Positive Power of Principled Profit
Volume 5, Number 2—October, 2007

Positive Power Spotlight: Armstrong Capital

Photo: Jeff Armstrong (left) greets Shel Horowitz following Shel's keynote address at the Noteworthy USA convention, Las Vegas, October 5, 2007.

When you deal in other people's money, you very quickly butt up against the perception that your company is likely to be crooked. Through his actions in his own business and his education of his peers, Jeff Armstrong of Armstrong Capital is doing what he can to change that. Starting with the very first line of his website: "Straightforward, Honest, Fair...The Way It Should Be."

Armstrong, based in the Los Angeles area, deals in real estate notes—for example, buying an owner-financed mortgage from a seller who needs an immediate large infusion of cash, and selling it at a profit to a securities company that can convert it into stock and offer it to its investors.

An early supporter of the Business Ethics Pledge, Armstrong came to my attention because he consistently generates new signers of the Pledge through the link on his website. Most of the people who have generated a larger-than-average number of signatures for me have done so through a single newsletter article—but with Armstrong, it's ongoing, year after year. It turns out he's been buying my books since the 1990s, starting with Marketing Without Megabucks, and he told me this is because even before I wrote a book about it, he sensed my strong commitment to ethics in marketing from those earlier works.

He also happens to edit the newsletter for NoteworthyUSA, his industry association, and consistently uses this "bully pulpit" to advance an ethics agenda. And when I heard him address the 300 attenders at Noteworthy's conference, he stressed both the practical and the moral imperatives of being ethical. He's not ashamed to admit that he has self-interest as well as altruism as his motives; if enough honest people crowd out the crooks, it's less likely that government regulators will choke off his industry.

If the group I met when I was hired to keynote Noteworthy's conference is any indication, Armstrong is having a significant impact. I got a lot of thank-yous from people who said I was reinforcing what they already knew was the right way to run their business, and giving the marketing ammunition necessary to help them prosper with it. Others told me my strategies for attracting and keeping clients through ethics are already working well in their business. And I met a few who are in the business specifically to advance a social change agenda: one woman works to provide capital to women fleeing abusive relationships and starting their lives over; a retired professor couple use their note business to fund water development projects in developing countries. All in all, an impressive group.

It does not surprise me in the least that Jeff Armstrong is quite successful in his own business.

Armstrong Capital: http://www.armstrongcapital.com
NoteworthyUSA: http://www.noteworthyusa.com

Another Recommended Book: Getting a Grip, by Frances Moore Lappé
Reviewed by Shel Horowitz

Near the end of Getting a Grip, Lapp'e—whose name may be most familiar as author of the groundbreaking Diet for a Small Planet back in the 1970s—notes that 80 percent of all Americans "say they're likely to switch brands to help support a cause when price and quality are equal."

This book is intended as a manual for social and environmental change activists, and not as a business book. Nonetheless, it's quite applicable to the world of business, and draws on a number of business principles and ideas, including the recently popular Law of Attraction. Lapp'e doesn't use that term, but her emphasis is clear: what you pay attention to becomes bigger and more real. Also, what I have for several years called the Abundance Principle: that there is plenty to go around, but a big maldistribution of resources. No one needs to be hungry or lack fuel once this imbalance is addressed.

Lapp'e's central thesis is that large corporate and government entities have robbed consumers of their citizenship, by substituting what she calls "Thin Democracy"—I'd call it "Pseudo-Democracy" for the involved and active citizen participation that comprises true democracy—and that we, the people, can take back our rightful heritage as citizens—as people who participate in the decisions that affect us—and initiate true change.

The book is full of inspiring examples of individual people with simple actions that turned injustice into justice—most strongly, the story of an African minister whose pro-democracy efforts brought a visit from the goon squad on a mission to torture and kill. His compassion, humor, and lack of fear in the face of the attack won over the attackers, who, after inflicting significant harm, stopped the attack and brought him to a hospital.

A key insight that I've long believed but not often seen elsewhere is that there are two concurrent social trends: a concentration in corporate and government power and wealth that is threatening to ordinary citizens as well as the environment—and at the same time, an energizing, a democratization based in the actions of ordinary people. This second trend is the Living Democracy, a powerful antidote to Thin Democracy.