BeyondPhilanthropy reviews recent studies indicating that the most admired companies under-perform a portfolio of despised companies by, say, 3%. Possible explanations:
- The market is efficient. Investor disgust is priced into the stock. The more disgusting the company the higher the return it must pay to attract capital?
- Evil companies attract psychopathic CEOs. The sicker the puppy who runs a firm, the more money it generally makes?
- Companies that externalize their costs do better than companies that clean up after themselves. The greater the indirect costs shifted to the general public, the higher the profit?
- Evil companies are the natural allies of evil politicians. Together they collude to prosper at the expense of humankind?
- Evil companies are the snares set by Satan to tempt us with worldly gain?
- Evil companies are like the villains we love to hate, and hate to love. We like getting shafted?