Download Does the Stock Market Have Any Socially Beneficial Aspects?

Does the Stock Market
Have Any Socially
Beneficial Aspects?
What Is the Stock Market?
What is the Stock Market?

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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
Market?
EVERYONE
• 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”).
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Is the market a socially
destructive institution?
Or are there some
socially beneficial and
constructive outcomes?
Is The Market Socially
Destructive?
But Can it be Socially
Constructive?
Charity
Universal Opportunity
Social Investing
Social Investing
The theory of aligning one’s investments with
one’s values
The Council on Economic Priorities (CEP)

Examines companies based on various criteria
I am focusing more on the larger picture than a
personal level
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Environmental Issues
Safer World
Charitable Giving
Education in America
Environment
Valdez Principles (Alperson 23)
1. Protection of the Biosphere
2. Sustainable Use of Natural Resources
3. Reduction and Disposal of Wastes
4. Wise Use of Energy
5. Risk Reduction
6. Marketing of Safe Products and Services
7. Damage Compensation
8. Disclosure
9. Environmental Directors and Managers
10. Assessment 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 America
Educational reimbursement
In-house literacy
Adopt-a-school
Scholarship programs for children
Marketing Ploys?
Your Turn
Company A
1. Is growing 18% annually with a 2.5% dividend
2. Was recently under heat for trying to cover up illegal
dumping of waste in the Pacific Ocean
3. Charity is .3% of their earnings, however, most of it
goes toward their local community
4. Offers little health care to their workers; has the
standard 8 week maternity leave
5. A large percentage of the company’s profits comes
from defense contracting, and the company
contributes to nuclear development.
Company B
1.
2.
3.
4.
5.
Is growing at 12% annually with a 1.7% dividend
Is supportive of minority promotion, and the executive
board is integrated
None of the top executives are environmentalists, and
the company refuses to disclose any more information
on its actions than is required by law
Sponsors the largest adopt-a-school foundation in the
nation, mostly in lower-class neighborhoods
Some of its profits come from defense contracting
Company C
1.
2.
3.
4.
5.
Is growing at 5% annually with a 1.1% dividend
Actively participates in the community through mentor
services and large donations
The executive board is integrated, and two of the
board members are famous environmentalists
Although it does not actively oppose nuclear
development, the company chooses to refrain from
participation
Health benefits to workers are adequate, although not
exemplary
My Take
Socially responsible investing is the most
beneficial aspect of the stock market
 It will never become a significant part of
the American culture
 There should be a majority of people
investing in Company C

Works Cited
Alperson, 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>.