Socially Responsible Investing - An Emerging Concept in Investment Management

FIIB Business Review, Vol. 03 No. 04, pp. 16-30, October - December 2014

15 Pages Posted: 2 May 2015

See all articles by Vanita Tripathi

Vanita Tripathi

Department of Commerce, Delhi School of Economics,University of Delhi, India; University of Delhi India - Delhi School of Economics - Department of Commerce

Varun Bhandari

University of Delhi - Department of Commerce

Date Written: October 17, 2014

Abstract

Socially Responsible Investing (SRI), which integrates social and environmental criteria into traditional investment decision process, has emerged as a new concept in investing, especially in the wake of growing concerns for corporate social responsibility. This paper provides an extensive review of literature on the performance of socially responsible investing. We find that almost in every study related to performance evaluation; socially responsible funds/companies perform better or at least not inferior to conventional funds or respective benchmarks. We also find that costs of socially responsible investing were less than or equal to conventional funds. So, there is no penalty for investing in socially responsible stocks. Rather, it is more rewarding especially during the time of financial crisis. The important implication of our review is for investment decisions as investors may start investing in socially responsible companies to reap higher returns at lower risk. We also expect that for SRI/green investment promotion, more and more socially responsible mutual funds or green mutual funds would be launched in India in near future.

Keywords: Corporate social responsibility, Corporate governance, ESG Index, GREENEX, Socially responsible investing, Green investing

JEL Classification: G11, G34, M14

Suggested Citation

Tripathi, Vanita and Tripathi, Vanita and Bhandari, Varun, Socially Responsible Investing - An Emerging Concept in Investment Management (October 17, 2014). FIIB Business Review, Vol. 03 No. 04, pp. 16-30, October - December 2014, Available at SSRN: https://ssrn.com/abstract=2601287

Vanita Tripathi

Department of Commerce, Delhi School of Economics,University of Delhi, India ( email )

Department of Commerce, Delhi school of Economics,
Delhi, Delhi 110007
India

HOME PAGE: http://people@du.ac.in~vtripathi/

University of Delhi India - Delhi School of Economics - Department of Commerce ( email )

Department of Commerce
Delhi University
Delhi, 110007
India

HOME PAGE: http://people@du.ac.in~vtripathi/

Varun Bhandari (Contact Author)

University of Delhi - Department of Commerce ( email )

University Road
Delhi, 110 007
India

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