Herewith from Fox News via London’s Sunday Telegraph the latest example of the exposure of inconsistences – at least in the eye of the beholder – between a foundation’s mission and its investments:

SHE PROVIDED the finale to yesterday’s Live Earth concerts, even writing a special song to mark the worldwide musical event. But instead of being lionised, Madonna found herself accused of hypocrisy after allegations that she has financial links to some of the world’s biggest polluters.

The Ray of Light Foundation, a charitable fund established by the star to support her favourite causes and named after one of her biggest hits, has $4.2 million … of shares in a string of companies including Alcoa, the American aluminium giant, the Ford Motor Company and Weyerhaeuser, an international forest products company. All have been criticised by environmentalists.

The Sunday Telegraph asserted, ‘News of Madonna’s links to the companies are an embarrassment to Live Earth’s organisers…’

Leave aside the highly arguable contention that investments in companies ‘link’ one to them. The Ray of Light Foundation is the latest charitable organization to learn the consequences of owning shares in companies whose objectives appear inconsistent with the charity’s mission.

As I pointed out in ‘The Virtue of Consistency’, the exposure of inconsistencies between mission and purpose have a long history. Just six months ago, it was the Gates Foundation in the media spotlight.

Foundations and endowments can avoid black eyes of this type through a program of mission-based investing, the incorporation of an institution’s mission in its investment decision-making process. In a time of increasing transparency, foundations and endowments will find their investments the objects of scrutiny. Inconsistencies – real or asserted – between mission and investments will be the first thing looked for.

It’s not too soon to begin working on that investment policy statement…