Critical Analysis in the Real World - Book Report/Review Example

The analysis shows Rio Tinto as the most effective performer in this regard followed by Vestas and Nissan. In terms of environmental and social wellbeing indicators, Vestas is obtained as the best performer with highly eco friendly practices and social responsibility. Rio Tinto is obtained as the worst performer creating many environmental and health hazards to the society. It also has a long reputation of being socially irresponsible. The contextual factor analysis also shows Vestas having good prospects.

Based on the overall analysis, it is recommended that that the sum of $1000000 needs to be invested in Vestas based on the definitions of ethical investment. This is because based on financial and non financial criteria; the company is the best performer. According to Cowton (1994, p215) “Ethical investment may be defined as the exercise of ethical and social criteria in the selection and management of investment portfolios, generally consisting of company shares (stocks)”.In this report, a comparative analysis of three companies Nissan, Rio Tinto and Vestas is done from the point of view of ethical investment .

The purpose is to make recommendations regarding in which company should be the sum of $1000000 be invested. Based on the definitions of ethical investment, a company needs to be selected for investment based on both financial and non financial criteria (Cowton, 1994). In other words, the company needs to perform well in terms of financial investments .At the same time, the products of the company should not cause any environmental damage, should not cause any health problems to the consumers or treat the people with disrespect (Sparkes, 2002).

Thus in this report, the recommendations regarding the selection of the company for investment is done on the basis of both financial and non financial criteria. The report analyzes the three companies in terms of their financial