Political consequences of ethical investing: The case of South Africa

This paper discusses the economic impact and political consequences of ethical investing, with particular attention to the case of South Africa. The origins of ethical investing are examined, along with the institutions and strategies by which ethical investing operates today. Of immediate relevance to managers is a recent judicial decision upholding Baltimore's divestment ordinance. The discussion concludes with an assessment of the likely consequences of ethical investing for U.S. multinationals in Southern Africa.Dr. Paul is an Associate Professor of Management at the Rochester Institute of Technology. She took her Ph.D. from Emory University in 1974. She has published and presented widely on the subject of Business Ethics and Business and Public Policy. Her current research interest in business and South Africa has taken her to South Africa on a Fulbright Fellowship. Dr. Paul has also been named a Radcliffe Peace Fellow for 1987–88. She has just edited Business Environment and Business Ethics: The Social, Moral, and Political Dimensions of Management (1987) for Ballinger Press.Mr. Aquila has been a full time Lecturer at the Rochester Institute of Technology since 1984. He took his M.B.A. degree from New York University in 1980 and is just finishing his Ph.D. at the University of Rochester in American History. Mr. Aquila was awarded the David Parker Memorial Prize in History from the University of Rochester in 1986.