Table of contents
Executive summary 1
1 Introduction 2
2 Evaluation of ethical performance 3 2.1 Environmental issues 3
3 Evaluation of financial performance 5 3.1 Profitability 5
4 Recommendation 7
References 8
Executive summary
The purpose of this report is helping a client who wants to invest ethically to evaluate the Santos 's performance in ethical and financial aspects. This report researches both ethical and financial activities of Santos what regards to its environmental and financial performance.
There are two main aspects of the findings. In the term of ethical performance, Santos has caused water pollution due to the use of fracking procedure. Furthermore, human health may be harmed by toxic chemicals and water pollution, which are produced by the fracking process. In contrast, the financial performance of Santos is positive. The analysis of the margin profit of Santos reveals that its profitability increased consistently in recent years.
Generally, this report suggests that investment in Santos is not recommended, because both the environmental pollution and health problems which are created by fracking belong to unethical activities. That means the ethical performance of Santos is not satisfactory. However, if client does not pay attention to ethical investing, Santo could be invested in. The reason for this is the increased profitability of Santos.
1 Introduction
This report aims to appraise the ethical and financial performance of Santos for the client who prefers an ethical investment. It will look at the environmental and financial behaviors. The definition of ethical investing is that some individuals decide to do a specific investment through considering ethical targets and financial standards of an entity (Schwartz 2003, p. 195).
According to the official website of Santos (2012),
References: Engineer 2012, ‘Backing for fracking’, Engineer, vol. 296, no. 7838, pp. 7-9, viewed 3 June 2012, Macquarie University Library database. Osborn, SG, Vengosh, A, Warner, NR & Jackson, RB 2011, ‘Methane contamination of drinking water accompanying gas-well drilling and hydraulic fracturing’, Proceeding of the National Academy of Sciences, vol. 108, no. 20, May, pp. 8172-6.