"On The Sociology of Wealth, 2016" by H. Peter Karoff

H. Peter Karoff, the founder of The Philanthropic Initiative, in the attached paper, provided here with his permission, addresses the clients of a wealth management  firm whose minimum net worth client has $75 mm. Peter is speaking with, not lecturing to, the humans sometimes termed Wealth-Holders or Ultra-High-Net-Worth-Individuals. The context is a country, an increasingly disenfranchised "electorate," of consumers, awakening in addled fury to wealth inequality, and their own increasingly diminished life chances. Peter feels the pain of the marginalized, but also (we are all one body politic) that of his audience: 

No one likes to be put on the defensive in the communities where one lives. No one wants a diminution of family self-worth, of increased fear, of unwanted exposure, or be forced to live an ultra-private life, or be constrained to speak out or play a lead on important social issues about which one feels passionate. All these things lead to withdrawal and less, not more, investment of a family’s human and financial resources at a time when the societal need and opportunity is greater than ever before.

Peter, in prior days, I believe, not only worked on civil rights, but has counseled some of the wealthiest families in other parts of the world who do or may live in fear for their safety. Peter asks his audience to consider fundamental questions, as to the proper uses of riches in a world divided.

1. What is our family’s definition of “wealth with responsibility” – how do our passions and values drive that definition? What “Guiding Principles” would help us be true to ourselves?
2. What “public persona” do we have today, and what do we wish to present to the outside world in the future – being anonymous and invisible is not an option in this Web-based information accessed environment – and how do we become more intentional in communicating that public persona?
3. How do we as a family, and as individuals, truly engage in the broader world? What does engagement mean – time, talent and experience, contacts and networks, and financial resources?
4. What are the bridges between our isolation, our privilege, and others who do not have those resources?
5. Philanthropy has been for many families a very successful bridge. What role does strategic philanthropy play for us, and how do we develop the competence and governance for a great philanthropy?
6. A family’s investment philosophy and policy can also be a bridge. How do we integrate our values and principles into a comprehensive investment philosophy and policy?
7. How expansive a role does social and impact investing play? Where are the lines between social investing and traditional philanthropy?

All positions carry with them a certain price of admission. (Even a Dumpster is owned by someone, and homesteaded on sufferance.) To be an outsider among insiders only allows so much slack. Any teacher must await a teachable moment. If words like "justice," did not make Peter's final draft..... If all questions at the end are posed as if they were "family branding" or "values questions," to be answered by the rich person, to the rich person's own satisfaction, without there being any external standard..... "Truth is a bitch that must to kennel....,' as the Fool exclaimed, exiting stage right, on the tip of his Majesty's boot. In short, if Peter's questions pose a test, who grades the Final?

Download On the Sociology of Wealth 2016 - Karoff - FINAL-1

Comments

[Tonymacklin1]

Phil - thank you for encouraging Peter to share this paper. I'm looking forward to reading it! Tony Macklin

[Phil Cubeta]

He is a truly wise man.