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May 13, 2009

Voluntary Simplicity?

An Ethical Investing Perspective

by Ron Robins, MBA*

From my globally popular ethical investing website, Investing for the Soul 

A sweeping new consciousness is enveloping the developed world. Some call it

 ‘voluntary simplicity.’ It has enormous repercussions for whole industries, financialmarkets 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 firstthought 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 involvematerial impoverishment.

Some might argue that numerous people are being forced into VS—as theunemployed 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 andpersonal fulfillment 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 consumerspending 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’ wherehe proposes a psychology of higher human development.

So when it comes to goods and services, what do those subscribing to VS values buyand 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 valuesespoused 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 ourenvironment are shunned. For instance in housing a modest sized, easily managed

home could be preferable to a big home requiring lots of housework, upkeep andmoney.

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Also, individuals seeking material simplicity might do more walking, cycling and usepublic 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 theindustries which need to be examined from a VS perspective could include basic

industries such as food, housing, transportation, recreation, and any industry helpingto simplify our lives.

The next value is human scale. ‘Small is beautiful.’ Referring back to housing, thetendency 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 andsafety 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 towork 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 humanityas “… 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 areoptimally efficient and durable. Possible industries to study: natural fibre/materials,

natural health and beauty, natural and organic seed companies, organic foods andherbs, 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 forVS 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 manyindustries that do not change to accommodate it will not survive. Ethical investors,

with their concerns for the environment and the health of their families, theircommunities, 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.) 

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*Ron Robins, MBA, is founder, Investing for the Soul ,(http://investingforthesoul.com/), a globally popular and respected ethical investing

website. He advocates, writes and teaches on the subject of ethical investing. Tocontact him, e-mail to Ron Robins or call 705-635-3034.

© Ron Robins, 2009. Permissions: Provided full credit, which includes title, my name, and link to this post isgiven , anyone may print or re-produce this article in part, or in full, to any relevant web page.

Disclaimer: (Website hereafter refers to Investing for the Soul.) This website does not make investmentrecommendations. Nothing in this site should be interpreted as a recommendation or solicitation tobuy/sell any securities or investments. Investing for the Soul is a source of general information andresources for spiritual investing, ethical investing, and socially responsible investing (SRI). Investors

should consider their actions thoroughly and consult their financial advisers and other professionals, priorto taking any investment action. This website does not necessarily agree with the opinions expressed inarticles on its pages or offered on the web pages to which it might be linked. Such opinions are theresponsibility of the writers themselves. Furthermore, this site does not offer or provide any warranties,representations, guarantees, implied or otherwise, as to the accuracy, legality, copyright compliance,timeliness or usefulness of the information, materials or services on this, or other sites, to which it islinked. Also, Mr. Ron Robins is not an investment advisor, nor is he licensed with any professionalinvestment related body, and thus is not able to, nor does he make, any investment recommendations.