Some fund managers are increasingly basing investment decisions in part on how considerate companies are to their employees and clients during the coronavirus pandemic.
Did firms move right away to let their staff work from home? Did they continue paying contract employees who had to stop working? Are they offering flexibility for clients who can’t pay bills on time? More and more, investors such as Dai-ichi Life Insurance Co. and AllianceBernstein Holding LP are asking questions like those when considering where to park their money.
It’s part of the growing global trend of environmental, social and governance investing to put money in ventures that benefit society, but these fund managers think it also just makes business sense. Being good employers and business partners may ultimately pay off with sustainable returns in the long term if, for example, it results in higher staff retention rates or helps avoid disruptions in supply chains, the investors reckon.