The Petroleum Fund of Norway is a government controlled fund owned by the people of Norway. The money is mainly profit from Norway’s oil production. The fund reached $170 billion in 2005.

It was decided that the stock of companies that produced cluster bombs or components for such bombs was not acceptable to invest in because of such weapons is considered inhuman by the Norwegian government. The companies were Lockheed Martin Corp, Alliant Techsystems, L3 Communications, Raytheon Co and Thales. Also bonds issued by EADS Finance Co.

This is all good and all, but on the other side the Norwegian government is a big customer to these companies. The Norwegian government is considering the Joint Strike Fighter air plane produced by Lockheed Martin. The Norwegian government has agreed to provide 1 billion NOK to support the development of the Joint Strike Fighter air plane in return to getting a favorable position if buying the airplane becomes a reality. Raytheon has been a supplier of rockets to the Norwegian Air Force and EADS has sold radar systems to the Norwegians navy.

The logic is difficult to see: to prohibit investing in these companies when you still buy a lot of what they are selling.

One can wonder how deep this investment consciousness goes, it makes a good image for Norway and the politicians to be a peace loving nation. It is difficult to really boycott companies that produce “bad” products. In today’s world a lot of the business is very tightly connected.

The customer, employee, the management and the regulatory government around a company have morale responsibility for the consequences of the business.

Sources used:
Article p10. in Dagens Næringsliv Sep. 3 2005.
Wikipedia.