Do you only consider roi in choosing an investment, or does morality and ethics matter?

Question

Did Enron care? Does ExxonMobil care? Hillary mentioned this oil company investment speculation scam by the hedge fund traitors, but nobody listened. Sad case.

Answer 1

I agree with Obama and see corn ethanol as the future for the energy market. Sugar cane is used in Brazil and America must learn to more corn fuel. Other members of the U.S. Congress are deeply involved with this ethanol program and that is what change means. Change to corn!

Answer 2

Yes, I consider a company's ethical behavior.  And not just for moral reasons.

Look at Enron. World com, etc.  Corporations that disregard ethical standards are usually bad investments. The best you can realistically hope for is a quick profit in the short term. Stick with an investment like that and you will eventually get burned.

The same is trueof companies like Exxon.  I'm quite serious--I consider the company to be a poor risk.

Why is pretty simple if you back off from the hype--political, ethical, oand otherwise.

Their current good fortune is not based on sound corporate strategy or management. It's a side effect of a market runup which (reggardless of its cause) is not going to last. When the currrent spike in oil prices ends, oil is going to drop way back (my guess is around $70/barrel.  And thre is not going to be a repeat. If this happens again it will be in a different political climate--one far less tolerant of profiteering given the costs to the nation economically.

But here is another and far more serious reason why a company like Exxon--or any company whose fortunes rest on fossil fuels--is a bad long-term risk.

Put very simply: the technology is obsolete.

We have cars now that are alll electric aand have ranges of over 200 miles, plus performance that equals or beats any gas-powereed vehicle. Check out the new Tessla--admittedly a high-end sports car. but note that it's price is competitive with other sports cars in the target market.

We have cost effective wind turbines. Thre is a technology revolution in solar power that is bringing the price down dramatically. We have the technology to build modern nuclear power plants that are safe--and that produce electricity for less than fossil fuel power plants must charge.

All that  spells the imminant end of the Fossil Fuel Age.

What does this have to do with corporate ethics?  The answer has to do with the behaviorof the corporations in response.  You've seen one possible response--T. Boone Pickens--who is using his money to re-capitalize into alternative enrgy. His company will be around  a lt longer than he will as a result.

Now look at the response of companies like Exxon. The following has been documented:

>deliberate publication and dissemination of false information about global warming

>lobbying Congress to halt raising fuel efficiency standards on automobiles

>pushing for an expansion of biofuels in a way that is simply not sustainable without grave ecological conseqeunces and rises in agricultural prices--and which still requires oil.

These are not the actions of an ethical corporation. They are the actions one would expect from an unethical management team that is facing the prospect of a long-term and irreversible decline in the company's fortunes.

Ethical business leaders insuch situations do what Pickens is doing--they begin to adopt the new technology, reinvesting in that as old capital plant must be replaced and as they expand.

Unethical management invariably tries to preserve the status quo by blocking change and competitors.

It doesn't take a Wall Street genius to figure out which is the better investment.

Answer 3

great question, people care only about ROI. Do  you think share holders should hold responsibility when companies break laws, or should it just be the CEO? The need has never been greater for an overhaul of laws dealing with corporations. This will only happen when people start voting the career polititians out of office, letting them know they are there to serve all the people just not the largest donors.

Answer 4

"Never put all the eggs in one basket".

Will surely have a safe investment.

Luke 6.39-40,41-45,46-49

What do you think?