Tag: B Corp

Company Stock Options and Financial Planning: What Works For You? 

Published in: Resources |

Your job likely offers you some form of equity compensation. Equity compensation can represent financial security and sustainability — but it also can come with a degree of risk. There are various factors to consider with compensation packages, such as your financial goals, taxes, and diversification strategies. In this week’s blog post, we go over the basics you should know.   

Equity Compensation 101

Equity compensation is non-cash pay offered to employees that represents ownership in a company. This includes options, restricted stock, and performance shares. Public companies and some private companies, especially startup companies, offer equity compensation to make up for lack of cash flow and attract high-quality employees.

Employee stock purchase plans (ESPPs) are company-run programs that let employees purchase company stock at a discounted price. Employees can usually contribute through payroll deductions; this typically builds up between the offering period and the purchase period.

Restricted stock unit (RSU) plans are company stock plans offered to employees as additional compensation. Instead of paying you your entire salary in cash, part of it is given to you in the form of company stock. It is usually listed alongside your base salary when you’re hired.

Stock option plans, also known as an incentive stock option (ISO), is a type of equity compensation given to employees and executives. Rather than giving you shares of stock directly, the company might offer derivative options of the stock.

The Role Of Equity Compensation In Your Financial Plan

Where does equity compensation fit into your financial plan? To understand this, you should go over the following with your financial advisor: figure out what kind of investor you are, watch out for concentrated wealth, understand the tax consequences of your investment decisions, and understand how recent tax law changes affects your wealth. This will help you make informed decisions about how to manage your equity compensation.

Work with The Humphreys Group Today

The right financial advisor can help you identify your core values, establish clear financial goals and create a financial strategy.

When you work with a financial advisor at The Humphreys Group, you’ll know that you’re working with a financial advisor that understands the importance of values. In August 2020, we earned the B Corp certification, which recognizes for-profit companies that use business as a force for good. B Corp companies are working toward reduced inequality, lower levels of poverty, a healthier environment, stronger communities, and the creation of more high-quality jobs with dignity and purpose. 

If you’d like to get started on your financial plan, reach out to our team today.

The Women-Led B Corps That Inspire Us

Published in: Resources |

In spring 2018, nearly 70 B Corp women CEOs gathered in the Hudson River town of Irvington, New York, for the first annual B Corp Women’s CEO Gathering at the Eileen Fisher Learning Lab. These women CEOs of Certified B Corporations — such as Eileen Fisher, Green Retirement, Sweet Livity, Colibri Digital Marketing, Buy Certifiably, and Ellevate Network —  addressed the question, “What can we do together that none of us can do alone?”

At the end of the event, the CEOS came up with five working groups — Shifting Capital to Women, Equity Diversity and Inclusion, CEO Peer to Peer Network, Growing Your B Corporation, and Political Advocacy. The event led to a movement, and they now hold monthly meetings and annual gatherings in the spring. It also led to the 2018 launch of WeTheChange, a group of womxn CEOs of Certified B Corporations and other purpose-driven organizations brought together by a collaborative declaration.

10 Inspiring Women-Led B Corps

The Humphreys Group became a B Corp in August 2020, and we’re so excited to be part of entrepreneurial community. We wanted to highlight some of the creative women-led B Corps that inspire us:

1. Ellevate Network

Professional Networking Membership, Education, Events
About: “Ellevate Network is a global women’s network, serving as the essential resource for professional women who create, inspire and lead. Their mission is to close the gender achievement gap in business by providing women with a community to lean on and learn from.” (The Humphreys Group is part of the Ellevate Network and we’ve hosted several events with Ellevate!)

2. Eileen Fisher

Women’s Apparel and Accessories
About: “For over 30 years, Eileen Fisher has created beautifully, simple clothes designed to move with real life. Before both minimalism and sustainability became trends, Eileen Fisher had the vision of a company guided by a distinctive aesthetic and an ongoing commitment to supporting women and making a positive impact in the world.”

3. One Village Coffee

Specialty Coffee
About: One Village Coffee was the first coffee roaster to become B Corp certified. “As a founding B Corporation and specialty coffee roaster, One Village Coffee has desired to connect roasters, growers, and coffee drinkers since 2007. Packed in their compostable bag, their offerings range from light to dark roasted coffees, focusing on balance and sweetness.”

4. Zen of Slow Cooking

Simple-To-Make Recipes
About: “Zen of Slow Cooking helps home cooks serve tasty, wholesome dinners to their families. They do this by providing simple-to-make recipes featuring their artisanal, certified non-GMO spice blends, which create contemporary, healthy and truly delicious dishes.”

5. Visit.org

Tours and Activities
About: “Based in NYC and founded in 2015, Visit.org is the world’s largest discovery and booking platform for immersive, impactful travel experiences hosted by do-good organizations around the world. 100% of hosts’ revenue is invested back into the local community.” 

6. Black Fox Philanthropy

Fundraising Consulting
About: “Black Fox Philanthropy is a consultancy of innovative strategists who help raise vital funds for social change organizations around the globe. Black Fox Philanthropy’s focus and deep knowledge of global NGOs enables them to strategize complexities, challenges, and opportunities in the international funding landscape.”

7. Eco-Bags Products

Reusable Bags
About: “Behind their little green ECOBAGS tag is a woman-owned business with a history of creating durable, sustainably sourced & responsibly made bags using natural, recycled, organic and recyclable materials for retail, resale, promotions, packaging and design.”

8. Geek Girl Tech

IT Security and Support
About: “Geek Girl Tech provides security and compliance solutions to mission-driven and socially conscious businesses.”

9. Rivanna Natural Designs

Sustainable Plaques and Awards
About: Rivanna Natural Designs offers elegant, planet-friendly alternatives to traditional trophies and plaques. They started in 2001 with a simple objective: to create green jobs for refugees and others in the community who needed safe, meaningful, and rewarding employment.

10. Sustrana

Software
About: Sustrana is a provider of sustainability management solutions. They help organizations build, implement, and grow strategic sustainability programs.

We’re Proud to Be Part of the B Corp Community

We’re so proud to be part of the B Corp community and movement. If you’re interested in learning more about the B Corp certification and how it helps The Humphreys Group run better, reach out to our team today.

The ABCs of ESG: Our ESG Investment Approach

Published in: Resources |
By Hallie Kraus, CFP®, CRPC®

We’ve discussed how ESG investing can motivate the corporate world to make positive change and have acknowledged the complexity of the investment decisions that are being made within ESG funds. Another complex aspect of ESG investing is that different financial firms adopt different investment strategies that are suited to their clients’ needs. It’s time for us to share our take on it!

How We Approach ESG Investing Within Your Portfolio

The Humphreys Group has invested in ESG mutual funds for 20+ years, and such funds currently make up about 15% of our clients’ assets. We have worked closely with industry leaders like Impax Asset Management and Parnassus Investments as well as newer entrants, such as Dimensional Fund Advisors, who are interpreting ESG in new, interesting, and valid ways. Our approach to ESG investing has evolved as has the industry, as the “opportunity set” has expanded as a wider range of funds has been made available, as the evaluation process has become more nuanced, and as the false choice between performance and social impact has been debunked.

All of this has led us to a robust process for implementing ESG investment strategies within your portfolio. First, we’ll ask you to complete an ESG questionnaire. This identifies what issues are most important for you — for many, it’s the environment, for others, it’s gender diversity, while others may focus on avoiding for-profit prisons or weapons manufacturing.

We’ll then review the questionnaire together, talk about priorities and about the issues you care about, and most importantly, we’ll help you identify the values that underly your passion for the issues. ESG funds will almost never match your preferences exactly, but truly getting to the heart of the matter is how we can find the investment strategies that will leave you feeling fulfilled while still helping you accomplish your investment and financial goals.

Based on this conversation, we’ll implement an ESG investment strategy in accordance with your overall portfolio investment guidelines, and when appropriate, we’ll refer you to resources for alternative strategies. Over time, you can expect us to include your ESG funds in your portfolio and performance reports and notify you of any changes or new developments that may further align with your values.

ESG Funds Outperform Their Competitors

Back to that false choice we mentioned earlier: how do these funds perform? For a long time, there’s been an often-repeated myth about ESG funds. Many advisors will offer these funds to placate well-intentioned clients, but in the same breath will caution that they require a sacrifice on the performance side of the equation.

However, the numbers simply don’t bear this out: Morningstar reported that sustainable funds comfortably outperformed their conventional fund peers in 2019 — a pattern that has only accelerated during the pandemic. In 2011, a Harvard Business School study examined 180 US firms and found that those with strong sustainability policies outperformed their competitors by almost 4% per year. And in 2015, Deutsche Asset Management and Hamburg University conducted the most comprehensive meta-analysis on ESG investing. After reviewing over 2,000 empirical studies since the 1970s, they found that the large majority of studies reported a positive relationship between ESG and corporate financial performance. The researchers concluded that the business case for ESG investing is well founded. It’s becoming impossible to ignore that ESG funds are not a risk, they’re an opportunity.

And you don’t have to be Janet Yellen to understand why this makes sense! Companies that incorporate ESG into their decisions tend to be less risky than those making bad decisions, because the bad actors are more likely to incur financial losses (think of the BP oil spill, Volkswagen’s emissions scandal, and Wells Fargo’s account fraud… you get the idea). Doing the right thing has increasingly become good for business, and therefore good for investors.

ESG Investing Is Always Evolving

Of course, it’s good to remember that impact investing exists as a spectrum — a spectrum that has and will continue to evolve as investors respond to the changes within our economy and on our planet. How we make a difference with our money is also sure to change, and we may find ourselves using different approaches on that spectrum to complement our goals and values over time.

Now that ESG investing has proven itself as an increasingly powerful force for good, we invite you to utilize it the next time you feel a calling to make an impact. Because if 2020 has taught us anything, it’s that fostering our collective power will get us closer to a more equitable, more sustainable, more empathetic world.

Are you interested in ESG investing? Contact The Humphreys Group to learn how we can help you meet your goals.

The ABCs of ESG: Investing in Action

Published in: Resources |
By Hallie Kraus, CFP®, CRPC®

As we noted in our most recent blog post (linked here), there has been a tremendous rise in the interest in impact investing and the dollars devoted to it. The primary driver of ESG, and the reason it has become so popular in recent years, is the simple desire to use our money to fund companies that are making the world a better place. Many ESG investors are pleasantly surprised to find that in addition, they’re supporting engagement between investors, businesses, and the government. What does that actually look like?

As is always the case, each asset manager has a different approach and different criteria. But let’s take a deeper dive into the acronym itself, then focus in on the most common investment strategies.

What does ESG stand for?

Before investing in a company, a portfolio manager typically analyzes a massive amount of financial data: everything from its balance sheet and profit margins, to the current phase of the economic cycle, and the current interest rate environment. Managing an ESG fund comes with the additional responsibility and opportunity to incorporate a variety of environmental, social and governance (ESG) factors into their analysis. Here’s what’s actually behind that acronym.

Environmental: What does a company do (or not do) to protect the environment? As you’d probably expect, the most important information that falls under this category is a company’s sustainability practices and their greenhouse gas emissions. But this may also include their water and land use practices, treatment of animals, product packaging, renewable energy usage, and whether existing climate change trends will threaten the company’s future.

Social: How well does a company treat their employees, customers, suppliers, and society at large? Mutual fund companies usually pay attention to labor practices, what sort of hiring, human resources and safety policies the company has adopted, how they protect consumer privacy, their customer satisfaction, and where their supply chains are sourced.

Governance: How do corporate leaders run their business and relate to their stakeholders? Asset managers are usually most interested in executive compensation and how their financial incentives align with the company’s success. They’ll also look at the quality and diversity of the board of directors and management team, how they communicate with shareholders, and examine past lawsuits brought against the company.

Mutual fund companies will use these factors, along with data from third-party rating agencies, like MSCI ESG and Sustainalytics, to develop a comprehensive analysis of the company — in fact, many often end up developing their own ESG rating system.

And here is where the rubber meets the road. When you buy shares of an ESG fund, portfolio managers typically invest your dollars using one (or a combination) of the following strategies:

Negative (or Exclusionary) Screening

If a fund is negatively screened, it means that it either underweights or eliminates companies that the portfolio management team has deemed objectionable based on their ESG data. For example, many ESG funds refuse to invest in tobacco, alcohol, or gun manufacturing companies. They may also eliminate companies that violate some set of norms, like the Ten Principles of the UN Global Compact, or operate in countries with corrupt leadership or human rights abuses.

Positive (or Best-In-Class) Screening

If a fund is positively screened, it holds or overweights companies with strong ESG performance. Oftentimes mutual fund companies will develop a minimum standard based on their ESG rating system, and this strategy invests in companies that exceed that minimum. This is also sometimes called the “best in class” approach. To be clear, this doesn’t always mean they eliminate the poor performers from their fund — it just means they overweight the best performers of a specific group or sector.

Thematic (or Inclusionary) Investing

Then there’s thematic investing, which is not about rewarding or excluding certain companies, but instead about concentrating on one ESG issue. For example, a thematic fund may invest only in companies that use renewable energy, or only in companies that achieve a certain level of gender diversity in their management (like one of our favorite ESG funds, the Pax Ellevate Global Women’s Leadership Fund). Most of the time, thematic funds are focused on an issue that the portfolio management team believes will become a widespread (and profitable) trend over time.

Still, ESG Investing is Subjective

Some mutual fund companies practice just one of these investment strategies, and some may use a combination of all three.

But here’s the thing: try as we might to outline these strategies in a straightforward way, ESG investing in real life is not usually as simple as holding or not holding this or that company. In fact, it’s quite subjective, because every mutual fund company has developed different ESG criteria, offers different depths of research, exercises different levels of flexibility, and deploys a variety of investment strategies.

That means that you may hold a positive screened ESG fund, but still be surprised to find that it holds an airline or an oil company — when in fact the reason it’s there is because it has better ESG metrics, or is making significant strides, compared to other airlines or oil companies. Even negatively screened funds are not absolute: they may underweight, but still hold a very small stake in, companies you consider unfavorable.

All of that is to say, as it becomes more popular and more dynamic, ESG investing is moving away from the binary “yes/no” approach and toward a more nuanced and proactive methodology. The good news is that it can still be worthwhile. In our last piece, we bring this all a little closer to home and outline how The Humphreys Group approaches ESG investing within your portfolio. Check it out here.

The ABCs of ESG: What It Is, and What It Is Not

Published in: Resources |
By Hallie Kraus, CFP®, CRPC®

So, let’s say you’ve chosen one of the most accessible methods to make an impact: ESG investing. You happily buy some shares of an ESG mutual fund and think to yourself… what does holding this fund really do, anyway?

At face value, you’re buying a fund that has a specific framework for the companies it invests in, based on their environmental, social and governance practices. (We’ll discuss this in our next blog post and highlight some examples.) But there is a lesser known, equally important component to ESG investing. Investing in these funds also means that you’re supporting a significant level of dialogue between the mutual fund company and the companies it holds a stake in. Sometimes, that dialogue turns into much more overt pressure to incorporate more equitable and sustainable business practices.

Every asset manager is different, but it usually involves a combination of the following:

Shareholder Activism

Unlike traditional activism, shareholder activism doesn’t involve marches and boycotts, but like traditional activism, it does involve voting. You see, shareholders aren’t just entitled to quarterly dividends — depending on the class of shares, they’re also entitled to distinct voting privileges. And when an ESG mutual fund company owns a significant percentage of shares of a company, it leverages its rights as a shareholder to bring about sustainable and societal change. In addition to voting on a wide range of business decisions (such as board of director elections, environmental goals, executive compensation, among other issues), they may also propose their own recommendations to the board (called shareholder resolutions) that are voted on during the corporation’s annual meeting.

Engagement

If shareholder activism is analogous to voting in the political system, shareholder engagement most closely resembles advocacy. In this case, the “advocates” are the members of the mutual fund’s policy and research team(s), who meet directly with company executives and encourage them to adopt higher sustainability and governance standards. The asset managers will also share their expertise, research findings and other resources to support their demands. Depending on the willingness and progress that the company shows during the engagement process, the portfolio managers may change the fund allocation to invest more — or less — in that company.

What does this look like? Let’s look to Parnassus Investments as an example. Parnassus is a San Francisco–based firm and one of the first entrants in the world of impact investing, decades ago. Beginning in 2013, they voted in support of a shareholder resolution that called on Mondelez, which owns snack brands like Oreo, Ritz and Cadbury, to improve its packaging waste. Over the next five years, Parnassus also directly engaged with its head of sustainability and corporate security, and by 2018, the resolution grew to receive 31% of the shareholder vote. In October of that year, Mondelez announced that all the company’s paper packaging will be sustainably sourced by 2020, and all of its packaging will be recyclable by 2025. We love to see this kind of shareholder activism and engagement in action!

Advancing and Developing Public Policy

In addition to voting and appealing directly to executives to bring change within corporations, some ESG mutual fund companies broaden their advocacy efforts to influence policy. Portfolio research teams at Impax Asset Management, for example, serve as facilitators to help policymakers and investors understand how subsectors within industries operate. This makes it possible to identify the trends and components within industries that are needed to support sustainability.

Many mutual fund companies will also band together to expand their clout worldwide. In 2019 alone, Impax wrote or signed letters to at least 11 public entities, including the EPA, three state legislatures, the SEC, and the government of Bangladesh, on issues ranging from upholding air quality standards, to increasing funding for energy efficiency, to maintaining corporate disclosure requirements — just to name a few! Both Impax and PIMCO are also part of the Institutional Investors Group on Climate Change, a network of 240 asset managers and pension funds that works with policymakers to advance climate policy on the global stage.

The Power of ESG Investing

As wealth managers, we’re excited that ESG mutual funds have become uniquely positioned to serve as a link between investors, businesses, and government, and appreciate how they’re doing the legwork and research to identify a sustainable path forward. By investing even a small amount in ESG funds, you are promoting a dynamic discourse and advocacy between institutions that you couldn’t otherwise do on an individual level. But that’s just part of it! In our next piece, we’ll explore the more granular side of ESG investing: how fund managers actually put your dollars to work.

If you’d like to learn more about ESG investing, check out Part III of our blog series on the topic here.

The ABCs of ESG: An Introduction to Impact Investing

Published in: Resources |
By Hallie Kraus, CFP®, CRPC®

In the year that has brought us COVID-19, a nationwide reckoning with racial injustice and undeniable signs of climate change, many of us — often feeling otherwise helpless — have opened our wallets in an effort to help correct the inequities that have been laid bare in our country. This isn’t particularly unusual: whether we choose to make a donation to a local nonprofit organization, drop a bill into our church collection box or contribute to a GoFundMe page to help someone pay their medical bills, when life gets difficult, many of us have a natural inclination to use our dollars to make a difference in a way that we otherwise can’t. Of course, we don’t expect to see that money again, or to see it grow. We simply hope it will have an impact.

For decades now, many in the world of finance have taken this traditional model of philanthropy a step further through what’s commonly called “impact investing.” While there are many flavors of this rapidly growing segment of the investment industry, they are all based on the desire to make money and do good at the same time.

Of course, we at The Humphreys Group heartily endorse the increased interest in investing to promote social good. It is one of the most effective ways we can vote with our dollars and have our money and values aligned — which we have seen results in better financial outcomes. Because 2020 has given us no shortage of causes that are deserving of our help, we decided to mark this year by focusing on what it really means to be an impact investor and explore a new strategy that can help you have the impact you seek.

Impact Investing Approaches

Let us start by acknowledging there are countless approaches to impact investing, and each depends on a variety of factors, including your resource level, your risk tolerance, your values and your goals. While we surely can’t cover each individual strategy, we think the best way to understand impact investing is to envision it as a spectrum, with direct strategies on one end, and indirect strategies on the other.

Direct Strategies: One End of the Spectrum

When we talk about direct impact, we’re referring to strategies you’re most familiar with, like charitable giving and political donations. They are approaches in which we often have a fair amount of control over where our money goes, generally know how the funds will be put to work, and rarely, if ever, expect a financial benefit.

Humphreys-Group-ESG-Chart-1

Less Direct Strategies: The Middle of the Spectrum

As we get closer to the middle of the spectrum, we lose some of that control, but we’re still quite aware of how we’re effecting change. Perhaps we choose to practice intentional spending, like supporting businesses that are women-owned, Black-owned, or certified as a B Corp. Maybe we choose to participate in a program that provides loans to underserved populations, like a microfinance organization or lending circle. Remember that these strategies are less direct because, for example, you cannot instruct how a loan recipient or business owner puts your money to use. But you are still broadly aware of how your money is reflecting and advancing your values. In some situations, like a lending program, you may expect some interest or a small return on your investment.

Humphreys-Group-ESG-Chart-2

Indirect Strategies: The Other End of the Spectrum

The best example of an indirect strategy is called ESG (environmental, social and governance) investing. It involves you (as an individual investor), buying shares of a mutual fund and essentially putting your trust in a number of intermediaries (portfolio managers, other shareholders and corporate executives) to use your money for good. In exchange, your investment is expected to grow over time. ESG investing is also one of the most accessible forms of impact investing, especially compared to those with a higher asset base, who might be better financially positioned to engage in more direct programs like microfinance or private foundation work. This indirect side of the spectrum is where wealth managers are most often engaged, and while ESG investing specifically can seem “hands off,” you may be surprised to know that it is an incredibly powerful way to bring about change.

Humphreys-Group-ESG-Chart-3

Why ESG Investing Is So Effective

The reason ESG investing is so effective is because it’s multifaceted. While enabling us to proactively use our money to support that which we want to thrive, this strategy also leverages research, financial support, shareholder activism and policy development to apply pressure on the private sector to become more equitable and sustainable. And it happens to be at an inflection point. According to Morningstar, the first half of 2020 saw a record $20.9 billion flow into ESG funds — almost as much as the $21.4 billion in ESG flows in all of 2019.

As we’ve seen ESG investing evolve, we’ve grown more excited about its potential. In the next three blog posts, we’ll take a deeper dive at why this indirect strategy may actually become the future of impact investing. First, we’ll take a look at how it can influence business leaders to act more equitably, then we’ll talk through what investment decisions are being made within the fund, and in our last post, we’ll share our specific perspective and investment approach. After a long, difficult year, we think it will give us all a much-needed renewed sense of hope.

If you’d like to learn more about ESG investing, check out Part II of our blog series on the topic here.

Q&A: What Does It Mean to Be a B Corporation?

Published in: Resources |

We recently shared the exciting news that The Humphreys Group is now a Certified B Corporation. We wanted to further explain what that means, especially since the issues of sustainability and social responsibility are so prevalent right now.

In this Q&A, President Diane Bourdo, CFP®, shares why earning this certification was so important to The Humphreys Group and the firm’s goals for 2021 and beyond:

1. Why did The Humphreys Group want to earn the B Corp certification?

Diane Bourdo (DB): I initially learned about the B Corp certification probably two decades ago. I’ve always aspired to run The Humphreys Group to serve the interests of all stakeholders, so validating that effort with a B Corp certification was a no brainer. I wanted to recognize and foster the idea (and my belief) that business success is not measured solely by the bottom line.

The world of wealth management is steeped in numbers and metrics, of course, and I wanted to explore other ways to measure value and success in a for-profit environment. I wanted to see (and felt challenged by) whether we could pass muster in this regard and earn the certification.

Joining a community of like-minded endeavors has great appeal. I want to add our voices to the growing belief that making money and doing good can happen at the same time.

2. What does the B Corp Impact Score mean?

DB:  From my perspective, the score measures how well we are doing when it comes to including the interests and concerns of all stakeholders in our business decisions and functions. Looking at the various groups of stakeholders:

  • Clients:
    • How well are we serving our clients?
    • Specific to our investment management services, how much of our managed asset base is invested in impact investments?
    • What are the fees that we charge and what is included in them? Are they reasonable and fair, considering the competition?
    • Do we hold ourselves (as we should) as fiduciaries? Do we put our clients’ interests ahead of our own? Yes, we do.
  • Staff:
    • What is the nature of the human resource component?
    • What is the difference between the salaries of the highest paid vs. the lowest paid employees?
    • Are we providing strong benefits including retirement account funding, paid time off, and the like?
  • Environment:
    • This process allowed us to take a close look at our environmental footprint. We are delighted that 60+% of the energy in our building is produced from alternative sources. We are committed to making the greenest choices possible, down to the hand soap and paper products we use.
  • Our Local Community: 
    • Everyone on the team lives in San Francisco, so we have no shortage of organizations we want to support — with our time, talent, and treasure. We commit to closing the office three to four days per year to do community service as a group. We provide financial support to organizations from the firm as a whole and at the direction of each of us, individually. We also regularly provide pro bono financial planning to underserved communities.
  • Our Professional Community:
    • Sisterhood was powerful in the ‘70s and it remains so today! In ways direct and indirect, we support our fellow female financial advisors and share our knowledge and resources.

3. How does being a B Corp change how The Humphreys Group is run?

DB: It formalizes what we already do and our commitment to it — and it also inspires us and motivates us to do better. It provides a much-needed morale boost (2020!) to know that our approach is valued and that we are part of a community of like-minded organizations.

4. What benefits do all stakeholders (clients, employees, communities, the environment) get from The Humphreys Group becoming a B Corp?

DB: They can see what we are committed to, and as it applies to them (see answer to question 2). We are putting our flag in the ground for what we believe in and are committed to doing — in a public, transparent, measurable way.

5. How does becoming a B Corp further The Humphreys Group’s mission of helping women own their financial power?

DB: We frequently urge our clients to align their money and values. We have seen that when that happens, our clients are more engaged in their own financial life, they gain confidence, they make better decisions for themselves, and they achieve better financial outcomes.

It is so important to us to show our clients that we believe this to also be true for ourselves, as a firm. Living by and espousing one’s values is easier said than done.

Becoming a B Corp is a way for us to demonstrate exactly what it means to align your values and your wallet. We all have power in how we deploy our financial assets and this is a way to show just how powerful that can be. We are setting the example — leading by doing.

6. How does the B Corp certification align with The Humphreys Group’s values?

DB: For most of my adult life, it’s been important to me to use my financial resources as a way to express my values. In addition to boycotting certain companies and products, I aim to direct my spending toward enterprises I wish to support and whose values are aligned with mine — and The Humphreys Group.

The metrics that go into a B Corp certification are extremely similar to our firm’s values and the ethic we strive to embody in our work with clients and each other. I have long believed that while the traditional metrics are crucial for business success, the broader business purpose must recognize and value the experiences of those it serves, those working within it, and the broader community.

7. What are The Humphreys Group’s goals for 2021 and beyond being a B Corp?

DB: We look forward to getting more involved in the B Corp community — learning from other B Corp organizations and offering our expertise and experience to the community as well.

We want to do our part in changing the narrative about “profit at all costs” in our own industry as well as championing those values more broadly.

Additional Resources

Miss our B Corp announcement? Check out the press release here! You can also learn more about what a B Corp is here.