Ethical Investment Funds – Shedding Some Light on the Reality vs Rhetoric
3 Pages Posted: 8 Dec 2019
Date Written: November 9, 2019
Ethical investment funds are a huge financial force in the world, some suggesting that they control upwards of $100 Trillion which has a very significant effect on the investment world. The conventional wisdom is that these funds invest in companies that are “ethical” which relates to environmental, social and governance factors.
Ontario Teachers Pension Plan Board and the Alberta Investment Management Corporation had invested their funds in Geo Group and Core Civic, which are American companies that run prisons in the US on a private basis; these companies have come under much attack for breaches of human rights, particularly after the stories surfaced of the horrible conditions in which migrant children are being held in US prison facilities.
The question that arises is why funds which promote the concept that they are “ethical investors” would invest in such companies.
The article looks at separating the reality from the rhetoric.
Keywords: ethical investment funds, ESG, CSR, Human rights, corruption
JEL Classification: M16, M14, M31, K10, K33
Suggested Citation: Suggested Citation