Leadership Exchange - December 2012/January 2013 - (Page 16)

GENERAL MANAGEMENT TNEMEGANAM LARENEG THOUGHTS ON SUSTAINABLE INVESTING AND SOCIALLY RESPONSIBLE INVESTING Gregory Wendt, CFP Senior Wealth Advisor StakeHolders Capital 310-526-0171 greg@gregwendt.com community investing. All of these investors used one or more of the three core socially responsible investing strategies – screening, shareholder advocacy and HOW CAN I BECOME A SOCIALLY RESPONSIBLE INVESTOR? Responsibly minded investors generally will align their portfolios the belief in profit-driven motives as the sole metrics of performance also changed. Our perception of risk has been forever altered; our communities involved; 4) the climate; 5) biodiversity issues and a host of other factors. economy is shifting toward a new foundation which allows for considerations in our investing decisions regarding different types of impacts on: 1) the environment; 2) the individuals employed; 3) the Our financial system changed dramatically in the past decade, as with their values by selecting or excluding companies based on their values. For instance if you had a strong commitment to public health, you might make a choice to not invest in tobacco holdings. This is known as screening. Investors consider a host of values when determining what companies to invest in – and what companies to avoid. short of an investor’s values. Socially responsible investors consider a wide range of factors. For example, many responsible investors tors might also exclude companies for any number of other reasons, such as companies with poor records of diversity in the workplace, pressive regimes. Affirmative Screening is the opposite approach. energy or companies that market organic foods. It might also take nority communities. port their values and principles. Sometimes this takes the form of the form of investing in companies or agencies that demonstrate a Avoidance Screening is an option when a company or industry falls shun companies that manufacture or sell tobacco, alcohol, firearms, weapons or energy from nuclear power plants. Responsible invesshoddy environmental records or firms who do business with opResponsible investors might seek out innovative companies that supinvesting in companies in cutting-edge industries such as alternative WHEN DID THIS TREND TOWARD SUSTAINABLE INVESTING, ALSO KNOWN AS SOCIALLY RESPONSIBLE INVESTING START AND WHAT EXACTLY DOES IT MEAN? gan in the 1960s as people began to shun companies that profited are defined as an investment in a company or industry that could types of investments argue that investing in “sin stocks” encourages Sustainable Investing and Socially Responsible Investing befrom the manufacture of napalm for the Vietnam War. “Sin stocks” be considered illegal, immoral, or unethical, such as tobacco companegative trends and behaviors. The movement to sell off “sin stocks” investors found it unconscionable to hold stocks in companies that nies, weapons manufacturers or gambling. Those opposed to these gained momentum in the 1980s. For instance, a growing number of apartheid inspired other socially responsible investors to turn their attention to other issues, such as protecting the environment and companies. Today, one out of every ten dollars under professional by US SIF in 2012) states that $3.31 trillion in US assets is held by promoting fair labor practices. One faith-based institutional investor on the East coast leverages its $90 billion in assets to make betmanagement in the U.S. is part of a values-based portfolio. The 2012 Report on Sustainable and Responsible Investing Trends (released high level of commitment to the environment, workers’ rights or miSO IS OUR MONEY DOING THE TALKING? Yes! Money can do the talking. A key factor in Sustainable and did business in apartheid South Africa. Success with helping to end Responsible Investing is using the power of your voice through your Through the shareholder process, your investments can convey your and your firm’s investing to improve the way business is conducted. values and concerns to top management, thus changing the way that major corporations impact their employees, their communities and the natural environment. This is known as shareholder activism. This is very important because it has a direct impact on how comAmerica via proxy voting, shareholder resolutions, and open dialogues with management. Every year there are hundreds of shareholder resolutions on issues as diverse as: climate change, execusweatshop labor, genetic engineering and human rights. Through Greater Los Angeles Leadership Exchange panies are managed and can promote powerful changes in corporate ter corporate citizens out of the world’s largest and most powerful institutions that apply various environmental, social and governance criteria in their investment analysis and portfolio selection. This represents 11.3% of the $33.3 trillion in total assets under management. tive pay, animal testing, product safety, non-discrimination policies, 16

Table of Contents for the Digital Edition of Leadership Exchange - December 2012/January 2013

Leadership Exchange - December 2012/January 2013
President’s Message
VOTY Nominations
Editor’s Message
Monthly Calendars
2012/2013 Event Calendar
ALA Webinars
Community Connection Program
Chapter Meeting
New Members & Member Updates
Member Spotlight
Thoughts on Sustainable Investing and Socially Responsible Investing
ALA Management Encyclopedia
ALA VIP Event Recap
People Are Watching: How Your Personal Brand Can Affect Your Success
Legal Market Place
CLM Corner
Chapter Meeting Recap
Cloud Series Part 2: The Pros and Cons of Moving to the Cloud
Region 5 & 6 Conference
GLA ALA and the OC ALA Chapters Mickey Mouse Around After Conference
Members in Transition
October Seminar Recap
Coach’s Corner
CLM Crossword Puzzle Answers
Diversity Upfront
Chapter Meeting
Board of Directors
GLA ALA Board Update
Region 6 Officers
Holiday Luncheon Recap
Business Partner Spotlight
Membership Connection Campaign
Section Reports
Annual Employment Law Forum
Business Partner Spotlight

Leadership Exchange - December 2012/January 2013