Question

In: Finance

Socially responsible investment (SRI) has moved very quickly from the periphery to the mainstream of institutional...

Socially responsible investment (SRI) has moved very quickly from the periphery to the mainstream of institutional investment

Discuss what is socially responsible investment (SRI) and discuss its various drivers.

Solutions

Expert Solution

Socially responsible investment are those investment who are investing into only such business who works for the overall development of the society , and who are not engaged in practices which are against the moral conscience of society and hurt the modal fabric of society so it is aimed at investing into such business who are ethically correct and who are morally correct according to the societal standards.

Not investing into companies who are producing tobacco and companies who are selling liquor are example of socially responsible investment.

Various drivers for socially responsible investment could be-

A. High level of model code of conduct

B. Incorporation of societal ethics into overall business

C. Investment into companies who works for the betterment of society through creation of products which will eventually help the society in the long run.

D. Business is always run in a society and it uses the resources of society so it will have to produce such resources which will ultimately benefit the society and it will not hurt the society in the long run.


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