Need to have vs. nice to have vs. neither

Take just as much as we need, and no more. I think that natural selection allows for some to have more than others, but those with more should not take more than they need. And only they know how much that might be.

Ten years ago, I was driving around a very nice four year old Nissan Pathfinder and really wanted a Land Rover. The big one. I was making enough money by then so I decided to go for a  test drive. I loved it. Such a machine. I decided to sleep on it and driving home, it struck me. What struck me was the question "Why do I need it". This question and also a disturbing self-reflection started a delightful falling of dominoes...starting with the job that would have afforded me the new car. I still notice though that there is plenty of opportunity to regulate my consumption. That extra latte or random shiny object in the store window, they all add up.

The markets and investing appear to work within these rules. Just think about all the people and companies that get greedy. We end up hearing about them on the news. And moreover, in this age of social and environmental awareness we are seeing that it is more profitable to not take more then we need. Put so eloquently in economic terms by Raj Sisodia -

"We have been working to understand how conscious businesses are able to operate with superior financial results while creating many forms of wealth and wellbeing for all of their stakeholders, including society. It boils down to something quite simple: these companies knowingly operate with lower gross margins than they could achieve, but are still able to achieve higher net margins than their traditional competitors."

Enantiodromia, a principle introduced by Carl Jung says that the superabundance of any force inevitably produces its opposite. Again we have seen this over and over with corporations, Enron being the poster child. Hedge funds are also known for going through months and sometimes years of massive profit taking, but are most always offset by equivalent or more in losses. Humans are as subject to the laws of nature in our inter-human capitalist activity as we might be if we are living in the wilderness. Climate change is a recent indication of just this. Our lesson how we handle each transaction. It’s ok to take, but we must not take more then we need so that we don't upset the equilibrium.

Warren Buffet is an extremely wealthy individuals who has worked the capitalist system as well as anyone. Buffet has a reputation for the same old house, the same old car. He certainly does not take more then he needs even though he is in a better place than anyone on the planet to do so. His money is the reward for self actualization. Yes, he's probably a rare exception. He exhibits that self-regulation that is so necessary for the sustainability of our existence.There are many other super rich who might be buying more planes than they need, more houses and just more stuff. But that is also the case for each of us. Every day we have the opportunity to check our consumption.

We need the super rich and mega corporations just as we need the ocean, the elephant and baobab. We need the poor like we need algae and bees. The elephant doesn't knock down trees it doesn't need. 70% of the food that we eat depends on the bees. This natural selection depends on each of us taking just as much as we need and for some it’s more than others. We should not look outward and ask,  “he or she has that, why can’t I?”, we should look inward and ask, “what is it that I need?”

As business people if we want to build companies that are going to last 100 years, and enjoy sustainable profits we need to look no further than our bottom line. Offer products must be promote well-being. Take low margins, so our net is wider.. As CEO's and owners, take less and give more. Increase employees pay. Take a lesson from one of the original capitalists Henry Ford - if not for compassion then certainly for profit. Increase in pay reduces turnover and increases a sense of being part of the company's mission. Research is clear that our productivity is optimized when we feel like we are playing a role in the mission.

We each need to be rational and realistic. Some of us are meant to have private jets, some are meant to find their way to work in a rickety old bicycle. But does the jet really need a hot-tub filled with champagne. And after that bike ride home a hot nutritious meal shared with the rest of the family might a lot better then sitting down to a Gordon Ramsay white table clothed no jeans allowed dinner...alone.

Until we each take responsibility for the regulation of our own consumption. Until we each become conscious of our place in the world. We won't have a chance against some of the greatest fears of our day - climate change, war, poverty.

Patagonia takes just what they need. A sales person at a Patagonia store might go as far as to discourage you from buying one of their products if you might already have a solution in your wardrobe. More and and more of the biggest companies are there as well, if not heading in that direction.  

Our personal ethics/values can be a helpful guide if it’s not clear whether we are taking too much. Ben Franklin tells the story about how he was offered money to publish something that compromised his ethics. Before he made the decision he went home, made himself a dinner of bread and water and then curled up on the floor with a heavy blanket for the night. In the morning he woke up to discover he could live in such a manner, he had no need "to prostitute his press for the purpose of corruption and abuse of this kind for the sake of gaining a more comfortable subsistence."

If we allow our values and ethics to guide us rather than our fears, research shows that we will enjoy a sustainable existence. And so will the everyone around us. Rather than help others out of obligation which I heard someone point out is the most selfish thing we can so, help others because we want to..

What is the lifetime to date performance of our investments?

This is one of many studies that come up with the same conclusion. So the question we must ask ourselves is why do we underperform. We should also consider whether we know what the performance is for the life of our investments, so that we can be clear about what we invest in and why.

Enriching Peoples Lives

"We produce products that give people the ability to do things they couldn't do before.  And in doing so, we helped change things," Apple CEO, Tim Cook

This is what it means to be a successful, sustainable company.  Its all about the intention and the motive.  Once we wake up in the morning with the intention of enriching others lives, we start down the road of long term success, sustainable profit and making world around us a better place for us to be.

We look for companies with this motive. Support them by investing in them and using products.  Benefit by sharing the fruits, and enjoying their services.  And then share this experience.

Put your money where your mouth is!

Tis the season to voice what we stand for...election season. How we believe the world should be. From dinner party arguments to the polls we stand by candidates or against others on the foundation of what we believe is right. From the basics of integrity to the the specifics of economics, from Roe vs Wade to healthcare - we take a stand and speak, write and vote accordingly.

The question we must ask ourselves is do we act accordingly?

There is no clearer way to examine or follow our actions then by paying attention to how we earn, spend and invest our money. I remember my aha moment of my own cognitive dissonance a few years ago when news came out about Apple's use of production lines that were less then optimal in the human rights department. I remember being disappointed and angry at Apple but I also noticed that I was passionately expressing my disappointment using an iPhone, a Macbook and an iPad. Which may have been ok, except I went on the buy more Apple stuff. Why...because I liked Apple stuff.

We have this opportunity of taking powerful action through the wheels of commerce. This action may seem subtle, but its not. We live in a world of stuff and we are not going to give it up. We like our lattes, our smart phones, our cars, our exotic food, our vacations. And if we look close enough we can see the dotted line between the things we like and the values and principles we believe in.

I believe that corporations are necessary because when I look around and notice all those things things in my/our life that seem integral to our success, creativity, well-being and fulfillment, I see the wheels of commerce. Yes, I also believe that corporations have tended to take the less then social and environmental road while making these wheels turn, however corporate strategy has evolved and there is plenty of evidence to show social and environmental mission(as opposed to obligation) within the corporate community.

We can effect change by standing behind the companies who have these missions by buying their products and investing our money and our careers with them. This togetherness will lead toward a powerful sea change, with downstream influence on the issues we toss back and forth across the political aisle.

Underlying our the decisions that drive the flow of our money is "not having enough", our most primal survival instinct lurks. So it’s good know that there is plenty of evidence these days showing that those companies who are faced with a decision between doing good or realizing profit, those who choose good are reporting that they end up making more. This reality which is expressed much more eloquently by Patagonia founder Yvon Chouinard has been noticed and adopted more and more by those in the C-suite. Sustainability is a panacea. It means preserving the environment as much as it means producing a profit again and again over a long period of time. Not to be confused to hauling in a short term chunk of cash with no succession plan.

So the good news is if we invest in and work with those socially and environmentally mission driven business’s, we will effect change, feel fulfilled and enjoy the fruits.

Express yourself!!

P.S. I write this from a Macbook and I manage a fund that invests in companies that have social and environmental missions. It invests in Apple. Since that aforementioned cognitive dissonance, my research has shown that Apple has realized the error of their ways and acted accordingly.

Follow the Money

Is how you earn, spend, donate and invest in line with your ethics?

Money has become the fabric of our interaction with each other. It has become how we project ourselves on the world. Paying attention to our relationship with money is an opportunity for personal transformation as much as a chance to improve the well-being of others close and far.

Our cultures have taught us that circumstance is more important then shared experience which drives our intention, but our actions show that unconsciously the most important is in fact the opposite....shared experience is more important then circumstance. This misalignment in our psyche has skewed our relationship with money. Our opportunity is to reset the boundaries in this relationship so that money works as our teacher, and a tool to deepen that which is most important to us.

Making changes to our money energy, will reduce anxiety, increase sleep, improve our diet, and allow us to have a richer and more meaningful connection with the world.

We may earn money from someone or a company who acts in a way that is not in line with our ethics. This most likely leaves some dis-ease in our subconscious. The question that we must ask ourselves is how does this dis-ease balance against the fear of not having that job or client and is there a better option even if it pays slightly less? Quite often we don't know the answer until we act.  There is plenty of evidence showing that working in an environment that is in line with our values excites and energizes us, making us more productive.

Spending money is a massive energy force.  As soon as we buy something we further along the cycle of consumption and effect the chain of supply and demand. We change our emotions by spending. Think of the elation of a brand new car, clothing or electronics....think of the pain of buyers regret.  Spending is a force more powerful then a vote,   strong enough to be mistaken for the feeling of love, more numbing then a glass of wine!  Once can become aware the most subtle ways we spend our money, when we spend it, what we spend it on we begin to transform.

Let's examine the levels of giving as defined by the Torah by putting them in the context of a visit to a coffee shop. Level one is we order a latte and the barista spins the iPad around for us to sign and first we have to decide on how much tip to give. We give a dollar because we feel we have no choice. Level two is we give a dollar because we want to but we hand it to the barista so we can see their gratitude. Level three giving is when the barista turns around to make our latte we put $5 in the tip jar without them seeing. This is not to say that we must tip, its to examine how and why we give.  Giving is a reflection of our energy and the further up the scale we go the more energy we create, the more selfless we feel. I once heard someone say that more selfish then doing nothing for someone is helping someone out of a feeling of obligation.

The last part of the question is to address how we invest out money. The stock market has offered the opportunity for anyone with just a few dollars to become a partner in any company that is publicly traded. Most of us don't have our own company to invest in so, so we can then leave our savings in the hands of other CEOs for growth. If 30 years ago we had invested in the S&P 500 our money would have grown about ten percent annually. Interestingly the average investor's money only grew about three percent. The reason being that most sell when the market takes a plunge and then buy on the way back up. This is driven by fear. Lack of confidence that our investment will weather the storm.  If we invest in companies that operate with the same values and principles we believe it, might our fears be soothed? As long as we are sipping lattes and tapping on iPhones the market will always go up, in spite of periodic dips.

There's that and then there is the feeling of empowering companies who have the well being of us, our children and the environment in mind. Let's invest in profitable companies that are built to last a hundred years. Lets empower companies who are consciously leading us into a bright future,

As Mark Bertolini from Aetna says profit is not the goal, profit is the output of mission driven companies, who build quality products for their customers.

Yvonne Chouinard, the founder of Patagonia says that whenever faced with the choice of profit or doing good, he chooses doing good and in the long run this always ends up being the most profitable decision.

The portfolio on the upper right hand side of this screen is a list of such companies.  Companies with good financials, who operate with the greater good as their mission.  These publicly traded companies have humble CEOs, products that improve the lives of humanity, work to reduce their impact on the environment giving as much as they take, diverse boards, happy employees.  Theses companies are congruent with our well being and the well being of the environment.  

“Conversation is the heart of human life and conversation is the heart of commerce” - David Whyte

Lets start the conversation about following the money!