Thursday, February 02, 2006

Ethical investing Socially responsible investing

There were some excellent comments on my recent post about ethical investing. Following up from one of the comments, I learned that the term "socially responsible investing" is considerably more popular (Google count about 453,000) than "ethical investing" (Google count about 169,000). See, for example SocialFunds.com. A related buzzword, more from the environmental perspective, is "sustainable"; see, for example this blog.

In the course of my web surfing, I learned about the World Economic Forum, who describe themselves as
"... an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas. Incorporated as a foundation in 1971, and based in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests. The Forum is under the supervision of the Swiss Federal Government."
They have a "Global Corporate Citizenship Initiative", from which several reports are available. One of them "... finds that the mainstream financial community places little emphasis on social, environmental and ethical issues in its investment decisions. Yet a company that profits while doing harm to the community is likely to suffer in the long run."

My friend Jordan pointed me to the work of Meir Statman of UC Santa Clara. You can download copies of many of his papers from his website. For example this paper (in pdf) on the composition and performance of "socially responsible indexes".

So the plot thickens ... perhaps. As usual, I welcome your thoughts on the subject.
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1 Comments:

Blogger Trikle Trade said...

Very impressive post, good for beginners as well. Thanks for sharing Trikle Trade

9:48 AM, April 04, 2016  

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