The Norwegian Government Pension Fund: The Divestiture of Wal-Mart Stores Inc.

What is the cost of ethical investing?
Andrew Ang  | Spring 2008
Print this page

The Program for Financial Studies
The Sanford C. Bernstein & Co. Center for Leadership and Ethics Case Series

In 2006, Norway's Ministry of Finance announced it would exclude Wal-Mart Stores Inc. from its government pension fund, citing the company's "serious/systematic violations of human rights and labor rights." Norway's fund, one of the largest sovereign pension funds, owned more than 6 million Wal-Mart shares at the time, as well as 8 million shares of Wal-Mart de Mexico, all of which it divested. This case teaches students about the complex issues raised by socially responsible investing, such as the merits of taking an activist approach, the responsibility of corporations for actions of its suppliers, and the difficulties of obtaining cost-efficient information.

Case ID: 080301
Supplemental Materials: Teaching Note , Norway Dataset

Buy select cases through The Case Centre,  Ivey Publishing and Harvard Business Publishing.

Contact us by e-mail at Columbia CaseWorks or 212-853-8585.