Becoming and maintaining a socially responsible company means that your profits and losses are equal; your financial conditions worsen as your sense and practice of social responsibility increases. In the same way, investing in a socially responsible company is means that you are playing a zero-sum game; your performance portfolio worsens as your become more socially responsible. How about investing in a socially responsible company? Such a company is Synaptics Inc. (NASDAQ:SYNA).
Socially responsible companies are very competitive generally. According to a study conducted in 2011, the stock market and financial returns of companies clearly show that socially responsible companies often outperform those companies that are not socially responsible. A study conducted in 2014 discovered that companies that have higher ratings of Environmental, Social and Governance (ESG) yielded better returns and reduced volatility of price.
Synaptics Inc. (NASDAQ:SYNA) was established in 1986. Based in San Fran Jose, the company has a market cap of $2.4 billion. Among other technologies, the semiconductor company focuses on fingerprint and display technologies. For the past five years, the company has maintained an average growth rate of 24%.
Recently, Synaptics Inc. (NASDAQ:SYNA) acquired Renesas SP Drivers which is a good bargain as well as a good strategy. This can help the company establish business with Apple Inc. (NASDAQ:AAPL). It may be possible for Synaptics Inc. (NASDAQ:SYNA) to produce an attractive, economical and smaller technology by combining its touch technology with the recently acquired display technology on to a single chip.
Recently, the company’s stocks declined sharply. Synaptics Inc. (NASDAQ:SYNA) posted their earnings that suggest strong growth but not at a rapid rate as expected by analysts. The projections also fell short of the expectations of analysts. Revenue generated from the mobile devices market increased by 23%. Business is also flourishing in China.
Synaptics Inc. (NASDAQ:SYNA)’s rating is below average in terms of social responsibility. As for the employees category, the company ranks above average. The company’s website includes a webpage that talks about its dedication to social commitments and responsibility. The company is working to eradicate chemicals that are not environment-friendly, such as PVC, halogen, phthalate etc. Synaptics Inc. (NASDAQ:SYNA)’s products also have an environmental warranty. Synaptics Inc. (NASDAQ:SYNA)’s commitment to the environment shows in the design of their products, management of waste products, packaging and office building management.
Synaptics Inc. (NASDAQ:SYNA) follows the Code of Conduct of EICC – Electronics Industry Citizenship Coalition. This code requires that employees freely make the decision to work in the company. This means that no employees must be bonded or forced to provide involuntary labor.
There are several other companies out there that have a stronger track record for social responsibility. Synaptics Inc. (NASDAQ:SYNA) however seems to be walking in the right direction. For investors who are interested, recent stock prices look very promising for Synaptics Inc. (NASDAQ:SYNA).
Dividend stocks can easily move ahead of non-dividend opponents. Companies with dividend stock steadily create more money. Such companies include Synaptics Inc. (NASDAQ:SYNA), which lets you relax while it continues to grow.