Edison International (EIX): Can Investors Save Lives?

What can we learn?
An anonymous commenter on a Valley News article identifying himself as “Northern SCE Family,” summarized the situation perfectly:

This theory that all accidents are preventable is only good in theory. There are safety protocols in place to prevent such losses. We as electrical workers can follow all OSHA and company policies and the simple fact is, accidents do happen. Investigations will be conducted by appropriate authorities and we as electrical workers need to rally around the families and let them know that we support them. Your SCE Family in central California is praying for all the families involved.

Accidents happen, but there’s no reason to think that investors can’t or shouldn’t consider employee safety when making their investment decisions. A safe employee is a happy employee, and a happy employee is a productive employee.

Duke Energy Corp (NYSE:DUK) CEO Jim Rogers recently pointed to Stakeholder Theory as a means for “higher investor confidence, more stable earnings, and a better share price.” This type of corporate governance includes, among other things, finding a balance between the interests of all stakeholders – including employees.

Rogers’ words might seem counterintuitive to any investor looking to make the most profit possible, but safety standards are absolutely essential for long-term value. Edison International (NYSE:EIX)’s tragic event serves as a reminder that we, as investors, have the power to dictate that balance and demand enduring value and employee safety over cost-cutting and short-term profiteering.

The article Can Investors Save Lives? originally appeared on Fool.com and is written by Justin Loiseau.

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Exelon and Southern Company.

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