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New Calvert Survey Shows Investors Link Corporate
Responsibility With Reduced Risk, Better Returns
11/17/2003
Calvert, the nation’s largest family of socially responsible
mutual funds, today announced the results of a
Harris
Interactive® investor survey, which dramatically
highlights investors’ growing concerns about ethical standards
at corporations and mutual fund companies. “The survey
clearly shows that investors understand that corporate
responsibility matters,” said Barbara J. Krumsiek, Calvert’s
President & CEO. “It is increasingly clear that investors
believe that well-governed, socially responsible companies are
better positioned to deliver long-term, sustainable value to
their shareholders,” she added.
Conducted by Harris Interactive® for Calvert, the survey found
that investors see a definite link between good corporate
governance and shareholder value:
- 84% of investors are more likely to invest in a mutual
fund if they knew one of its principles was to invest in
companies that engage in ethical business practices in terms
of operations and reporting.
- 71% of those surveyed said that they either strongly
agreed (35%) or somewhat agreed (36%) that companies
operating with higher levels of integrity carry lower
investment risk.
- 68% of those surveyed said that they either strongly
agreed (31%) or somewhat agreed (37%) that companies
operating with higher levels of integrity deliver higher
investment returns.
Against the backdrop of two years of corporate scandals, the
Calvert survey clearly found that investors are more interested
in knowing how the companies they invest in conduct their
business. According to the survey, compared to two years ago,
investors said they now:
- want their financial advisors to investigate the ethical
as well as financial performance of investments before
making recommendations—92%.
- are more interested in how corporations are governed—79%
- are seeking more financial and accounting information
about their investments—68%
- are less confident about the trustworthiness of
corporate management—77%
- are less confident about the safety of financial
markets—59%
- are less confident about mutual fund integrity—45%
Finally, the survey showed that investors were generally in
favor of a wide range of corporate reforms that might encourage
ethical behavior. Here are the percentages of survey respondents
who felt that the following reforms are either essential or very
important:
- Open and honest reporting – 94%
- Having a Board of Directors that is independent from
management – 76%
- Setting reasonable executive compensation – 66%
- Encouraging greater shareholder voting on key issues –
66%
- Diversity in the Board of Directors – 63%
The Calvert survey was based on telephone interviews with 600
respondents with primary or shared decision making about
financial investments, who have not worked in the investment or
securities industry, and who currently own at least one mutual
fund outside of their 401(k) investments.
http://www.calvert.com/
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