This article, written by Maya Fisher-French, enlightens us with another way of linking ethical commitment to financial performance.
Instead of thinking as a customer, who wants to purchase goods and services from a company with good commitment to ethics, we should think as an investor, who cares more about his portfolio than his conscience.
Most people immediately suggest that the stock gains of companies with their eyes on the profits will exceed those with their eyes on the environment. But now it seems that an eye on the environment might save a company a lot of money in the future.
E.g. BP’s lack of maintenance, after building up their stock prices by saving money on important safety issues, BP might face a billion-dollar claim for polluting the entire Gulf of Mexico. In the future oil companies will even have to pay environmental tax towards a fund for future oil spills.
Another example concerns companies that aren’t energy efficient. Those companies will face enormous costs due to the risings energy prices. Again it doesn’t seem too bad to have an eye on the environment.
We can conclude that socially responsible investing doesn’t have to be part of your portfolio to make you feel good, but to be safe from companies with enormous law suits and tax burdens.
Baptiste De Vleeschauwer
Geen opmerkingen:
Een reactie posten