Ethical investment — returns on good behavior?
The launch of the Global Compact 100 Index, which selects its line-up according to financial performance as well as sustainability credentials, pits purists against pragmatists

Article Highlights

  • The launch of the Global Compact 100 Index pits purists against pragmatists.

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  • The GC 100 tracks the stock market performance of a representative group of Global Compact companies.

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  • The GC 100 offers new developments in a field hungry for innovation and dogged by ideological correctness.

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There is a new kid on the block in environment, social and governance investment, and it’s one that has some answers for those who remain sceptical about “social investing”. The Global Compact 100 index offers welcome new developments in a field hungry for innovation and dogged by ideological correctness.

The GC 100 tracks the stock market performance of a representative group of Global Compact companies selected not only on their adherence to the Global Compact’s 10 principles covering human rights, labour, environmental and anti-corruption standards, but also on evidence of leadership commitment and consistent profitability.

“While many other sustainability screens focus primarily on the environment and social dimensions, we’re a little different,” says Gavin Power, deputy director of the United Nations Global Compact, which launched the index in September. The measure of pre-tax profitability included in the new index is a factor often overlooked by competing sustainability screens.

“We’ve established a baseline...

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About the Author

 

Jon
Entine
  • Jon Entine, a former Emmy-winning producer for NBC News and ABC News, researches and writes about corporate responsibility and science and society. His books include No Crime But Prejudice: Fischer Homes, the Immigration Fiasco, and Extra-Judicial Prosecution (TFG Books, May 2009), about prosecutorial excesses; Abraham's Children: Race, Identity, and the DNA of the Chosen People (Grand Central Publishing, 2007), which focuses on the genetics of race; Let Them Eat Precaution: How Politics Is Undermining the Genetic Revolution in Agriculture (AEI Press, 2006), about the genetic modification of food and farming; Pension Fund Politics: The Dangers of Socially Responsible Investing (AEI Press, 2005), which reveals the effects of social investing on pension funds; and the best-selling Taboo: Why Black Athletes Dominate Sports and Why We're Afraid to Talk about It (Public Affairs, 2000), based on an award-winning NBC News documentary. Currently, Mr. Entine is an adviser to Global Governance Watch (GGW), a project that examines transparency and accountability issues at the United Nations (UN), in nongovernmental organizations (NGOs), and in related international organizations. GGW also analyzes the impact of UN agencies and NGOs on government and corporations. He is also working on a book exploring the revolutionary impact of genomic research on medical treatments and traditional perceptions of human limits and capabilities.


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  • Phone: 513-319-8388
    Email: jentine@aei.org

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