Negative screening
Definition
Negative screening excludes securities, often qualified as sin stocks, if the company activity is considered unethical or immoral, based on religious or philosophical views. Sin stock sectors usually include alcohol, tobacco, gambling, weapons, animal testing or pornography.
Negative screening strategies can also refer to internationally accepted norms, such as the International Labor Organization standards, UN Global Compact, Universal Declaration of Human Rights and/or other globally recognized norms. This type of screening, called norm-based screening, is considered to be more objective, as the decisions to exclude sectors or companies are taken in accordance with standards established by international organizations.
About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
