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May18
Will doing business with bad-boy regimes harm these brands? Pension-fund managers say YES.
At first glance names such as Siemens, General Electric, Hyundai, Shell and BNP Paribus suggest strength and goodwill.  A closer examination reveals companies willing to turn a blind eye toward terror-promoter nations.  We’re talking Iran, Syria, North Korea and Sudan.  And there are hundreds of other companies doing the same thing.  In today’s world, can shareholders have it both ways?  Some think not.  “Disinvestment” is the watchword here.  What it means is putting your money where your philosophy is and keeping it out of stocks of companies bedding down with the like of the Iranians and Sudanese.  Sarah Steelman, treasurer of Missouri and gubernatorial hopeful, has taken her state’s pension-fund money away from these brands.  Now California, Florida and Louisiana have followed suit.  GE, for its part, cozies up to Iran under cover of foreign subsidiaries.  But it’s not fooling anybody.  Time will tell if these brands, in the sunshine of notoriety, will be wiping the slime off their luster as the price of wrong-headedness.

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« Mondavi – the man who made “California wine” a premium brand of its own | Main | Microsoft’s “rapprochement” with Yahoo and your brains on advertising: studies in predictability »

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