4 Most Hated Companies for Ethical Investors
Sometimes, no matter what they do, some companies just can’t shake off their bad reputation. Things are so bad that some investors won’t even consider putting their money anywhere near them. Today’s article is dedicated to 4 of these companies. We’ll also go over the top fundamental market events you won’t want to miss out on. Let’s go!
Ethical investor repellent companies
Ethical investing is becoming increasingly popular. Many investors are only interested in investing their money in companies that align with their own personal values.
Of course, some companies are on a lot of people’s “no” list — here are just a few of the most investor-resistant companies, who, no matter how hard they try, just cannot shake off their reputation.
#1 Lockheed Martin
The Maryland-based defence contractor has interests in countries all over the world. As a result, it’s responsible for manufacturing weapons that have been used in countless wars and conflicts.
You can probably see where this is going…
Ethical investors argue that Lockheed Martin’s profits are built on death and destruction, and it’s a little hard to disagree.
But that position isn’t hurting the bottom line. The company made $5.7 billion profit in 2022, though its stock is down 3% so far in 2023.
#2 Nestlé
You don’t need us to tell you what these guys do. Nestlé is the Swiss-based multinational food and drink conglomerate. You’ll know them best for Nescafe, Nespresso, Haagen-Dazs, KitKat, and Smarties.
You might also know them for being accused of a number of unethical business practices, namely:
● Using child labour in its cocoa supply chain
● Targeting their marketing of high-sugar foods to under-16 year olds
● Syphoning off millions of gallons of water from California’s San Bernardino forest, bottling and selling it, even though the community was experiencing a drought
…not exactly saint-worthy behaviour.
The bad rep isn’t hurting the business, however. Nestlé is a money making machine. It made $45 billion gross profit in 2022, though that was down 1.87% YoY.
#3 Monsanto
Monsanto is an agricultural giant, known for its controversial products, including genetically modified crops and its popular brand of herbicide, Roundup.
Ethical investors aren’t fans because they believe that the company’s products have a negative impact on both the environment and on human health.
Monsanto still had a bumper 2022, earning $14.6 billion in revenue.
#4 Johnson & Johnson
This healthcare company has been involved in a number of high-profile scandals, including:
● The marketing of defective baby powder that was linked to cancer — a couple of months ago, the company offered $8.9 billion to settle the lawsuit.
● The manufacturing of faulty hip implants that led to serious injuries — in 2017, the company was ordered to pay $257 million to 6 patients.
Again, not great reading for J&J shareholders, however — again — it’s never really affected the company’s numbers. In fact, if you check the stock price over the last 5 years, you’ll notice that its price is up 36%.
Source: Google
Let us know what you think!
Which of these companies deserve to be on this list? Maybe you know of some others that are even more divisive? Let us know by tweeting us at @_contentworks.
Top fundamental events this week
Ready for the week ahead? Here’s everything you need to know about.
Monday, June 26
● EUR — German Ifo Business Climate; President Lagarde speech; ECB Forum on Central Banking
Tuesday, June 27
● CAD — Inflation Rate (YoY)
● USD — Durable Goods Orders (MoM)
Wednesday, June 28
● EUR — GfK Consumer Confidence
● USD — Fed Chair speech
Thursday, June 29
● JPY — Consumer Confidence
● EUR — Germany Inflation Rate (YoY Preliminary)
Friday, June 30
● CNY — NBS Manufacturing PMI
● EUR — Inflation Rate (YoY Flash); Unemployment rate
● USD — Core PCE Price Index (MoM); Personal Income (MoM); Personal Spending (MoM)
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Speak soon!
The Contentworks team
