Ethics, climate mark 'good business' for investors in tier-2 cities: Study

Investors in tier-one cities-- Delhi, Mumbai, Bangalore, Chennai, Ahmedabad and Hyderabad-said they would stick to traditional business criteria

Investors in India’s four tier-2 cities would include ethics and climate change in their definition of a "good business", revealed the findings by Mahindra Good Business Study.

Coimbatore, Chandigarh, Jaipur and Lucknow would look beyond the financial strength of a company for investing, according to the study conducted by Mahindra Group with a third party firm through telephonic interviews with 2,089 respondents in 10 cities. 

Investors in tier-1 cities-- Delhi, Mumbai, Bangalore, Chennai, Ahmedabad and Hyderabad—said they would stick to traditional business criteria of financial profits when looking at investing in a good business.

Investors in the tier-two cities said they would consider unconventional criteria such as "ethical standards’ and "climate change agenda" as they check traditional financial strength when evaluating a business.

Findings from the study:

32.13% of tier-2 respondents consider traditional business criteria (such as products, service, and profits) when looking to invest in a ‘good business’

28.25% of tier-2 respondents consider unconventional criteria (such as climate change and ethics) when looking to invest

76.00% of tier-2 respondents claim they would never invest their own money in a company that they did not believe was a genuinely ‘good business '