There is no doubt that people invest to make money. However how investors set up their portfolio to achieve their goal can differ amongst investors even with similar objectives. Like any other challenge in life, morals play a big part in the preparation towards achieving a goal.
For some, the main goal of their portfolio is to achieve their target return by year end at all costs. For others it might not be that simple. The latter would want to make sure that the companies which are contributing towards performance in their portfolio operate in an ethical way. For these investors, obtaining their portfolio goals is much more complicated because the portfolio manager is restricted in what he can buy in order to achieve that goal.
All investors want to make money but not at all are ready to do it at any cost. Some shy away from companies which do not operate in an ethical manner or which produce goods and services which are harmful to society in any way or form.
Corporate Social Responsibility is the initiative taken by a company to assess and take responsibility for its effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups.
The Ethisphere Institute is the global leader in identifying companies which adopt high standards of ethical business practices. The world's most ethical companies are those which go beyond making statements about doing business "ethically" and translate those words into action.
In 2015, 132 companies from 21 countries and five continents and representing over 50 industries were nominated by the Ethisphere Institute as the most ethical companies in the world. 10 of these companies which trade on a listed exchange include:
1. Hennes & Mauritz AB (H&M) (Sector: Apparel, 5-year performance +52%)
H&M designs and retails fashions for women, men, teens, and children. The Company sells a variety trendy, sporty, and classic garments in addition to accessories such as jewellery, bags, and scarves, and cosmetics. H&M owns and operates stores in many European countries and the United States.
2. Kellogg Company (Sector: Food and Beverage, 5-year performance +26%)
Kellogg Company manufactures and markets ready-to-eat cereal and other convenience foods. The Company's products include cereals, cookies, crackers, toaster pastries, cereal bars, fruit snacks, frozen waffles and veggie foods. Kellogg markets its products in the United States, Canada, and other countries throughout the world.
3. Ford Motor (Sector: Automotive, 5 year performance, 5-year performance +28%)
Ford Motor Company designs, manufactures, and services cars and trucks. The Company also provides vehicle-related financing, leasing, and insurance through its subsidiary.
4. Google Inc (Sector: Computer Services, 5-year performance +162%)
Google Inc. is a global technology company that designs and offers various products and services. The Company is primarily focused on web-based search and display advertising and tools, desktop and mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.
5. Microsoft (Sector: Computer Software, 5-year performance +88%)
Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices.
6. Colgate-Palmolive Company (Sector: Consumer Products, 5-year performance +63%)
Colgate-Palmolive Company is a consumer products company that markets its products throughout the world. The Company's products include toothpaste, toothbrushes, shampoos, deodorants, bar and liquid soaps, dishwashing liquid, and laundry products, as well as pet nutrition products for cats and dogs.
7. Schneider Electric (Sector: Diversified Machinery, 5-year performance +51%)
Schneider Electric SE manufactures power distribution and automation systems. The Company produces circuit breakers, remote installation management equipment, panelboards, programmable logic controllers, industrial control products, detectors, human-machine interfaces, and process controls. Schneider's products are sold various brands.
8. Iberdrola SA (Sector: Energy and Utilities:Electric, 5-year performance +27%)
Iberdrola S.A. generates, distributes, trades, and markets electricity in the United Kingdom, United States, Spain, Portugal, and Latin America. The Company specializes in clean energy and more specifically wind power.
9. Prudential Financial (Sector: Financial Services, 5-year performance +70%)
Prudential Financial, Inc. provides financial services throughout the United States and several locations worldwide. The Company offers a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, and asset management.
10. PepsiCo, Inc (Sector: Food and Beverage, 5-year performance +55%)
PepsiCo, Inc. operates worldwide beverage, snack and food businesses. The Company manufactures or uses contract manufacturers, markets and sells a variety of grain-based snacks, carbonated and non-carbonated beverages and foods in countries throughout the world.
This article was issued by Kristian Camenzuli, Investment Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt . The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice.