Find out if a company shares your values

Protestors rallied outside of Chic-fil-A following the CEO's comments opposing same-sex marriage.

NEW YORK (CNNMoney)

Finding out the answers to those questions may be harder than you think.

"More and more consumers [are saying], 'If I'm supporting this company by buying a product or investing in it, I want to make sure it supports my personal values, and I don't want to buy from a company that doesn't,' " said Dara O'Rourke, associate professor of environmental and labor policy at the University of California, Berkeley, and co-founder of Good Guide, a website that rates and reviews over 5,000 companies based on their environmental, health and social policies.

But unless a company has been all over the news because of a controversial policy or view -- like Chic-fil-A when its CEO came under fire for opposing same-sex marriage -- you'll have to do a little digging.

Of course, what one person feels is ethical, another might think is wrong. So we're all on our own in deciding the role our values play in where we put our money. Here are just a few hot button issues and places to start your research.

Animal rights: Find out if a company is testing its products on animals by looking at lists from PETA (People for the Ethical Treatment of Animals) and the Coalition for Consumer Information on Cosmetics.

Related: What businesses owe the world: Then and now

Environment: Climate Counts, a nonprofit aiming to combat climate change, scores companies based on their carbon footprint, impact on global warming, stance on climate legislation and public disclosure of climate policies and actions. More than 100 companies have been rated so far. IBM (IBM, Fortune 500) and L'Oreal are among the high scorers.

Health: The Organic Consumers Association has a directory of green and organic companies that lets you search by state. For makeup and cosmetics, The Environmental Working Group maintains a cosmetics safety database that scores companies and products based on their ingredients and how safe they are for your body, including whether they contain anything suspected to cause cancer or developmental or reproductive problems.

LGBT rights: To gauge how friendly a company is to its lesbian, gay, bisexual and transgender employees, the Human Rights Campaign has a Buyer's Guide to Corporate Equality that scores companies based on their LGBT policies, including whether they offer domestic partnership benefits or transgender-inclusive health insurance. ExxonMobil carries the lowest score of negative 25. Gap (GPS, Fortune 500), Chrysler, Citibank (C, Fortune 500), Kellogg (K, Fortune 500) and Walt Disney (DIS, Fortune 500) all boast perfect scores.

Related: Does sustainability matter to investors? Depends who you ask

Oil and fracking: Hydraulic fracturing, a practice known as "fracking" that involves injecting water, sand and chemicals into the ground at high pressure to crack shale rock and bring oil to the surface, has been driving the energy boom in the United States. But it has environmentalists up in arms.

It's easy enough for those opposed to fracking to avoid the major companies involved with the practice. It can be harder, though, to determine when you are indirectly supporting the cause by doing business with a firm that is invested in a fracking company.

TD Bank (TD), for example, has come under fire for holding shares of TransCanada (TRP), the oil giant behind the controversial Keystone XL pipeline. Without all of the attention from environmentalists, however, this may not have been so obvious for TD Bank customers.

You can find out whether your bank, retirement plan provider or investment firm has a big stake in a company you don't like simply by looking at that company's major shareholders, which are listed on financial websites like Morningstar or CNNMoney.

Faith-based investing: There are a number of investing firms that invest only in companies that are aligned with certain religious beliefs. Many of these are aimed at the world's two largest religions, Christianity and Islam.

The Biblically Responsible Investing Company, for example, invests in companies based on 60 criteria that it says are "important to Christians." This means your money won't be placed in companies that donate to organizations that support abortion rights, provide domestic partnership benefits to lesbian and gay employees or are involved in the sale of pornography or cigarettes.

The Amana Mutual Funds Trust, meanwhile, is an Islamic fund that only makes investments that it deems "consistent with Islamic principles," screening out interest-bearing securities and companies involved with alcohol and pornography, among others.

First Published: August 6, 2013: 5:46 PM ET

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Variable annuities: Beware of shrinking payouts

Angling for more retirement income? Variable annuities are not as generous as they once were.

(Money Magazine)

Driving most of those sales was not the annuity itself, essentially a tax-deferred investment account; rather, buyers have been attracted by the "living benefit" rider, an optional feature ensuring that you can draw a base income from your investments regardless of how the markets perform or whether you drain your account.

Before the financial crisis, riders commonly guaranteed impressive returns of 8%-plus and annual withdrawals around 7%. So it was no wonder that over a period that included two bear markets Americans eagerly rushed into these insurance products, seeing them as the antidote to investment risk.

These days, however, the variable annuity and rider combination isn't looking like the panacea it once seemed to be.

Over the past 18 months, most of the insurers that sell these products have seriously scaled back guarantees offered on new contracts while hiking fees and restricting investment allocations on both new and existing policies.

Seven major firms, including AXA, John Hancock, and Prudential, have limited or prohibited additional investments in some of their older, more generous contracts. A few companies have even offered buyouts to customers willing to cancel the rider.

Meanwhile, the Securities and Exchange Commission is now looking into whether buyers were ever made fully aware of the potential for such changes.

What's going on? First, the financial crisis tanked customers' portfolios, putting insurers on the hook for billions in guarantees on pre-2008 contracts. Since then, years of low interest rates have left firms uncertain that they will be able to satisfy future payouts.

"A lot of companies got burned," says Moshe Milevsky, a finance professor at Toronto's York University. Besides rejiggering the terms on their contracts, many insurers have reduced the number of policies they sell; last year two big names -- Hartford and Sun Life -- dropped out of the business altogether.

Related: The Social Security mistake that could cost you thousands

If you have a VA or were thinking of buying one, you're probably wondering where all this leaves you. For owners, the answer depends on your contract, your account value, and the changes to your terms.

For income shoppers, it ultimately comes down to what risks you can accept -- though there are cheaper, simpler, and more profitable ways to ensure that you won't outlive your money.

The sections that follow will help you make the right decision for you.

What the changes mean

While each insurer is tweaking its terms differently, there are a few common threads: limited investment freedom, tightened minimum-return and income guarantees, and higher fees.

The most common -- and arguably most impactful -- shift has been to cap owners' stock allocation. Through the VA itself, investors used to be able to choose from a large menu of mutual funds. You could go whole hog into stocks, if you so desired, knowing you had the rider's guarantees as a backstop.

Related: Annuity payment calculator

Today most buyers who opt for a rider -- 88% do, says research firm LIMRA -- will see their stock stake capped at around 60%. You may also be required to use model portfolios or "managed-volatility" funds, which automatically shift assets from stocks to more conservative choices if your account value falls a certain percentage within a short time.

Such restrictions can have a huge impact on the value of the rider because of how the vehicle is structured.

First thing to know: While the actual money you've stashed in a VA-with-rider fluctuates with the value of your investments, a hypothetical account called a benefit base grows at a minimum "roll-up" rate each year -- say, 5% -- even if your real-life investments lose money. If your actual investments do better than this guaranteed return, the benefit base is increased, or "stepped up," to match them.

The rider also has a set schedule of guaranteed withdrawal rates based on the age you start collecting. Whenever you decide to start taking income, the percentage is applied to your benefit base to determine the amount. Then the money is drawn from your actual account.

You can generally tap the account for more, if needed, as well, though it will affect your future income. In the most popular kind of rider, known as the guaranteed minimum withdrawal benefit, the insurance kicks in once withdrawals drain the account, allowing you to continue receiving the same amount for as long as you live. (If you die before depleting the account, your heirs get what's left.)

Investment restrictions decrease the chances that your portfolio will suffer a major downturn, thus decreasing the chances the insurance will come into play at all. Also, the smaller your stock allocation, the less potential for step-ups. "If you're forced to have a balanced allocation, what's the point of buying protection?" asks Milevsky.

Changes in guaranteed income further diminish the rider's value. Two years ago 70% of riders offered a 5% withdrawal rate. Now less than 50% do, says Morningstar.

A lower withdrawal rate means it takes longer for your account to run out and longer for the insurer to have to shell out its own money. Roll-up rates have drifted down too, from a typical 8% to around 5%, and some companies have found ways to further limit them (such as capping the number of years).

More: Rising fees

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China fines six companies for baby formula price fixing

HONG KONG (CNNMoney)

The National Development and Reform Commission has levied $108 million in penalties against Biostime, Mead Johnson (MJN), Danone (DANOY), Abbott Laboratories (ABT, Fortune 500), Friesland and Fonterra, according to state media.

The companies, only one of which is headquartered in mainland China, have come under pressure in recent months as a shortage of foreign-sourced infant formula has sent consumers on a global search for supplies they feel are safer than Chinese brands.

The firms had been accused of hiking prices during the crunch in violation of Chinese antitrust laws.

Biostime, Mead Johnson and Fonterra all confirmed the fines on Wednesday. The Guangzhou-based Biostime will pay $26.6 million, while American producer Mead Johnson said it owes $33 million.

New Zealand's Fonterra, which is currently under pressure following a botulism scare, said its fine was less than $1 million.

"We understand that a number of companies in the dairy industry were fined, with Fonterra's fine being in the lowest range," a company executive said in a statement.

According to state media, three additional producers -- Wyeth, Beingmate and Meiji -- escaped punishment because they cooperated with the probe and "carried out active self-rectification."

Related story: China draining world baby milk supply

Even as the investigation was announced in July, media reports indicated the companies were likely to face some manner of disciplinary action.

"Based on the evidence obtained, these companies are involved in price control with distributors and retailers, aimed at excluding fair market competition," an anonymous NDRC official told state media at the time.

Chinese families, fearful of tainted formula, have been scouring the globe for milk they perceive to be safer. The rush has created shortages as far afield as the U.K.

Major supermarkets in the U.K. including market leaders Tesco and Sainsbury's began restricting purchases of formula in April in an effort to prevent private exports to China.

The rationing in U.K. stores followed shortages reported earlier this year in some Australian shops. Customers had been buying formula in bulk and either sending it to their family and friends in China, or selling it online for a profit.

Hong Kong has also introduced baby milk restrictions at its border. Travelers cannot leave with more than 4 pounds of formula, and smugglers have been arrested for bringing more than their allotted quantity across the border.

First Published: August 7, 2013: 1:00 AM ET

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Sony shares plummet as board rejects Loeb's plan

HONG KONG (CNNMoney)

The refusal came in a letter from CEO Kazuo Hirai that described Sony's movie and music businesses as "critical elements of our strategy" and "fundamental drivers" of future growth.

"After careful review, the Sony board of directors has unanimously concluded that continuing to own 100% of our entertainment business is the best path forward and is integral to Sony's strategy," Hirai said in the letter.

Investors did not take the news well, and Sony shares dropped more than 5% in Tokyo trading.

Loeb, an activist shareholder who succeeded in bringing changes to Yahoo (YHOO, Fortune 500), has in recent months amassed a $1.4 billion stake in Sony. As he bought shares, Loeb pressed the company to consider his plan for structural changes that included separating the company's entertainment division.

That division, made up of record labels and television properties, includes the movie studio that recently produced box-office hits Skyfall and The Amazing Spider-Man.

Sony (SNE) shares are still up almost 100% this year, helped by a weaker yen and efforts to restructure its legacy electronics divisions.

Given Japan's famously conservative and inflexible corporate culture, it appeared unlikely that Sony would agree to the spinoff. But Sony said it would consider and study the plan.

As Sony considered, Loeb ratcheted up pressure on the company, sending a letter last month to investors with his Third Point fund that described the entertainment division as "bloated."

The letter said that profits from the division lag behind its competitors, a trend exacerbated by recent summer blockbuster films like After Earth and White House Down that "bombed spectacularly at the box office."

Loeb also issued a sharp critique of management in the entertainment division, saying the operation has a "famously bloated corporate structure, generous perk packages, high salaries for underperforming senior executives, and marketing budgets that do not seem to be in line with any sense of return on capital invested."

Related story: 7 big winners in Nikkei surge

The letter appears to have attracted attention in Hollywood.. Actor George Clooney expressed his displeasure in an interview with Deadline Hollywood, calling Loeb a "carpetbagger" who "is trying to spread a climate of fear."

"He's trying to manipulate the market," Clooney said. "I am no apologist for the studios, but these people know what they are doing. If you look at the industry track record, this business has made a lot of money."

Loeb has been vocal about his interest in Japan, telling investors that his firm is "extremely focused" on the country. At a hedge fund conference in May, Loeb said Japanese stocks were cheap despite recent strong gains.

First Published: August 5, 2013: 11:14 PM ET

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Is now the time to buy beach property?

NEW YORK (Money Magazine)

Test the waters first. A beach lot may have a lower cost of entry than an investment in a beach home, says Gary Eldred, author of Investing in Real Estate, but your risk is much greater.

At issue: conditions that limit what you or anyone else can do with the land, such as access to utilities and zoning that restricts the size and location of any structures.

Related: Was my home a good investment?

You'll need a good agent and appraiser to determine whether that price drop signifies a deal or simply reflects news that has lowered the land's value.

A neighbor might have an easement on the property, for example, that restricts the area you could build upon, says Sheila Dodson, executive director of the Coastal Association of Realtors.

First Published: August 5, 2013: 6:03 PM ET

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Japan's tough choice on tax hike

Prime Minister Shinzo Abe has reaped the rewards of a bold economic stimulus plan but now faces a tough choice over a proposed tax hike.

HONG KONG (CNNMoney)

The government is planning to double consumption tax to 10% by 2015. Paid by consumers when they buy goods or services, the tax will be increased in two stages, rising first to 8% in April 2014.

The country's leaders face a tough choice over how, or even whether, to implement the unpopular measure that could take a bite out of growth just as a bold economic stimulus plan appears to be bearing fruit.

Advocates for the tax increase argue that Japan must do something to improve its fiscal position. Gross public debt is projected to hit 230% of GDP next year, a level critics say is unsustainable.

Should the government follow through with the tax hike, it would help raise revenue and prove that the country is committed to fiscal reforms. But the measure, as planned, would also slow the economy.

Japan has been mired in a malaise brought on by falling prices and a strong yen for years. The economy's prospects have brightened significantly since Prime Minister Shinzo Abe announced fresh spending by the government and encouraged the central bank to unleash a tidal wave of asset purchases.

Growth has picked up, the yen has fallen sharply and stocks have hit multi-year highs. The IMF has endorsed the plan and Japan has largely avoided charges of currency manipulation.

Related story: 7 big winners in Nikkei surge

But the third pillar of Abenomics -- structural reforms -- has been tougher to implement. If the government bails on the tax hike, some economists see little hope that parliament will follow through with other reforms.

"The economic case for raising Japan's consumption tax is overwhelming," analysts at Capital Economics wrote last month. "Not going ahead would deal a severe blow to the credibility of Abenomics."

Japanese policymakers are engaged in a fierce debate over the tax.

Bank of Japan Governor Haruhiko Kuroda has backed the rate hike. Meanwhile, some members of the Liberal Democratic Party, haunted by the political consequences of past tax increases, have urged Abe to modify or abandon the plan.

One option would be to phase in the tax hike more gradually. Some analysts have suggested increasing the consumption tax by one percentage point per year for five years.

Related story: Market swings call Abenomics into question

Bond markets may find this change unpalatable, given the increased scope for political interference further down the track.

"A gradual increase would reduce the chances of recession next year, but with elections due by 2016, the tax rate might never reach the planned 10%," wrote Capital Economics.

The IMF would prefer Japan stick to the current two-step plan.

"The scheduled tax increases in April 2014 and October 2015 should proceed as planned," the IMF said Monday in a report. "They are critical to maintain confidence in the ability of the government to address the fiscal problem."

First Published: August 5, 2013: 9:58 PM ET

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Twitter U.K. cracks down after threats against women

Twitter will get tougher on cyber abuse in the United Kingdom.

NEW YORK (CNNMoney)

There has been a lot of pressure on the social networking site to increase these measures after several female members of parliament and female journalists were the targets of misogynistic, bomb and rape threats.

Twitter's U.K. arm announced Saturday that it updated its rules section to clarify that abusive behavior is not tolerated.

Related: Why I'm quitting social media

In a blog post, Twitter reiterated that an in-tweet report button is available on Apple (AAPL, Fortune 500) devices, so that users can report abusive behavior directly from a tweet rather than going through the help center. This button will be available for Androids and on Twitter.com next month.

Twitter also said that it is adding more staff to handle abuse reports, and will use promoted tweets to bring more attention to the issue.

The calls for Twitter to take action grew particularly loud in the wake of hateful tweets from Twitter "trolls" against British activist Caroline Criado-Perez, who had successfully campaigned to get a woman on British bank notes. The Bank of England announced that novelist Jane Austen's face will appear on £10 notes in its next design update.

British Member of Parliament Stella Creasy was also threatened after she voiced support for Criado-Perez. Some female journalists also received bomb threats via Twitter messages.

After the Twitter attacks, more than 126,000 people signed a Change.Org petition calling on the site to take a zero tolerance policy on abuse and make it easier for users to report incidents.

"We need Twitter to recognize that it's current reporting system is below required standards," the petition said. "Women standing up to abuse should not fear having their accounts canceled because Twitter fails to see the issue at hand."

Twitter responded by saying it has been listening to the feedback over the last week on how it can make rules clear and make reporting abuse easier.

First Published: August 4, 2013: 11:28 AM ET

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