Gates Foundation Revokes Pledge to Review Portfolio

NewsCloud writes "After the LA Times reported that the Gates Foundation often invests in companies hurting the very communities Bill and Melinda want to help, the Seattle Times reported the foundation planned 'a systematic review of its investments to determine whether it should pull its money out of companies that are doing harm to society'. Shortly after that interview, the Gates Foundation took down their public statement on this and replaced it with a significantly altered version which seems to say that investing responsibly would just be too complex for them and that they need to focus on their core mission: 'There are dozens of factors that could be considered, almost all of which are outside the foundation's areas of expertise. The issues involved are quite complex...Which social and political issues should be on the list? ... Many of the companies mentioned in the Los Angeles Times articles, such as Ford, Kraft, Fannie Mae, Nestle, and General Electric, do a lot of work that some people like, as well as work that some people do not like. Some activities might even be viewed positively by some people and negatively by others.'"

Comments

Re:Damn good point.

[arivanov]

The impact of a responsible investment policy on the money scale of GF will exceed the results from donating proceeds by an unimaginable magnitude.

While the money it is giving to good causes may sound great, it is nothing compared to the possible impact of running a strictly "responsible investment" policy with a money chest of their size (Most of BG money and most of the wizard of Omaha money nowdays).

This will turn the stockmarket bottom up, upside down and leave it on its head for a very long time. Money this size will cause a large number of companies to accept responsible corporate polices in order to be eligible for investment. You cannot just ignore it or turn its back on it. This in turn will force move of other investment and so on and so on.

I can bet that the perspective of this happening has scared all those pyramid jugglers with "quantitative models" shitless. I can bet that the real reason for BGF to abandon the policy 2 days after stating it is that Gates personal phone (the one not published in the phonebook) did not stop ringing during that period.

So this most likely is an order from above and it sucks. A money chest this size which is bound by "responsible investment" covenant may have forced many companies to assume more responsible polices and ultimately changed the world to the better much more than the money GF gives away to good causes. Everything else aside, its effect would have been much more long term.