We believe, and our experience validates, that virtually all well-run businesses have a positive social impact. For example, all good businesses create jobs and provide the social benefit of delivering needed goods or services. During our investment careers, however, we have noted that there is a growing subset of well-run businesses that also exhibit leadership in how they partner with both human capital (employees, customers, suppliers, communities) and natural capital (natural resources and the environment).
Well-run businesses that thoughtfully steward financial, human and natural capital with a long-term perspective are first and foremost, profitable. Well-intentioned ideas are at most inspirational unless they can be executed profitably. In this way profit, rather than a singular goal, is actually an indicator of the health and success of a business that in turn serves as a powerful signal for others to follow. By investing in these profitable and thoughtfully managed businesses, Concentric not only generates market returns for our investors but also facilitates the growth and leadership of businesses that are poised to offer social and financial returns for many years to come.