A summit will take place this week in Honolulu on the prospect for socially responsible investment in Hawai'i.

This idea ("SRI") is the rapidly growing practice of integrating values and concerns of society into investment decisions – considering the investment's impact on society as well as the financial bottom line.

Much has been written recently in the financial press about how good business practices that are protective of the environment, the safety and well-being of workers, and the consumers of products are also good for the bottom line.

This recognition that socially responsible business practices are consistent with good economic performance also supports the growing practice of many investment advisers who direct their investments to socially responsible companies.

A growing number of studies have shown that investments in companies meeting social and environmental standards also have a higher likelihood of financial success.

When sound investments also benefit working people, promote economic development and provide for environmental protection, we have what California Treasurer Philip Angelides calls a "double bottom line" return.

As he has pointed out, it's not a matter of a choice between investing to make money or investing to do the "right" thing; it's a matter of taking the time and making the effort to find investments that do both.

The 'Aha Ho'opuka Pono summit, at the State Capitol tomorrow through Wednesday, will gather leading experts and practitioners from the fields of socially responsible investment and community reinvestment in a roundtable setting. They'll meet with key members of Hawai'i's political, financial and community leadership.

The summit will provide an opportunity, in an interactive setting, for participants to gain a greater understanding of opportunities and techniques of socially responsible investing – including techniques for screening, proxy voting and targeted investment – and how these relate to issues of performance, fiduciary responsibility and prudent investment.

Wednesday's focus will be on Hawaiian trusts. Many members of the Hawaiian community have promoted the importance of making investments that result in more than just financial returns. There has been increasing pressure on wealthy individuals and those who manage money for the benefit of Hawaiian people to invest in companies that support the traditional values of Hawaiian people.

One clear example is contained in Kamehameha Schools' new strategic plan, which includes the specific goal to "Manage the portfolio of resources to derive an overall balance of economic, educational, cultural, environmental and community returns."

Given the importance of Native Hawaiian trusts, and the legal obstacles they are encountering, socially responsible investing offers powerful, innovative new ways to carry out the missions of the Ali'i Trusts and Hawaiian agencies.

What better than to make targeted investment into the communities served by the trusts and creating jobs, providing for social needs while at the same time helping to protect the 'aina and realize profits?

The summit will discuss techniques for assessing companies' records specifically with regard to native and/or indigenous peoples and their lands, and the use of proxy voting power shareholder advocacy work to modify corporate behavior in a way that is consistent with Hawaiian values.

A resolution in support of socially responsible investment strategies has been introduced in this year's state Legislature, urging Hawai'i's trustees, investment counselors and money managers to apply the principles of socially responsible Investment in their investment practices and decisions.

A public hearing will be held on State Senate Resolution 10, Senate Concurrent Resolution 13 by Rod Tam, Senate Economic Development Committee chairman, on Thursday, March 1, at the State Capitol.

Because this investment approach has historically been supported by constituencies that are often at odds with one other, the summit should serve as a unifying event for Hawai'i.

Labor unions, Native Hawaiians, environmentalists, public officials and small businesses can all get positively enthused about the cultural, economic, social and environmental benefits of socially responsible investing. They will have an opportunity to work together in implementing the various opportunities that this comprehensive approach to investing provides.

For information on studies showing that socially responsible investment makes good sense, go to www.SRIstudies.org.

The Summit is presented by Responsible Markets, LLC in partnership with the Native Hawaiian Advisory Council.

The agenda and list of participants are available at ResponsibleMarkets.com.

For information, call (808) 573-1000 (Maui) or (808) 261-1151.

Ho'oipo Pa, Kanani Nihipali and Bumpy Kanahele are with the Native Hawaiian Advisory Council, Kuleana Waiwai Like Core Group Members.

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Investments can have impact on Native Hawaiians

(Sidebar)

Socially screened mutual funds recognize the significance of the impact of investments of indigenous peoples.

They specifically have adopted screening practices for their investments that not only respect native people's land, culture and grievances, but that actively promote them. These funds are successful and serve as a model.

A clear example is the Calvert Group Mutual Funds, the largest socially screened mutual fund.

Their policies and practices include:

• Respecting land, sovereignty and natural resource rights of indigenous communities;

• Respecting cultural heritage, ceremonial and sacred indigenous sites.

• Upholding the self-governance of indigenous communities;

• Contributing to community-driven environmental management and economic development plans;

• Providing restitution and equitable compensation to indigenous peoples when any property, including intellectual property, has been taken from them.

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