As Returns Diminish We Could See Further Balkanization In Corporate America: Bernstein

Is socially responsible investing about to take a dramatic turn? Investing decisions based on environmental, social and corporate governance standards, commonly known as ESG, has been increasingly popular. In a Bernstein report titled “Trust in Asset Management,” analysts talk about “the social function of the investment profession” beyond just delivering returns performance. As returns start to become more challenging to achieve, Bernstein predicts the motivation to find socially minded investments will increase. But could this trend result in corporations taking more partisan political positions, as one observer suggests?

“Political surprises of 2016” sent a message that the finance world needs to...