds just 7 years ago.

 After 15 years of working in the financial services industry and four years of working with humanitarian and environmental NGOs, last year it struck me that sustainable and responsible investing is not a gimmick or a fad, but a potentially lucrative way to invest.  I realized that running a company is an expanded version of how we run our personal lives, and that when we live a sustainable lifestyle, it becomes more abundant. 

 So I began the research and I started to find qualitative and quantitative research and meta-analytical experience fortifying this theory. Which led me to the SRI investment industry and I was happy to find a trillion dollars invested in companies with socially and environmentally responsible management.  But as I started to examine the holdings within these funds, the screening process seemed to fall apart, and I was finding companies that were clearly producing unhealthy products, or complicit in ravishing the environment.  One of the most prominent SRI funds goes as far as write the following in their research disclosure...."we may determine that a security is eligible for investment even if a corporation’s profile reflects a mixture of positive and negative social and environmental characteristics.”

 I have whittled down the the hundreds of funds to only two that seem to follow a strong SRI screening process.  Highwater Global, which is an in-house fund run by Baldwin Brothers with $37 million under management and Portfolio 21, which is an open-end mutual fund with $500 million under management. So why so few? Consensus is that it comes down to distribution.  An SRI fund with strict screening will not fall into any existing benchmark or asset allocation, so there is nothing to compare. Performance may trail any given benchmark in the short term.  But as both Highwater and Portfolio 21 have shown that over the long term, they start to run closer to the broad market, if not out-perform. Fund administration costs and high fund employee compensation expectations are most likely another obstacle. 

 But there is clearly a market for an SRI fund that seeks to invest in companies that do not compromise social and environmental awareness when making strategic decisions… companies that strategize for the long term.  From high profile executives like the leaders of Facebook, Google, Whole Foods, Virgin, Patagonia, Tesla et al, to college graduates who feel strongly about the importance of SRI practices, encompass a broad, wealthy and influential market who are passionate about investing in their future.

Our mission is to place a spotlight on the paradigm of human and environmental interdependence. To provide an environment where people can participate in the mission while also enjoying its benefits. How we use our money is an expression of the energy we wish to extend to the world and a direct correlation to what we get back. An investment fund is an active vehicle, which can lead and teach, connect like-minded people, provide objectivity and improve the lives of investors, and simultaneously offer opportunity to under served and under resourced segments of the community.

Money is Power...be conscious how we use our power!!

Consider this...money is the expression of our power.  Where do we invest our power???

Money represents how we use our power, how we respond to power.  How we use money represents our priorities.  If we spend money on someone, whether we are buying them a gift, buying them a meal, perhaps even buying ourselves a new outfit to wear when we see someone...we are we subtly asserting our power.  How about when someone spends money on us, do we feel a bit vulnerable, or that we owe that person - that they have power over us?

If this at all rings true, expand it into the big picture.  Consider what we really want to accomplish - which most likely will include making more money.  Perhaps we want a new car, to run a marathon, to loose weight, to get a promotion or have our own company, to provide for our family, to have our preferred political party elected,  to mend a relationship, to preserve a beautiful piece of nature, to give food to a homeless person, to wake up in the morning with no anxiety, to be seen by others as worthwhile, an investment in our future.  Where and how do we spend our money and where do we resist.  

Take a few minutes to careful consider whats really most important to you and how it aligns with money.  Are there places where you can re-allocate spending, or perhaps take the "conditionality" out of spending and receiving.  How can you best invest in your future and the future of the people around you who matter most?

 

Looking for a better Return on Investment?

If we want to prepare for a marathon, we run a few times a week.  If we want to prepare to be a singer, we exercise our voice.  If we want to make any part of our functionality better, we train...we practice.  What do we do if we want our mind to perform better, to make make smarter, more effective decisions/choices...we must train, we must practice.  This article is not new news, its old news but how many of us train our brains, how many of us practice for making smarter choices?  

We have to be careful what we practice...we will get good at it!!!

http://www.newyorker.com/books/page-turner/meditation-for-strivers

The tide is rising!!!

The most interesting thing about this article is that it is the most emailed New York Times article today,  in an edition of the paper covering a terrible war, a frightening plane crash and a stock market charging through an all time high.  And yet the the article that people find the most appealing, the one we want to share most is about how we become the happiest by being social, by giving our time and energy to others.  Im sure few would argue that the free market is designed by us as a tool to attain happiness, and that seems to be our intention in using it.  When the dust settles though we quite often find that we have over-used the free market and have gone speeding past out happiness zone.  To get back there usually requires us to be more attentive to our family, friends and community, to live with all of their best interests in our mind.

In 50 years of ruling Spain the Caliph of Cordoba enjoyed loyal subjects, fearful enemies, respect honor, power and riches and this is what he had to say in hindsight...."“I have diligently numbered the days of pure and genuine happiness which have fallen to my lot: They amount to 14.”

When we use the free market well, we profit and we live well and fulfilled. The tide of this awareness is clearly rising...

http://www.nytimes.com/2014/07/20/opinion/sunday/arthur-c-brooks-love-people-not-pleasure.html?mabReward=RI%3A9&action=click&contentCollection=Middle%20East&region=Footer&module=Recommendation&src=recg&pgtype=article

Bees make us more profitable!

"Farmers who planted their entire field would earn about $27,000 in profit per farm, whereas those who left a third unplanted for bees to nest and forage in would earn $65,000 on a farm of similar size."

http://www.nytimes.com/2014/07/15/opinion/bees-and-colony-collapse.html?mabReward=RI%3A7&action=click&pgtype=Homepage&region=CColumn&module=Recommendation&src=rechp&WT.nav=RecEngine&_r=0

The Virgin says compassion is a competitive advantage

Flying Virgin airlines from booking the ticket to disembarking at the end of the journey may be the most pleasant way to travel.  Why? The employee's ooze love of their jobs.  The prices, the food, the movies, all are so much fun.  But then I pause and say well, I'm flying...probably one of the highest carbon emitters - http://travel.cnn.com/explorations/life/us-and-europes-most-eco-airlines-revealed-173008 - and there you have it!!!  My decisions may not be the most environmentally friendly one, and Virgin is complicit, but at least they are working in the right direction.  In a world where we are all complicit, those who recognize our reality and operate with as much compassion as possible are the most successful!!!

"In business, as in nature, companies that want to survive aren’t mindlessly pursuing profits at the expense of people and the planet; they are smart enough to know that caring and cooperation are key. "

http://www.entrepreneur.com/article/234837

SEA (Socially and Environmentally Aware) Stock-picking

Investing has become such a complex process that most of us turn over our money MBA’s and Doctorates to manage. The paradigm encourages us to seek Alpha (performance better than the broad market index), which turns into a quagmire of buying and selling that leaves most people worse then the broad market index over 30 years. The potential lesson, is invest in the broad market and leave it and in the end you will more then likely end up with a higher return then anyone you know…easier said then done.

With that being said – if we take our investing to the next level and invest in companies that have clear plan for the long term with SEA corporate policies/principles, we set ourselves up for being even more profitable.

Where to start? Well SEA investing might not be as daunting and as complex as investing as we know it. SEA investing takes our natural born intuition, especially since we are looking for corporate characteristics that correlate to the human condition – who we are. Each of us has as much potential as MBAs and Doctors to identify good companies – in the same way we might make long-term friends or partners or plan for our children’s future or our own retirement.

Here are some guidelines through which I ran the company Costco (COST) – an operator of membership warehouses.

1. Is the company public - YES


2. Does the company sell products that are healthy and constructive to people - YES


3. Does the company charge a reasonable price for their product - YES


4. Does the company minimize its negative impact on the environment - YES


5. Does the company treat all employees like partners - YES


6. Does the company provide fair opportunity to labor and sellers -YES


7. Does the company donate at least 5% of its annual profit to charity - NO


8. Does the company’s executive team receive a reasonable compensation – YES


9. Are the company’s assets greater then its liabilities – YES


10. Is the company profitable (does the company show a trend of or toward profitability in the last 5 years) – YES

Based on this analysis I would say the only thing that stands out is Costco’s Philanthropy. I believe that SEA companies should be donating at least 5% of their profits back to sustainable charity unless they are clearly redirecting their philanthropy in other directions.

1. Public companies provide the easiest and most liquid access as investors, unless a private company is offering private investment perhaps in the form of venture capital or private placement.


2. My Dad shops at COSTCO – a person who boycotts Walmart and has his own vegetable garden, and turns his nose up at anyone with more then 4 cylinders in there car. In my experience Coscto food is high quality and although may not be Whole Foods potential, it provides food and other retail products of a higher quality then most others.


3. From filet mignon to flat screen TVs, Costco has some of the most competitive prices for the highest quality products


4. Here is an example of the steps Costco is taking to be an environmental steward - http://www.opb.org/news/blog/ecotrope/12-fish-you-wont-find-at-costco-anymore/ - Based on a quick scan of a google search, in the last 5 years Costco is making great strides in its environmental impact.


5. This article echo’s much of what is said about Costco on the internet - http://www.enn.com/environmental_policy/article/44802 and http://www.huffingtonpost.com/2013/11/19/reasons-love-costco_n_4275774.html


6. There does not seem anything on the web implying that Costco treats its vendors unfairly or sells products which are produced by unfair labor conditions


7. In 2012 Costco gave away $23.5 Million in cash to charity. Only about 1% of its profit that year


8. Costco paid its executive team $20 million last year. Yes a lot of money, but also a lot less then other corporations of that size, which tend to average around $35 million


9. http://finance.yahoo.com/q/bs?s=COST+Balance+Sheet&annual


10. Yes, and has also outperformed the S&P 500 in the period since it became public

The Path of Kyosei

"Many companies around the world believe that they have a moral duty to respond to global problems such as Third World poverty, the deterioration of the natural environment, and endless trade battles. But few have realized that their survival actually depends on their response. Global corporations rely on educated workers, consumers with money to spend, a healthy natural environment, and peaceful coexistence between nations and ethnic groups. This reality is to me a great source of hope: at this watershed period in history, it is in the interests of the world’s most powerful corporations to work for the advancement of global peace and prosperity. To put it simply, global companies have no future if the earth has no future."...

http://hbr.org/1997/07/the-path-of-kyosei/ar/1

Starbuck's employees are offered a free college education...

With a few strings attached but no long term obligation.  With a college degree employees may move on from baristaship...even if it means leaving the company.  By investing in its employees well-being Starbucks will take a short term loss, but will lower its turnover in the long term - improving service quality which will no doubt increase revenues.

http://online.wsj.com/articles/an-education-from-starbucks-1403562708

Why is it profitable to protect the environment?

One way is to consider the value of services that the environment provides.  Nature provides services like pollinating crops, purifying water, protecting us from storms, producing fish, and many many more - services that we depend on.  These services are provided to us for free!

The value of these services in 1997 was $125 trillion (compared to the world's GNP of $75 trillion)

In business we consider the cost of services that we need when calculating our profit margins, but I doubt the value of natural services are considered and why should they be...these services are our birth rights as residents of earth. That is, until these services start to degrade.  Since 1997, the value of the services the earth provides has decreased by $20 trillion, and where we have become dependent or have taken these services for granted, this has started to cost us money.  

What comes to mind is the money we are spending on water, farming fish, property damage from storms, and how much will it cost us take over pollination if the Bee's disappear.

Take a long look at your balance sheet and see if any of these types of costs might be creeping in and eroding your profit margins.

Every business from mining to manufacturing, from farming to fashion, from entertainment to banking, from healthcare to technology all have financial stakes in the environment.  

http://www.loe.org/shows/segments.html?programID=14-P13-00025&segmentID=4

 

 

"What would Google do?"

I cant seem to think of one person that I might know that has not been impacted by Google.  Can you?

Google's corporate motto is ...Dont be Evil! Its written in their Prospectus. Their belief is that they would be better served in the world if they do good things even if it means forgoing some short term gains.

This seems to be working out nicely for them.

“What Would Google Do?” – As the book by Jeff Jarvis says…”companies need to learn from Google and grow by building platforms to help others prosper“.  Thats what Google does…they help others prosper.  We all have free access to most everything Google has to offer so that we can improve our lives...learn, stay in touch, build our business's.  Yes, Google makes an incredible amount of money by advertising but their first order of business was/is to create free conflict free access to information.  If you search for this book on Google, the first option to buy it is by Amazon (not GooglePlay)

www.google.com

 

The Big Number

Last year 72% of S&P 500 companies published sustainability reports.  In 2011 - only 20% did it!

http://online.wsj.com/news/articles/SB20001424052702304710104579608562794001026

Tesla shares their Secrets

As you approach the new Tesla, the door handles come out to meet you. Getting into the seat is like slipping into the near and distant future.  Extreme comfort, few gadgets and tapping the accelerator releases massive power...and not a sound.  Completely electric.  Its like driving an iPhone.

Last week Tesla CEO, Elon Musk, announced that he will share its secrets.  By taking down the patents he has on this world changing technology.  What's clear is Tesla's intent to spread opportunity and to protect the environment.  But Elon Musk is a pure capitalist so what might not be so clear is as he says...."We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard."  

He believes that sharing his secrets will make him more profitable.

http://www.teslamotors.com/blog/all-our-patent-are-belong-you

Does being ethical Pay???

"For companies, the implications of this study -- albeit limited -- are apparent. Efforts to move toward ethical production, and promote that behavior, appear to be a wise investment. In other words, if you act in a socially responsible manner, and advertise that fact, you may be able to charge slightly more for your products.

On the other hand, it appears to be even more important to stay away from goods that are unethically produced. Consumers may still purchase your products, but only at a substantial discount."

http://online.wsj.com/news/articles/SB121018735490274425

Corporate ethics is key to financial success

"A study done at the University of Chicago by Prof. Curtis Verschoor and published in Management Accounting found that companies with a defined corporate commitment to ethical principles do better financially than companies that don’t make ethics a key management component.  Public shaming of Nike’s sweatshop conditions and slave wages paid to overseas workers led to a 27% drop in its earnings several years ago. And recently, the shocking disregard of ethics and subsequent scandals led to financial disaster for Enron, Arthur Anderson, WorldCom, Global Crossing, and others."

http://www.visionarylead.org/articles/spbus.htm

Domini Social Investments

Key Issues

Before we invest in a company, our researchers work to understand how it is addressing the key sustainability challenges it faces. We also engage with corporate management to improve their social and environmental performance.

Learn more about how we approach the following key issues:

• Environment: Companies that meet the long-term environmental challenges of their industries can benefit the environment and their shareholders. Learn about our comprehensive approach to the promotion of environmental sustainability.

• Human Rights: Universal human dignity is a long-term objective of the Domini Funds. Learn about how we pursue this objective through in-depth research and effective engagement.

• Consumer Health & Safety: Consumer health and safety presents a multi-faceted set of issues for a variety of industries. Our researchers look closely at product safety controversies and recalls, and programs to reduce the use of toxic chemicals.

• Local & National Communities: A strong, vibrant marketplace requires strong, vibrant communities.

• Diversity: In a global economy, diversity is a hallmark of a well-managed corporation with a culture based on merit and open to new ideas and perspectives.

• Harmful & Addictive Products: Learn why certain industries, including tobacco, military weapons, firearms and nuclear power are fundamentally misaligned with our long-term goals.

 

 

http://www.domini.com/responsible-investing/key-issues

Investing in companies that are socially and environmentally considerate(SEC)

1 Trillion dollars!!!...is invested in companies that are socially and environmentally considerate.  Many funds and Investment managers specialize in this type of investment and spend the time to analyze how considerate companies might be.  There are many criteria that are published by these Investment Managers, some are standard across the board while some managers differentiate themselves by digging a little deeper.  

At some level we are all investment managers.  We invest in our own well being (brushing our teeth, exercising, saving money, eating and sleeping well...etc.) all day and every day, and just like money managers some of us are more successful then others.  Lets take our own intuitive experience and create a fund of companies that are SEC.  Here are some thoughts:

- Philanthropy is at least 5% of annual after tax profit

- Executive compensation is the lowest in that specific industry

- Lowest employee turnover within an industry

- Products that enhance customers lives

- High quality product - would we use it?!

- High customer service ratings

- Low climate and environmental footprint

- Long term (>10 years) financial goals

- Long term company strategy (>100 years)

 

Lets start a fund!!!

Socially, Environmentally, and Ethically Responsible (SEER)

Ex Navy Seal and CEO of Patagonia Michael Crooke travels the world consulting fortune 500 companies on how to do business through the SEER lens.  SEER values are:

• Corporate social responsibility
• Environmental stewardship
• Financial strength
• Product/service quality

Executives from around the world are starting to realize that these values go hand in hand, and you can no longer focus on "Financial strength" alone.  Mr. Crooke has also founded a SEER certificate program available for MBA students at Pepperdine University.

http://bschool.pepperdine.edu/programs/full-time-mba/seer/michael-crooke.htm

Great companies

"Good to Great" by Jim Collins, a great company is defined by consistent superior performance compared to competitors over a period of 30 years.  When he searched for companies that might fit those criteria, he ended up only finding a handful.  So of all the thousands and thousands of public companies, only 11 consistently were great.  Furthermore when he analyzed the possible reasons, he found undertones of consciousness, of passion, of executives acting for the benefit of a much bigger picture, of happy employees and happy customers...of harmony in the marketplace. Rather then scrambling for the quick big buck, these companies are the most profitable because they invest for the long term by thinking beyond "Profit"!

So "What Would Google Do?" - As the book by Jeff Jarvis says..."companies need to learn from Google and grow by building platforms to help others prosper".  Thats Google does...they help others prosper.  Google doesn't have a 30 year track record yet, but they certainly seem to be blazing the trail to Greatness!

$1 trillion invested by conscience

http://www.nytimes.com/2014/06/01/business/the-surge-in-investing-by-conscience.html

The free market is like nature...

And money is like reward.

Imagine a forest.  Trees, bushes, plants, animals, air, soil.  The tree drops its leaves on the ground which nourishes the soil.  Animals live in the trees and feed from its leaves, and they then nourish the soil.  This all comes full circle to nourish the tree.  This is one example of millions of ways that nature works to sustain itself.  Organisms give and in return are rewarded with growth.  Organisms take only what they need.  When this happens a rich, sustainable  community is formed and flourishes until an organism stops giving or takes more then they need.

The free market is the same.  Trees are like Fortune 500 companies and small coffee shops are like insects.  Harmony not only is possible but more rewarding to all.  The more big companies give to the community and environment (in the form of good products and philanthropy) and the less they take the more they are rewarded over the long term.  This also goes for small business.

They key to a companies long term success is having clients and resources, and the key to having sustainable clients and resources is to make sure that the latter are nourished.

 

 

Patagonia lets their employee's surf

Patagonia employees wake up in the morning and cant wait to get to work.  Each day they know they each play a role in building a company that will last 100 years, and if the surf's up...then off they go.  How does one go about building a company that will last 100 years...

There are two stories about Patagonia that come to mind.  One is a personal experience told to me by a friend who walked into a Patagonia store looking for a waterproof warm jacket - Patagonia's bread and butter for north of $200! When my friend walked into the store he was asked how they could assist him.  After hearing what he needed, they asked if he had a fleece at home as well as a waterproof shell.  They suggested that that combination could be a great alternative to a new jacket.  My friend left happy without a new jacket.  This Patagonia employee saved my friend $200 and saved the environment the strain of making a new jacket!

The second story is told by the ex-CEO of Patagonia.  The company was getting a lot of complaints about a new line of fleece, about how the odor of sweat would not come out in the wash.  A fairly easy fix would be to switch to another form of material which was fairly synthetic.  When this decision reached the CEO's desk, the proposed fix did not sit well with him so he decided to send the problem to Patagonia's scientists to try to find a solution, which they did - crab shells that had been washed up on the beach could be used for the needed material!  This much more expensive, much delayed solution to the problem was the path that Patagonia took...better for the environment, and what ended up being a much higher quality for the client.

Patagonia takes the long term approach, considerate of their employees, their clients and the community and environment around them - these are their priorities and a side affect is sustained profitability (a good chunk of which they donate to charity), profitability that has put them ahead of their competitors over the long haul.

Dabbawala

Over 100 years ago, in Mumbai India,  the Dabbawala service was founded.  It delivers lunch boxes to people at work after picking it up from their homes in the morning and then returns the empty lunchbox that afternoon.  Today 5000 employees deliver 130,000 peoples lunches each day.  And rarely is there an error!  So for over 100 years this service has endured famines, wars, monsoons, riots, terrorist attacks, the industrial and age, and still they achieve their one simple goal...on-time delivery.

When it comes down to it, their efficiency and reliability is not because of some magic business process nor is it because they use the most advance technology, nor is it because they've hired a high priced CEO...it is simply because they each have a deep respect for each other, and for their clients receiving their lunch each day on time.  They do this work for very little money, but yet do it happily and efficiently.

Here...social awareness and consciousness...is the pillar for an organization's longevity and effectiveness!!!

Social and environmental consideration is now a legal corporate form

Benefit corporation or B-corp is corporate form that is designed for for-profit entities that want to consider society and the environment in addition to profit in their decision making process.  The purpose of a B-corp is to protect a companies social environmental mission, while raising growth capital.  There are over 1000 companies registered as a B-corp

http://en.wikipedia.org/wiki/Benefit_corporation

https://www.bcorporation.net/

Statistical study shows that it is profitable to be socially considerate

In 1999 Business week asked the question..."Can business meet new social, environmental and financial expectations and still win?"

This question prompted a study titled "Corporate Social and Financial Performance: A Meta-analysis" by Marc Orlitzky, Frank L. Schmidt, Sara L. Rynes.

Based on this meta-analysis(combining and contrasting existing studies) integrating 30 years of research, the answer to the introductory question is affirmative.  The results show that there is a positive association between corporate social performance and corporate financial performance across industries and across study contexts.

http://www.sustainabilitymanagement.net/public/corporate%20social%20and%20financial%20performance.pdf

Social and Environmental Awareness is the Ultimate Competitive Edge

The evidence is in and its not just the subjective opinions or even objective opinions for that matter of a select few.  It’s statistical.  It is woven into the numbers.  The money, the number by which we measure almost everything is showing us that social and environmental responsibility leads to higher profit margins.  How can this be?  Isn’t Social Responsibility a radical new train of thought that is reserved only for those, time and financially privileged enough to act accordingly so that they may add it to their marketing campaign.  Isn’t the road to financial success paved by shrewd decisions, cost cutting and ingenious marketing campaigns?  Isn’t the marketplace too competitive for compassion?

The world is a couple of centuries into an industrial age, where success is taught to hinge on some of the aforementioned questions.  But the whole time there has been a reoccurring theme, that can be seen by looking at the numbers.  An intention of compassion, even in the most cut throat of board rooms, leads to more sustainable profit.  Being compassionate is a sure way to gain an edge over a business’s competition…over the long term.  And there lies the trick.  We wake up in the morning worried about being able to retire comfortably, but yet, when we get to work, we bite and claw for short-term profit.  Short term is so yesterday.  Long term and sustainability is where it’s at!  Why?  Well, it just feels better.  Just like a warm cup of soup might feel better then if its cold.  We might have to wait a few minutes, but it feels so much better.  An old Afghan saying – “Patience is bitter, but its fruit is so sweet”

So where is the evidence.  It’s everywhere. Start by pulling up a chart of your favorite index and compare it to the ETF – DSI.  If you like what you see, I won’t have to get into too much more detail.

In 1999, Business Week posed the question – “Can business meet new social environmental and financial expectations an still win?”  This prompted a study which was published as Corporate Social and Financial Performance: A Meta-analysis, by

Marc Orlitzky, Frank L. Schmidt, Sara L. Rynes. This meta-analysis using 30 years of empirical data concluded that corporate virtue in the form of social and to a lesser extent environmental responsibility is rewarding in more ways then one. There is a positive correlation between corporate, social and environmental responsibility and corporate financial profit.

If you walk into a Patagonia store, ready to pay $200 for a new jacket, the sales associate will ask you about your existing wardrobe to help you figure out if you really need to buy their jacket after-all

Benefit Corporation or B-Corp is a corporate form for for-profit entities that want to consider society and the environment in addition to profit in their decision making process.

 

This is just a sampling of the evidence, but likely more then enough to think twice about the intention behind our next decision.