By Alan Murray and David Meyer
June 8, 2018

Good summer Friday morning.

There’s new evidence out this week that investing in “good” companies—companies that treat workers well and strive to meet other social and environmental goals—leads to better returns. JUST Capital, the organization founded by billionaire hedge fund manager Paul Tudor Jones, tracked the 894 companies covered by its first ranking in 2016, and found that if you invested in the top 20% of those companies, you would have made an excess return—or alpha—of 3.5% last year. If you invested in the bottom 20, you would have had negative alpha of 7.1%.

That’s just year one, but pretty impressive. You can argue over the chicken and the egg: whether socially responsible practices lead to better corporate performance, or whether well-performing companies are better able to follow socially responsible practices. But JUST Capital CEO Martin Whittaker told me yesterday he thinks that’s irrelevant. “If a just lens helps identify companies that do better financially AND pay workers more, reduce environmental impacts, strengthen communities, grow jobs, provide a better workplace and make great products—does it even matter?”

By the way, number one on the JUST Capital list in both 2016 and 2017 was Intel. FORTUNE’s Susie Gharib yesterday posted a clip from her recent interview with Intel CEO Brian Krzanich, who talked about the company’s move away from personal computers and toward products that process big data. “Oil changed the world in the 1990s,” Krzanich said. “It drove cars, it drove the whole chemical industry. Data, I look at it as the new oil. It’s going to change most industries across the board.”

Krzanich will be joining FORTUNE June 25-26 in San Francisco, where we will hold our second annual meeting of the CEO Initiative—a community of corporate leaders committed to addressing social problems as part of their business strategies. Still room for a few good CEOs, if you know one.

You can read the JUST Capital report here, watch Gharib’s interview here, and get more information on the CEO Initiative here.

News below.

Alan Murray


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