Wednesday 5 February 2014

Benefit of ethical conduct: attracting investment

One of the business benefits of ethical conduct is attracting investment. This is illustrated by the fact that Royal London Asset Management (RLAM), a leading city fund manager, considered pulling investment in Amazon from its ethical funds because of tax avoidance and its employment conditions for its staff around the world.

Basically Amazon do not allow "collective bargaining" and RLAM see this as hindering its ability to recruit.(Interestingly, another business benefit engendered by good ethical conduct is employee engagement and ability to attract and keep talent). As Amazon has apparently shown some signs of progress the fund managers have not made any change.

It is this kind of pressure however which can really help to get the message across to our growing "corpocracy".

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