I found this interesting data at usatoday:
More than nine in 10 investors say they would choose a financial services company with strong ethics; just 5% prefer higher returns
This is a classic case where people say what they think they should rather than the truth. Please don’t get me wrong. I’m sure that there are a lot of people out there who prefer ethics over returns. – I just don’t believe it’s 92%. If that was truly the case, investment funds would be touting their “ethics” and not their “returns” in advertisements and that is just not the case.
Now I believe that if investors were given a choice between an ethical investment and a questionable ethical investment that provided the same returns, they would overwhelming choose the company with ethics. My question is do you really believe that 92% would choose an ethical company that returns 4% less a year over one with questionable ethics? I just don’t see that happening to such a high percentage.
Am, I the only one who finds these numbers reflect investors choosing a “socially correct answer” rather than reality?