Monday, June 9, 2014

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.
  • 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

Tuesday, June 3, 2014

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!

Sunday, June 1, 2014

$1 trillion invested by conscience

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