Rob Thomas started on the road to social entrepreneurship in
the late nineties. He is the founder and
President of Social(k), a fully bundled, full-service retirement program that
provides access to more than 100 socially responsible investment (SRI) funds in
addition to 600 traditional funds. In
1998, he began working for a major wire house after selling two of his prior
ventures. “Everyone was a stock picking
God,” he said, referring to the roaring nineties. “Someone asked me if I wanted to be a stockbroker,
and I said no way.” Somehow, though, he
found himself selling 100 shares of Disney by five o’clock.
When the market turned in 2000, Thomas looked toward the
401K industry as an alternative. It took
a trip away form the city with a close friend, removing themselves form the distractions
of the average work day, to solidify an idea that combined his industry
expertise with an already green lifestyle.
He returned from that trip ready to launch his idea Social(k).
Thomas identified an unfulfilled niche in the marketplace;
socially responsible fund families tend to be smaller and generally
underrepresented by the larger 401k providers.
Social(k) steps in to serve as a platform for these investments so that
employers have responsible alternatives for their retirement packages.
When challenged with the idea that socially responsible
funds are underperformers in the market, a theory that many traditional
investors have, Thomas replies in a way that compels any investor to take
notice. “Look at the numbers. The numbers out there show that socially
responsible investments at least keep up with if not outperform traditional
funds over the long term.” In fact, the
rate at which assets are going into SRIs is growing faster than the overall
flow of assets into traditional investment funds, indicating an increased
awareness and interest in responsible investment options.
“Why would you want to own Exxon Mobil?” Thomson asks. “Over the last 60 years, it may have been
great, but there’s no way that will continue over the next 60 years –
especially if they’re not setting aside money for suits or renewable energy.
Buying a company that pays attention to more than single bottom line accounting
will deliver more.”
As industries change, and international focus on topics such
as the environment, governance, and human rights intensifies, even the skeptics
are beginning to see that changes need to be made. “I think we’ve come to a tipping point, and I
think the awareness has come to stay when I see Wal-Mart stepping up and saying
that they are going to make change.”
Indeed, who better to make such a change? Thomas highlights the impact that such a
large organization can make with even small improvements in their consumption.
To the MBA graduate, his advice is a simple yet critical mandate. “Spread the word. Not only do you have an obligation as an individual to say something to your friends, but as an MBA, you have an obligation to take it into your workplace. Any of the topics – environmental, social – you have to address them.”
