Gunns: A lesson in Corporate Social Responsibility

The news this week that Gunns has gone into receivership is an amazing lesson in how to fail at Corporate Social Responsibility (CSR). If any investor were to doubt the material impacts of ignoring community concerns about the environment, this is a massive wake up call. Investments in companies such as this made by fund managers (or Super funds) on behalf of investors should come with a warning!

Article from Andrew Darby, Fairfax:

http://www.theage.com.au/business/gunns-failure-a-story-of-corporate-greed-and-hubris-say-mills-critics-20120925-26jhv.html

Interesting reading – the Pulp mill impacts according to the Wilderness Society (Tasmanian Clearfelling photo courtesy of The Wilderness Society):

http://www.wilderness.org.au/campaigns/gunns-pulp-mill/tasmania2019s-future-threatened-2013-pulp-mill-impacts

The ‘Gunns 20’ case: in 2004, 20 environmental activists, organisations and concerned citizens were sued by Gunns for AU$6.9 million, for actions it claimed damaged their business and reputation.

http://www.gunns20.org/

By the way, if you’re a member of Australian Super (www.australiansuper.com), you’ve probably been investing in Gunns. Whilst it’s hard to find transparent disclosure of what Australian Super members invest in, Gunns is mentioned here:

http://www.australiansuper.com/investments-and-performance/approach-and-holdings/~/media/files/ShareVoting/Stock%20voting%20template%20Oct%2011%20to%20Dec%2011.ashx

 To learn more about investing your money ethically, contact JustInvest today on 08 9267 3488 or clientsupport@justinvest.net.au