The Purpose of Money Management

Income, Impact, and Inclusion: Reimagining the Purpose of Money Management

by Shundrawn A. Thomas

“Business must be run at a profit else it will die. But when anyone tries to run a business solely for profit, then also the business must die, for it no longer has a reason for existence.” – Henry Ford, founder of Ford Motor Company?

This week I had the opportunity to give a keynote address on the opening day of the 2022 Money Management Institute (MMI) Annual Conference. It was wonderful to see industry leaders and peers together again at this year’s sold-out event. MMI is an industry association which provides advocacy and education for firms that provide financial advice and solutions to investors. MMI also seeks to advance diversity and inclusion in the investment advisory industry. The title of my address was?Income, Impact, and Inclusion: Reimagining the Purpose of Money Management.?

I believe the private sector broadly, and the financial services industry specifically, can be an unrivaled force for good. We have both an opportunity and a responsibility to create shared economic value and positive societal benefits for our stakeholders. This however requires shared purpose, intentional effort, and long-term resolve. I presented a framework for delivering a triple bottom line benefitting our clients, colleagues, and the communities we serve. I’d like to share three takeaways that highlight the essence of my address.?

Income?(profit) is a gain or recurrent benefit derived from the investment of capital or labor. Importantly, it is not solely measured in monetary terms. Generating income is essential to the going concern of any business enterprise, however profit is not an end unto itself. Income is the result of the successful execution of a shared mission and is part of a range of valuable outcomes that an enterprise seeks to achieve. Profit is derived from purpose.

Impact?is the net effect an enterprise has on people and communities. It can be positive or negative. Impact is never optional. Businesses have material and measurable impacts on society. So, the real question is whether your enterprise is having a positive or negative net contribution to society and is that impact intentional. Our individual actions and/or our inaction ultimately contribute to the health of our enterprises and the health of society.

Inclusion?is about acknowledging, valuing, and respecting differences and how they contribute to an enterprises’ culture, mission, and outcomes. Inclusion is a potentially powerful concept, yet widely misunderstood. Most common notions about inclusion tend toward assimilation and perpetuation of an existing cultural context. True inclusion involves a genuine exchange ultimately creating a new cultural context for everyone.

By emphasizing income, impact, and inclusion, our industry can fully embody the transcendent purpose of money management helping individuals and society to flourish.

Shundrawn Thomas ?is the founder and managing partner of?The Copia Group, a diverse owned investment adviser providing capital solutions to privately held, lower middle market companies. He is also the author of Discover Joy in Work: Transforming Your Occupation into Your Vocation. To learn more about The Copia Group, follow the company on LinkedIn or visit?https://copiagroupllc.com