NZBusiness+Management - June 2018

(Grace) #1

M 8 | management.co.nz | JUNE 2018


ETHICAL CONSIDERATIONS IN THE
INVESTMENT SPHERE

COVER STORY


KVOQXGUKPVQVJG7PKVGF-KPIFQOOCTMGV+V
JCUCNUQCVVTCEVGFUQOGJGCX[YGKIJVDCEMKPI
KPVJG7PKVGF-KPIFQOYKVJVJGHQTOGT%'1
QH29%KPVJG7-CPFKVUHQTOGTINQDCNXKEG
EJCKT4KEJCTF%QNNKGT-G[YQQFEQOKPIQP
board as a director
in May.
)NGKUPGTJCUCDCEMITQWPFCVVJG0<
6TGCUWT[YJGTGJGYQTMGFHQTUKZ[GCTU
1PGQHVJGNCUVVJKPIUJGFKFCV6TGCUWT[YCU
VQETGCVGVJG.KXKPI5VCPFCTFU(TCOGYQTM
which considers the collective impact of
)QXGTPOGPVRQNKEKGUQPKPVGTIGPGTCVKQPCN
wellbeing. This has recently been adopted by
VJG.CDQWTNGF)QXGTPOGPV
+PVKOGJGUC[UJGYCPVU%QPUEKQWU
%QPUWOGTUVQDGCVTWN[OCUUKXGINQDCNRNCVHQTO
used by hundreds of millions of people and by
representing all these people and their spending
RQYGTVJG[YKNNDGKPƃWGPEKPIDWUKPGUUFTKXKPI
change in the world and rewarding those
businesses doing good things.
9JKNG%QPUEKQWU%QPUWOGTUKUVCMKPIQPG
VCEMKVoUPQVJCTFVQƂPFGZCORNGUVQDCEMWR
VJGRTGOKUGVJCVCEQORCP[oUGPXKTQPOGPVCN
and societal credentials are important to
consumers.
6JG%QNOCT$TWPVQP%QTRQTCVG4GRWVCVKQP
+PFGZ
YJKEJHQWPF#KT0GY<GCNCPF
has the country’s best corporate reputation
HQTVJGHQWTVJ[GCTKPCTQY OGCUWTGUUQEKCN
TGURQPUKDKNKV[HCKTPGUUUWEEGUUNGCFGTUJKR
and trust. It is done in partnership with Wright
%QOOWPKECVKQPUCPF/&0KMMK9TKIJVUC[U
VJKU[GCToUKPFGZJKIJNKIJVUVJGXCNWGQHVCMKPI
a stand and doing the right thing.
p+H[QWNQQMCVVJGHCUVGUVTKUGTUKPVJKU[GCToU
KPFGZVJG[CTGDGKPITGYCTFGFHQTTGURQPFKPI
VQVJGOCTMGVKPCYC[VJCVKUTGNGXCPVVQVJGKT
CWFKGPEGUsQHVGPVJCVKUCDQWVVCMKPICEVKQP
QPUQOGVJKPIVJCVEQPUWOGTUECTGCDQWVq
she said in a media release in April.
p%QWPVFQYPYJKEJKUKPVJG6QRHQT
VJGƂTUVVKOGVQQMCUVTQPINGCFQPVJGUKPING
WUGRNCUVKEDCIKUUWGqYJKNG5KNXGT(GTP(CTOU

YJKEJLWORGFRNCEGUVQ JCUCHCTOVQ
RNCVGDTCPFUVQT[YJKEJ9TKIJVUC[UTGURQPFU
to the increasing impact of sustainability on
-KYKoURWTEJCUKPIDGJCXKQWT
#PGCTNKGT%QNOCT$TWPVQPTGRQTVKP
,CPWCT[HQWPFVJCVYCVGTRNCUVKEYCUVG
and climate action were the emerging hot
VQRKEUVQEQOGQWVQHKVU$GVVGT(WVWTGU
report which surveyed New Zealanders on
environmental and social issues.

Ethics is also increasingly evident in the investment
sphere. At the Institute of Directors annual conference
/KEJGNNG'FMKPUVJG/&CPFINQDCNJGCFQHVJG
KPXGUVOGPVUVGYCTFUJKRVGCOCV$NCEM4QEMQWVNKPGF
YJ[JGTQTICPKUCVKQPUGGU'5)EQPUKFGTCVKQPU

GPXKTQPOGPVCNUQEKCNCPFIQXGTPCPEG CUKPVGITCNVQKVU
investment stewardship activities.
$NCEMTQEMKUVJGYQTNFoUNCTIGUVKPUVKVWVKQPCNKPXGUVQT
OCPCIKPIQXGT75VTKNNKQPKPHWPFUCPFYJKNG'FMKPU
address to the IoD conference was under Chatham
*QWUGTWNGUKP,CPWCT[VJKU[GCT$NCEM4QEMoU%'1CPF
EJCKTOCP.CTT[(KPMUGPVCPQRGPNGVVGTVQ%'1UECNNKPI
for corporations to serve a social purpose.
*GUCKFKPVJGNGVVGT
UGGYYYDNCEMTQEMEQO VJCV
UQEKGV[KUFGOCPFKPIVJCVEQORCPKGUDQVJRWDNKE
CPFRTKXCVGUGTXGCUQEKCNRWTRQUGp6QRTQURGTQXGT
VKOGGXGT[EQORCP[OWUVPQVQPN[FGNKXGTƂPCPEKCN
RGTHQTOCPEGDWVCNUQUJQYJQYKVOCMGUCRQUKVKXG
EQPVTKDWVKQPVQUQEKGV[%QORCPKGUOWUVDGPGƂVCNNQH
VJGKTUVCMGJQNFGTUKPENWFKPIUJCTGJQNFGTUGORNQ[GGU
EWUVQOGTUCPFVJGEQOOWPKVKGUKPYJKEJVJG[QRGTCVGq
*GYTQVGVJCVp%QORCPKGUOWUVCUMVJGOUGNXGU
9JCVTQNGFQYGRNC[KPVJGEQOOWPKV[!*QYCTG
we managing our impact on the environment? Are
YGYQTMKPIVQETGCVGCFKXGTUGYQTMHQTEG!#TGYG
adapting to technological change? Are we providing
the retraining and opportunities that our employees
CPFQWTDWUKPGUUYKNNPGGFVQCFLWUVVQCPKPETGCUKPIN[
CWVQOCVGFYQTNF!#TGYGWUKPIDGJCXKQWTCNƂPCPEG
CPFQVJGTVQQNUVQRTGRCTGYQTMGTUHQTTGVKTGOGPVUQ
that they invest in a way that will help them achieve
VJGKTIQCNU!q
6JG4GURQPUKDNG+PXGUVOGPV#UUQEKCVKQP#WUVTCNCUKC
said in August last year that investment funds in New
Zealand had shifted towards responsible investing in
FTQXGUQXGTVJGRCUV[GCTYKVJPGICVKXGN[UETGGPGF
HWPFUITQYKPID[QXGTRGTEGPVCPFTGCEJKPIC
VQVCNQHDKNNKQPKP
Its Responsible Investment Benchmark Report
2017 found that following the controversy around
-KYK5CXGTHWPFUKP#WIWUVVJGTGJCFDGGPC
massive increase in the use of negative screens to avoid
investments in tobacco and controversial weapons.
p6JKULWORKURTKOCTKN[FWGVQVJGKPVTQFWEVKQPQH
PGICVKXGUETGGPKPIQHOWNVKRNGKUUWGUD[VJGOCLQTKV[
QH0GY<GCNCPFoU-KYK5CXGTRTQXKFGTUqVJGCUUQEKCVKQP
says in a media release. M

»

Free download pdf