The ethos investment Foundation, along with 7 other institutional investors (Morley Fund Management, Co-operative Insurance Society, Friends Ivory & Sime, Henderson Global Investors, Universities Superannuation Scheme in the United Kingdom and PGGM in the Netherlands) have joined forces to launch 'Business involvement in Myanmar (Burma) - A statement from institutional investors.'
The statement outlines the concerns raised by the presence of a military dictatorship in Myanmar and highlights the risks to shareholders in investing in companies that have interests in the country. The group suggests that companies operating in unstable political climates can be exposed to loss of shareholder confidence, negative press and publicity campaigns, safety risks, and corruption.
The statement does not call for divestment, but urges companies to be aware of the risks and to establish effective policies and procedures for managing them. The statement calls upon those companies choosing to continue their business involvement there to adopt responsible business practices so as not to contribute to, or further perpetuate human rights abuses committed in the country. The ethos Foundation has raised this issue directly with companies in which it holds stock and which are involved in Myanmar. In addition, a company’s involvement in the country will penalise its social rating and thus contribute towards reducing its weight in the Foundation’s portfolio.
