Jan 20 2009
Pension funds should be encouraged by the government to become responsible investors, it has been suggested.
A joint statement signed by a number of people, including John McFall MP, chair of the Treasury select committee and Brendan Barber, general secretary of the Trades Union Congress (TUC), has called for a "do no harm" clause to be added to statements of investment principles.
The statement said: "Recent events have shown how the failure to hold corporate leaders to account for their decisions about risk can have a catastrophic effect on the financial system, the economy, the corporations themselves and ultimately the well-being of members of pension schemes."
Meanwhile, Mr Barber went on to say that some investors have become complacent in recent years and have let company executives "run riot" with irresponsible business decisions, people saving for retirement may be interested to hear.
Describing itself as the "voice of Britain at work", the TUC represents nearly seven million people in the UK.
