Can private pension funds be socially responsible? The US experience

For much of the relevant literature, the “Anglo-liberal” model is the least satisfactory approach to the provision of retirement pensions. This article addresses a particular aspect of the Anglo-liberal model, the investment of retirement savings in equities and other interest-bearing assets, to augment retirement benefits. The management of such investment pays insufficient attention to the externalities that may arise from corporate decision-making. Nevertheless, several US pension funds have embraced labour-friendly investment practices, which are vital to the well-being of employees, as well as the maintenance of sustainable and vibrant communities. In this respect, the Anglo-liberal model is not necessarily at variance with the demands of social justice and inclusion.