|"According to the Social
Investment Forum, socially responsible investing (SRI) includes assets of
over $2 trillion." Bob Willard, The Perfect Storm
Corporations in this $2 trillion SRI category are not sought out first on their social/ecological strength, nor to the negation of their fiscal strength. In fact, quite the opposite. Starting with the top financial performers, additional screening for social and environmental performance are then applied.
The investment world has matured in how they look at and assess organizations. As a result, they have given birth to an expanded set of indicators for corporate performance, a shift;
· From just assessing financial performance
· To assessing financial, human and natural capital performance.
As a result, the top performers in all three categories, and across every industry, are being rewarded with inclusion in this new category of investment instruments.
|One such instrument, the
Dow Jones Sustainability Index (DJSI) has outperformed the Dow Jones General
Index (DJGI) since 1997. "The FTSE4Good Index, launched
in the United Kingdom in 2001, now lists over 250 companies screened through
various social and environmental criteria."
Globe & Mail
Capital is being shifted from single to triple-bottom-line managed companies.
"25 per cent of shareholders say that they have made a buy-or-sell decision because of a company's social performance."
"67 per cent of North American shareholders (either direct or indirect) say they would sell their shares if a company or fund were behaving in a socially irresponsible manner, even if the shares gave them high earnings." Travis Engen, CEO, Alcan Inc.
|Not only is the investment world
more savvy at measuring performance and redirecting capital, but shareholders
are entering the boardrooms. 237 of the 862 shareholder proposals
filed at publicly traded U.S. companies in the first six weeks of 2003 alone
were social and environmental resolutions. Shareholder
Proxy Season Overview
Not passing these resolutions can mean the loss of investment capital. The trend of investors voting with their dollars and their resolutions continues.
And how have Corporations been responding.