BrownFlynn at SRI in the Rockies!

Hello from SRI in Rockies!  As a sponsor of this conference, BrownFlynn is pleased to be here with more than 500 other people who are passionate about directing the flow of investment capital in transformative ways and drive a shift to a more sustainable economy.  Most encouraging to note is that 200 of these people are first-time attendees at this conference, further reinforcing the increased interest in making companies and the world more sustainable. 

I arrived yesterday afternoon to join up with Barb Brown and John Barrett from our team, and we’ve already met some great people and heard some interesting speakers.  A couple of key takeaways:

1) 75% of a company’s value is now based on qualitative analysis–the intangibles–which is up from 25% twenty years ago.  The intangibles have also evolved over this timeframe and are now referred to as the “new intangibles”, which include: governance, environmental impact, transparency, community involvement, product safety, employee relations (specifically fairness and diversity), human rights, and reputation.

2) There are 3 “Myth Busters” when it comes to socially responsible investing–and Craig Metrick, Principal & U.S. Head of Responsible Investment for Mercer, shared his feelings about these myths, which include:

a) SRI funds have a limited investment universe–as Craig said, “Busted!” (Not true!)

b) Performance of SRI funds is not competitive with other funds–“Busted!” (Not true!)

c) The scope of SRI is insignificant–“Busted!”–(Not true!)  In fact, SRI funds topped $3 trillion dollars in 2010.

There are more great sessions still to come…looking forward to learning more and meeting many new colleagues over the coming few days!

–Margie Flynn

The Gulf Coast Oil Spill and Lessons in Crisis Communications

As oil continues to pour into the Gulf Coast, damaging human and environmental welfare in incomprehensible ways, we try to think of the positive lessons that have emerged from this tragedy.

Some of these lessons come from looking into our personal use of petroleum (the demand that drives offshore drilling), some of them come from watching how our governmental leaders respond to this national misfortune (perhaps with energy policy?), and others come from the actions and words of the responsible parties.

BP recently launched the following ad campaign in an attempt to reassure our nation that they “will make this right”:

Unfortunately for BP, the campaign has received widespread criticism due in large part to the general lack of credibility that BP has accumulated.  Inaccurate estimates, failed attempts to quell the oil flow, $5,000 settlements to keep residents from suing, and courtroom battles have all contributed to public mistrust of BP.

The ad campaign reinforces negative public sentiment toward the company because its message does not align with BP’s actions to date.

On top of the cost of cleanup, BP has suffered both stock and reputational losses and its image as a “green” company publicly terminated following its removal from the NASDAQ OMX CRD Global Sustainability 50 Index.  BP need not suffer to this extent; companies in the oil industry have dealt with oil spills of various sizes in the past.  The differentiating factor may not be the crisis itself, but how the company responds.

Lessons in crisis communications:*

Trust as Core of Corporate Responsibility

Two recent reports –Edelman’s “trustbarometer” and Forbes/Audit Integrity’s list of the top 100 “Most Trustworthy Companies” bring to the forefront what is at the core of corporate responsibility and sustainability–trust. As defined by Merriam-Webster, “trust is the assured reliance on the character, ability, strength, or truth of someone or something, one in which confidence is placed.”