Wayfinding for Ethical Investment Seminar
Written by Dr Rodger Spiller and Prof Chellie Spiller
The theme for Ethical Investment Week 2021 was ‘wayfinding for ethical investment’. Organised by the Ethical Advisers' Co-Op, and promoted by media partner FS Sustainability, the week featured an online seminar, led by Professor Chellie Spiller and Dr Rodger Spiller. Integrating Chellie’s wayfinding research and Rodger’s ethical investment research, the seminar was a journey of discovery for ethical investors. Read on for a summary of what the seminar covered and to watch the seminar below. This article first appeared in FS Sustainability 12 October 2021
What is ‘wayfinding’?
In its simplest definition, wayfinding is about observing the natural world in order to work out your location, orient yourself towards your destination, set a course to get you there, then dynamically respond to signs as you journey. Think of the legendary sea-faring prowess of Polynesian navigators, and the rich Aboriginal tradition of exploring and guiding. Wayfinding is as relevant for our times as it has been throughout history. By drawing upon ancient wisdom, modern wayfinders hold insights that can make a big difference for ethical investors, ethical businesses and a sustainable future. Rodger and Chellie explain how to discover the new by pulling apart the old map, exploring new and uncharted territory, and journeying towards true wealth and wellbeing.
Purpose, Principles, Practices and Performance Measurement.
As with any journey, reference points (or ‘waypoints’) can be used to help navigate the way forward. The webinar used Rodger’s Four P’s model as these waypoints. Created in 1997 as part of his PhD, Rodger’s Four Ps are Purpose, Principles, Practices and Performance Measurement.
The question of ‘Purpose’.
Both the investor’s journey – and the webinar – begin by considering ‘purpose’. The two-dimensional approach of solely ‘risk and return’ is being challenged by the addition of a third dimension; impact. An ethical investor’s purpose is to make money and make a difference. Making this journey into three-dimensional investing requires a change in mindset. Drawing from the indigenous response to the sustainability crisis, the webinar explores the Five Wellbeings approach of Chellie’s PhD; economic, social, environmental, cultural and spiritual wellbeing. Journeying to what Māori describe as Te Ao Mārama, the world of enlightenment.
A matter of Principles.
Chellie’s ‘Wayfinding Leadership’ co-author, wayfinding captain Hoturoa Kerr, explains that, “Unless love is present in the way you operate, all this stuff is not ever going to be for a good reason – aroha must be behind all these things that you do.” From an Indigenous perspective, principles or values are like stars illuminating the human pathway. Principles are also a critical guide for the ethical investment journey. Challenging Milton Friedman’s rejection of social responsibility beyond profit maximisation, the case is made for an ethic of care and aroha (love). The webinar also highlights the virtue of courage - the first virtue listed by Aristotle, and a key quality of the wayfinding ethical investor.
Practices: Applying the wisdom
Practices are the actions an investor and a business take to fulfil purpose and apply principles. To be highly rated on the ‘ethical’ spectrum, businesses need to implement particular practices. The practice of ‘developing people’ was central to Rodger and Chellie’s PhD research, and is increasingly considered by global ethical investment research firms. The webinar explored how this development can occur professionally, personally and as an investor – using insights from the world of wayfinding.
Performance: Measuring what matters
In ethical investment, Performance Measurement goes well beyond conventional financial measures, to also report on ‘impact’. The global funds pioneering impact reporting processes can be seen as wayfinders, paving the path towards a more ethical investment future. This future will hopefully include more reporting on deeper performance measures – such as a business’s focus on leadership development.
In this journey, an expert trusted navigator is key to investors’ success.
An ethical adviser clarifies the journey’s purpose, and the investor’s principles. They create a clear and realistic plan for achieving investment goals, and establish an ethical profile along with a conventional risk profile. The plan provides a map, charting the best course and recommending a portfolio. Along the journey, performance measurement will consider both financial progress and ethical impact, and changes will be made as required.
Ethical investment advisers and their clients are wayfinders.
We are transforming the finance system and financing the transformation needed for a sustainable future. Together, we aim higher—to reduce environmental, social, and financial risk, and increase financial return by creating more positive impact.
Watch Chellie and Rodger to learn more about wayfinding for ethical investment, and help make this seminar a turning point in our individual and collective journeys.