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Sins of Omission
(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)
With growing interest in socially responsible investing and corporate awareness of environmental, social, and governance (ESG) issues, should investors shun corporations that are branded “sin” stocks? Typically associated with the alcohol, tobacco, gaming, and firearms industries, the number of sin stocks appears to be growing as investors weigh environmental, human rights, political positions, and other issues into their investment decisions. Should investors be more concerned about earning appropriate risk-adjusted returns rather than making moral judgments? For investors willing to indulge in a little vice, we examine the bull and bear case for four sectors generally left out of socially responsible portfolios.