27th June 2013, Actuarial Post
Responsible businesses out-perform market, but responsibility still not at heart of investor dialogue, new report says
Businesses that manage and measure their corporate responsibility* can offer greater long- term value and are less volatile – yet investors and business are failing to put responsibility issues at the centre of their discussions, according to a report published today by Business in the Community and Legal & General.
Research conducted by Ipsos MORI for the report (Conscious Capital – bridging the gap between business and investors) reveals that FTSE-listed responsible businesses (characterised by participation in Business in the Community’s annual CR Index) outperform the FTSE’s average total shareholder return in seven out of eleven years from 2002-12. The research also shows that, between 2009 and 2012, FTSE-listed responsible businesses were less volatile than their peers, by an average -0.02 against the FTSE All-Share. Continue reading…