Businesses That Invest In Their People Are Good Investments

Companies that treat their employees well may be good buys for investors, if one mutual fund that chooses stocks based on positive work environments is any indication.

“I always felt that companies that treat their employees well do better than those that don’t,” Jerome L. Dobson, president of Parnassus Investments in San Francisco and the investment manager for its Workplace Fund, told Human Resource Executive Online.

It’s a loose metric, analysts say, but picking companies named “Best Places To Work” and avoiding any mired in scandals or fraud seems to be working.

In 2008, when the S&P plummeted 37 percent, the Workplace Fund lost 30 percent. So far this year, it’s up 22 percent, compared to 1.5 percent for the S&P.

Crazy idea or one whose time has come? Discuss.