Nearly two out of three charities are risking their reputations because they have no ethical investment policy, according to a new report.
The study, released last week by campaign group Just Pensions, revealed that more than 60 per cent of charities surveyed had no written guidelines on whether they should avoid investing in arms manufacturers and other controversial companies.
The report, Do charities invest responsibly?, claims an organisation's lack of an ethical policy could affect whether the public trust it and make donations.
"The raison d'etre of charities is carrying out good works across a large range of activities," Les Jones, finance director of WWF-UK, writes in the report. "Charities must lead the way in their investment policies and practices."
Just Pensions linked up with CAF and the Ethical Investment Research Service to survey 57 top charities and foundations on socially responsible investment.