The Norwegian Government Pension Fund: Ethics Over Efficiency
Gordon L. Clark
Oxford University - Smith School of Enterprise and the Environment
Ashby H. B. Monk
Stanford University - Global Projects Center
Rotman International Journal of Pension Management, Vol. 3, No. 1, 2010
The Norwegian Government Pension Fund Global has an explicit mission to integrate long-term investment return objectives with an ambitious ethical commitment. This approach has drawn praise among Western policymakers. However, we contend that the ethical investment policy of the Norwegian Government Pension Fund Global presents a paradox, as the manner in which the country applies its ethical criteria to investment management transgresses best practice as we define it. As a result, we believe that Norway has chosen to discount functional efficiency in favor of exerting a “fundamental social perspective”. This may have unfavorable consequences in the long run. Nonetheless, we recognize the current approach is the source of the public and political legitimacy the Fund enjoys today.
Number of Pages in PDF File: 7
Keywords: Democracy, Ethics, Investment, Norwegian, Pension Fund, Resources, Sovereign Wealth Fundworking papers series
Date posted: June 1, 2010
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