Ethical investors are asking, Do Investee companies make a profit in excess of appropriate hurdle rates, and do they earn that profit in an ethical manner?
Usually, the maximization of profit in a longer than one-year time frame requiresharmonious relationships with most stakeholder groups and their interests.
Corporations are finding that in the past they have been legally and pragmatically accountable to shareholders, but they are also ecoming increasingly accountable to stakeholders (Employees, Customers, Suppliers, Media, Lenders, Creditors, Governments, Activists).
If I'm ever in a corporate situation where I have to decide if we spend money on pollution control, I'm going to do it. It's always a positive net benefit in the long-run. And no one can really criticize you for saving the environment. Decision is made.
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