We began this two-part series (read part 1 here) positing Corporate Philanthropy is in serious upgrade and no longer relegated to fig-leaf functionality as an adjunct to marketing and sales. We also highlighted how Corporate Philanthropy now comprises a broad array of emerging operational disciplines including, but not limited to, Social and Mission Related Investing, Sustainability and Corporate Social Responsibility.

One outspoken corporate leader with an accessible vision extolling the merits of this tidal shift is Ray Anderson of Interface (http://www.interfaceglobal.com/), the world’s largest manufacturer of modular carpet. Ray articulates comprehensive and complete innovation towards sustainability at every level of their supply chain and customer product cycle. As Ray relates, he moved his company from “The Way of the Plunderer” that wreaked havoc on the environment to one of sustainable manufacturer because of a kick in the pants by his customers. Not surprisingly, doing good for the environment also did well for their bottom line. Ray is not unique, as Gene Kahn, vice president of sustainable development at General Mills notes, “… sustainability really lives at the intersection of the interests of society and the interests of business… It illustrates the potential and necessity for systemic change in the corporation and links it to the formation of competitive advantage.” These are just two outspoken advocates of what is known as managing for the “Triple Bottom Line” (people, profits, planet); to date, over 600 major corporations around the world have self-declared their participation and report annually on sustainable, triple bottom line practices and results, as noted by the Global Reporting Initiative.

Another integration of Corporate Philanthropy is the seamless shift by professional investors in defining their Alpha: more RIAs, CFAs and corporate financial officers responsible for investment portfolios are including social impact performance in their achievements. This Social and Mission Related Investing began globally as shareholder activism and disinvestment in South Africa to end Apartheid. Professional money managers have since evolved their social screens on equities from merely negative ones of disinvestment to more sophisticated filters seeking positive, triple bottom line impacts. Social investing has also made its way to retail products, whereby publicly traded funds now offer customers direct access to social good producing, financial portfolios. This trend is a sweeping opportunity for investment professionals to upgrade their own disciplines by offering superior insights and services to their private clients. Even the Wall Street Journal notes evidence in a recent article “Doing Good, and Not So Badly” that not including social good portfolios could lead to sub-par financial performance (November 2, 2008 http://online.wsj.com/article/SB122558025168290947.html#).

What a hopeful discovery for beleaguered times: social investing offers true Alpha (not simply negative correlation) to market indices and perhaps especially so in down-market environments where shareholders prefer to hold rather than liquidate ownership. Evidently, Doing Good really does lead to Doing Well after all!

R. Mark Hanna is founder of Social Wealth Partners, a private philanthropy advisory firm offering tailored workshops for individuals, families of wealth and the professionals that serve them.

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