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
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
Last year 72% of S&P 500 companies published sustainability reports. In 2011 - only 20% did it!
http://online.wsj.com/news/articles/SB20001424052702304710104579608562794001026
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
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:
http://www.domini.com/responsible-investing/key-issues
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!!!
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:
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
"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!
