The Congress of the United States spent more than two years on ERISA, the Pension Reform Act of 1974, hearing countless witnesses, conducting dozens of studies, and considering a raft of alternative proposals. Yet there is not one mention in those thousands of printed pages of the social or political implications of the pension funds, and very little concern for the economic impacts, on capital market or capital formation… -Peter F. Drucker (1976)1

The Ontario Teachers’ Pension Plan led a successful group of bidders for Bell Canada (BCE)2 on June 30. According to the New York Times (July 1, 2007), ‘The deal for Bell Canada, worth about 51.7 billion Canadian dollars ($48.8 billion), would be the largest leveraged buyout ever.’

The Canadian Pension Plan Investment Board put BCE in play, and a number of other large Canadian plans indicated interest in bidding before withdrawing.

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This week, in the wake of recent discoveries of lead paint in toys and contaminated toothpaste, pet food and other products from China, the International Herald Tribune reported that large American toy and food retailers were “stepping up their analysis of imported goods that they sell”.

News coverage of tainted products from China reached a fever pitch in the late spring, with customers (including parents of children who love Thomas the Tank Engine toy trains) demanding companies do something to ensure the safety of the products they sell. As is often the case, it has taken a public outcry (based on investigative reporting) to light a fire under companies.

It is not a new thing that suppliers have been cutting corners on products to meet the growing demand for cheap goods. But the deaths of about 100 people in Panama from tainted Chinese cough medicine, and the deaths of dozens of cats and dogs in the U.S. from melamine-laced pet food made in China, have focused people’s minds.

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I had great fun teasing Peter Kinder today about a typo in an article published by Forbes. The piece mentions that KLD’s Domini 400 Index has averaged an annual return of 12.7% since its inception back in 1009. I asked Peter if William the Conqueror was an original investor.

Kidding aside, the Forbes piece is interesting as it mentions that while interest in hedge fund investing by wealthy individuals has dropped 10% over the past year, SRI assets acquired by the same group have tripled since 2005.

I never thought I would see the day when Forbes would downplay hedge funds to boost “SRI and ethical investing”.

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Climate Counts is a new nonprofit organization that has developed a rating system for corporate responses to climate change.

Their corporate scorecard evaluates criteria such as a company’s greenhouse gas (GHG) reduction goals and programs, its reporting on GHG emissions, and its public policy positions on climate change issues.

So far, Climate Counts has only rated a few companies and industries, but their rating system (PDF format) is a helpful starting point for:

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