Why Shouldn't Retirement Savers Buy ESG Stocks?
Labor Secretary Eugene Scalia’s proposed rule appears to impinge on pensioners’ freedom.
Eugene Scalia’s rule could have a profound impact.
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Easily overlooked in this febrile atmosphere, a debate over the roles and responsibilities of the investors entrusted with other people’s money is coming to a head, and with it, a debate over the responsibility of those who manage companies. Do investors look merely at maximizing financial return without taking anything else into account? And should managers look for “shareholder value” — maximizing the value of the company’s shares — or a more elusive concept of “stakeholder value,” which takes into account the interests of employees, customers, suppliers and the local community?