Who Owns the World?
Activist Investing:
A Stock Market WebQuest
Kristine Larsen
Economics
Introduction
Free
market capitalism and political democracy are often linked together in the
minds of Americans. 1776, the year of our
Declaration of Independence was also the year Adam Smith’s landmark work on
laissez faire economics, “Inquiry into
the Nature of the Wealth of Nations” was published. Through stock markets around the world,
companies are able to raise large amounts of money from international
investors. These investors hope to make
profits either through dividends or by selling stocks at a higher price than
which they bought them. Unfortunately,
profitability can often come at the expense of workers’ rights or environmentally
responsible practices. Governments which
take the side of companies that profit by these expenses over the side of their
citizens often stifle democratic practices and political organization meant to
challenge these policies and practices.
Task
You are working for an
investment firm. You are responsible for
the investment of $100,000. You must
decide which products you think are the most profitable and which companies own
them. You must also familiarize yourself
with the different industries represented on the stock market and decide which
show the best potential for growth.
However, you work for a firm that specializes in socially active
investment. Your clients want to be sure
that their profits do not come at the expense of democracy, workers’ rights or
the environment.
Process
- 1) Identify a problem that exists in our world that is related to
industry. Use Worksheet1:
"Defining the social problem"(MSWORD) to record your answer.
- 2)Gather information that this problem exists. Use Worksheet 2:
Gather the Evidence (MSWORD Version) to record your answer.
- 3)Identify causes: show how a
particular industry has caused or contributed to the problem. Use Worksheet3:
"Determine the Causes"(MSWORD Version) to record your answer.
- 4)Evaluate policy: what kinds of
industry policy would reduce or reverse the problem you are
researching? Record your findings
on Worksheet4:
"Evaluate the Policy"(MSWORD Version)
- 5)Using Yahoo! Finance, identify the names of the leading companies in
your industry.
- 6)Research the policies and practices of these companies in regard to your
problem. Prepare an
assessment of the companies’ policies and practices with regard to the
problem. Are they part of the
problem or part of the solution?
Put them in order from best to worst, giving specific information
about their policies and practices.
- 7)Use Yahoo! Finance to research financial information on your
companies: stock price, dividends, earnings,
etc. Order the companies from best
to worst in terms of which you would want to buy stock in, giving specific
information about what makes you think the stock is a good
investment.
- 8)Is
there a relationship between the social consciousness of a company and its
financial picture? What conclusions can you draw from comparing your
assessments?
- 9)Prepare a 3-5 minute oral presentation on your findings.
References
http://www.csmonitor.com/specials/sri/
www.sustainablebusiness.com/progressiveinvestor/index.cfm
Evaluation
Your work
will be evaluated according to the following rubric:
|
Category |
1 Unsatisfactory |
2 Satisfactory |
3 Very Good |
4 Excellent |
|
PPA Worksheets |
Unorganized and meets less
than half the requirements |
Project meets half of the
requirements; well-organized |
Project is well- organized
and meets most requirements |
Project is well-organized
and meets all requirements |
|
Assessment of policies and
practices |
Unorganized and meets less
than half the requirements |
Project meets half of the
requirements; well-organized |
Project is well- organized
and meets most requirements |
Project is well-organized
and meets all requirements |
|
Comparative analysis of social
consciousness and financial performance |
Unorganized and meets less
than half the requirements |
Project meets half of the
requirements; well-organized |
Project is well- organized
and meets most requirements |
Project is well-organized
and meets all requirements |
|
Oral Presentation |
Careless, hurried, and
illegible presentation |
Project appears rushed,
somewhat careless, but the content is legible |
Clear, uncluttered, and
attractive |
Evidence that pride and
care was taken and the message of the product is clearly defined |
This
WebQuest addresses the following Standards:
Students will use a variety
of intellectual skills to demonstrate their understanding of major ideas, eras,
themes, developments, and turning points in world history and examine the broad
sweep of history from a variety of perspectives.
ELA Standard 1: Language for Listening and
Understanding
Students will read, write,
listen, and speak for information and understanding - As listeners and readers,
students will collect data, facts, and ideas; discover relationships, concepts,
and generalizations; and use knowledge generated from oral, written, and
electronically produced texts. As speakers and writers, they will use oral and
written language to acquire, interpret, apply, and transmit information.
ELA Standard 2: Language for Critical Analysis and
Evaluation
Students will read, write,
listen, and speak for information and understanding - As listeners and readers,
students will collect data, facts, and ideas; discover relationships, concepts,
and generalizations; and use knowledge generated from oral, written, and
electronically produced texts. As speakers and writers, they will use oral and
written language to acquire, interpret, apply, and transmit information.
Conclusion
You are now an expert on activist
investing. You understand that company
practices and policies have an impact on the lives of people and the actions of
governments. You are aware that
investment in a company supports its practices and policies. Therefore, a potential investor should be
conscious of a company’s position on issues important to the investor.