Hortz: Do you feel that more financial services firms should consider becoming B corps?
Blume: Absolutely. Businesses of all types in all industries could benefit from becoming B Corps. The B Corp assessment is very rigorous, and it challenges business owners to look at their businesses in new ways. It also encourages owners and managers to institutionalize positive practices or methods. Oftentimes, businesses will be doing something well simply because it makes good business sense, but the B Corp assessment encourages businesses to take those good everyday practices and build on them in ways that improve companies, both internally and in their effect on their communities.
Hortz: From your experience, what is your best advice to advisors about building a portfolio for their clients looking to use values-based investment principles?
Blume: The first and most important thing that advisors can do is simply have conversations with their clients to understand each client’s unique values. This understanding is the foundation upon which a values-based investment portfolio is built. Oftentimes, advisors are not even aware that their clients may have an interest in building a values-based investment portfolio and therefore miss an opportunity to provide a greater level of service to their clients. Surveys have indicated that simply having a conversation about a client’s personal values and how those values can be integrated into an investment portfolio can strengthen the client/advisor relationship. And then if there is interest on the client’s part in building a values-based investment portfolio, I would recommend advisors familiarize themselves with some of the ESG-focused investment managers in the marketplace who have expertise in managing these types of portfolios.
The Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial advisors and financial services firms determined to lead their businesses in an operating environment of accelerating business and cultural change. We position our members with the necessary ongoing innovation resources and best practices to drive and facilitate their next-generation growth, differentiation and unique community engagement strategies. The institute was launched with the support and foresight of our founding sponsors: Pershing, Voya Financial, Ultimus Fund Solutions, Fidelity, and Charter Financial Publishing (publisher of Financial Advisor and Private Wealth magazines).