Question

Describe some examples of socially irresponsible behaviour by business firms with regard to investors

Answer 1

Irresponsible behaviour regards investors is something businesses should aim to avoid. It revolves around companies being irresponsible. The focus is on businesses that behaves in a less than ideal way with regards to thwir legal obligations, ethical commitments and the consideration the give to economic, social dactors. it can be defined as business doing wrong in relation to the social responsibility.

Financial scandals such as the collapse of Baring banks etc. the business social irresponsible neglect environmental, ethical, and social responsibility and primarily focuses on profitability.

The social irresponsible investors actively seeks out investing that are making the world a worse place . They invest in companies that harm the environment, disregard consumers, break the law, ignore social justice.

Vice fund, a mutual fund started 14 months ago by mutuals.com a Dallas investment company, is profiting nicely from what some would consider the wickedest corners of the legitimate economy: alcohol, arms, gambling and tabacco.

So, far this year, vice fund has returned to investors beating both the S and P and the Dow Jones industrial average by few points.

In fact , all four vice ridden sectors have out performed the overall American market during the past five years; No matter what the economy ‘s state or how interest rates move , people keep drinking, smoking and gambling.