The Limping Bull 4.1

Remember last month's post on ethical investing (FTSE4Good Index)? And I promised I'd post on the Dow Jones Islamic Index (Could be called "DJII4God Index" ... ... )! Well, let's put the IMANX aside for a few more days. Instead, here's question for you:

I know. I know. You'll tell me that rational investors do not factor in a company's social impact to make decisions unless it has immediate implications for the stock's performance. Maybe the term "socially responsible" bothers you.

The way I see it, we shouldn't be stopped by the word socially. Because good social behaviour could be a criteria to find good stocks to invest in (again, this will depend on your investment style). Still not convinced? Here's another question:

For most of us, i think the answer is yes. Well Reputex offers Social Responsibility ratings for Australian companies. Its ratings are based on factors such as Corporate Governance, Environmental Impact, Social Impact and Workplace Practices.

Coles Myer LTD has an A+ rating for instance (and a low rating for its environmental impact).

GE Financial Services has a B rating due to a "very Low" environmental impact. Go figure!

Corporations are increasingly aware of the public cry for my sensitive and responsible corporations. Well, with the torrent of corporate donations to Tsunami victims the public is getting what it was asking for.

Big businesses are being so generous that NGO are unable to accept all their donations much to the frustration of corporations (such generosity ... isn't it amazing ).

For more news on corporate good (and bad) behaviours visit the CSR Wire. But remember, there remains a major flaw in the sort of ratings I just talked about: reliability.