May 13, 2009
Voluntary Simplicity?
An Ethical Investing Perspective
by Ron Robins*
A sweeping new
consciousness is enveloping the developed world. Some
call it ‘voluntary simplicity.′ It has enormous
repercussions for whole industries, financial markets
and investors. Because of their values, ethical
investors are in a unique position to take advantage of
this dawning new reality.
The term voluntary
simplicity (VS), according to the
Simple Living Network,
is first thought to have been used by “Richard Gregg
who, in 1936, was describing a way of life marked by a
new balance between inner and outer growth.” And it is
this life balance that is growing in the world today.
Please note though, that this style of living is not to
be compared with the ‘back to nature′ lifestyle, nor
does it involve material impoverishment.
Some might argue that numerous people are being
forced into VS—as the unemployed might be, for instance.
There is some truth to that. Nonetheless, I believe that
most of us are sensing a new frugality and desire for
simplicity and personal fulfilment in our lives. We see
it in almost everyone around us as well.
The exact numbers of individuals engaged in the VS
lifestyle, either knowingly or unknowingly are not
known. But it is apparent when looking at current
consumer spending behaviour and the growth and interest
in the environment and spiritual development that VS is
growing fast. (For related information, see my
editorial,
Everyone Becoming A Cultural Creative.)
According to the Simple Living Network site, the
values underlying VS are:
material simplicity, human
scale, self-determination, ecological awareness, and
personal growth. These personal values are also often
attributed to individuals of higher consciousness. Also,
they generally conform to Maslow′s ‘hierarchy of needs′
where he proposes a psychology of higher human
development.
So when it comes to goods and services, what do those
subscribing to VS values buy and use? And therefore what
industries might ethical investors want to look at to
benefit from this huge trend? Let us examine these
points in relation to the values espoused by VS
participants as described above.
The first value: material simplicity. One
interpretation would be that material objects that are
important for human life are a priority for VS
participants whereas those objects requiring high costs
and maintenance or that might be harmful to us or our
environment are shunned. For instance in housing a
modest sized, easily managed home could be preferable to
a big home requiring lots of housework, upkeep and
money.
Also, individuals seeking material simplicity might
do more walking, cycling and use public transportation
when travelling. In many places today, they might
participate in car-pooling rental schemes rather than
owning a car directly. You can see that the industries
which need to be examined from a VS perspective could
include basic industries such as food, housing,
transportation, recreation, and any industry helping to
simplify our lives.
The next value is human scale. ‘Small is beautiful.′
Referring back to housing, the tendency of architects to
look at models of European communities such as seen in
homes around a central piazza, square or even a pub, are
coming back. The local food movement is gaining ground
too, as people question the quality, freshness and
safety of their food, preferring to get it from the
farmer they may know. As more people become contract
employees or self-employed, they are able and prefer to
work at home or in small, local office and factory
environments. Thus, possible industries that need to be
reviewed in this light again include housing, food
(retail, restaurant, and distribution), agriculture, and
everything concerning the functioning of the small home
office (SHO) or factory/workshop.
Continuing down the list we have self-determination.
For VS adherents, self-determination is often central
their being. This could include being self-employed,
growing one′s own vegetables and fruits, doing one′s own
home repairs and renovations, etc. It is about the
freedom to do what you want, when you want, where you
want. It is also a characteristic of independence and
self-reliance. From this perspective, possible
industries to scrutinize are SHO office suppliers,
agricultural products and services, home renovation,
etc.
The values related to ecological awareness are clearer
to everyone today. The American lifestyle is
unsustainable and cannot become the standard for all
humanity as
“… average human consumption of water,
forests, land, energy, and other natural resources
[already] exceeds the capacity of the biologic systems
that support our planet by 20 percent”. For VS
participants this means minimizing their use of the
planets resources by consuming less, and buying products
and services that are optimally efficient and durable.
Possible industries to study: natural fibre/materials,
natural health and beauty, natural and organic seed
companies, organic foods and herbs, everything nutrition
related, alternative and preventive medicine, home
renewable energy systems, home based-business services,
cultural industries, educational services, home health
care, self-publishing, and the water industry.
Many of the same industries cited above come into
play regarding the final value for VS adherents,
personal growth. Industries or areas especially
interesting to research might relate to educational
services and programmes, spiritual development (i.e.
retreats and various services that cater to them), and
cultural industries.
In this new economic era, voluntary simplicity is
coming to the fore. And many industries that do not
change to accommodate it will not survive. Ethical
investors, with their concerns for the environment and
the health of their families, their communities, and so
on, are in a better position to profit from this
momentous trend than more ‘conventional′ investors.
(Note: concerning industries mentioned in this
editorial. Please see Disclaimer at bottom of this
page.) *
Ron Robins, MBA, is founder, Investing for the
Soul (http://investingforthesoul.com/),
Huntsville, Ontario, Canada. He advocates, teaches, and writes
on the subject of ethical investing. To contact him,
e-mail
to Ron Robins or call 705-635-3034.
© Ron
Robins, 2009. |
