Invest
Investors accepting of lower returns for greater good
Australian retail investors are highly receptive of lower financial returns if the companies they invest in behave ethically towards customers, employees and the community, a new report has found.
Investors accepting of lower returns for greater good
Australian retail investors are highly receptive of lower financial returns if the companies they invest in behave ethically towards customers, employees and the community, a new report has found.
KPMG’s Shareholder Value: Shareholder Values report found that 72 per cent of retail investors rated reputation ahead of recent dividends when deciding where to invest their money.
Head of KPMG’s customer brands and marketing practice, Amanda Hicks, believes the new research shows a clear pattern in what investors expect from corporations.
“What this new research makes clear for the first time is Australian retail investors are now keenly aware of the importance of reputation, transparency, ethical behaviour, values alignment and social responsibility,” Ms Hicks outlined.
It was noted that age is a relevant factor in the findings, with younger Australians more likely to care about trust factors including the environment, ethics, values and good treatment of employees.
Middle-aged investors (aged between 41-50) were found to be the least likely to care; only half cited “ethical behaviour” as an important factor in their investment decision-making.
Australians over 60 showed a return to more ethical thinking, with 55 per cent saying trust factors play a role in their investing habits.
The report also found that female investors are more likely to prioritise ethical behaviour, environmental sustainability and whether companies pay their fair share of tax than males – across all age groups.
KPMG said the research showed that investors are giving boards permission to pursue long-term ethical goals over short-term financial outcomes.
“In fact, this survey indicates that boards and management have a green light from shareholders to pursue genuine efforts to become more transparent, more honest, more ethical and more values-driven,” according to Ms Hicks.
“The results, we believe, should drive a genuine advancement in the way we think about the phrase ‘delivering value for shareholders’,” she said.
About the author
About the author
Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more
Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more
Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more
Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more
Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more
Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more
Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more
Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more
Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more
Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more
Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more
Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more
Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more
Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more
Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more
Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more