GRI Equity - sustainable success

BeTheChange.org.uk marks the 30^th anniversary the May Lectures of 1974. I describe it as an alternative gathering because of its broad scope. It was a fulfilling three days of exchange among leading exponents of business, psychology, biology, technology and change. It was unusual in that all those gathered have similar objectives and are leading by example, to reengineer human systems to be compatible with nature. Hard technology and discipline were balanced by empathy, modesty and humanity. These notes summarise my experience.

Introduction

The principal proponents are John Whitmore, Nick Hart-Williams and Christopher Cooke, with Jim Fadiman moderating proceedings.

Introduced as “Leading edge science and consciousness” with Michael Jackson's “what about us?” on the sound system. Presented in the frame of mind that there are no right or wrong, no good or bad; this is the perspective of a systems thinker (as opposed to “flat-earth thinkers”). Whole systems thinking, displayed by participants (and sought by most organisations) is also termed joined-up thinking or integral thinking.

It is for “people who want to change the world”. This was a striking statement to me because most business “leaders” would say you can't change people. However, the (social etc) technology discussed and displayed plainly confirmed that people and systems are changing in timescales that can are relevant to business and economic development.

Frank Dixon – business, investment and economics

Frank heads a team of 35 researchers covering 2,000 listed companies for Innovest. He is a steward of spiritinbusiness.org and displayed an unusual combination of investment analytics and human understanding. His excellent presentation on Total Corporate Responsibility may be available on www.bethechange.org.uk. Much of it reflects GRI Equity's pitch so we especially liked it!

The key to investment screening is management quality. (Classic VC rule.) But how can one evaluate it. Frank notes that sustainability screens act as a benchmark for management competence. (GRI Equity also uses a parallel decision making process (DeBono) and a comprehensive diagnostic (Bell-Mason).)

Human activity is degrading life support systems – water, air etc. (Astraea's rationale provides additional background.)

Current economic behaviour is dysfunctional because it fails to recognise limits to growth. The majority of activity is based on the objective of continual growth, like cancer – so that we end up with one massive company, and then what?! It therefore forces system imbalances.

The discount rate was addressed as an inappropriate tool because it would demand that CEOs seek current wealth, over survival for their grandchildren. (I would recognise this but contend that the discount rate merely reflects people's values/behaviour and if that changes then the discount rate could behave differently and appropriately. The discount rate merely reflects the time value of money. More notes on money later.)

Companies are not held responsible for their actions eg deceit, fraud, pollution etc. (This also is changing and, I would say, is a symptom of our (consumer) complacency rather than the nature of collective investment vehicles/companies.) He questioned the ethics of limited liability structures because of the moral hazard demonstrated. (Again I would blame our use of the tool rather than the tool itself.)

Advertising has got out of control as professional manipulate cultural values to get people to buy things.

Today's economic systems reflect “flat earth thinking” that became entrenched by the Renaisance. For example, permissiveness concerning genetic modification fails to recognise that current genetic engineering bypasses evolutionary screens and may be a terminal threat to nature (eg Monsanto's terminator gene). We are not talking about Mendellian breeding which works with nature rather than without it. He supports the rationale that nature should be our systems model; and humility will be needed for this to overcome the human centred focus of thinking now entrenched.

Encouraged the adoption of feminine traits in system design and development – to move away from fear, aggression and control to nurturing, sharing and cooperation.

Total Corporate Responsibility was outlined. It focusses on three scales:
Interconnectedness – risk, product development, industrial ecology, stakeholder engagement, emerging economics, lobbying.
Actualisation (happiness, vitality) – Leadership, people, organisation, governance, advertising, media.
Posterity – conservation, sustainability

The commercial strength of sustainability in finance/business/investment is that financial products are augmented:
Enron screen – behaviour of CEOs office.
Eco-screen – understand liabilities.
Management screen.

System change IS happening because short term metrics are becoming unusable. The unidimensional perspective obscures risk evaluation.

Intermission

Met Richard Dunne public school principal, educator and conservationist. Linked to roots and shoots an education initiative energised by Jane Goodall.

Don Beck – spiraldynamicsgroup.com

One of the developers of spiral dynamics, with Clare Graves, Dr Beck has pioneered the understanding of this social engineering technology. He has been the principal advisor in South Africa's movement from apartheid since the early 1980s. Very modest and passionate and a powerful thinker.

SD turns Mazlow on its head: if you satisfy the higher needs, other demands fall into place.

SD is strongly founded on paleo-psychological history of humanity and describes the emergence of mindsets. The emergence of western thought (music, art, science, technology, business) in 1250-1600 (the Rennaisance) dominates global human activity today: male dominance, eurocentric, human centric.

We need a new model that makes the existing model obsolete (Buckminster Fuller). It should not block the natural emergence/developoment of people (as the current fear based system does).

System evolution can continue without limit as divergence and emergence allow change. Though our system must necessarily first evolve from non-system thinking (beige ... green in the SD model of emerging values) to system level thinking (yellow, turquoise).

The principal benchmark for higher level thinking is the ability to absorb and work with complexity: Complexity Quotient Intelligence is an improved model for intelligence which considers linear and lateral thinking and emotional aptitude.

Solutions focus on what is needed at that level of thinking (beige to turquoise) by
removing blocks to emergence
solve problems to allow progression
upgrade coping skills
match the solution to the culture.

See the attitudes that cause pain – greed, fear, hate, judgement. And change them.

It appears that one can not leap frog evolution (but acceleration is possible). Reason is critical, but can only be introduced at the appropriate level.

SD language adapts genetic terminology replacing meme (cultural prototype) for gene ... so, memetics, human memome project etc.

Lunch

A chance to catch up with Pathways.co.uk Tim MacCartney and friends. After lunch Chloe Goodchild charmed us with singing “how I love you” and we all joined in to set the tone for the afternoon.

Lynne Twist – the Hunger Project, Institute of Noetic Science and other affiliations.

Language is an issue. She prefers to speak of resource poor people (rather than poor people) because their abilities are viable but their resource restrictions prevent actualisation. They are often whole and complete even if resource poor. “Don't group people's character with their wealth”.

The Lie of Scarcity:
Lie: There's not enough to go around – so you start feeling as if you're not enough. (Eg: I didn't get enough sleep ... I didn't get enough done today.) Training starts at a young age when we play musical chairs and push our friends away to get the remaining chair.
Lie: More is better.
Lie: That's just how it is.

The Truth: There is enough to go around.
It used to be you or me, now it is you AND me.
The new problem is abundance – waste remediation is a booming business.

She thinks of money as water – it should flow, its no good sitting around. It should be put where it can help. (This is very similar to astraea.net's analogy that money is the blood of our economic system.)

Hafsat Abiola – promoting democracy for Nigeria, KIND.org

Telling her story. The assassination of her mother and death, in prison, of her father, the first elected prime minister of Nigeria who was prevented from taking office by the military. These role models provided an example for her to follow in working for change.

Serendipity shone with Hafsat and Lynne: an unusual relationship exists in that Lynne has become Hafsat's mother, but none of the conference organisers knew this and they did not know they would both participate until after arrangements had been made.

Michael Lintner

Ajay Khaitan

Dinner

What the Bleep do we know?

A special showing of the documentary/film discussing the scientific underpinning of some spiritual drivers. In particular quantum physics showing that particles behave as points or waves depending on how they are observed and that it can now be show for a particle to be in two places at once. Discussions with leading scientists and thinkers show how universal possibilities are more flexible than we have yet conceived. Probability (risk) however was not discussed though it would have a bearing on the outcome of events.

Introduction day 2

Elisabet Sahtouris – leading biologist, evolutionist.

The universe is contracting and expanding at the same time; it is not entropying. Black holes are complimented by white holes from which matter emerges. Other examples of balance: radiation:gravity, entropy:centropy/syntropy, anabolism:catabolism.

The universal shape is a torus (donut). The black/white hole may reflect this. (So does the electromagnetic field created by a heart beating.)

Bruno's theory: omnicentric universe is relevant to modern theories. He was burnt by the Catholic inquisition in 1600!

Technology is part of the solution. But we must evolve from mechanism mentality to organism mentality. (Philosophy – the love of wisdom; sought through nature in original context.)

Her description of the industrial revolution provided a framework for comparing what I see as the ethical revolution (now occurring).

Presented an organisation model reflecting astraea.net's body mind soul categories:

At the universal level, compared the cosmic consciousness to the human consciousness.

unity -> individuation -> tension (competition) -> negotiation -> resolution -> cooperation -> unity

The spiral model also lends itself well to the concept of holarchy, rather than hierarchy. Systems evolving to greater degrees of complexity but coexisting. There is no singular habitat – all are in communication and coexisting. (This science reinforces astraea.net's position that humanity's choice today is to live with or without nature (a virtual world of manufactured air, food, etc, which is not yet proven possible.)

Also compared ecosystems levels: level I sees competition, level III sees cooperation. (Humanity is trying to break out of level one.)

Intelligence like physiology has evolved. Humanity now can manage itself, but it must choose to do so (ed.).

Humanity's system based on western culture is founded on 10,000 years of empire building. Whereas in nature there is no leadership. We are now evolving from negotiated self-interest to cooperation – “glocalisation”.

The stories we tell influence the emerging generation. So we should develop sustainable/cooperative stories, rather than conquering/competitive ones.

Our systems have neglected organisation design (ecology) to overemphasise operating principles (economics).

Though indefinite growth is impossible in our system (see Frank Dixon), sustainable growth may occur by increasing creativity and complexity.

Alan Watkins – many doctorates, neuroscience.

In the scientific field the trend of perspective is
from systematic to systemic
from reductionist to dynamic.

He provided a physiological framework (which is better reproduced on his presentation).

Heart rate variability is a predictor of the risk of death, including from cancer.

Fear stops the functioning of the frontal lobe, which results in confusion. (Management by fear is thus shown to be dysfunctional in a thinking organism/organisation.)

Can generate physiological improvement by generating coherent waves. Heart beat is an electrical pulse (detectable with hospital equipment a metre from the body) and sets up an electromagnetic field of toroid shape.

He then demonstrated using a volunteer, that rythmic breathing can rapidly help bring one's energy and emotion into the contented zone. It worked. We saw her pulse become faster and more erratic under pressure and her mental agility decline under modest pressure, and then, by breathing regularly, moderate her pulse so that it fluctuates in a seemingly perfect metronomic wave and improve mental performance. (Similarities with yoga, martial arts etc occurred to me.)

Intermission Ideas

Systems wrong? No – humans are great and wonderful, but are only now evolving the memes to cope. (See SD.)

Several discussions, including the movie What the Bleep do we know? suggested a “god” as a way of rationalising an undefineable force that seems to be directing evolution and being positive. Perhaps the fairest presentation was the recognition of a universal energy.

Utropia presented

A sustainability park. Incubator, residential, utilities, education, entertainment, experience.

Religion – Some reactions to the discussion between Moosa Raza and Jim Garrison.

Jim Garrison offered some thoughts.

The idea of the US was designed by Francis Bacon. Founding fathers of US were largely freemasons, illuminati. US was a new beginning and was intended to be successful. But now we are moving from an era of nation states. There is hubris of invincibility.

Now facing risk management challenge. Traditional expectations are redundant, can no longer predict (eg climate change, technolgy change, LTCM/Enron risks). No multilateral backup for these risks.

A strange coincidence occurred. Two Americans from greatly different backgrounds used the same word to describe the US president: “evil”. One was Jim Garrison, the other an MD of a bulge bracket US investment bank met later that day. Personally I'm more tolerant, but tension is plainly mounting. (Recommended reading if you want to voice an opinion is American Dynasty.)

Open Space

The final day was an open, self managing forum originally proposed by Harrison and Owen. Unfortunately I did not participate as I had planned. I took the opportunity to meet some people interested in our work so missed much of content. The finale was, however, moving.

Seated in circular formation we randomly presented ideas to other participants for an hour or so. One particpant, a well lived woman we might all call mother, concluded on a positive note, spoke of universal energy (avoiding the “g” word) and people being the change. We all received a gift from a child – a stone and a message. And shared a moment together.

A note on money

This is a personal comment on capitalism and the world of money based on work of GRI Equity and Astraea.

A number of people at bethechange, including some presenters, suggested that money and/or corporations are a problem. This was not discussed critically nor in the context of economics. It would be useful to discuss the world of money because it is so integral to current systems.

Money is a tool. It merely represents value (or utility/usefulness). It facilitates barter, the exchange of goods and services. It makes it easy to exchange carrots for carpentry. Many see the state of the world today and decry the effect of money. However, the way money is used is merely consequent of our values. If we want to give to the poor, we can; if we want to buy coke and McD instead of organic veggies, we can; if we want to buy petrol instead of biodiesel, we can; if we want to buy coal power instead of green power, we can; if we want ot holiday in the sun instead of sending the cash to feed starving children, we can; if we want to invest in dirty tech, low transparency and ecological degradation instead of globally responsible initiatives, we can. We can thus use our money, as well as our opinion, to change our world. The problems blamed on money should rather be blamed on humans that decide where it flows.

It seems to me that money will eventually become one currency, and that will be energy since energy is the currency of the biosphere. Thus the currency of humanity will become integral with the currency of nature. (More at astraea.net.)

Corporations similarly are a reasonable tool increasingly reflecting natural laws. They are a collective organisational form. The symptoms blamed on companies should be blamed on the people behind the companies and the customers of the companies who choose to support them.

As humans increasingly accept personal repsonsibility for our actions, we will tweak the world created on Earth to be sustainable and work with nature.

A note on being American

Many apologised for being American. During open space this was recognised and agreed to be unnecessary. All recognise that the problems of America's imperialism are human problems not American.

A number of people became comfortable to call themselves globals (as opposed to American, Indian, English or Thai). Perhaps we will soon just start calling ourselves human.

We may find that much of the energy for change comes from America. Certainly much technology (spiral dynamics, evolutionary biology, innovest etc) comes from America and the country may be beginning to feel a sense of crisis as ethics in business, politics and education have deteriorated and are under scrutiny.

The country was founded by people escaping religious and political control. Original founding principles were for tolerance, equity and community – these may be reborn in this time of crisis.

This report has been prepared for information purposes and is not an offer, or an invitation or solicitation to make an offer to buy or sell any securities. This report has not been made with regard to the specific investment objectives, financial situation or the particular needs of any specific persons who may receive this report. It does not purport to be a complete description of the securities, markets or developments or any other material referred to herein. The information on which this report is based, has been obtained from publicly available sources and private sources which may have vested interests in the material referred to herein. Although GRI Equity and the distributors have no specific reasons for believing such information to be false, neither GRI Equity nor the distributors have independently verified such information and no representation or warranty is given that it is up-to-date, accurate and complete. GRI Equity, associates of GRI Equity, the distributors, and/or their affiliates and/or their directors, officers and employees may from time to time have a position in the securities mentioned in this report and may buy or sell securities described or recommended in this report. GRI Equity, associates of GRI Equity, the distributors, and/or their affiliates may provide investment banking services, or other services, for any company and/or affiliates or subsidiaries of such company whose securities are described or recommended in this report. Neither GRI Equity nor the distributors nor any of their affiliates and/or directors, officers and employees shall in any way be responsible or liable for any losses or damages whatsoever which any person may suffer or incur as a result of acting or otherwise relying upon anything stated or inferred in or omitted from this report.

“putting our money where our world is”