Investors Increasingly Concerned with Corporate Ethics

Small investors more likely to invest in companies that display ethical practices and reporting.

According to a new survey, investors are becoming more concerned about the ethical standards of corporations and mutual fund companies. Eighty-four percent of those surveyed reported being “more likely to invest in a mutual fund if it engages in ethical business practices in its operations and reporting,” according to a Nov. 18 announcement by Bethesda, Md.-based Calvert Group Ltd., a mutual-funds firm.

“It is increasingly clear that investors believe that well-governed, socially responsible companies are better positioned to deliver long-term, sustainable value to their shareholders,” states Barbara Krumsiek, Calvert president and CEO, in a Nov. 18 announcement. In addition, more than two thirds of the 600 people surveyed strongly or somewhat agreed that companies operating with higher levels of integrity carry lower risk and deliver higher returns.

Harris Interactive conducted the survey on Calvert's behalf. Survey respondents were not investment or securities industries employees.