May 7, 2018

05/07/2018: Is ethical investing unethical?

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(U.S. Edition) That's what the Labor Department is suggesting with a new announcement that socially responsible investments could be a violation of a company's fiduciary responsibility. In other words, considering values other than traditional measures like profits and losses when…

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Socially responsible investing is in the crosshairs of the Labor Department

May 7, 2018
An official recommendation was made to not put retirement plans at risk by investing in stocks that focus on environmental social governance, or ESG.
The day's numbers are displayed after the closing bell of the Dow Industrial Average at the New York Stock Exchange on May 3, 2018 in New York.
BRYAN R. SMITH/AFP/Getty Images

(U.S. Edition) That’s what the Labor Department is suggesting with a new announcement that socially responsible investments could be a violation of a company’s fiduciary responsibility. In other words, considering values other than traditional measures like profits and losses when running a retirement plan is frowned-upon, though not outlawed. What does this mean for the future of “ethical” investing? We talk to Senior Economics contributor Chris Farrell to find out. Plus, the price of crude oil crossed above $70 per barrel today, the highest it’s been since 2014.

The team

Stephen Ryan Producer, BBC