All firms with strong financial performance are eligible for inclusion on socially responsible investment indices,because strong performance is positively correlated with social responsibility.

Question

Quizplus · Accepted Answer

Strong financial performance alone does not necessarily indicate social responsibility. Socially responsible investment indices typically evaluate a range of criteria beyond financial performance, such as environmental and social impact, ethical governance practices, and labor standards. Therefore, not all firms with strong financial performance will meet the criteria for inclusion on socially responsible investment indices.

All Firms with Strong Financial Performance Are Eligible for Inclusion