Does reporting on progressive business models make you a progressive business?

By Joe Sibilia

Delaware, U.S.A. Incorporated MSCI purchased Risk Metrics, following Risk Metrics purchase of Innovest and KLD, two independent CSR/Sustainable/EGS research firms. In a flagrant exercise in the classic ‘rollup’ strategy of traditional Wall Street, MSCI tramples into the CSR/Sustainable/ESG ecosystem like a predator consuming its prey.  It’s almost unbelievable that they would openly concentrate on purchasing the last remaining independent research firms and fire so many people.

They are making money on providing research for good corporate citizenship while at the same time participating in the age-old process of consolidation for cost savings - the most primitive of business models.

If they are genuinely interested in the movement towards a more economically just and environmentally sustainable society, they could have invested in expanded research and the development of standard reporting platforms.

Their overt actions draw attention to the activities of CSR/Sustainable/ESG ecosystem at a time when just about every company on the planet is trying to figure out how to integrate social purpose into their business strategy.  MSCI is designed exclusively to make money without concern for their Environmental/Social/Governance impacts.  Yet, they can make money on reporting and researching firms that are moving towards a more economically just and environmentally sustainable society?  Do they think everyone is on vacation?

Fortunately, the consolidation of the research firms will make room for those of us that are trying to push the envelope on non-financial reporting. A recent white paper from the Hauser Center at Harvard and the Initiative for Responsible Investment “From Transparency to Performance” illustrates the growth and potential for “Industry-Based Sustainability Reporting on Key Issues” – According to the report, “there were almost 50 socially responsible indices offered directly or indirectly by stock exchanges” worldwide.  Voluntary reporting has grown from an initial twenty or thirty companies to over three thousand today and growing rapidly. Voluntary reporting will move into regulatory reporting in the very near future. Almost every Global Fortune 250 companies publish some type of social and environmental reporting.

It’s a shortsighted move by MSCI that will make room for innovative ideas and technological advancements advocating for the new economy.

For full disclosure, Csrwire.com makes money distributing, archiving, interacting and advocating for CSR/Sustainable/ESG initiatives.  And, not all our members are doing the work to advance an ideal.  However, we’re hopeful that our activities will inspire all our members to improve their business practices.  We’re not perfect either.  However, we operate on a chemically contaminated street, revitalizing a neighborhood, training young offenders, incubating social enterprises, ‘b’ Corporation member, United Nations Global Reporting Initiative participant, among other initiatives serving as an example for the hard work necessary to make these changes and improve the quality of life for everyone.  Hopefully, companies like MSCI will read some of their reports and research and begin to act in a manner consistent with the ideals of the research they are selling.

About Joe Sibilia

As a visionary of the socially responsible business movement, Joe Sibilia is founder and CEO of Meadowbrook Lane Capital (MBLC), described by the Wall Street Journal as a “socially responsible investment bank” specializing in turning values into valuation.

He is also the CEO of CSRwire.com, the social responsibility newswire service that distributes and archives corporate social responsibility/sustainability news to journalists, analysts, investors, activists, academics, public relations and investor relations professionals worldwide.

Joe also founded the Gasoline Alley Foundation, a 501(c) 3 corporation that has incubated forty-three small businesses since 1985 and teaches inner city and/or underprivileged persons to be successful entrepreneurs using socially responsible/sustainable business practices while revitalizing inner city neighborhoods.

Through MLBC, Joe has worked with a number of Socially Responsible Companies and has been widely recognized for his work in attempting to take Ben & Jerry’s Homemade Ice Cream private, while creating a private stock exchange for CSR companies.  MBLC successfully preserved many of the founders’ social initiatives, and advancing the connection between good corporate citizenship and increased share value.

His long range plan for CSRwire is to establish a “platform for innovative revenue sharing applications advancing the ‘Movement’ towards a more economically just and environmentally sustainable society and away from single bottom line capitalism.”