RE: It’s essentially Wall Street’s way of describing “investing for a cause” or “do-gooder investing.”
OK, How does one decide:
A) What a “good cause” is. If a company contibutes to the pro-life cause, does that count?
B) Whether you are over or underestimating your investment in such a cause ( if they even agree that its a good cause ).
From a business standpoint (for a publicly held company at least), the only consideration should be: “can this charitable donation/investment bring us increased profits from the marketing, exposure and good press we can get from it?”
That’s it. If you can’t answer that question with a “yes”, then it’s negligence.