Does the Stock Does the Stock Market Have Any Market Have Any Socially Beneficial Socially Beneficial

Aspects?Aspects?

What Is the Stock Market?What Is the Stock Market?

What is the Stock Market?

The group of public stocks that can be bought and sold by anybody

When a person buys a stock, he is buying a partial ownership of the company

The two largest American exchanges on which stocks are bought and sold are the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ)

– NYSE = The largest stock exchange in the world in dollar value Conduct exchanges face-to face on a trading floor Companies must pass a financial strength test and pay to be listed

– NASDAQ = The largest electronic stock exchange in America Primarily tech stocks and start up companies

Who Influences the Who Influences the Market?Market?

EVERYONEEVERYONE

• Washington (IWR Satire) - The stock market today dropped more than 250 points this morning when President Bush turned up missing for over an hour. Moments before Vice President Dick Cheney was to assume the reins of power, George W. Bush emerged somewhat shaken from the White House hedges.

• "I was on my way to the Marine One helicopter, but I guess I took a wrong turn in the hedges," said President Bush (“Bush Gets Lost”).

Is the market a socially Is the market a socially destructive institution?destructive institution?

Or are there some Or are there some socially beneficial and socially beneficial and constructive outcomes?constructive outcomes?

Is The Market Socially Destructive?

But Can it be Socially But Can it be Socially Constructive?Constructive?

CharityCharity

Universal OpportunityUniversal Opportunity

Social InvestingSocial Investing

Social InvestingSocial Investing

The theory of aligning one’s investments with The theory of aligning one’s investments with one’s valuesone’s valuesThe Council on Economic Priorities (CEP)The Council on Economic Priorities (CEP) Examines companies based on various criteriaExamines companies based on various criteria

I am focusing more on the larger picture than a I am focusing more on the larger picture than a personal levelpersonal level Environmental IssuesEnvironmental Issues Safer WorldSafer World Charitable GivingCharitable Giving Education in AmericaEducation in America

EnvironmentEnvironmentValdez Principles (Alperson 23)Valdez Principles (Alperson 23)

1.1. Protection of the BiosphereProtection of the Biosphere2.2. Sustainable Use of Natural ResourcesSustainable Use of Natural Resources3.3. Reduction and Disposal of WastesReduction and Disposal of Wastes4.4. Wise Use of EnergyWise Use of Energy5.5. Risk ReductionRisk Reduction6.6. Marketing of Safe Products and ServicesMarketing of Safe Products and Services7.7. Damage CompensationDamage Compensation8.8. DisclosureDisclosure9.9. Environmental Directors and ManagersEnvironmental Directors and Managers10.10.Assessment and Annual AuditAssessment and Annual Audit

Safer World

• Weapons Contractors• Nuclear Weapons and Power Plants• Many ethical investors immediately

exclude defense contractors from consideration (Alperson 31)

• There are also many non-defense companies that serve as research facilities for the military• Ford Motor Co. and AT&T

Philanthropy

In general, average corporate giving is around 1% of pretax income

Social investors want to reward companies for their philanthropy by buying into the companies

Do corporations donate money out of good will, or is charity used to put out an image?

Would it matter?

An Educated AmericaAn Educated America

Educational reimbursementEducational reimbursement

In-house literacyIn-house literacy

Adopt-a-schoolAdopt-a-school

Scholarship programs for childrenScholarship programs for children

Marketing Ploys?Marketing Ploys?

Your TurnYour Turn

Company ACompany A

1.1. Is growing 18% annually with a 2.5% dividendIs growing 18% annually with a 2.5% dividend

2.2. Was recently under heat for trying to cover up illegal Was recently under heat for trying to cover up illegal dumping of waste in the Pacific Oceandumping of waste in the Pacific Ocean

3.3. Charity is .3% of their earnings, however, most of it Charity is .3% of their earnings, however, most of it goes toward their local communitygoes toward their local community

4.4. Offers little health care to their workers; has the Offers little health care to their workers; has the standard 8 week maternity leavestandard 8 week maternity leave

5.5. A large percentage of the company’s profits comes A large percentage of the company’s profits comes from defense contracting, and the company from defense contracting, and the company contributes to nuclear development.contributes to nuclear development.

Company BCompany B

1.1. Is growing at 12% annually with a 1.7% dividendIs growing at 12% annually with a 1.7% dividend2.2. Is supportive of minority promotion, and the executive Is supportive of minority promotion, and the executive

board is integratedboard is integrated3.3. None of the top executives are environmentalists, and None of the top executives are environmentalists, and

the company refuses to disclose any more information the company refuses to disclose any more information on its actions than is required by lawon its actions than is required by law

4.4. Sponsors the largest adopt-a-school foundation in the Sponsors the largest adopt-a-school foundation in the nation, mostly in lower-class neighborhoodsnation, mostly in lower-class neighborhoods

5.5. Some of its profits come from defense contractingSome of its profits come from defense contracting

Company CCompany C

1.1. Is growing at 5% annually with a 1.1% dividendIs growing at 5% annually with a 1.1% dividend

2.2. Actively participates in the community through mentor Actively participates in the community through mentor services and large donationsservices and large donations

3.3. The executive board is integrated, and two of the The executive board is integrated, and two of the board members are famous environmentalists board members are famous environmentalists

4.4. Although it does not actively oppose nuclear Although it does not actively oppose nuclear development, the company chooses to refrain from development, the company chooses to refrain from participationparticipation

5.5. Health benefits to workers are adequate, although not Health benefits to workers are adequate, although not exemplaryexemplary

My TakeMy Take

Socially responsible investing is the Socially responsible investing is the most beneficial aspect of the stock most beneficial aspect of the stock marketmarket

It will never become a significant part It will never become a significant part of the American cultureof the American culture

There should be a majority of people There should be a majority of people investing in Company Cinvesting in Company C

Works CitedAlperson, Myra, et al. The Better World Investment Guide. New York: Simon and Schuster, Inc., 1991.

Burns, Shannon. “I left out the stock market section for your own good.” Cartoon. 2001. Shannon Burns. https://www.shannonburns.com. 2006. 26 Nov. 2006

<http://www.shannonburns.com/Toon637+.gif>

"Bush Gets Lost in the White House Hedges." Internet Weekly Report. 26 Nov. 2006 <http://www.internetweekly.org/photo_cartoons/

cartoon_bush_hedges.html>.