Showing posts with label CSR. Show all posts
Showing posts with label CSR. Show all posts

Wednesday, January 16, 2019

Impact Investing Forum - March 31-April 3, 2019

Impact Investing Forum- Palm Beach County Convention Center, West Palm Beach, FL- March 31-April 3, 2019

15% discount code: CIIF2019

The Impact Investing Forum will look at many of the asset classes that encompass this space. We invite you to join us and meet top influencers, experienced investors, money managers, and service providers that are leading the charge in this ever growing space. Themes of defining impact investing, portfolio construction, asset class opportunities, and the role of the investor are just a few of the stimulating topics to be covered at this event.

Sunday, April 12, 2015

Effective Investing: How to minimize fees and maximize potential return

We coined the term "Effective Investing" to reflect a style of investing that does several things. First, it minimizes fees and costs. Your money should go toward your future, not to a broker or mutual fund company. There are only two ways to accomplish this, one in stock investing and the other in bond investing. Your money should be safe and effective investing means being able to sleep at night.

This means managing and minimizing risk. There are a limited number of ways to accomplish this, too. Risk is a feature of investing. It is how you get to return. Still, you can rationally minimize risk by taking a few constructive steps. 
In the bond or fixed income world, investing in US Government securities is the only way to accomplish this. 
In the stock market, the strategy is the polar opposite and can be summarized as "don't put all of your eggs in one basket," in fact, put them in the biggest basket you can find. This means investing in an Index Fund comprised of shares of stock in 500 or more companies. The S&P 500 Index is the tool we suggest (although we have had issues with S&P, their Index is solid.)
Finally, effective investing means being at peace with your conscience. This means not investing in companies that are, or may do bad things with your money. (Now, we understand that this may be difficult for some investing in US Government securities or investing in an Index, but we show you a way around this, in fact the ONLY way around this...) This means looking for and investing in responsible companies. In summary, Effective Investing:
  1. Minimizes fees.
  2. Minimizes risk.
  3. Maximizes potential financial AND social return.

We tell you how to do this online in: Stock, Bond and Mutual Fund Investing We cover the following topics:
  • What is Investing?
  • Why Invest?
  • How to minimize fees and maximize potential returns.
  • Risk and Reward
  • What Is a Stock?
  • What Is a Bond?
  • What Is a Mutual Fund?
  • What is a return?
  • What is Ethical/Socially Responsible/Environmental Social and Governance and Corporate Social Responsibility Investing?
  • What is screening? exclusion? shareholder activism? positive investing?
  • How can you invest effectively, meaning with minimum fees and maximum potential for return?
  • For a preview, see:

Sunday, May 22, 2011

40th Anniversary of the Birth of Corporate Social Responsibility (CSR)

May 18, 2011 – Reverend Leon H. Sullivan, a Baptist minister, African American civil rights leader and economic justice leader/activist joined the Board of Directors of the General Motors Corporation (GM) on March 1, 1971, and was the first African American to hold a Directors seat on a major U.S. Corporate Board.

May 21, 1971 marks the date of the first stockholder's meeting attended by Reverend Sullivan. At that meeting, he challenged GM to leave South Africa until apartheid ended. This set the stage for the integration of U.S. Corporate Boards and for the development of corporate social responsibility (CSR).

Reverend Sullivan “was best known for creating the Sullivan Principles, a set of ethical guidelines later signed by officials from more than 125 US corporations working in South Africa." The principles were one of the first benchmarks used for corporate social responsibility (CSR), and are a methodology still in use today.

His work “illustrates the most fully developed instance of corporate reaction to shareholder pressure. It remains a successful example of corporate activism in support of social justice: U.S. companies responded to anti-apartheid pressure and shareholder' ultimate goal of eliminating apartheid was realized, eventually.”

Reverend Sullivan founded the very first Opportunities Industrialization Center (OIC) in 1964, in an abandoned jailhouse in Philadelphia. The OIC provided job and life skills training and matched its graduates up with the employment needs of Philadelphia businesses. The undertaking was a huge success, and the programs were replicated in cities across the United States. In 1969, OIC International was created to provide employment-training services on a global scale.

In addition to GM, Reverend Sullivan also served on the Board of Directors of Mellon Bank and the Boy Scouts of America.

Please join us on June 14th as we launch a series of webinars on the Reverend Leon H. Sullivan, corporate inclusiveness, diversity and economic justice. We will discuss Reverend Sullivan’s' background and personal history, the impact of the Principles on social ethics, the impact of the Principles on corporate behavior and the effect this effort has on succeeding generations.

Date: June 14, 2011. Time: 11 am.


Saturday, November 6, 2010

A Comparison of CSR Methodologies (Angela Liu, GWU, MSF, 2011)

In the posting below, CIR Intern Angela Liu, (GWU, MSF, 2011) compares two recent papers on CSR.

A web article from Ioannis Ioannou, Assistant Professor of Strategic and International Management at London Business School, asks "Is there a link between a company's social responsibility and its profitability?" The second study reviewed is the Boston College 2010 Corporate Social Responsibility Index.

A Comparison of CSR Methodologies

Both studies focus on how to measure and value corporate social responsibility (CSR). Both show how difficult it is to precisely measure the exact economic value of CSR, but both also use methods that highlight the intangible value that social responsibility might actually bring to a given firm.

External and Internal Aspects

The research from the London Business School mainly focuses on the internal aspects of CSR. The authors have collected data since 1990. They use this data to study the key ways that a firm can transfer CSR information to capital markets in an attempt to increase economic value. In this research, the authors suggest there should be a number of intermediaries and institutions involved in the CSR information dissemination process. They found that sell-side analysts are an important information intermediary and found a vast set of literature examining sell-side analysts' role and their impact on stock prices: sell-side analyst recommendations and long-term growth forecasts reflect, at least to an extent, expectations about value-creation at a given firm. These forecasts are starting to include CSR related data.

The LBS research shows there are three key ways to measure the benefits of CSR: better understanding of the firm, providing more detail on resources and explaining CSR initiatives.

Better understanding. An analyst consistently follows and does research on a firm; with added CSR related information, he or she might better understand a given firm's long run strategy. Further, he/she may be able to better understand how the firm's CSR strategy can benefit the firm.

Resources. The larger a given firm, the more resources it can provide to analysts seeking to include CSR related data in the valuation process. For example, a given firm might purchase CSR related data from other professional institutions or hire experienced CSR professionals to help integrate and disseminate the data.

CSR initiatives. Analyst CSR awareness may be based on the total number of firms an analyst is following and how CSR-sensitive she/he is. If CSR awareness is high, the analyst will be able to better value and describe how CSR benefits of a firm.

The Boston College 2010 Corporate Social Responsibility Index

The Index uses external data to measure the marginal value to a firm from making social responsibility-related activities part of its operational strategy. The authors believe that a firm gains from social responsibility-related activities because these activities help reinforce a more positive general reputation. Reputation is evaluated by collecting and reviewing information concerning external views of the firm, rather than via analyst measurements from internal sources.
The corporate social responsibility index contains seven elements: Products/Services, Innovation, Workplace, Governance, Citizenship, Leadership, and Performance. According to this research, the relationship social responsibility and reputation is positive; the relationship between reputation and consumer support is positive. Therefore, if a firm has higher social responsibility, it obtains a better reputation and more consumer support. This also implies that social responsible behaviour on the part of a firm can generate actual economic benefits.

In their evaluation model, the Boston College researchers use a survey tool, a questionnaire, to determine the reputation of a firm. A higher score means the firm posses a higher, better reputation. As a final step, the authors use the survey results to determine the link between social responsibility and economic value.

Pros and Cons




l Internal Information on a Company

l Longer-term Observations

Experienced analysts

l Bigger firms have more precise measurement of CSR benefits

l Information Credibility

l Can’t show the short-term effects when company adopts a social responsibility policy

l Credibility of Analysts

l Not suitable for small firms



l Based on external reputation

l Once a year

l Firm can improve via marketing

l Questionnaire are easy to collect and score

l Only bigger firms included (selected by total assets)

l Short-term rating and performance of firm

l Biased Marketing

l Possibly unreliable questionnaire

l Can’t apply to small business

Monday, November 2, 2009

Major SEC shareholder resolution policy change

According to the Responsible Investor and SEC websites, in a major policy reversal, "the Securities and Exchange Commission (SEC) (will) allow shareholder resolutions (concerning) companies’ environmental and social risks.. Similar resolutions had previously been blocked under policies dating back to the Bush administration. The move was unveiled in new guidance by the SEC’s Division of Corporation Finance under new director Meredith Cross. As a result, companies will no longer be able to automatically exclude resolutions seeking information on the risks of environmental, human rights and other social issues." Shareholder resolutions are now sure to include executive compensation, community development, diversity, gender, SRI, ESG and CSR issues.