Should investors care if their stocks are ethical?

Should investors care if their stocks are ethical?

Peter Michaelis, head of SRI at Alliance Trust Investments, analyses how investors can pick ethical winners and avoid the losers

Should a dollar from cigarette sales be comparable to a dollar from cancer drug sales? Should an apparel company sourcing from the cheapest manufacturers, with little regard for human rights, be comparable with one committed to higher standards? Is a dollar of electricity from coal equivalent to a dollar from solar electricity? There is an argument that investors should care about these differences. Not simply for ethical reasons, but for reasons of investment returns. Arguably, companies with products which improve quality of life, or reduce environmental impacts will see better grow...