Applying Ethics in Investments Essay Example | Topics and Well Written Essays - 5750 words

Applying Ethics in Investments - Essay Examplemmendation 26 4.1 remnant 26 4.1 Recommendation 27 Reference 28 Appendix 1 31 Wright Quality Ratings 31 Appendix B Company Operations Information 32 Mayne Pharma Group Limited 32 capital of Singapore Telecommunications (SGT) 32 Renaissance Uranium (RNU) 33 List of Tables Table 1 Environmental efficiency criteria employed for screening of companies for investment 17 Table 2 paygrade of environmental credentials 19 Table 3 Evaluation of Corporate Governance Credentials 21 Table 4 Evaluation on the basis of contextual factors 22 Table 5 Evaluation on the basis of pecuniary exertion and prospects 25 Tables of Figures Figure 1 Adapted form source Morningstar, 2011. Equity Research Methodology. Online Morningstar (January 27, 2011) for sale at http//news.morningstar.com/pdfs/Equity_Research_Methodology_102308.pdf Accessed 14 September 2011. 12 Figure 2 Research process adopted for the count 14 Figure 3 Sub-factors considered under factor financial performance and prospects 27 Section 1 Executive Summary This study was undertaken to choose the most worthy company among three companies namely, Mayne Pharma Limited, Singapore Telecommunications, Renaissance Uranium, with the aim to invest $500,000 on a long-term basis. Four main criteria were considered to estimate the companies performance. These were (1) financial performance and prospects, (2) corporate governance performance, (3) environmental protection credentials, (4) Contextual factors (e.g. legal/political issues, ball-shaped or regional economic pressures, etc.). An extensive review of existing literatures on the subject was undertaken to identify adequate similarity variables on the basis of which the companies were to be evaluated. A total of 24 sub-criteria criteria were listed under the financial... Four main criteria were considered to evaluate the companies performance. These were (1) financial performance and prospects, (2) corporate governance p erformance, (3) environmental protection credentials, (4) Contextual factors (e.g. legal/political issues, global or regional economic pressures, etc.). An extensive review of existing literatures on the subject was undertaken to identify suitable comparison variables on the basis of which the companies were to be evaluated. A total of 24 sub-criteria criteria were listed under the financial performance and prospects twelve sub-criteria were identified under corporate governance seven sub-criteria under environmental protection eon the contextual factors consisted four sub-criteria. On the basis of the four criteria and the variables contained in the sub-criteria, a scoring method was true and the companies performance was compared. The findings revealed that Singapore Telecommunications is most worthy company. Accordingly, the company was recommended for long-term investment.As Beal et al (2005) brought out in their paper Why do we invest ethically? Over the last two decades, one picky type of behaviour is the desire to invest ethically (Beal et al., 2005). The authors add that based on traditional finance theory and the ethical investment literature, there are three potential reasons why people whitethorn invest some or all of their funds ethically (1) for superior financial returns (2) for non- wealthiness returns and (3) to contribute to neighborly change (Beal et al., 2005). These motivations also inspired this report and prompted that investing should not only be made for shareholders wealth maximisation but also for sustainable development.