A Brand Perspective on SRI in the Rockies 2008 By Carol Holding Last year, attendees at SRI in the Rockies (SRIR) still struggled over how to make the SRI brand name more broadly accessible than “Socially Responsible Investing.” After all, it was announced at the conference that for the first time, SRI funds had achieved higher returns than the market as a whole, wasn’t it time to change the message that SRI entailed sacrifice? Yet as it stood last year, the SRI brand, though clearly in transition, still seemed to be that of an activist that was focused on social returns and somewhat indifferent to financial returns. What a difference a year makes. The SRI brand has matured, expanding to include new audiences while maintaining its core supporters. Expanding SRI’s Definition The definition of SRI first had to be expanded to include the broader cross-section of investors that SRI now represents. as Joe Keefe, CEO, Pax World explained, “…whereas a few short years ago, (SIF defined) SRI as ‘integrating personal and societal values with investment decisions,’ it now defines SRI as ‘integrating environmental, social and governance factors into investment decisions.’” This new definition allows PaxWorld and others to sell funds to investors whose criteria includes economic in addition to social criteria. Implementing the New Definition in a Brand Name Last year, when leaders of the movement were grappling with whether to continue to use “Socially Responsible Investing” or change the category name to include “Sustainability,” I argued that SRI had meaning and traction with important audiences, including Institutional Investors, and should not be abandoned. I am happy to report that the sector found a middle ground that satisfies both: it will continue to use SRI as the brand as simply letters rather than an acronym with a literal meaning. As it stands, some continue to use the term “socially responsible investing” while others are moving forward with the term “sustainable, responsible investment.”   Thus SRI, the sector “master brand,” follows the proven strategy of megabrands such as IBM and MCI, both of which had literal meanings (International Business Machines and Microwave Communications Corporation) which those companies outgrew even as they recognized they wanted to preserve the substantial advantage in awareness and positive associations their brands held. So with SRI: the letters hold for a wide variety of SRI players, from faith-based investors who will define SRI as “Socially Responsible Investing” to others who say SRI stands for “Sustainable Research and Investing,” implying ESG integration. Expanding the SRI Brand’s Reach The title of this year’s conference “Beyond Borders” underscores SRI’s evolution to a global brand. In a panel on International SRI, the moderator began her presentation by noting that SRI goes by different names in different regions, with Europe using “Sustainability” and the US and Canada “SRI.” This distinction does not prevent cross-border exchange and in fact further reinforces SRI’s big tent brand with its tolerance of different names in order to achieve its global ambitions. Expanding SRI’s Influence The conference title “Beyond Borders” also played out in attendees, speakers and sponsors from sectors outside the industry whose ambitions around a more ethical society dovetail with SRI. Of the 720 attendees, just 175 were from SRI’s original target of SRI financial advisors. Tacitly acknowledging the blurring boundaries between the social and business sectors, the conference included a plenary panel on philanthropy as well as talks on micro-finance and social enterpreneurship. The agenda redefined SRI’s tradition of community investing to position it as a model for the higher-profile microfinance efforts going on in India and Africa. Establishing Brand Leadership The SRIR 08 agenda committee chose for its opening keynote the brilliant speaker Stephen Lewis, former Canadian UN ambassador and now AIDS activist. Lewis addressed the failed UN Millennium Development Goals in light of the affluence of the West and brought the room to tears and a standing ovation. With this single stroke, SRIR 08 focused the conference on the one thing that all attendees share, a desire to change the world for the better, inserting itself into the conversation about how to continue to find solutions grounded in multi-lateralism — “Beyond Borders” — and defining the important role that SRI has an to play in that conversation. The Future of SRI Brand Leadership Great brands are associated with a single attribute — IBM = reliability, MCI = cheap, and SRI = ethical investing. On that association, SRI has built brand leadership that will continue to gain strength as the world evolves. The question is, is the current rebranding of SRI a one-off to solve an immediate issue or did it include establishing processes for future brand building and protection? For example, are there standards for products that identify themselves with the SRI name? Is SRI itself trademarked or otherwise protected? Is there an accepted vocabulary? A communication system that enables sharing of experience and stories and visual symbols that can spread the SRI brand beyond the investment community to retail investors? Applying the rules set down by Jennifer James in her talk on Cultural Intelligence: before its rebranding, SRI had stories that fed its culture and allowed its brand to expand and a distinctive voice through which to communicate its message. How are those elements being nurtured? The agenda committee clearly presented an evolved brand, but how deeply are its concepts embedded?   back to top other articles