AP Funds' Ethical Council uses dialogue to encourage corporate responsibility
- This dialogue is the Ethical Council’s most important tool for encouraging companies to act responsibly. Our discussions are aimed not only at pressuring the companies in question to address documented violations. As long-term investors we also want to see them implement preventative systems to avoid similar violations in the future, says Carl Rosén, Chairman of the Ethical Council.
The infringements of conventions identified by the Ethical Council are often indications that a company has not acknowledged its responsibility for incidents or taken an adequately proactive approach to environmental and social issues.
Pursuing a process of this type demands both discipline and a large portion of patience. Although the Ethical Council prefers to see continuous progress, there is an awareness that it can take time to achieve results. It is therefore a particularly satisfying that already during the Ethical Council’s first year, one of the targeted companies has taken the necessary action and subsequently been removed from the list.
- We are convinced that when companies take their responsibility and make these issues an integral part of their day-to-day business, they are a better investment for us and ultimately also for Sweden’s pensioners, says Carl Rosén.
Carl Rosén, 2008 Chairman of the Ethical Council
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