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The 32nd annual Natural Products Expo, the largest on record with more than 60,000 industry members and over 2,000 exhibiting companies, filled more than 1 million square feet at the Anaheim Convention Center March 8 – 11, 2012.
 The Yellow 108 hat booth was a popular stop My first Expo West was 1999. Freshly licensed as financial advisor I set out to establish my value. Shared interests and habits brought me to this community, and I’ve been here since. These businesses offer a simple but monumental improvement over the traditional offering of a single bottom line for-profit. Instead of gearing revenue toward the benefit of shareholders, they make sure it benefits all stakeholders. That means shareholders, employees, and the community at large.
Organic, Natural, and Fair Trade, these widely adopted terms express the values of the community I set out to do business with. I was looking for clients who agreed that screens for social responsibility on their long term investments was what their stakeholders wanted. More than a decade ago, at Expo West, I knew I had found my tribe.
Honest Tea, Numi Tea, Sambazon, Guayaki, Organic Trade Association, Tierra Farm and Oregon Tilth are a few of the companies that I met early on and began long standing relationships. Every year I returned since 1999 I found new, like-minded clients. This year I came back again, and thrilled to see how hugely the community had grown.
For all the wrong reasons I missed the last five years of Expo West. A few visits to Expo East, the smaller version of the show, and a full travel calendar kept me away. Those days are over. Expo West 2012 was the largest Natural Products Expo to date and every person I spoke with said business was booming. Attendance was up 13% from 2011 with over 58,000 industry-related people and 3,000 exhibitors. The show is the second largest at The Anaheim Convention Center.
That larger show, held by The National Association of Music Merchants, has been around three times longer than ours, for 110 years. Unlike the Natural Products Expo, NAMM represents an industry composed of almost 100% discretionary spending. Seems to me like we’ll be #1 in no time.
Organic, Natural, and Fair-Trade products are now consumer staples. Every time people go to the store they realize that they do not want products or services rendered at the expense of others. A healthier profit can be made by taking care of every stakeholder affected by your business–employees, communities, and shareholders.
Being able to provide for this particular community at Expo West makes me smile everyday. Thanks everyone.
Rob Thomas
President & Founder
Social(k)
Video: Social(k) Smarts: Keeping Score 
Some people watch baseball and do line scoring. Others keep score with box scores. Line score is similar to single bottom line accounting. Box score is like triple bottom line accounting. How do you keep score of your financial returns? How do you keep score of the way the game was played?
Keeping score using line score, or single line accounting, measures returns only. $100 goes in and $125 comes out. Financial wizards can measure financial returns with great precision. They can even measure the amount of risk taken for the return. But at the end of the game it is a line score. What is harder to measure is how the game was played, how the returns were made. If you want to really understand the dynamics of a specific game you use box scores. This brings much more depth to the story of the game, or the investment.
We know Portfolio 21, a mutual fund, returned 2.99% annually, over the last five years as of Dec 31, 2010. We know The Vice Fund, also a mutual fund, returned 2.43% annually, for the same time frame. Very similar returns as seen from the line scores.
Let’s look at the box scores. What companies do they look at to invest in?
“The Vice Fund invests in companies, both domestic and foreign, engaged in the aerospace and defense industries, owners and operators, gaming facilities as well as manufacturers of gaming equipment, manufactures of tobacco products and producers of alcoholic beverages.” www.usamutuals.com/vicefund
“Portfolio 21 invests in companies designing ecologically superior products, using renewable energy, and developing efficient production methods. Portfolio 21 companies seek to prosper in the 21st Century by recognizing environmental sustainability as a fundamental human challenge and a tremendous business opportunity.” www.portfolio21.com/
The box scores add a deeper understanding of the game. Triple bottom line accounting adds a deeper understanding of the investment.
How are you keeping score of your investments? Are you measuring success by dollars only? Isn’t wealth more than cash in the bank? Returns at any cost, certainly not. We can each use our own values and beliefs to decide what is important to measure, but we should be measuring more than the simple return.
The Pension Protection Act of 2006 directed the Department of Labor to provide plan participants and beneficiaries sources of information on investing and diversification.
Many employees have the ability to choose or direct their investments in their workplace retirement plans. For example, many people who participate in a 401(k) plan choose where the money in their individual accounts is invested among the plan’s options. The Department of Labor has a number of publications that provide information on various types of investments typically offered in 401(k) and other employer retirement plans, as well as information on the importance of diversification.
The Department’s publication, Savings Fitness: A Guide to Your Money and Your Financial Future, provides an overview of how to include retirement savings in your overall financial plan. The chapter on Strengthening Your Fitness Plan, pages 13–17, describes different types of investments and explains how diversifying investments can reduce investment risk. This publication is available in English and Spanish.
Taking the Mystery Out of Retirement Planning is designed to assist individuals who are within 10 years of retirement plan their finances. Chapter 2, pages 9–11, provides information on investing and diversification. In addition, A Look at 401(k) Plan Fees includes descriptions of different types of investments typically offered through 401(k) plans.
via Investing And Diversification.
At Least 17 States Already Allow State Employees to Consider SRI Choice for Retirement Funds
The introduction of the Federal Employees Responsible Investment Act (FERIA), is a significant milestone for socially responsible and sustainable investing (SRI), proposing to grant federal employees the opportunity to select an SRI option in their Thrift Savings Plan (TSP).
The Social Investment Forum (SIF) commends Rep. Jim Langevin, the original sponsor of the bill, (D-R.I.) and original co-sponsors Reps. Patrick Kennedy (D-RI), Dennis Kucinich (D-OH), Nita Lowey (D-NY) and James McGovern (D-MA) for their leadership on this legislation.
At least 17 states — Alaska, California, Connecticut, Florida, Illinois, Indiana, Massachusetts, Montana, New York, Nevada, New Mexico, North Carolina, South Carolina, Tennessee, Vermont, Washington and Wisconsin — already offer their employees the option of investing retirement dollars in SRI funds.
SIF CEO Lisa Woll said: “This measure would give federal employees the range of investment options that many state and private sector employees already have access to by allowing investments in at least one socially responsible index fund. Investors are increasingly turning to socially responsible and sustainable investment (SRI) options because good corporate governance and performance on social and environmental issues are often indicators of financial success, good management and less risk. Many federal employees enter the government to pursue social and environmental goals and are looking for investment options that work towards — rather than against — achieving those goals.”
Rep. Langevin said: “The reckless actions of financial institutions over the past few years provide a clear illustration of why we need to place a greater importance on good corporate governance. That is why I reintroduced the Federal Employees Responsible Investment Act — a bill I have sponsored for the past five years. Investing in companies that are committed to corporate responsibility and sustainability will have a positive impact on our financial system, as well as empower federal employees to reward companies that share their values.”
via Social Investment Forum: Press Release: Social Investment Forum Applauds Introduction of Bill Allowing Federal Employees to Select SRI Retirement Option (9/21/2010).
by Rob Thomas
I became licensed to sell securities in 1998, a great time to be investing in stocks and bonds. Qualcomm was going to $1000 and Cisco was going to be worth more than most countries. That lasted until March 2000 when the dot.com boom went bust. My interests then took me to retirement plans. For over ten years I advised companies on pension benefits as an advisor for UBS. Defined contributions plans, 401(k), 403(b) 457 and profit sharing plans, to name a few, are a part of most companies’ benefit programs. The defined benefit plan, the traditional pension plan, is not as popular. Working with companies to offer plans that makes sense, and are embraced by employees, is where I have focused my efforts with Social(k). Since 1999 I offered a 401(k) platform with more socially responsible funds than any other provider. In 2005 I greatly expanded the socially responsible fund offerings on the platform and branded it Social(k).
During that time I have heard a lot of reasons why someone is not interested in a retirement plan. The newest batch actually considers the world ending in our lifetime a valid reason to avoid putting a little extra cash away for later in life. Let’s examine reasons for not investing for retirement. Then we will look at how one’s relationship with money changes over time and how to use that to your advantage.
Who has time for a retirement plan when the world is collapsing?
“Global climate change means we will be drowned, frozen or dehydrated before I reach retirement age, the last thing I need to do is put money away for a future that may not exist.”
“The Mayan calendar says we are done by 2012! I’ll enroll in 2013, thank you.”
“Nut jobs are going to drive this country into the ground, I don’t need a 401(k) I need an A(k)– as in AK-47!”
“Why bother saving for retirement, I’m 300 lbs overweight and will be dead by 50.”
Okay, maybe those excuses are a little extreme. How about these?
“As soon as I get a chance.”
“When I get my next raise.”
“When they plug the well in the gulf!” (which has been done…)
Finally, the ever-popular “market timing” excuses:
“The market is too overvalued. I will buy in during the next drop.” (Good luck having the intestinal fortitude to buy when the market is collapsing.)
“The market is tanking, I will get in after it recovers.” (You will miss the early returns and prices will rebound before you step up to buy.)
The arguments against contributing to a retirement plan seem to come down to:
The world is going to end; I have no money; The market is too high or too low.
Let’s look closer at each:
via GreenMoney Journal: From the Stock Market to the Supermarket.
Do you look for financial return at almost any cost?
If your retirement plan provider knowingly supports investments that support governments engaged in crimes against humanity, e.g. Sudan, would you switch?
That’s exactly what the Unitarian Universalist Association (UUA) did to Fidelity. UUA switched away from Fidelity when it became clear that “Fidelity’s position on investing in the Sudan hadn’t changed one iota,” according to Peter Muellar, President of UUA .
Unitarian Universalist is a liberal religion with Judeo-Christian roots. It has no creed. It affirms the worth of human beings, advocates freedom of belief and the search for advancing truth, and tries to provide a warm, open, supportive community for people who believe that ethical living is the supreme witness of religion. The Unitarian Universalist Organizations Retirement Plan provides benefits to about 2,800 UUA staff members, ministers, church staff, and their families, with investments totaling approximately $178 million. Fidelity has managed the UUA accounts since 1999.
Sometimes, we go too far in our analysis of what we buy — should I buy organic free range non toxic carpet cleaner for my yacht? In the case of crimes against humanity, however, its not a joke. We can do something about these atrocities when we object to financially backing them.
One of the key characteristics of our community, is the strong desire to pay attention to what we buy and who we support. We are torn about pulling into the BP station for a fill up; “Am I using too much petroleum? Why am I supporting BP? Don’t I hurt my neighbor when I boycott his station even though he has nothing to do with the spill?”
We cannot get every decision right. Moving toward a sustainable and responsible lifestyle is a process not a destination. We’re always considering options. We’re constantly asking ourselves, “How far should I go?”
Investing is an area where many are easily confused about impact and options. Understanding and offering appropriate investment options as an employer of a mission driven organization is a whole new row, which most don’t want to hoe.
In primitive times, it was an easy choice to choose Fidelity for a 401(k) option. As a retirement plan record keeper and administrator, Fidelity is one of the best. As a result, I see a lot of mission driven, sustainable, responsible and conscientious organizations with Fidelity 401(k) plans. However, the fact remains that Fidelity’s position on certain investments are not in-line with those employee’s beliefs and moral compasses. If you are currently using Fidelity ask them to divest from the Sudan, and see what they say. If your employer is using Fidelity ask them to consider switching, and see what they say.
Check out the links below and begin to consider not only who your provider is, but what companies the funds they offer hold.
Money Central has a great tool to look at top 25 holdings of almost any mutual fund.
http://moneycentral.msn.com/investor/partsub/funds/holdings.asp?symbol=csxax&Funds=1
Scan your fund for animal testing, GMO crops, environmental degradation, human rights violations, and genocide, and determine whether your money is growing with the right people.
These recent press releases speak to the issue of genocide.
UUA Moves Retirement Plan from Fidelity to TIAA-CREF. Announcement from the UUA, May 21, 2010. (UUA.org)
Special Board Meeting, May 20, 2010. Agenda and reports. (UUA.org)
TIAA-CREF. Will begin managing UU retirement funds beginning in the fall of 2010. (tiaa-cref.org)
End Crimes Against Humanity in Darfur, Sudan. Action of Immediate Witness passed by the UUA General Assembly, 2005. (UUA.org)
UUA pressures Fidelity over Sudanese investments Retirement plan holders urged to change funds. Jane Greer
In the past few years, a growing number of employers have added automatic features, especially automatic enrollment, to their 401(k) plans. This national telephone survey of large employers with 401(k) plans was conducted in order to better understand large employer attitudes toward and experiences with two automatic 401(k) features: automatic enrollment and automatic escalation.
via Automatic 401(k) Plans: Employer Views on Enrolling New and Existing Employees.
If you are a little unsure about 401(k) plans, don’t be. The issue is mostly new language and not difficult concepts. Here is a good primer.
In 1978, Congress decided that Americans needed a bit of encouragement to save more money for retirement. They thought that if they gave people a way to save for retirement while at the same time lowering their state and federal taxes, they might just take advantage of it. The Tax Reform Act was passed. Part of it authorized the creation of a tax-deferred savings plan for employees. The plan got its name from its section number and paragraph in the Internal Revenue Code — section 401, paragraph (k).
via HowStuffWorks “How 401(k) Plans Work”.
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