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Would you think twice about investing in a sin fund if historical returns showed greater growth...

Would you think twice about investing in a sin fund if historical returns showed greater growth potential than SRI funds? What is the justification for you decision?

The book is Strategic Corporate Social Responsibility CSR chapter#7,8

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Even if historic revenues show more potential for growth than SRI funds, I'm going to think twice about investing in a sin fund; these companies are socially accountable for the way they are managed. A sin fund, by comparison, invests in the business of Alcohol, Tobacco, gambling / casino and other security industries. Like socially responsible investments, the socially reckless non-funds are named.From the point of view of virtue ethics, investing in SRI funds is considered a virtuous deed even though the return on sin funds is higher. That is an ethical judgment.

SRI funds investments in financially responsible businesses have a number of benefits from the long-term financial perspective. Socially conscious businesses have long-term success because they have an improved brand identity, superior competitive advantage and profitability potential. Environmentally responsible businesses recruit the industry's best talent, recruit socially responsible consumers and take environmental conservation measures. In turn, these businesses comply with legislation, waste management and energy efficiency regulations. The results are that socially responsible businesses would be financially sustainable in the longer term, improve sales growth and raise profits. Although if there were greater historical gains, I would stop investing in the sin fund and invest in an SRI fund instead.

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keosha answered 1 year ago
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