Why neglecting ethical principles is a dangerous gamble

ETHICAL WEEK

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Alexis Krajeski, director in the governance & sustainable investment team at F&C, explains why investors can profit from ethically astute companies in times of market volatility.

Over the summer of 2011, volatility and uncertainty returned to the global markets once more. The mass sell off during this time, reminiscent of events in 2008, saw billions being wiped off market values and the much-feared double-dip recession edge closer to becoming a reality. Adding to the general pessimism, the stock market has been rocked by several high profile ethical scandals in some of its biggest companies. As seen in some of the recent trading scandals, when individuals behave unethically they can lose millions, bringing severe losses to companies and tarnishing whole industry...

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