Scott:
Though I have mainly been in contact with Amy O'Brien and John
Wilcox, since you reached out to me recently I wanted to communicate
to you the remaining interests of our coalition group member, Social
Choice for Social Change. These are:
1. Community Investment in the Social Choice Account (SCA)
We hope that CDFI investing will soon become a reality in the SCA.
While the SCA is less flexible than the Traditional TIAA Annuity, it
is flexible enough to add community investments, as managers of
other socially responsible funds have come to realize (and perhaps
you, as well). It reminds me of my experience years ago as a
Macintosh owner: I was told I was at a real disadvantage since I
only had five word processing programs to work with rather than the
twenty available for PC owners. Yet one good program was sufficient
for me. The same is true investment-wise for the SCA. With survey
results showing that SCA participants (a) value social concerns as
much as financial ones, and (b) are willing to give up some
financial return for social gain, the opportunities for community
investment have opened up even further. A strong social return will
excite SCA participants, I can guarantee you. There are additional
reasons to include community investment in the fund, as I have
outlined at the annual meeting and in correspondence with Amy.
2. Screening in the SCA
If I understand correctly, your new investing department will be
taking a closer look at screening, with the intent of screening more
actively rather than simply following KLD/BMSI recommendations.
Though KLD screens are generally good, they miss some companies. For
example, our coalition pointed out problems with Coke for years, and
finally the stock was removed by KLD and the SCA in July. I hope you
will be open to the occasional further investigation and removal of
other SCA companies should outsiders make a good case for it. There
are stakeholders with the resources and interest to conduct much
more thorough investigations of particular companies than can KLD
and TIAA-CREF, which must monitor thousands of corporations. These
groups can provide valuable information and references that you can
use to further refine the fund.
3. Social Venture Capital in the SCA
Though less common in SRI circles than community development, social
venture capital is gaining prominence and is now recognized more
strongly by the Social Investment Forum as an important entity in
the SRI world. It carries the same risks and benefits as other
venture capital that TIAA-CREF currently invests in, but given the
priorities of SCA participants as revealed in your survey , it is
clear that they would value investment in socially and
environmentally responsible products and services. This is also a
way for TIAA-CREF to contribute to a more humane economy and
society, in general. I can put you in touch with top professionals
in the field willing to present opportunities. (I also know a
professor at Columbia who envisions a limited pilot project that
would constitute both an investment, as well as research that might
further advance the field.) I also know the long-time social venture
capital manager for one of the pioneer SRI mutual fund families that
has successfully placed a small percentage of assets in such
investment. The two most prominent social venture capital interest
groups are holding their national conferences in October and
November, and I can provide you with that information.
4. Expanded Community Investment within TIAA-CREF Overall
Finally, I hope that TIAA-CREF's very laudable step into
microfinance will lead to far more community investment, with a more
ambitious goal than that presented at the annual meeting. This would
be compatible with the Social Investment Forum's campaign for "at
least one percent in community investment." It would mean billions
invested on a much shorter timeline. With Amy's and TIAA-CREF's
strong connection now to the Forum, I hope you will re-consider your
goals and timeline. You could truly lead the way in community
investment, helping untold numbers of needy families and
revitalizing many U.S. communities.
The inclusion of community investing, social venture capital, and
some enhanced screening will make the Social Choice Account a model
socially responsible fund that is admired and emulated by others. It
would be the true darling of socially concerned investors in
TIAA-CREF, who would promote it to others. And it would be an
excellent publicity face for the outside world that fits well the
phrase, "Financial Services for the greater good."
Neil
Neil Wollman; Ph. D.; Senior Fellow, Peace Studies Institute;
Professor of Psychology; Manchester College, North Manchester, IN
46962; nwollman@bentley.edu; 260-982-5346; fax 260-982-5043