“The Center for Business Ethics” has launched a case writing competition to create anopen access repository.
In this regard, the case study entitled “When return goes reddish” prepared by PrAmine Zenjari and Pr Mohamed Amine ISSAMI was selected by the jury “Second Place Award” and will be published in the repositoryof the “Center for Business Ethics” “.
Case summary
Mr. Hassan is a Moroccan asset manager, faced with a dilemma situation, the asset allocation according to the ESG approach which shows its limits in terms of financial performance and the obligation to align with the performance of the benchmark (stock indexes).
Mr. Hassan is known for his charisma, his expertise in the field and he has built a reputation as the best asset manager. In order to keep his ESG portfolio, Mr. Hassan is alone in defending this investment and will be in conflict with the Investment Committee.
Abandoned this model of sustainable economy, is it the only measure to take into account to use this imbalance?
The teaching noteSummary
This case study focuses on the relationship between investors and asset managers. The dilemma between the declared values (ESG investment criteria) and the commitments (an asset allocation of saving) according to the information note.
This situation offers the opportunity to understand the significant financial issues and theirimpact in terms of behavior and financial conduct.