Slow Money
A concept under development by Woody Tasch, Chairman of Investors’ Circle. Inspired by the mission of the Slow Food Movement, Tasch considers that “fast” money investments (such as venture capital) is expected to return a profit quickly but is rarely invested long enough to create sustainable ventures. This is especially true of early-stage companies in […]
Shareholder Activism
The process of dialogue with company executives and filing shareholder resolutions generates investor pressure on corporate executives, garners media attention (which adds even more pressure on corporations to improve their behavior), and educates the public on often-ignored social, environmental, and labor issues. The process has served as a powerful tool to encourage corporate turnaround in […]
Present Value (PV)
An assessment of the “real” value of a future investment or financial transaction in terms of present economic value (as opposed to the actual value of the investment or transaction when it occurs).
Profit
The positive residual value (if there is one) or the benefit or advantage that can be achieved by a particular action or activity. Profit is calculated by adding all revenues associated with that product, service, or activity, and subtracting all expenses associated with it. Often, traditional accounting, finance, and economic calculations of profits don’t include […]
Permaculture
Permaculture is an ecological design system that employs an integrated systems approach to developing ecological human habitats, food production systems, and other material and non-material needs.
Non-profit and Not-for-profit
Two types of organizations that are not expected or allowed to make a profit, though many still generate revenues from activities. In return for not earning profits, these organizations are regulated differently and are tax-exempt. Non-profit organizations cannot distribute revenue to an individual or for-profit company. Any “earnings” gained in the pursuit of its goals […]
Liquidity
The ability to quickly buy or sell a particular security, investment, or asset in a short period of time (under one year) without causing a significant movement in its price. The essential characteristic of a liquid market is that there are ready and willing buyers and sellers at all times. Sustainable businesses operate in ways […]
Keystone Species
A species so critical to an ecosystem that its removal could potentially destroy the entire system. A good example of this are Blue Jays, which plant acorns that give rise to oak forests. Without Blue Jays, oak forests are not naturally replenished and without the forests, all other species in the ecosystem cannot survive. It […]
IPO (Initial Public Offering)
A first sale of equity in a company to public investors. IPOs are governed the Securities Act of 1933, SEC (Securities Exchange Commission) regulation, and differing state laws. An IPO is one way to raise money for further investment or expansion, the other being the issuing of debt in the form of bonds. A company […]
Integrated Bottom Line
A process, described by Theo Ferguson, for integrating financial, environmental, and social costs and benefits into a unified measure of business activity. Conventional objectives of profitability, competitive advantage, efficiency, and economic growth are judged successful by their compatibility with biodiversity, ecological sustainability, equity, community support, and maximized well-being for a variety of stakeholders. An Integrated […]
