A blog about marketing, causes and a variety of topics in the “goodsphere”

Category Archives: Socially Responsible Investing (SRI)

I want my life back

It’s easy to point the finger at Mr. Hayward from BP right now.  Recent callous comments from Mr. Hayward (”I want my life back”) are almost darkly funny coming from an exec who’s likely sweating out the oil crisis in a 5 star hotel and crisscrossing the world via an executive jet when he needs a moment with the family.

Surely Mr. Hayward’s PR team is not happy with the bumbling BP exec.  BP seems to continuously downplay the accident and make slick new ads promising to fix things while they underspend on the clean up effort (though the recent $20 Billion spill fund effort is a step in the right direction).

But really, Mr. Hayward is no different from most of us.  We tend to rarely think beyond ourselves…even in situations where we should so obviously be concerned about those who are suffering the most.

And, although we were not directly responsible for the current crisis, we can shoulder some of the blame.  We’re the one’s investing in mutual funds replete with oil companies and driving gas guzzling SUVs.   We’re the one’s creating all the global demand for oil.  BP makes an incredible amount of money off of us.  Heck, last year alone, BP posted $17 billion in profit.  For perspective, $17 billion was almost double the profit of Apple ($5.7 billion) and Google ($6.5 billion) combined.  In the past three years, the company has generated a staggering $91 billion in cash flow from operations.  I was a loyal contributor to that enormous number.  I often purposefully drove into BP gas stations vs other competitors…I was a believer.

BP was supposed to be the “Green” oil company, right?  Maybe Greenpeace had it right all along.  In 2008, Greenpeace sensed something was amiss with BP’s trustworthiness and awarded them the 2008 Emerald paintbrush Greenwash award.

But Are Consumers Like Us the Real Greenwashers?

Joel Makower just posted an interesting article entitled “Who’s the Biggest Greenwasher of All?” In the article, Makower also takes consumers like us to task saying:

How many (consumers) can say that they are making substantive changes in their daily lives? How many are doing more this year than last? How many have set bold goals about their environmental progress — two, five, or ten years from now?

Compare this to the latest consumer research findings. “Eight in 10 consumers are interested in some type of green product,” according to the latest LOHAS Consumer Trends Database from the Natural Marketing Institute…so, who’s fooling who? Are companies nefariously saying one thing and doing another, or is it consumers who are masquerading as eco-heroes while making only symbolic changes?

In the end, Makower has a point.  If we all want change like we say we do, then we need to start exercising our collective power & start leaving our old fund portfolios, products + marketing/PR plots behind.  We don’t have to live on the extractive stuff of the past; we can help develop the regenerative stuff of the future by driving change ourselves…1 purchase choice at a time.

Maybe things will turn around for BP after this crisis?  And, hopefully Mr. Hayward, like all of us, internalizes that very often those who willingly lose a little bit of their life in defense of something greater, actually wind up “getting their life back” (though life as they knew it may look a little bit different than it did before).

Enhanced by Zemanta
1 Comment

Shareholder activism, Glasnost and dinosaurs…

Soviet General Secretary Gorbachev in the Whit...Image via Wikipedia

Mikhail Gorbachev introduced Glasnost in the 80s…hoping he could moderate the abuse of administrative power in the Central Committee of the USSR.  Gorbachev uncorked the genie of openness and transparency (see Wikipedia for full details) unleashing a pent up yearning for freedom.  We all know what happened next–the iron curtain fell and democracies started popping up across eastern Europe.

It would have been great to have a Gorbachev like figure leading  shareholders in the cause for more Glasnost from the boards of AIG, Lehman, Citi, etc. prior to the financial crisis.  But, many Global companies have fragmented shareholder bases…and, while many change oriented shareholders out there want to stand up and do the right thing, it’s not so easy for shareholders to unite & make their voices heard.

Motivating shareholders to stand up for major social and environmental issues

Groups like the Interfaith Center on Corporate Responsibility and Ceres bring together institutional investors to tackle corporate governance issues such as global climate change.  Both groups advocate for change via shareholder resolutions.  Even the smallest of shareholders can partner for change and can put their vote forward in support of shareholder initiatives…if they are aware that they exist.

Unfortunately, I have never been involved personally in a shareholder cause/resolution on behalf of a social, enviro., or labor issue.  Every time I stare through the fine print of one of my proxy voting cards, I find it difficult to quickly find the info I am interested in.  If there were meaningful resolutions out there that I needed to vote on, I probably missed them.  Granted, I try not to invest in companies with sketchy sustainability records, but that’s no excuse for me to not be aware of what organizations are debating within companies where I invest.  Maybe I am also put off by the way corporate communications flow down to me as a shareholder.  For example, annual shareholder meetings can all too often seem like a USSR gathering of the Supreme Soviet, where everything is already figured out and all too often shareholders just get the “dog & pony” show.

Tonight, though, as I skimmed though an article in the NYT on how the major Oil Giants (are) Loath to Follow Obama’s Green Lead, I wondered how many concerned investors were perhaps unwittingly holding “responsible” oil companies (like BP) within their mutual fund portfolios…yet are unaware that BP is currently paring back its renewable energy programs.  So, if BP is paring back its focus on renewables, you can guess how Exxon and others are reacting.

Dinosaurs

Oil companies are clearly drifting away from their green position as they see that their profits are going to suffer in the near term. In that regard, they seem to me to be going down the same path as the U.S. car companies did 30-40 years ago. The future was actually pretty clear, but short term thinking won out and look where the US auto industry is now.

The oil dinosaurs selling rotted dinosaur, fish and plant material from eons gone by are becoming dinosaurs themselves.

And since we’re talking about Energy companies…

The ICCR and Ceres have just released Climate watch companies.  These are companies that are lagging behind their industry peers in responding to Global climate change.  Massey Energy and Consol Energy; Oil & Gas: Ultra Petroleum, ExxonMobil, Chevron, and Canadian Natural Resources; Automotive: General Motors; and Home building: Standard Pacific.

Shareholders do have a voice…there is a lot to do in 2009

In addition to the Climate Watch companies, investors filed resolutions with the following other businesses. The list of investors filing resolutions with each of the companies can be found here

Credits:  Tks to my dad for the dinosaur material and this book for the Supreme Soviet idea.

Reblog this post [with Zemanta]
1 Comment

A shameless plug…but much still to be done

A few weeks back I learned that P&G won the European Business Award for Corporate Sustainability (Mar 11).  This felt great…indeed, P&G has been a leader in this space vs. competition. 

Sustainability is a pretty broad term as it incorporates social, econonmic & environmental aspects.   Recently, I have been able to take part in some of our “socially sustainable” projects here in Switzerland, and they do have impact within the community.   

The award was great, but with the tremendous amount of global challenges facing companies we are going to have to step up our efforts in a big way.  I recently learned that 29 of the top 100 economic entities in the world are corporations, not countries.  P&G has the brands, technology, expertise and global scale to help solve problems in ways few other institutions can, so it needs to continue to be a force for good in the world.  

2 Comments

A good place to go for SRI info

After the flu and a rather busy start into the New Year, I am just now getting a new post out…  

 One area I wanted to look deeper into for the New Year is socially responsible investing (SRI).  This trend just continues to build globally as fund companies open up new SRI funds every day.   socialfunds.com is a site I can recommend as a starting point.   From what I can gather, socialfunds.com is one of the SRI world group websites.  SRI world group is a company based out of Vermont, a seriously green state. 

Once institutional investors start to seriously demand better standards and deeper levels of accountability at Fortune 500 companies, I think we will see SRI kick into another gear and socially responsible investing will move to another level as we close the decade.  It may take an external event, like another big climate catastrophy in the US or W. Europe to reach this new level, but we are getting closer all the time.  SRI will be a very interesting space to watch in 08  

In closing, it seems even seeing hedge funds get heavily into the game now!  I just did some Google SRI searching and found a Swiss SRI Hedge fund advertising.  Of course, entry into this fund is only 500,000…but hey, once Hedge funds start doing this, watch out SRI world!  Your time is arriving.   

1 Comment