SRI 2.0: More than a Makeover – A Fundamental Reformulation

Abstract

Purpose

Our hypothesis about the failure of SRI as the new mainstream a series of profound misunderstandings about CSR and SRI among the various stakeholders, that is ‘responsible’ companies that are practitioners of CSR, academic theorists, asset management companies, SRI finance professionals, rating agencies and non-financial analysts.

Methodology/approach

This chapter presents a ‘bottom-up’ approach that reintroduces the long-term horizon in investment decisions and focus on the adaptability and innovation capacities of the firms (and States) in front of the unprecedented challenges of the century.

Findings

The severity of the repeated financial crises and the challenges associated with global sustainability call urgently for responsible finance. Despite praise from institutional investors, SRI is far from the norm and has met very limited success with private investors and retail networks.

Originality/value

To truly reconcile finance and sustainability we first need to go beyond the traditional dilemma between ethics and performance which considers any non-financial criteria as a severe constraint and foster a contributive conception of sustainable prosperity, for public and private agent as well.

Citation

Ninet, J. (2016), "SRI 2.0: More than a Makeover – A Fundamental Reformulation", Finance Reconsidered: New Perspectives for a Responsible and Sustainable Finance (Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 179-197. https://doi.org/10.1108/S2043-905920160000010027