Michael Kramer is a financial adviser and managing partner of Natural Investments, a socially responsible investing company. For more than a decade, he has helped others manage and use their money as a force for environmental and social change. He’s
Michael Kramer is a financial adviser and managing partner of Natural Investments, a socially responsible investing company. For more than a decade, he has helped others manage and use their money as a force for environmental and social change. He’s excited about the ongoing momentum building with green consumerism and the possible transformation in the country’s financial system.
As “a recovering anti-capitalist,” Kramer said he believes money is not the problem. “It’s what we do with it or not that’s the issue. It’s the values that we ascribe to it,” he added.
Speaking last Wednesday to the Rotary Club of Kona Sunrise, Kramer gave an update about the state of green business in Hawaii and the nation, as well as shared several strategies available to help local businesses align their operations, purchases and investments with this shift. He encouraged attendees to begin thinking about and using their money as a tool for social justice, community development, corporate reform and ecological benefits. Kramer asked hypothetically, “We all know of companies that are known as being poor work places, then why do we patronize them? Shouldn’t we encourage everyone to raise the bar and take care of their most important assets — their employees, customers, other stakeholders, the community, environment and society?” He said it’s not just about philanthropy, but also being excellent citizens who give better values and are the corporations we’re proud of and want to give back to.
The green economy is emerging because Americans are shopping and investing in it. Though, the most recent economic slowdown and high energy prices have also helped move the country toward green practices. Other contributing factors include the financial motivations for going green, the affordability of renewables and the availability of products and industries, Kramer said.
There’s an effort to build more locally based, self-reliant economies and to very enhance the local multiplier effect, a term referring to how many times a dollar recirculates within the local economy before leaving, Kramer said. Slow food, community supported agriculture programs and the county’s Think Local, Buy Local initiative were some of the examples mentioned. Kramer also talked about groups like the Hawaii Alliance for a Local Economy, the Hawaii Island chapter of the Business Alliance for Local Living Economies, which helps with networking and capacity building, education and resources, consulting, promotion, advocacy and community capital.
Kramer thinks Americans should be striving toward regenerative, not sustainable, capitalism because “we don’t really want to sustain what we have; we want to go beyond it.” He defined regenerative business as “integrating financial benefits, social impact and environmental wisdom to assure maximum impact toward a regenerative way of life for all people and forms of life forever.”
By thinking of capital as a reflection of core values, Kramer argued people begin to think they can make more regenerative choices, from a personal level to a planet level. However, he warned a certain level of commitment is required to really change behaviors.
“Money has no intrinsic value. It has the value we give it, and we can use it as a force for good in a world or not,” he said. “The choice is always ours; We can do what we want with us and it does ripple.”
Today, there are smart phone applications, such as GoodGuide and The Better World, available to help shoppers make conscientious decisions and find safe, healthy and green products using the makers’ ratings for popular products. The same thing can be done with investments. Maybe, it’s owning something because of a company’s commitment to social, environmental and governance issues or owning to influence a company and help make it a better version of itself, Kramer said.
A good example of this is shareholder advocacy, using the power of ownership to impact corporate policies. As a shareholder, Kramer worked for a year and half with Costco’s senior management to convince the company to adopt a sustainable seafood policy. The retailer no longer sells 12 endangered species and sells wild harvest salmon. He explained it was in corporate management’s best interest and survival, to change the way it does business, and as a shareholder, he wanted Costco to remain being a leading retailer. He wasn’t antagonistic, only persistent.
“Shareholder advocacy is using the power of your share in your IRA, pooled with those millions of shares of those across the country, as leverage to hold companies accountable and be a collective voice to say there’s a much better way to make money,” Kramer said.
Kramer is a member of the Advocacy and Public Policy Committee of the U.S. SIF: The Forum for Sustainable and Responsible Investing and serves on the American Sustainable Business Council steering committee. He’s involved in the constitutional amendment to assert that corporations are not people. He said it’s a difficult battle changing capitalism, but believes the industry should have regulations and practices ensuring transparency and accountability. This includes mandatory sustainability reporting and the disclosure of political contributions.
Kramer said he helped pass legislation to establish in 2011 a new corporate structure in Hawaii, the sustainable business corporation. Nationally, corporations operating for public benefit are referred to as B Corps and must meet strict environmental, social and governance standards. To have the state’s sustainable business corporation designation,which is voluntary, a company must operate for the benefit of multiple stakeholders, qualify via third-party certification and have an independent director who monitors compliance with the law and produces an annual report highlighting the company’s stakeholder benefits. This designation will help businesses stand out from their peers. Someday, there may even be tax incentives or IRS designation, he added.
