I am determined to follow up with this topic over the summer. There is not enough time to even die right now.
Many investors used to avoid ethical funds because they considered returns would be lower than for conventional ones, but such views are being consigned to history. Or are they?
...SRI still conjures up the idea of investment based on a moral imperative. This narrow definition of SRI does not convey ideas about out-performance. A new perspective and more meaningful terminology could help increase accessibility of SRI. When social and environmental responsibilities of companies are seen as representing existing and future intangible assets, this definition would be easily understood by mainstream investors and trustees alike. Viewed from this angle, SRI relates more clearly to management of risks and opportunities - an integral part of the risk/return conundrum.
That is exactly my point. It is not about holding a high moral ground and eliminating certain business sectors from your portfolio, but taking a broader look at the company's financial as well as environmental, social and ethical performance.