Helping others to help ourselves

Elaine Henry

Financial services organisations that incorporate social as well as economic issues into their business models will thrive in the changing political landscape and make a positive contribution to Australia along the way, according to The Smith Family chief executive Elaine Henry.

Speaking at the Financial Planning Association (FPA) national conference last Friday, Henry urged financial planners to recognise that social and economic issues are inextricably linked and that giving due weight to the former is about much more than altruism.

“We need to remind ourselves that social issues and economic issues are not insulated — they are joined.

“If [Australia] doesn’t look after its people, it won’t continue to run productive businesses … If we don’t have the social capital, how will we continue to support a robust economy?”

Henry urged planners, whom she described as being in “an era of unprecedented good health”, to dedicate at least a small portion of their time and talents to helping those who are struggling socially and/or financially (many because they were born into such circumstances).

“I think the financial planning industry has a responsibility to help society’s underprivileged and can play an important role in improving these peoples’ financial literacy and, consequently, Australia’s skilled labour force and economy.

Henry said that incorporating social — including philanthropic — issues into a practice’s business plan is imperative given the changing political landscape and the industry’s chronic, and worsening, labour shortages.

“As the University of New South Wales’ Chris Sykes said, ‘today’s biggest social problems are tomorrow’s biggest business opportunities.”

The not-for-profit The Smith Family, which Henry terms a “social enterprise”, offers low-income Australians both financial education and life coaching.