Socially Responsible Investments

Posted: 11 Dec 2015 Last revised: 22 Feb 2022

See all articles by Sweety

Sweety

L J Institute of Management studies

Date Written: June 11, 2012

Abstract

Socially responsible investments (SRI) are a confluence of money and ethics, simply known as “ethical investments”. SRI has laboured for more than 5 decades now to gain recognition as an investment strategy, and today, it has reached a juncture where it is being considered as a potential player for mainstream investments.

Companies are evaluated on the basis of E (Environmental), S (Social) and G (Governance) criteria to qualify as being socially responsible. SRI works on the dimensions of investment screening (acts of commission and omission), investor advocacy (practicing investor’s rights for advocating corporate ethics) and community investments (investing in CSR initiatives). Total SRI assets under management in 2010 were 7 trillion Euro globally, and the major contributors were Europe with 70% market share followed by US with 28% market share and remaining 2% from rest of the world.

Popularity of SRI in India is facing resistance from all the three stakeholders of investment community, namely; Governmental bodies and authorities, corporates and investors. The paper contributes in terms of recommendations towards adoption and implementation of SRI as a sustainable investment strategy in the Indian context.

Keywords: Socially responsible investments, CSR (Corporate Social Responsibility), ESG (Environmental, Social, Governance) criteria

Suggested Citation

Shah, Sweety, Socially Responsible Investments (June 11, 2012). Available at SSRN: https://ssrn.com/abstract=2702209

Sweety Shah (Contact Author)

L J Institute of Management studies ( email )

SG Highway
Near Nagdev Mandir
Ahmedabad, GA Gujarat 380058
India

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