The Conference
CESR’s 2015 Conscious Capitalism Conference was a vibrant exchange of knowledge and ideas on the topic of social impact investing, featuring experts and pioneers in the industry, who presented to an audience of students, faculty and staff from 5 universities, and community members.
CESR's Conscious Capitalism Conference has welcomed students from colleges and universities across the state of Colorado since its inception. This year marked the first time students from out of state joined the proceedings. 26 students and faculty from Kansas State University’s University Honors Program (UHP), and the multi-campus collaborative Frontier Program, traveled to Boulder to participate in the conference.
“As co-directors for the Frontier program, we strive to introduce students to the growing importance of public-private partnerships in addressing today’s and tomorrow’s multifaceted problems. From the food system to the energy sector to the environment, complex issues abound. By bringing our students to the Conscious Capitalism Conference, we introduced future thought leaders to complex issues in these very areas.” – Justin Kastner and Jason Ackleson, co-directors, Frontier Program
Also in attendance were students from Colorado State University, University of Colorado Colorado Springs, and Regis University.
“As a graduate student at CU Boulder's Leeds School of Business, I always enjoyed attending the Conscious Capitalism Conference, so now, as a professor at Regis University's College of Business and Economics, I wanted to be able to give my students the same opportunity to hear from thought-leaders in socially responsible business. We were all very grateful for the opportunity and left very inspired and having learned so much. The content is always different, but the underlying values, the vision for using business as a catalyst for social change, is ever present.” – Dr. Abby Schneider, faculty
CESR Executive Director Mark Meaney offered this insight on the Conference:
“It is clear from the proceedings that different financial institutions are adopting a variety of approaches to impact investing,” said Dr. Meaney. “Some are operating under the traditional rubrics of philanthropy and screened portfolios, while others are creating new financial models, such as ‘blended finance’, ‘crowdfunding’ and ‘Program-related Investments’. These are very exciting times in the world of finance—it’s our hope that students were made aware of the variety of market-based options with a social mission in considering a career path.”
Summary of Events
The day began with the vision for the conference outlined by CESR Executive Director Mark Meaney, Dean David L. Ikenberry of the Leeds School of Business, and Mark Retzloff, a pioneer of the organic foods industry, co-founder of Greenmont Capital Partners, a venture fund financing early-stage growth of LOHAS (Lifestyle of Health and Sustainability) companies, and Trustee of RSF Social Finance. The common theme of the day was a focus on the social power of impact business, and the attainability of financing for those who have great social impact business ideas. Retzloff, a man of many successes in the impact business world, stressed the importance tying personal and organizational values to the strategies and tactics a business employs as a fundamental requirement for achieving real impact.
Panel Discussion
From here, the conversation shifted to more specific means of financing companies that would seek to do good in the world. The moderated discussion between Steve Schueth, President and Chief Marketing Officer, First Affirmative Financial Network, and John Powers of Alliance for Sustainable Colorado addressed the readjusting of traditional philanthropic giving and strict financial-return-focused investment practices toward a middle ground that better addresses the needs of society and the desires of socially conscious shareholders.
Where the impact finance sector was once focused screening out socially harmful investments, it is now geared more toward seeking out the companies who are doing better business. As Schueth noted, “we are not stuck on avoidance… our focus is on ‘who are the companies of the future?’” Powers called attention to the shift from general grant making to strategic philanthropy and the concept of patient capital (capital lending with longer periods for return and generally lower interest rates). Powers referred to strategic philanthropy as “the 100% solution… utilizing investment to achieve the social ends of a foundation."
Keynote Speakers
Over lunch, the Conference’s two keynote speakers, Jamie Van Leeuwen and Katrina Steffek, told their stories of success and finding value in their innovative spaces. Both Steffek and Van Leeuwen echoed in their discussions the key message of the Conference: values driven business is the key to success.
Jamie Van Leeuwen walked attendees through his journey from Denver, as a policy maker and political advisor to the Governor of Colorado, to Uganda as the founder of the Global Livingston Institute. The institute is an experiential learning program for students and community leaders to form a new perspective of the culture of poverty both domestically and internationally. When asked why he chose Uganda, he answered that he fell in love with the country and the people, his key takeaway being that by finding your passion you’ll find your success.
Katrina Steffek, COO of RSF Social Finance, spoke about RSF and the landscape of social impact finance. She stressed the strong relationship of RSF’s core values in social impact with the company’s function as a provider of financial returns and business financing. She spoke of the challenge of finding businesses to invest in that meet RSF’s high acceptance criteria. While seemingly limiting, Steffek noted that this selectiveness as produces a high quality portfolio with significant social and financial return: the aspiration of any social impact finance firm.
Case Studies Discussion
Following lunch, attendees participated in a case study session, viewing a selection of four cases from real impact businesses, each with executive representation in the room. The case study session was an opportunity for attendees to put into practice information from earlier speakers of the day, and get a feel for what financing decisions may face a social impact startup, or those advising investors in the space.
The conference ended with closing remarks from CESR board member and founder of Impact HUB Boulder, Rich Hoops, who wrapped up the day with a take-home message of excitement. “There’s an incredible transformation taking place where we’re reviewing the meaning of business and capital and their function in society, which is to be more sustainable and just. …Think about capital and be conscious about it and you’re on your way to making a better world.”