Based upon his conviction that socially responsible investing
(SRI) does not mean trading profits for personal or institutional
values, author and investment advisor
delivers a strong and passionate case for profitable SRI in
"Profitable Socially Responsible Investing?,"
his 32nd book. The book, released by Institutional Investor
Books this month, offers a sensible and credible option to
investors' negative screening of "sinful" securities
such as those for tobacco companies and defense contractors,
which tend to sacrifice risk-adjusted returns.
"A careful examination of management's behavior will
empower the investor,"
writes, "more effectively than negative screening could
ever have done, to deploy their investment capital in a way
that gives voice to their principles. . . Since good management
is a prime indicator of financial success, their inclination
to invest in only ethical companies should serve them well.
goes on to argue that "only by investing in a company
can one create the opportunity to influence the way it does
business, especially in collaboration with other, like-minded
Relying upon "Advocacy
his proprietary approach to values-based investing and his
proposes a proactive strategy that suggests when investors
select virtuous companies, based upon their own values, their
portfolios will thrive - and might even beat some of the popular
indices. His eight-year study demonstrates that those companies
that earned the highest marks for social justice and environmental
concerns actually outperformed the Russell 3000.
offers a clear and thoughtful approach to advance socially
responsible investing," says Victor De Luca, President,
Jessie Smith Noyes Foundation. "He makes a convincing
case that the strategic use of screens can result in both
comparable rates of return and adherence to social and ethical
Throughout the book, Mr.
analyzes and responds to the empirical research of academics
who have been most interested in SRI over the years. He also
provides the practical tools to define an individual's or
institution's core values in a way that is useful in constructing
a portfolio and demonstrates how to draft a mission-based
investment policy that satisfies fiduciary obligations. Addressing
the power of investors to effect change in the boardroom and
the executive suite,
dedicates a chapter to proxy voting and demonstrates how investors
might most strategically vote their shares, ensuring that
voice is given to values. Finally, the book provides a helpful,
comprehensive glossary of investment terms.
Mindy S. Lubber, President, Ceres says "'s
book covers the breadth of socially responsible investing
in a refreshing and accessible format for institutional investors
and 'civilians' alike."
"Doing well and doing good is possible," says Stasia
Zwisler, President and CEO, The Giving Trust, "and
proves it . . . In the wake of ethics and governance scandals,
this guide boldly takes socially-responsible investing to
a new level."
About the Author
President of Marc J. Lane Investment Management, Inc. He is
a practicing Chicago attorney and financial advisor; an Adjunct
Professor of Law at Northwestern University School of Law;
an Adjunct Professor of Business at the University of Illinois;
and the author of 32 books.
Publisher: Institutional Investor Books
Publication date: 05/05/2005
ISBN: 1 84374 136 9
For additional information on purchasing the book and on
on or go to the following URL: www.AdvocacyInvesting.com