“Finally, I hope that the great thinkers here will dedicate some time to finding ways for businesses, governments, NGOs, and the media to create measures of what companies are doing to use their power and intelligence to serve a wider circle of people.” — Bill Gates at Davos, Switzerland, “Creative Capitalism,” January 24, 2008

Mr. Gates appears now to be joining the social investing movement. What a welcome development! He wants measures because he wants recognition for these activities, because recognition brings rewards to companies: inspired employees and public approbation. And I would add: social investors investing for the long-term. His speech calls on companies to do what social investors have been asking companies to pay attention to and what KLD has been measuring for many years — the social and environmental impact of corporations, especially on low-income groups.

Microsoft Corporation’s efforts to expand its beneficial impacts for low-income citizens beyond philanthropy into its business model are recent, as Mr. Gates acknowledges in his Davos speech. These efforts are recognized by KLD in our company profile of Microsoft. KLD’s evaluation of Microsoft’s efforts is that the company is not yet a leader in this regard, but it is making a start.

In 2007, Microsoft expanded its Unlimited Potential program to include initiatives beyond charitable giving. For example, the company had 110 Innovation Centers around the world that offered software development assistance, business skills training, employment programs for students, and market incubation. Microsoft planned to open an additional 90 centers by 2009.

The company also had research and development initiatives focused on meeting the needs of technology users in emerging markets. In addition, Microsoft was exploring alternative business models that would make it easier for individuals and small businesses with limited or irregular income to acquire computers, such as subscription and pay-as-you-go options.

I hope that some of the “great thinkers” at Davos will help Mr. Gates recognize that many investors have been basing their investments (rewards to companies) on “measuring what companies are doing to use their power and intelligence to serve a wider circle of people.”

For example, through investment choices and shareholder resolutions, social investors have urged companies to provide responsible financial services to low-income citizens and have criticized firms with predatory lending practices.

Other examples include social investors pressing pharmaceutical companies to make medicines affordable and available in low-income countries and in the U.S. where they are unaffordable to low-income citizens.