Advisers Shine Light on CSR at Work
“Companies that fulfill their purpose and responsibilities to stakeholders reap rewards over the long term. Companies that ignore them stumble and fail. This dynamic is becoming increasingly apparent as the public holds companies to more exacting standards. And it will continue to accelerate as Millennials, who today represent 35% of the workforce, express new expectations of the companies they work for, buy from and invest in.” So wrote Larry Fink, CEO of BlackRock in his annual letter to CEOs, “Purpose and Profit,” early last year.
Later in the year, Business Roundtable, a group of 181 CEOs representing the largest U.S. companies, stated corporations should not just prioritize shareholders but “share a fundamental commitment to all of our stakeholders.” Among the group’s five commitments was “Supporting the communities in which we work.”
And so, many of the largest firms are, at least outwardly, noting an initiative toward purpose and beyond returns. But it is not just large publicly traded companies. Increasingly, smaller companies, including advisory firms, are realizing the value of integrating some sort of corporate social responsibility (CSR) program into their organization.
PLANADVISER discussed this topic with three previous winners of the PLANSPONSOR Retirement Plan Adviser of the Year Award: Christopher D. Kulick Jr., of CAPTRUST in Doylestown, Pennsylvania, who won in 2018 in the individual category; Devyn Duex, who, with the rest of the team at Pensionmark Retirement Group in Santa Barbara, California, won in 2013 in the Multioffice Team category (she now advises for the Santa Barbara office of CAPTRUST, a strategic partner of Pensionmark since 2015); and Jason Chepenik, whose practice Chepenik Financial, in Orlando, Florida, won in 2019 in the Small Team category.
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2013 PLANSPONSOR Retirement Plan Adviser Multioffice Team of the Year Duex is now an adviser at CAPTRUST; she founded the CAPTRUST Women’s Initiative and served as co-president of the CAPTRUST Community Foundation |
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2018 PLANSPONSOR Retirement Plan Adviser of the Year Kulick is an active member of Cradles to Crayons, a nonprofit organization that provides school supplies and clothing to homeless and low-income children. |
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2019 PLANSPONSOR Retirement Plan Adviser Large Team of the Year Chepenik founded the Smarter Tomorrow Foundation and the 4.01k Race for Financial Fitness to “support the financial literacy programs that put kids on the right track.” |
PLANADVISER: How do you define corporate social responsibility? What does CSR mean to you?
Jason Chepenik: I’ll start at the end, with the word responsibility. When I bifurcate the word responsibility, I think that it is the ability to respond, which means CSR is the ability to respond to corporate and social issues. I believe that it is the responsibility of small-business owners to play an active role in our communities.
It’s how I was raised: to be part of something bigger than ourselves. But in my parents’ time it was buying a table or sponsoring an event, and now it is an evolved ecosystem where it’s more about the action. I think the attention CSR is getting and its normalization is showing that giving back should be a normal part of our daily lives. It makes me feel good, and you make great friends, and you become a happier person. It’s wellness for the community.
When you walk into charitable organizations and you realize you can help somebody, it is such connective tissue that you want to do more of it and you want to tell people about it. Being socially responsible allows us to feel grounded and step away from the long days that are part and parcel of the service business—where you are focused on talking about the right product or service or investment option.
Christopher Kulick: It’s our mission “to enrich the lives of our clients, colleagues and communities.” In that way, CSR is part of the CAPTRUST firm from the ground up. From the first day that you join the firm, you’re told, “We are looking for our employees to participate not only through the CAPTRUST Community Foundation, but on their own in their communities.”
The foundation supports organizations that specifically help children with physical disabilities, illnesses, abuse, poverty, absence of a parent, and more. Over 10 years, the foundation has given away over $1 million with that goal in mind. “We feel very fortunate in the work we do and believe giving back to others is critical.”
PA: How has your firm embraced corporate social responsibility principles in its own operation?
Kulick: CAPTRUST’s CSR approach is varied across the company and the employee side. We want to be a strong leader in the industry professionally and in what we do for retirement and individual financial planning, but we also want to leave a mark on the next generation. We put a lot of passion into leaving communities in a better place.
Also, every employee gets 16 paid hours for community service to be able to support their local community. For example, in my home area of Philadelphia, I am active in an organization called Cradles to Crayons that supports children. I spend time there giving back and I make a donation, which the foundation will match.
Devyn Duex: It is a holistic vision at the firm to be championing causes. This past year, I served as co-president of our foundation and was able to provide direction and momentum. The foundation here at CAPTRUST has a large infrastructure, and it’s growing.
There’s a great team of committee members and board members that make it all happen, and hundreds of employees donate directly to the foundation. The majority of the funds that we distribute to grant recipients come from employee deferrals and the company match.
Last year, 85 charities across the country received grants ranging in size in terms of the dollar amount, but they benefited 51 communities. Nearly $1,000,000 went out the door on community action under the foundation. The company has said, collectively the goal is $10,000,000 in 10 years, and we’re on our way and really excited about that. This is in addition to the various offices that are doing their own thing.
Being a national firm and encouraging employees to give back in their local communities allows us to cover a wider blueprint and touch more communities. This gives us a consistent message across the country.
Another cause we championed was bringing more female advisers into the firm, which really came from CEO Fielding Miller and the senior leadership. Two years ago we created a women’s initiative group where women got involved in bringing women into the company. While formally it’s a newer initiative, it goes back a long time at the company.
Whether it’s our formal CSR program or our diversity initiative, I believe it is vital to have top-down support.
PA: Do you discuss your firm’s CSR initiatives with clients?
Duex: We communicate this part of our mission in every single final presentation. We believe in talking about our culture. When we are talking to prospective clients or visiting with our clients, we like to talk about the work that we’re doing in our community, to give them a sense of how we view the world. For potential clients, it’s important for them to make an educated decision as to whether or not we are the right kind of partner.
This is also shifting, because I think five to 10 years ago you didn’t see it as much, but now you see similar initiatives on clients’ websites or at their firms when you visit. Showing clients that we are participating in the communities that they serve as well is important, and, perhaps, we might work in tandem with one another on certain initiatives as well.
Chepenik: When we go out to clients and prospects, it’s nice to walk into an organization and start talking about what we did today in our community. Many of these clients have vibrant corporate social responsibility programs that they consider to be a critical component of their business. This gives us another connection point.
Practicing corporate responsibility opens doors for us. I’ve been invited to speak at colleges or to be part of other initiatives, which in turn has connected me to community conversations.
PA: What value does the firm’s staff place on CSR efforts? Is it bringing people into the firm?
Chepenik: One thing I can say is that my team has stuck around. I credit this initiative with helping me attract top talent. We share this information with young people who are starting out in the industry and applying for jobs. They want to join the party, because this is a really enjoyable part of working here, I think. I do believe our work in CSR is the biggest reason why my business has doubled the past three years. Our founding of the Race for Financial Fitness, and the Smarter Tomorrow Foundation, which we have spun off from our advisory practice, got everyone so excited.
The Smarter Tomorrow Foundation began in 2010 and is on a mission to give every kid from every community a fair shot at a strong financial future. By spearheading initiatives that promote financial education for the next generation, we empower kids to take charge of their finances and their life. The Race for Financial Fitness was one such initiative launched in 2015, and is run in multiple cities around the country, with all proceeds donated to a local organization that provides educational workshops or seminars about financial literacy services for kids.
What’s been wonderful about it is that my employees now bring ideas to me. I know it’s valued by the staff because they are doing it on their own or asking if they can do more. I would never say no to these things because I’ve seen what a difference they have made. I believe in the importance of maintaining relevancy and continually pushing yourself to try new things.
Kulick: I do think CSR plays a role in recruiting because I think many more of the practices that we’re looking at or that have recently come in have had very strong presence in their communities. Culture is the backbone of any company, and so we are looking for like-minded RIA [registered investment adviser] firms that have been rolling up their sleeves and see this as a good cultural fit for them.
PA: How can advisers bring CSR into their own practices?
Chepenik: What’s the quote? “Culture eats strategy for breakfast”? It’s all about having this be something you believe in. Your culture attracts like-minded employees and clients. Not every day is great, but having this purpose to our practice helps us rise above the noise and any difficult situations at work. You have to pick topics that matter to you. That being said, it can be easier to stay away from political hot potatoes and focus more on saying “My community is important to me; how can I help make a difference?” Advisers have certain skill sets they can use to help motivate others to get involved.
It does require a bunch of selflessness. When Fink addressed this in his letter last year, he was saying this is the balance to capitalism. Similarly, I like to think this is the corporate version of work-life balance.
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Art by Wenting Li