What happened is that the econminc

Sent from my iPhone

On Feb 1, 2018, at 11:18 AM, Farha, Ryan <Ryan.Farha@orix.com<mailto:Ryan.Farha@orix.com>> wrote:

My view is that our thinking about capitalism has to undergo some kind of conceptual shift to sustain itself.

Society is demanding it, whether it’s millennials generally, the Occupy Wall Street Movement, constant focus on the “1%”, Enron, 2008, Madhoff, etc.

Just look at the support Bernie Sanders garnered in the last election. The guy is a self-proclaimed socialist getting real votes in the United States. In prior decades, it would have never gained momentum. But in 2016, it did.

We will only see more of a barrage on capitalism as time goes on.

I look at conscious capitalism as a fundamental shift in the model and a real solution to address the accountability people are looking for.

Ryan Farha  |  Managing Director, Head of Corporate/M&A  |  Legal
ORIX USA Corporation | 1717 Main Street, Suite 1100 | Dallas, TX 75201
t  | 214-237-2242 | e | ryan.farha@orix.com<mailto:ryan.farha@orix.com>  |  www.orix.com<http://www.orix.com/>  |

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of Jha, Christine
Sent: Thursday, January 18, 2018 10:02 AM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: RE: semantics and conscious capitalism

A marketing ploy at best.

Christine Jha | Deputy Chief Financial Officer | ORIX USA Corporation
1717 Main Street, Suite 1100 | Dallas, TX 75201 | t 214 237 2308 | c 972 322 0966 | e christine.jha@orix.com<mailto:christine.jha@orix.com>  | www.orix.com<http://www.orix.com/>

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of Lenocker, John
Sent: Thursday, January 18, 2018 9:52 AM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: RE: semantics and conscious capitalism

Larry Fink’s Warning to CEOs Rings Hollow
https://www.bloomberg.com/view/articles/2018-01-17/larry-fink-s-warning-to-ceos-rings-hollow<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.bloomberg.com_view_articles_2018-2D01-2D17_larry-2Dfink-2Ds-2Dwarning-2Dto-2Dceos-2Drings-2Dhollow&d=DwMFaQ&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=EHRVDYmGsNRZ23dTKmUAa5PMk6ZDhTb4aJgzW5p-lxc&m=qKfkIJ6L_ue13335gc5OEDPVhOq-r9bE5HfK5SN2Izg&s=KH63LfVkRDsvLxZnVHMl4maTiy-PZ_TrCFW7dGVH-T8&e=>
The BlackRock founder wants companies to make the world a better place. It's going to take more than a strongly-worded letter to create change.
By Matt Levine
January 17, 2018, 1:00 AM CST

There is a theory, once popular in certain circles, that the way you build a big profitable company is by providing some valuable good or service to the rest of society. If you build a billion iPhones and sell them for $500, and a billion people get more pleasure out of an iPhone than they do out of $500, then those billion people will be better off for your efforts, and you will have $500 billion. This straightforward theory -- it is sometimes called "capitalism" -- runs into some complications with rents (if you build a lifesaving pill for $1, patent it, and sell it for $100,000, the person who buys it will be better off in a sense, but you might still be a jerk) and externalities (if you build a delightful social network, sell lots of ads for it, and it happens to undermine democracy and civil society, then you might be subtracting value even as people are happy to buy your ads), but like I said it used to have a certain popularity.
In particular, people in the financial-services sector tended, as a matter of professional pride, to believe in it. For one thing, people in the financial-services sector themselves provide a nebulous and hard-to-explain value to the rest of society. "Wait, you allocate capital? What does that mean?" their aunts ask them at family gatherings, creating a certain touchiness that can only be assuaged by their paychecks. For another thing, people in the financial-services sector usually allocate that capital based on profitability metrics -- they'd rather allocate capital to a stock that goes up than one that doesn't -- and so they have a natural tendency to think that profitability is a good measure of social value. You'd hate to buy a tobacco stock and have it go up and think that that was bad.
But now the largest capital allocator in the world seems to have renounced the theory<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.nytimes.com_2018_01_15_business_dealbook_blackrock-2Dlaurence-2Dfink-2Dletter.html&d=DwMFaQ&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=EHRVDYmGsNRZ23dTKmUAa5PMk6ZDhTb4aJgzW5p-lxc&m=qKfkIJ6L_ue13335gc5OEDPVhOq-r9bE5HfK5SN2Izg&s=zic60RSuRpz0Qxgr25-ttwkQx-zVMBDdoXQ5n5PAl4c&e=>:
Laurence D. Fink, founder and chief executive of the investment firm BlackRock, is going to inform business leaders that their companies need to do more than make profits — they need to contribute to society as well if they want to receive the support of BlackRock.
"To prosper over time," Fink's letter to chief executive officers says, "every company must not only deliver financial performance, but also show how it makes a positive contribution to society." "The financial performance is what shows how we make a positive contribution to society," the CEOs might reasonably have responded not too long ago, but that answer apparently no longer cuts it.
Obviously this is a ... strange ... approach for a massive provider of index funds? Pick your least favorite public company -- guns or tobacco or oil or opioids or Facebook or whatever you think is doing the most harm to society -- and BlackRock Inc. is among the top five holders. Fink's threat -- contribute to society or you'll lose BlackRock's support -- rings a bit hollow since BlackRock's index funds can't sell. (They can vote against directors, sure, but what exactly do you want a gun maker's directors to do?)
And BlackRock's own central function is making investing and capital allocation more efficient with smart strategies and economies of scale. That is, you know, fine. It clearly adds value to society; you can tell because Larry Fink is very rich. Still you would not expect too many starry-eyed idealists to dream of growing up to allocate capital efficiently. As a contribution to society, it is one that looks better in an income statement than in an inspirational letter. "Well what is your positive contribution to society, Larry Fink?" his targets might ask. I suppose the answer is that he invests people's retirement savings in fossil-fuel companies, but also writes strongly-worded letters about it.
If you'd like to get Money Stuff in handy email form, right in your inbox, please subscribe at this link<https://urldefense.proofpoint.com/v2/url?u=http-3A__link.mail.bloombergbusiness.com_join_4wm_moneystuff-2Dsignup-3Fsource-3Dmsweb&d=DwMFaQ&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=EHRVDYmGsNRZ23dTKmUAa5PMk6ZDhTb4aJgzW5p-lxc&m=qKfkIJ6L_ue13335gc5OEDPVhOq-r9bE5HfK5SN2Izg&s=G3fExdrWMh1n9DZmrsSsSKHeYd6EcPVERc6u9q2dvBs&e=>. Thanks!
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
To contact the author of this story:
Matt Levine at mlevine51@bloomberg.net<mailto:mlevine51@bloomberg.net>

John Lenocker |  Managing Director  |  Private Debt & Equity Capital
ORIX USA Corporation  |  1717 Main Street, Suite 1100  |  Dallas, TX 75201
t  |  214-237-2026     c  |  972-762-5528     e  |  john.lenocker@orix.com<mailto:john.lenocker@orix.com>  |  www.orix.com<http://www.orix.com/>

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of Ashmore, Slade
Sent: Wednesday, January 17, 2018 1:18 PM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: RE: semantics and conscious capitalism

I’m sure many of you saw the Larry Fink letter yesterday.  It’s timely to see the conscious capitalism topic in the headlines.

https://www.blackrock.com/corporate/en-us/investor-relations/larry-fink-ceo-letter<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.blackrock.com_corporate_en-2Dus_investor-2Drelations_larry-2Dfink-2Dceo-2Dletter&d=DwMFaQ&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=JOt28gYMAaWoiyOL5F1GIW-elwFqcYyHWSJUUW8ABfo&m=xwKu4jyw8FnIMlgaQ9wyPBEylAhHwFLBYJ3NpGs6-Kk&s=PCeY90YqXhcEw7Cq6Ee6NISjdYovH33M2TSfSye4TGo&e=>

Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.

Without a sense of purpose, no company, either public or private, can achieve its full potential
Seems like an excerpt from the Stagen handbook.    Will be interesting to see the traction and follow-through on this message.

Slade Ashmore  |  Director  |  Financial Planning & Analysis  |  ORIX USA Corporation   |  t  |  214-237-2353 c  |  214-728-5081     e  |  slade.ashmore@orix.com<mailto:slade.ashmore@orix.com>  |  www.orix.com<http://www.orix.com>

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of LeeAnn Mallory
Sent: Wednesday, January 17, 2018 9:50 AM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: Re: semantics and conscious capitalism

Good morning Thatcher-

I’m pulling this e-journal string back to the top and ask that you read through it again for the purpose of bringing your conversation about Conscious Capitalism alive again.

Meet you on the e-journal tomorrow morning!

LeeAnn

LeeAnn Mallory | Executive Coach
leeann.mallory@stagen.com<mailto:leeann.mallory@stagen.com> |  214.287.0565

Stagen | 3535 Travis  Street | Suite 100 | Dallas, TX 75204
p: 214.744.9255 | f: 214.744.0094 | www.stagen.com<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.stagen.com&d=DwMFaQ&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=c8bmmdGKEC38UDoTpGgpLhXwoamtrnMD1pxzUt40ml0&m=dt_UPrlnVpSKKqQmdW_rl3T6zb6mpZEBygv_UMWVMHA&s=VRpX8BlPCU8Z6bvOgcj1eMjvVMQJSBBBig2D-34rmJk&e=>

On Dec 15, 2017, at 6:29 PM, Paulinelli, Nathalia <Nathalia.Paulinelli@orix.com<mailto:Nathalia.Paulinelli@orix.com>> wrote:

I think time horizon is a key component of the decisions of a conscious leader, business, parent – they are making (sometimes tough) decisions for a better future. I struggle with this big time given the weight of imminent responsibilities or the luxury of a comfortable situation, but I can see how conscious business / leader can elevate the reality of all stakeholders and its own over time and create a virtuous cycle, instead of a potentially destructive one.

We also want the stakeholder to be independent and thrive on their own, which in turn generates more benefit for all – again. I will seek to approach parenting and leadership with that perspective. For example, I don’t want to raise a child who depends on me forever, in fact I want him to be better than me!  To John’s point about the foundation, if we can “teach it to fish” it doesn’t have to depend on us. As long as it depends on us, it is constrained by our success.

Seeing more changes starting to take place, for now I can only tell myself stories and hope they are meant to drive growth and prosperity for all.

Nathalia Paulinelli  |  Director  |  ORIX Latin America  |  ORIX USA Corporation  |  1717 Main Street, Suite 1100  |  Dallas, TX 75201
t  |  214-237-2372     c  |  469-271-6040     e  |  Nathalia.Paulinelli@orix.com<mailto:Nathalia.Paulinelli@orix.com>  |  www.orix.com<http://www.orix.com/>

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of Lenocker, John
Sent: Friday, December 15, 2017 5:03 PM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: RE: semantics and conscious capitalism

No surprise, but I found John Mackey’s summary of CC insightful…link and excerpt below.
https://hbr.org/2013/01/cultivating-a-higher-conscious<https://urldefense.proofpoint.com/v2/url?u=https-3A__hbr.org_2013_01_cultivating-2Da-2Dhigher-2Dconscious&d=DwMFAg&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=HpPHEj8qqdtdGbfMdgybJ4iYXgivSaVx6TUOhOc1hDc&m=LJh6MTcQa75WjCNCTBJeREIiev1dysYq1xmwm0eyG7o&s=-6BbZU_KlIVA0CfHIzs7-0iPHyE0V2GicxLjKbDI1k4&e=>

“Conscious Capitalism” is a way of thinking about capitalism and business that better reflects where we are in the human journey, the state of our world today, and the innate potential of business to make a positive impact on the world. Conscious businesses are galvanized by higher purposes that serve, align and integrate the interests of all their major stakeholders. Their higher state of consciousness makes visible to them the interdependencies that exist across all stakeholders, allowing them to discover and harvest synergies from situations that otherwise seem replete with trade-offs. They have conscious leaders who are driven by service to the company’s purpose, to all the people the business touches and to the planet we all share. Conscious businesses have trusting, authentic, innovative and caring cultures that make working there a source of both personal growth and professional fulfillment. They endeavor to create financial, intellectual, social, cultural, emotional, spiritual, physical and ecological wealth for all their stakeholders. Evidence is mounting<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.firmsofendearment.com_&d=DwMFAg&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=HpPHEj8qqdtdGbfMdgybJ4iYXgivSaVx6TUOhOc1hDc&m=LJh6MTcQa75WjCNCTBJeREIiev1dysYq1xmwm0eyG7o&s=0CNQkKFrl0P7jcIcvgDdxYhLyX_pqCae8xpqGKDW0d4&e=> that such businesses significantly outperform traditional businesses in financial terms, while also creating many other forms of well-being.

To me, this reinforces the concept of CC as a framework or tool to be used. It does not have to be a referendum on capitalism, but does reflect a choice by leadership as to how they will make decisions.

John Lenocker |  Managing Director  |  Private Debt & Equity Capital
ORIX USA Corporation  |  1717 Main Street, Suite 1100  |  Dallas, TX 75201
t  |  214-237-2026     c  |  972-762-5528     e  |  john.lenocker@orix.com<mailto:john.lenocker@orix.com>  |  www.orix.com<http://www.orix.com/>

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of Chang, Geoff
Sent: Friday, December 15, 2017 4:02 PM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: RE: semantics and conscious capitalism

I could not agree more with Seth.  Diction is deliberate and changes everything.

Adding conscious before capitalism gives it another dimension.  It takes a 2D concept and makes it 3D, adding complexity and additional purpose.

The point is that conscious capitalism is additive to the basic concept and to me, represents a vision and purpose that is more complex and far reaching than the alternative.

Why does it matter if it is a buzzword?  It should not.  If you can’t get past that and see the forest through the trees, then it is akin to being stuck in the drama triangle and either not wanting to get out, or failing to understand why being a rescuer is frowned upon – I admit that was tough for me, I like to rescue, but to coach or challenge, well it took me longer than most in the class to practice and adopt and see as better.  I even admit to being stuck in the drama triangle earlier this week and letting it negatively affect my actions and decision making.  So I am nothing more than a student and novice myself.  But I get it.

No different than a concept like Machiavelli’s benevolent dictator – is every dictator the same or is a difference?  There’s a difference.

***PLEASE NOTE OUR NEW OFFICE ADDRESS***

Geoffrey S. Chang  |  Managing Director  |  ORIX Leveraged Finance
ORIX USA Corporation  |  280 Park Avenue, 40 West  |  New York, NY 10017
t  |  212-468-5870     c  |  917-860-5946     e  |  Geoff.Chang@orix.com<mailto:Geoff.Chang@orix.com>  |  www.orix.com<http://www.orix.com/>  |  www.orixlf.com<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.orixlf.com_&d=DwMFAg&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=JOt28gYMAaWoiyOL5F1GIW-elwFqcYyHWSJUUW8ABfo&m=Ob5BLXOKoB2qs5IzCIQ6w9mOjKf4h9xjNkfhjnVPRHI&s=uLn0FxkUVt4NFf5DN1q4FNRnn8rQBhBZ3RCA6BbL_1k&e=>

From: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com> [mailto:ironlady@stagen.simplelists.com] On Behalf Of Seth Braun
Sent: Friday, December 15, 2017 4:43 PM
To: ironlady@stagen.simplelists.com<mailto:ironlady@stagen.simplelists.com>
Subject: semantics and conscious capitalism

Hmmm…

Capitalism = Conscious Capitalism
It is all how you think about it and then semantics.

I am going to push back here a little.

Words matter.

And the deliberate use of words with meaning make a difference.

Not all capitalist activity aspires to be conscious, just like not all parents aspire to be conscious.

There is parenting. Then there is conscious parenting.

Being a parent requires very little thought, effort, or attention.

Being a conscious parent requires engagement, attention, presence, thought, effort, sacrifice, not to mention a commitment to values and standards.

However, the word conscious could also be analogous to “pretentious,” “special,” or even “sizzle.” Is it a buzz word? Is it a marketing ploy?

Words matter.

When we use the word “conscious,” it is central to the notion of moving out of reactivity and moving towards deliberate behavior, with intention and meaning.

Seth

Seth Braun | Executive Coach
Seth.Braun@stagen.com<mailto:Seth.Braun@stagen.com> |  303.443.6543

Stagen | 3535 Travis  Street | Suite 100 | Dallas, TX 75204
p: 214.744.9255 | f: 214.744.0094 | www.stagen.com<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.stagen.com_&d=DwMFAw&c=l6wIEjFZ2r6NRbgTeJOW4HMPY8FVASe8l9IlzHzRYYs&r=aSgwXCY3nTCn3fGz231Af-EeUKtGzXVr9vuCGzqe-YA&m=Bqwklo93TdfhihGjEBKu0Jg7OzkKXHBiFBoda_g54Ms&s=klaXxwSYMbuz7mB2qe_eVv__NIOcEbD3Wi-0PISg5AM&e=>