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Socially responsible investment in the UK—criteria that are used to evaluate suitability

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  • Michael Ross Jayne
  • Glynn Skerratt

Abstract

Ethical and environmental investment criteria, collectively grouped under the title socially responsible investment (SRI), are becoming increasingly important factors in today's markets. Nowadays, banks, pension funds and other investment institutions frequently undertake some form of environmental risk analysis of an organization's relevant operational practices before committing themselves to direct investment. Factors such as a company's past pollution record, its future potential to contaminate and its overall social policy are often cited as important influences in this respect. Many funding institutions now have their own ethical investment arms, even if these are not part of their mainstream activity. Understanding the role of ‘ethical’ investors and their ‘ethical’ considerations is becoming increasing important to fund managers and businesses alike. The activities of fund managers who are specifically marketing themselves and their products as ‘ethical’ have been explored using an in‐depth questionnaire, in order to determine the nature of the environmental and sustainability criteria that are used as a basis for directing investments, and the ways in which these factors are compared and balanced during the evaluation process. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment.

Suggested Citation

  • Michael Ross Jayne & Glynn Skerratt, 2003. "Socially responsible investment in the UK—criteria that are used to evaluate suitability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 10(1), pages 1-11, March.
  • Handle: RePEc:wly:corsem:v:10:y:2003:i:1:p:1-11
    DOI: 10.1002/csr.25
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    Cited by:

    1. Carmen Valor & Marta de la Cuesta & Beatriz Fernandez, 2009. "Understanding demand for retail socially responsible investments: a survey of individual investors and financial consultants," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(1), pages 1-14, January.
    2. Estapé-Dubreuil, Glòria & Ashta, Arvind & Hédou, Jean-Pierre, 2016. "Micro-equity for sustainable development: Selection, monitoring and exit strategies of micro-angels," Ecological Economics, Elsevier, vol. 130(C), pages 117-129.
    3. David J. Collison & George Cobb & David M. Power & Lorna A. Stevenson, 2008. "The financial performance of the FTSE4Good indices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(1), pages 14-28, January.
    4. Hayam Wahba, 2008. "Exploring the moderating effect of financial performance on the relationship between corporate environmental responsibility and institutional investors: some Egyptian evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(6), pages 361-371, November.
    5. Peter Dobers & Lars Strannegård, 2005. "Design, lifestyles and sustainability. Aesthetic consumption in a world of abundance," Business Strategy and the Environment, Wiley Blackwell, vol. 14(5), pages 324-336, September.
    6. Surekha Rana & Padma Misra, 2010. "Operational Dimension of CSR: An Empirical Assessment of BSE and NSE Listed Companies," Vision, , vol. 14(1-2), pages 57-66, January.
    7. Pavel Castka & Michaela A. Balzarova & Christopher J. Bamber & John M. Sharp, 2004. "How can SMEs effectively implement the CSR agenda? A UK case study perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 11(3), pages 140-149, September.
    8. Paolo Capelli & Federica Ielasi & Angeloantonio Russo, 2021. "Forecasting volatility by integrating financial risk with environmental, social, and governance risk," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1483-1495, September.
    9. Maike van Dijk-de Groot & Andre H.J. Nijhof, 2015. "Socially Responsible Investment Funds: a review of research priorities and strategic options," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 5(3), pages 178-204, July.
    10. Gary Pivo, 2008. "Exploring responsible property investing: a survey of American executives," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(4), pages 235-248, July.

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