Monday, January 16, 2012

Socially Responsible Investors Balance Values and Returns

American Socially Responsible Investors Don't Want to Sacrifice Returns, Wharton Study. -  "Investors interested in socially responsible investing do not necessarily expect to sacrifice a portion of their gains. Thus, to encourage socially responsible investing, its returns should be comparable to returns for conventional investing."

Fortunately, the conclusion generally drawn from the dozens of studies indicate that over the long term, socially responsible-ethical investors don't have to sacrifice returns. However, this study does contradict many surveys that show SR-ethical investors would tolerate lower returns if they are invested in industries and companies that relate to their values.

It could be that many newly converted SR-ethical investors, investing in green-sustainable companies, don't really share the same values of the more traditional SR-ethical investors.

Socially Responsible Investing, by Olivia S. Jung, January 12, 2012, Wharton, University of Pennsylvania, USA.

Reported by Ron Robins at Investing for the Soul

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