Are ethical companies' shares less likely to be bought and sold in difficult economic times?

This paper examines the effect of the Global Financial Crisis, on the share prices of companies purported to be socially responsible through an ethical companies list regularly sent to investors in Australia. A matched pairs method was used and share price fluctuation data was compiled using public sources. T-tests were then used to determine the statistical significance of differences in daily fluctuations of share prices. Results indicated that companies listed on the index as ethical companies demonstrated less share price fluctuation which was sustained when in recent times of economic downturn. These results show the shares were less responsive to the global panic that ensued and that shareholders may have had more trust in these organisations.