City Sloth on Ethical Issues
Research shows interest increasing but action lagging
behind
Public opinion is playing an increasingly important role in convincing
the City of the need to take social and ethical considerations into account in
investment strategy.
Research by Control Risks, the international business risks
consultancy, states that 73% of businesses agree specifically with the
assertion that 'the City is becoming more socially and ethically responsible'.
71% believe that social and ethical factors are higher on the business agenda
than 5 years ago and 77% say that this trend is set to continue. Public opinion
and media coverage are cited as the main drivers to this shift in attitude.
The environment was the highest scoring social/ethical issue to merit
concern for investment decisions. It was closely followed by unstable political
regimes, corruption and human rights malpractice.
With pension funds gearing up to stating whether they have an ethically
responsible stance to their investment policy by 3 July this year and
considerable media attention being given to the issue, there is certainly an
increasing awareness among the public. What is more questionable is whether
this increased exposure will translate into concrete action.
The results of the survey reveal that though, in principle, the City
may be offering strategic support to the cause, there is still reluctance to
reflect this support in policy decisions. Of the participants in the survey,
which involved 68 UK fund managers and 26 City analysts, only 39% said that
they have a formal ethical statement in place and 53% said that social and
ethical interests were not important when assessing a company for its
suitability as an investment.
Pensionsnet.com
23rd May, 2000
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