The Limping Bull 4.1

It is a basic assumption upon which finance theories and the conceptual framework (Accounting) depend:

And these days reputation is everything. In fact, investors are increasingly concerned about corporation's anti-social behaviour. Environmental sustainability has become a key issue for many small investors. Accounting fraud, embezzlement and negligence don't go down well with investors either. But how do we know? How can small investors like you and I obtain information on a company's social and environmental impact? I mean, this isn't disclosed anywhere. Or is it?

Well good news! It is starting to be disclosed voluntarily by the companies themselves in their financial statements. Yep. There are no disclosure requirements provided by regulatory bodies but we are getting there. Is it a good thing? Look, yes it is more costs for the company. And yes the neutrality of such disclosures is questionable. But like I said, it's a start.

Ever heard of Triple Bottom Line?

But wait, there's better. How about a rating agency ranking companies according to their social and environmental impact? Better still! An index listing socially responsible companies?!

Well for those of us who are concerned about "transparent management" or "socially responsible products" there is the FTSE4Good Index!

Not sure it is approved by Green Peace though.

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Next post: IMANX, the Dow Jones Islamic Index. Until then take good care.