SRI in the 21st century: Does it make a difference to society?
Socially Responsible Investment in the 21st Century: Does it Make a Difference for Society?
ISBN: 978-1-78350-467-1, eISBN: 978-1-78350-468-8
Publication date: 7 July 2014
Abstract
Purpose
This chapter interrogates the idea that Socially Responsible Investment (SRI) is ‘making the world a better place’. It explores the issue of the societal impacts of SRI by addressing five main questions: (1) Is SRI a viable solution to society’s problems? (2) What are the impediments and limits to SRI’s ability to make a difference in society? (3) Where is ‘ethics’ in SRI? (4) How do we measure societal impacts of SRI? and (5) What is the future of SRI?
Methodology
This chapter is a reflective piece debating the societal impacts of SRI. For the purpose of this chapter, a focus group was organised and interviews were conducted involving both academics and practitioners.
Findings
The chapter highlights and discusses several items that can either enhance or on the contrary hinder the societal impacts of SRI. Some of them are related to understanding of SRI, some concern the practice of SRI, while others are more of an epistemological nature. Based on the discussion, we propose three points of leverage that can enhance the capacity and ability of SRI to create change.
Research implications
The chapter is a call for more research on the societal impacts of SRI. Research in SRI has dominantly focused on the technicalities of the activity and the financial implications, but has hardly touched upon the question of the societal impact.
Practical implications
There are three primary managerial implications highlighted in this chapter: rethink the notion of fiduciary duties, strengthen the interaction between asset owners and asset managers, and encourage changes in public policy.
Keywords
Acknowledgements
Acknowledgement
We would like to thank all the people who contributed to this chapter: the participants of the focus groups and the interviewees whose names are provided in Appendix B and a special thanks to Heather Hachigian who helped us taking notes during the focus group.
Citation
Louche, C. and Hebb, T. (2014), "SRI in the 21st century: Does it make a difference to society?", Socially Responsible Investment in the 21st Century: Does it Make a Difference for Society? (Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 275-297. https://doi.org/10.1108/S2043-905920140000007011
Publisher
:Emerald Group Publishing Limited
Copyright © 2014 Emerald Group Publishing Limited