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
The heroic nature of health stocks in 2020
Putting money into health stocks is not only an investment in financial return, it’s also an investment into social impact, a portfolio manager has said. ...Read more
Shares
Emerging markets: 5 pandemic-proof sectors set for growth
As the world continues its migration online due to COVID-19, emerging markets will reap the benefits and open up new avenues of investment for savvy investors, according to an investment management fi...Read more
Shares
JobKeeper sees CEO bonuses rise
The Morrison government’s JobKeeper scheme has been used for corporate welfare and to line the back pockets of CEOs, an opposition minister has shown. ...Read more
Shares
Will BNPL shares continue to rally?
The COVID-19 pandemic has seen a change in customers’ approaches to online retail, creating a tailwind for the “buy now, pay later” sector. ...Read more
Shares
More users than Apple and Netflix: How investors can cash in on a growing trend
With COVID-19 seeing an already active 2.7 billion users spending more time playing video games, the opportunity to invest in the sector has never been greater, an industry expert has advised. ...Read more
Shares
Top 4 tech stocks right now
Tech has been a beacon of light in the US markets of late – so what are the stocks that are doing the heavy lifting? ...Read more
Shares
Qantas profits nosedive 91%: Here’s what it means for Aussies
Qantas’ profits have fallen 91 per cent as COVID-19-induced border closures hammer the airline’s bottom line. ...Read more
Shares
How much is the wagyu and shiraz case costing taxpayers?
ASIC has disclosed the preliminary legal bill for its responsible lending case against Westpac. ...Read more
Shares
The heroic nature of health stocks in 2020
Putting money into health stocks is not only an investment in financial return, it’s also an investment into social impact, a portfolio manager has said. ...Read more
Shares
Emerging markets: 5 pandemic-proof sectors set for growth
As the world continues its migration online due to COVID-19, emerging markets will reap the benefits and open up new avenues of investment for savvy investors, according to an investment management fi...Read more
Shares
JobKeeper sees CEO bonuses rise
The Morrison government’s JobKeeper scheme has been used for corporate welfare and to line the back pockets of CEOs, an opposition minister has shown. ...Read more
Shares
Will BNPL shares continue to rally?
The COVID-19 pandemic has seen a change in customers’ approaches to online retail, creating a tailwind for the “buy now, pay later” sector. ...Read more
Shares
More users than Apple and Netflix: How investors can cash in on a growing trend
With COVID-19 seeing an already active 2.7 billion users spending more time playing video games, the opportunity to invest in the sector has never been greater, an industry expert has advised. ...Read more
Shares
Top 4 tech stocks right now
Tech has been a beacon of light in the US markets of late – so what are the stocks that are doing the heavy lifting? ...Read more
Shares
Qantas profits nosedive 91%: Here’s what it means for Aussies
Qantas’ profits have fallen 91 per cent as COVID-19-induced border closures hammer the airline’s bottom line. ...Read more
Shares
How much is the wagyu and shiraz case costing taxpayers?
ASIC has disclosed the preliminary legal bill for its responsible lending case against Westpac. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
