I’ve been listening to
the General Motors downsizing announcements with a familiar feeling of angst and
empathy; the pain of economic transition is undeniable and real. Our community
has experienced this firsthand due to the impact of market forces and
globalization on the paper industry.
Over the last two
decades, Incourage has come to understand that we may not be able to stop the
forces of the global markets, but we can be smarter and more intentional about
transitions.
We’ve learned a few
things about what matters.
We’ve learned that
increasing local ownership, community led decision-making and inclusive
economic growth are essential to transitioning single-industry economies. Because of this, Incourage has focused our efforts in these areas with
training programs, grants, convenings, research, capital projects and
partnerships/initiatives that have impacted thousands in our region.
We’ve learned that effective
economic transitions benefit from ingenuity, willingness to think differently,
accepting ambiguity and perseverance – working for an economy of the future
that is emergent. The real task is
keeping the faith, or as Dr. Martin Luther King, Jr. famously said, “Faith is
taking the first step even when you don’t see the whole staircase.”
We’ve learned that
accelerating economic and cultural transitions requires examining our own
behavior as individuals and institutions. Incourage assessed our policy and practices to become smarter and more
intentional about how we use all of our resources, including our investment portfolio, for greater mission
impact and economic growth.
As a result, we now
include holdings in publicly traded companies whose operations have a bearing
on our community, including paper companies and large retailers. Incourage
votes its shares and otherwise gives voice to resident concerns in favor of
positive moves by these companies, such as increases in their minimum wage and
effective governance practices.
This strategy is
increasingly important as corporate ownership structures have changed over time
to now include control by remote private equity firms with short-term
incentives to maximize shareholder gains, often times at the expense of workers
and community. Further, we are working
in partnership with like-minded shareholders, stakeholders and public officials
to set new standards for how corporations manage transitions.
We’ve learned that we
need diverse and strong businesses who embrace mutual value
and shared benefit for all stakeholders – business, workers and community. This is particularly important in rural,
less densely populated communities like ours where one restructuring, sale or
closure can disrupt an entire economy.
Finally – and most
importantly - we know that effective transitions require all of us working
toward a common vision of the future and a recognition that we are all
connected by virtue of this place we call home.
Thanks for reading.
Kelly
