Feature Articles

How do foundations invest their endowments?

The challenge of "walking the talk"

by Dr. Jan-Olaf Willums & Samuel Shiroff, Bellagio Forum for Sustainable Development

"Many foundations seem however still to believe that if you are a social investor you have to forego financial returns. The fact is that many of those funds that have approached the extra-financial analysis very systematically have indeed shown very acceptable performances: Some have outperformed their benchmark consistently for several years. But the general knowledge about these funds seems not to reach the investment advisors at foundations."

Dr. Willums and Mr. Shiroff take a look at responsible investment practices for foundations and present possible solutions to increase endowment assets in SRI

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Socially Responsible Investing: An Evolving Concept In a Changing World

by Peter D. Kinder, President of KLD Research & Analytics

“Socially responsible investing:  Few terms are so unloved by the people who rely on them.  Still no one has devised a better term.   And, it has locked itself into the usage of the public, the press and the financial services industry.  We are probably going to have to live with it."

Peter Kinder and his staff at KLD examine the broad range of meanings in SRI and the different methodological implications of the meanings given to this term.

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Feature articles focus on current trends and investment opportunities in the field of SRI, TBLI and Corporate Governance, offering a source of new information and insights.

Do you have an idea for an article, or would like to submit an article for publication? Please send a letter to the editor.

Columns

Sisyphus Revisted

by Robert Rubinstein


Do you ever feel that sometimes the burden of sustainable investment that we are all pushing up the hill seems very heavy?  Like Sisyphus, who pushes the boulder up the hill every day only to have it roll back down, I often get disillusioned and tired of this burden.

I have discovered a wonderful way to get focused and motivated again. Read a blog, or tabloid, or one of the websites devoted to blocking progress in sustainable investment. The alternative becomes a very loud wake up call. It's like having that rock roll over your big toe on its way back down the hill.

When you look at the focus of these types of publications, it becomes clear that idealizing unnecessary over-consumption, propagating the idea of CSR and SRI as a threat, blatant superficiality, and toxicity of spirit are not healthy life choices. Allowing these voices to be the only ones heard makes matters worse. It is diverting and sometimes even entertaining to glance at the words that are being put out by the current "backlash,” but I find it this destructive criticism an excellent reminder of why we do what we do.  As we have learned over the past few years, the backlash has a way of becoming the status quo if left unchecked by the continuing hard work of reasonable people.

Why bother with all the heavy lifting and struggles in what seems like a Sisyphean battle? That thought does come up, especially when the criticism is baseless and it is being yelled at me. However, when I look at the “backlash” and the noise being produced to drown us out, the sounds of sanity, health, restoration, and ultimately, sustainability are re-invigorated.

Just keep a positive space in your thoughts, focus, and rest regularly. After all, the alternative presented by the “backlash” is not an alternative - it is nihilism.  Don't get discouraged, don't take the yelling too seriously, and continue your good work.  One of these days we'll get that boulder to the top, and perhaps, then, it will roll down the other side.

Angel of the Month


I met Amber Nystrom last year at the Digital Dividends conference in San Francisco. She left a lasting impression, and struck me immediately as a dedicated, intelligent, talented person who was fully committed to her mission: Social Fusion is an incubator for entrepreneurs to grow for-profit and nonprofit businesses that produce sustainable social and environmental impact.

Amber has proven to be an excellent partner who is always willing to assist, share, stimulate discussion, and give more than 100%. Whether it is the preparation for chairing a TBLI session or just chatting on the phone to motivate another. She is very organized, sharing and works tirelessly to achieve her dreams and helps others with theirs.

When I think of Amber, her sense of humor, generosity, and commitment come to mind. I am extremely glad and privileged to have met her, and we should all be grateful for all her hard work. Congratulations on being our Angel of the Month.


News

SOCIALLY RESPONSIBLE INVESTMENT

Spreading SRI: Goldman Sachs Adds Its Own Twist in Social and Environmental Assessment

Social Responsibility Doesn't Much Sway the Balance Sheet



SCREENING & REPORTING

Courting Conscientious Investors

Freeport's Hard Look at Itself


CORPORATE SOCIAL RESPONSIBILITY

People management is central to successful Corporate Social Responsibility

Report: More U.S. Corporations Weighing Climate Risk

CORPORATE GOVERNANCE

Fund-of-hedge-funds ‘worst for seven years’

European pension funds sue News Corp.

Contract aims to claw back rewards for executive failure

Rules relaxed on corporate governance statutory audit directive

CLIMATE CHANGE

Climate change summit postponed

Counting on Cars: A Disaster in the Making

USDA Awards $12.6 Million for Biomass R & D

Global Warming Threatens Chinese Coastal Cities

Dirty Thirty – WWF names Europe’s dirtiest power stations



MISCELLANEOUS

Trend Watching: Zeroing in on Waste


We select a variety of current news items hosted at third-party websites that cover a broad range of issues from different perspectives around sustainable finance and asset management, corporate social responsibility, climate change, and corporate governance. Please let us know if there is a story we should include in next month's newsletter.


Do you have a comment or reaction on any of the material presented in the Newsletter? Send a letter to the editor.

Publications

The Market for Virtue: The Potenital and Limits of Corporate Social Responsibility

by Dr. David Vogel
222 Pages, USD $28.95, ISBN 0-8157-9076-7

David Vogel strives to provide a balanced perspective on Corporate Social Responsibility in his latest book.  In most ways, he is successful.  Not only is CSR usually misunderstood and poorly implemented, but it is improperly vilified by one side and improperly deified by the other.  With illustrative cases and systematic analysis, Vogel provides a useful and insightful account of the current potential and drawbacks of CSR.

The State of Corporate Citizenship in the U.S.: Business Perspectives in 2005

by Barbara Dyer, Stephen Jordan, Steven A. Rochlin, and Sapna Shah (PDF Download)
"This second in a biennial series delves into the corporate citizenship motivations, challenges, priorities and investments of 1,189 small, medium, and large businesses across the U.S. Responses representing a breadth of industry sectors and geographic regions provide a unique insight into the state of corporate citizenship from a national perspective."

Green Dollhouse, Creating a Doll’s Eye View of a Healthier World

by Emily Hagopian & Ecotone Publishing
70 Pages, USD $19.95, ISBN: 0—9749033-3-7
Shows children and adults how we can all take action to make our homes healthier and more sustainable.

L'Investissement Socialement Responsable

by César de Brito, Jean-Philippe Desmartin, Valéry Lucas-Leclin, François Perrin
€30.00, 311 pages, French Language
(English translation pending)
Mandatory reading for those working with or interested in the French SRI market.