A new study by The Corporate Library constructs a hypothetical portfolio based on its corporate governance rankings, which significantly outperforms a Russell 1000 benchmark. SocialFunds.com — Last week, SocialFunds.com spoke with Cary Krosinsky of Trucost about the apparently undeserved reputation for sustainability enjoyed by BP before the Gulf of Mexico oil spill disaster. Krosinsky observed that if the governance ratings of companies compiled by The Corporate Library included foreign firms, BP’s reputation for sustainability might have been calibrated more realistically. Based in Portland, Maine, The Corporate Library is an independent research firm that focuses on corporate governance. Kimberly Gladman, the Director of Research and Risk Analytics at The Corporate Library, told SocialFunds.com, “We look at the shareholder model of corporations, and look for agency problems. We ask, where do we think there is a diversion between the board and the shareholders? That’s the question we ask of every company, and we think we have a group of indicators that help see in patterns of public disclosure.” Image: wheelhouseadvisors.files.wordpress.com. More…

Source: SocialFunds