The latest evolution in social responsible investing comes out of Dow Jones & Company, which has partnered with the Indian firm Dharma Investments to create new “dharma indexes” that will track the stocks of companies that observe the values of dharma-based religions such as Hinduism and Buddhism.
The Dow Jones Dharma Indexes are the first to measure dharma-compliant stocks and now track more than 3,400 companies globally, including about 1,000 in the U.S., according to the company. In addition to the global index, Dow Jones has created dharma indexes for the U.S., Britain, Japan and India.
…
“The principle of dharma contains precepts relevant to good conduct, but also the implicit requirement of mindfulness about the sources of wealth — and therefore responsible investing,” said Dharma Investment CEO Nitesh Gor.
Advisory committees of religious leaders and scholars will screen and monitor companies’ environmental policies, corporate governance, labor relations and human rights, among other criteria. Companies from business sectors deemed un-dharmic, such as weapons manufacturers, pharmaceuticals, casinos and alcohol, are barred from the index.
Bhakti Charu Swami of the International Society for Krishna Consciousness said, “If one only considers the profit motive of an investment without recognizing how that profit was generated, one may unknowingly commit sinful activity. Every link in the entire chain of events is liable for the results.”
The whole thing is here.