call us: (206) 522-3055

Glossary

Glossary

Terms frequently used in finance and Shareholder Engagement

3-legged stool

     A classic metaphor for the three levels of social investment: Screening, Community investment, and Shareholder engagement.

5% rule

     A portion of SEC Rule 14a-8 that generally requires the topic of a shareholder resolution to apply to more than 5% of a company’s business.

ASE

     American Stock Exchange

B Corp

     A company certified as a B Corp (regardless of their legal corporate structure). See bcorporation.net for more information.

Benefit Corporation

     A company legally chartered as a benefit corporation in one of the States or jurisdictions that has adopted benefit legislation. See benefitcorp.net for more information.

CDFI

     Community Development Financial Institution

Closely held

     See Privately held

Community investment

     A type of investment that makes available necessary capital access and banking services to groups of people or regions of the world traditionally underserved if not outright excluded from receiving them (= micro-credit lending)

CRI

     Coalition for Responsible Investment

CSR

     Corporate Social Responsibility

DAF

     Donor Advised Fund

DSI

     Domini Social Index

EDGAR

     Electronic Data Gathering, Analysis and Retrieval.  This is the SEC system by which public companies make their required filings, such as quarterly reports, annual reports, and other mandated disclosures.

EFT

     Electronic funds transfer

ESG

     Environmental, Social & Governance factors

ETF

     Exchange Traded Fund

GIIRS

     Global Impact Investing Ratings System

Glass Lewis

     A proxy reporting service

GRI

     Global Reporting Initiative

ISS

     Institutional Shareholder Services, a proxy reporting service

KLD

     Kinder, Lydenberg, Domini.  A company originally formed by Peter Kinder, Steve Lydenberg and Amy Domini.  KLD created the first SRI index in 1990 called the KLD 400 Index.

L3C

     Low-Profit Limited Liability Corporation

Microcredit

     See Community investment

Microfinance

     See Community investment

Morelos Forum

     A thought leader invitational forum created by Amy Domini.  Originally, meetings were convened in Cuernavaca, Morelos State, Mexico (hence, the name).

Muhammad Yunis

     Bangladeshi banker, economist, and Nobel Peace Prize recipient. He developed the concepts of microcredit and microfinance.

NGO

     Non-Governmental Organization or non-profit entity

NYSE

     New York Stock Exchange

Oikocredit

     A leading Community Development Financial Institution.

Ordinary business

     A portion of SEC Rule 14a-8 that generally requires a shareholder resolution to not focus on matters that might be considered under management’s routine, day-to-day purview.

PRI

     Program Related Investment

Privately held

     A company whose shares are not publicly traded.

Proxy

     The document sent by a company to its shareholders, that contains items on the formal agenda for consideration and a vote at the annual meeting of shareholders.

Proxy reporting service

     A company or service that makes vote recommendations for items found in corporate proxies; a company or service that will vote shares on behalf of clients.

Publicly traded

     Shares of stock that can be bought-or-sold on a stock exchange by members of the public.

Screening

     (a) Avoiding companies whose practices are unfavorable; (b) seeking companies whose practices are better than others.

SEC

     Securities and Exchange Commission.

SEC Rule 14a-8

     The primary SEC rule that defines the rights and obligations of shareholders wishing to file shareholder resolutions.

Shareholder advocacy

     See shareholder engagement.

Shareholder engagement

     Using one’s rights as a shareholder to advocate for changes in a company’s practices. (Also known as shareholder advocacy).

Shareholder proposal

     See Shareholder resolution.

Shareholder resolution

     An item for inclusion in a company’s proxy for a vote of all shareholders, that is submitted by a shareholder (as opposed to put forward by management).  (Also known as a shareholder proposal).

SIF

     The former Social Investment Forum, now known as US SIF – The Forum for Sustainable and Responsible Investment.

SIRAN

     Sustainable Investment Research Analysts Network.

SOCAP

     The Social Capital Conference.

SPC

     Social Purpose Corporation, enacted by WA State June 7, 2012.

SRI

     Socially Responsible Investment, or Socially Responsive Investment, or Sustainable & Responsible Impact investment.

SRO

     Self Regulated Organization.

Stock exchange

     An entity or organization that creates a market for publicly traded shares of stock.

UN

     United Nations.

UNPRI

     United Nations Principles for Responsible Investment.

US SIF

     The Forum for Sustainable and Responsible Investment.

Investor Voice, SPC
111 Queen Anne Ave N, Suite 500
Seattle, WA 98109
(206) 522-3055
info@investorvoice.net