Abstract
Investment analysts are trained that the primary responsibility of managers in public companies is to maximize shareholder wealth by raising the value of their stock holdings without regard for any greater societal good. Only recently have analysts begun to recognize the influence of various external stakeholders on the financial viability of corporations that violate ethical norms. The result is an increasing interest in socially responsible investing, defined as the process of integrating personal values and societal concerns into investment decision making. This orientation to the issue considers both academic research and popular press treatments. Careful selection of socially responsible investments over broader market investments may actually represent a value-maximizing strategy. Financial analysts will need to move beyond a laundry list of mutual funds in their dealings with investors.
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