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Socially responsible investing describes an investment strategy which combines the intentions to maximize both financial return and social good. In general, socially responsible investors favor corporate practices which are environmentally responsible, support workplace diversity, and increase product safety and quality, and oppose businesses involved in alcohol, tobacco, gambling, defense, and abortion. Invest redirects here. ...
A strategy is a long term plan of action designed to achieve a particular goal, most often winning. Strategy is differentiated from tactics or immediate actions with resources at hand. ...
Return on Capital, also known as Return On Invested Capital (ROIC) is defined as Net Income / Invested Capital usually expressed as a percentage. ...
Collective goods (or social goods) are defined as public goods that could be delivered as private goods, but are delivered instead by the government for various reasons (usually social policy) and financed from public funds like taxes. ...
Corporate redirects here. ...
Environmental science is the study of the interactions among the physical, chemical and biological components of the environment; with a focus on pollution and degradation of the environment related to human activities; and the impact on biodiversity and sustainability from local and global development. ...
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The Consumer Product Safety Commission (CPSC) is an independent agency of the U.S. federal government created in 1972 through the Consumer Safety Act to protect “against unreasonable risks of injuries associated with consumer productsâ€. As of 2006 its acting chairman is Nancy Nord, a Republican. ...
History The beginning of socially responsible investing could be attributed to many people and many places. Many believe social investing began with the Religious Society of Friends (Quakers). In 1758, the Quaker Philadelphia Yearly Meeting prohibited members from participating in the business of buying or selling humans. Religious institutions have been at the forefront of social investing ever since. One of the most articulate early adopters of SRI was John Wesley (1703-1791), one of the founders of the Methodist Church. A sermon of his, entitled “The Use of Money,” outlined his basic tenets of social investing – i.e. not to harm your neighbor through your business practices and to avoid industries like tanning and chemical production that pollute rivers and streams.-1...
Nickname: City of Brotherly Love, Philly, the Quaker City Motto: Philadelphia maneto (Let brotherly love continue) Location in Pennsylvania Coordinates: Country United States State Pennsylvania County Philadelphia Founded October 27, 1682 Incorporated October 25, 1701 Mayor John F. Street (D) Area - City 369. ...
Members of the Religious Society of Friends, or Quakers, use the term Yearly Meeting to refer to an organization comprised of a collection of smaller, more frequent constituent meetings within a geographical area. ...
This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...
John Wesley (June 28 [O.S. June 17] 1703 – March 2, 1791) was an eighteenth-century Anglican minister and Christian theologian who was an early leader in the Methodist movement. ...
The United Methodist Church is the largest Methodist denomination, and the second-largest Protestant one, in the United States. ...
A sermon is an oration by a prophet or member of the clergy. ...
Tenet is a Canadian heavy metal band, started by Strapping Young Lad guitarist Jed Simon and drummer Gene Hoglan. ...
Tanned leather in Marrakech This article or section does not cite any references or sources. ...
Chemical tanks in Lillebonne, France Chemical industry includes those industries involved in the production of petrochemicals, agrochemicals, pharmaceuticals, polymers, paints, oleochemicals etc. ...
It has been suggested that Pollutant be merged into this article or section. ...
Modern SRI movement began during the Vietnam War [1], [2]. Many people living during the era remember a picture in June of 1972 of a naked nine year-old girl, Phan Thị Kim Phúc, running towards a photographer screaming, her back burning from the napalm dropped on her village. That photograph channelled outrage against Dow Chemical[3], the manufacturer of napalm, and prompted protests across the country against Dow Chemical and other companies profiting from the Vietnam War. In the late 1970s, SRI activism turned its attention to nuclear power and automobile emissions control. An acronym SRI may refer to one of the following: Socially Responsible Investment. ...
Combatants Republic of Vietnam United States Republic of Korea Thailand Australia New Zealand The Philippines National Front for the Liberation of South Vietnam Democratic Republic of Vietnam People’s Republic of China Democratic Peoples Republic of Korea Strength US 1,000,000 South Korea 300,000 Australia 48,000...
8 June 1972: Kim Phúc, center left, running down a road near Trang Bang after an VNAF napalm attack (© Nick Ut/Associated Press). ...
This is a list of notable photographers in the art, documentary and fashion traditions. ...
A simulated Napalm explosion during MCAS Air Show in 2003. ...
Masouleh village, Gilan Province, Iran. ...
The Dow Chemical Company (NYSE: DOW) is a multinational corporation headquartered in Midland, Michigan, USA. In terms of market capitalization, it is the second-largest chemical company in the world, smaller than only DuPont. ...
Manufacturing is the transformation of raw materials into finished goods for sale, or intermediate processes involving the production or finishing of semi-manufactures. ...
A simulated Napalm explosion during MCAS Air Show in 2003. ...
Demonstrators march in the street while protesting the World Bank and International Monetary Fund on April 16, 2005. ...
The 1970s decade refers to the years from 1970 to 1979, also called The Seventies. ...
Activism, in a general sense, can be described as intentional action to bring about social or political change. ...
The Susquehanna Steam Electric Station. ...
Vehicle emissions inspection station Automobile emissions control covers all the technologies that are employed to reduce the air pollution-causing emissions produced by automobiles. ...
During the 1950s and 1960s, labor unions deployed multiemployer pension fund monies for targeted investments. The United Mine Workers fund invested in medical facilities, for example, and the ILGWU and IBEW financed union-built housing projects.[4] Labor unions also sought to leverage pension stocks for shareholder activism on proxy fights and shareholder resolutions. In 1978, SRI efforts by pension funds was spurred by The North will Rise Again: Pensions, Politics, and Power in the 1980s and the subsequent organizing efforts of authors Jeremy Rifkin and Randy Barber. By 1980, presidential candidates Jimmy Carter, Ronald Reagan and Jerry Brown advocated some type of social orientation for pension investments.[5] A union (labor union in American English; trade union, sometimes trades union, in British English; either labour union or trade union in Canadian English) is a legal entity consisting of employees or workers having a common interest, such as all the assembly workers for one employer, or all the workers...
A pension (also known as superannuation) is a retirement plan intended to provide a person with a secure income for life. ...
The United Mine Workers of America (UMW or UMWA) is a United States labor union that represents workers in mining. ...
The International Ladies Garment Workers Union was once one of the largest labor unions in the United States, one of the first U.S. unions to have a primarily female membership, and a key player in the labor history of the 1920s and 1930s. ...
The International Brotherhood of Electrical Workers (IBEW) is a labor union which represents workers in the electrical industry in the United States and Canada, particularly electricians in the construction industry and linemen and other employees of public utilities. ...
Shareholder resolutions are proposals submitted by stockholders for a vote at the companys annual meeting. ...
Jeremy Rifkin (b. ...
James Earl Jimmy Carter, Jr. ...
Ronald Wilson Reagan (February 6, 1911 - June 5, 2004) was the 40th President of the United States (1981–1989) and the 33rd Governor of California (1967–1975). ...
For the whistleblower, see Gerald W. Brown. ...
From the 70's to the early 90's, large institutions avoided investment in companies that were related to the government and apartheid policies of South Africa . After the Sharpeville Massacre in 1960, international opposition to apartheid strengthened. In 1976 the United Nations imposed a mandatory arms embargo against South Africa. In 1971, Reverend Leon Sullivan (at the time a board member for General Motors) drafted a code of conduct for practicing business in South Africa which became known as the “Sullivan Principles.” These principles sought to document the practices of American companies within South Africa . Reports documenting the application of the Sullivan Principles discovered that US companies were not attempting to lessen discrimination within South Africa. Because of these reports and mounting political pressure; cities, states, colleges, faith-based groups and pension funds throughout the United States began divesting (or removing their investments) from companies operating in South Africa. The subsequent negative flow of investment dollars eventually forced a group of businesses, representing 75% of South African employers, to draft a charter calling for an end to apartheid. While the SRI efforts alone didn't bring an end to apartheid, it did focus persuasive international pressure on the South African business community. [1] A segregated beach in South Africa, 1982. ...
The Sharpeville massacre, also known as the Sharpeville shootings, occurred on March 21, 1960, when South African police opened fire on a crowd of black protesters. ...
The foundation of the U.N. The United Nations (UN) is an international organization whose stated aims are to facilitate co-operation in international law, international security, economic development, social progress and human rights issues. ...
Reverend Dr. Leon Howard Sullivan (October 16, 1922 - April 24, 2001) was a Baptist minister, a civil rights leader and social activist focusing on the creation of job training opportunities for African-Americans, a longtime General Motors Board Member, and an important part of the dismantling of Apartheid in South...
General Motors Corporation, also known as GM, is the worlds largest auto company by annual production volume as of 2006, and the second largest by sales volume as of the first half of 2007, behind Toyota Motor Corporation. ...
The Sullivan Principles were developed in 1977 by the Rev. ...
Modern applications Socially responsible investing (SRI) is a booming market in both the US and Europe. SRI in the United States remained robust during 2001 and 2002, even as the rest of the investment world was stagnant. Assets in socially screened portfolios climbed to $2.15 trillion in 2003, an increase over the $2.01 trillion counted in 2001. Screened portfolios grew 7 percent from 2001, while the broader universe of all professionally managed portfolios fell 4 percent during the same period, according to the Social Investment Forum’s 2003 Report on Socially Responsible Investing Trends in the United States.
Screened portfolios, with $2.15 trillion in assets, represent the largest amount of assets in SRI. Community investing and shareholder advocacy contribute additional assets, resulting in a total of $2.18 trillion in professionally managed assets for all SRI.
Research estimates by financial consultancy Celent predict that the SRI market in the US will reach $3 trillion by 2011. The European SRI market grew from €1 trillion in 2005 to €1.6 trillion in 2007.[6]
Mutual funds Socially responsible mutual funds counted by the 2003 Trends Report increased in number to 200 in 2003, up from 181 in 2001, 168 in 1999, and 139 in 1997. Assets in socially screened mutual funds identified by the Trends Report grew by 19 percent, to $162 billion, up from $136 billion in 2001. More than half (51 percent) of this growth is attributed to both newly identified and newly created funds, and 49 percent represents growth in existing assets. In terms of attracting investor assets, socially screened mutual funds grew on a net basis in 2002 while the rest of the mutual fund industry contracted. According to Lipper, socially responsible mutual funds saw net inflows of $1.5 billion during 2002. Over the same time, U.S. diversified equity funds posted outflows of nearly $10.5 billion.
Separately managed accounts Of the $2.15 trillion in socially screened portfolios, $1.99 trillion are found in separate accounts (portfolios privately managed for individuals and institutions) with the remaining $162 billion residing in mutual funds. Assets in socially screened separate accounts grew by seven percent since the “2001 Report.” Screened private portfolios climbed to $1.99 trillion in 2003, as compared with $1.87 trillion in 2001, $1.34 trillion in 1999, and just $433 billion in 1997.
Shareholder advocacy Between 2001 and 2003, shareholder advocacy activity increased by 15 percent, growing from 269 social and crossover resolutions (which combined aspects of both “social” and traditional corporate governance issues) filed in 2001 to 310 in 2003. Likewise, the average percentage of votes received on these resolutions increased from 8.7 percent in 2001 to 11.4 percent in 2003. Of the total $2.15 trillion in all socially screened portfolios, $441 billion are in portfolios controlled by investors who are also involved in shareholder advocacy on various social issues.
Shareholder resolutions are filed by a wide variety of institutional investors, including public pension funds, faith-based investors, socially responsible mutual funds, and labor unions. In 2004, faith-based organizations filed 129 resolutions, while socially responsible funds filed 56 resolutions[7]]
Regulations governing shareholder resolutions vary from country to country. In the United States they are determined by the Securities and Exchange Commission, which also requires mutual funds to disclose how they voted on behalf of their investors[2]. U.S. shareholders have organized various groups to facilitate jointly filing resolutions. These include the Council of Institutional Investors, the Interfaith Center on Corporate Responsibility, and the Social Investment Forum. The Securities and Exchange Commission, commonly referred to as the SEC, is the United States governing body which has primary responsibility for overseeing the regulation of the securities industry. ...
The central idea of a mutual fund is to enable investors to pool their money and place it under professional investment management. ...
The Interfaith Center on Corporate Responsibility (ICCR) is a coalition of 275 faith-based institutional investors. ...
Community investing Community investing climbed 84 percent between 2001 and 2003. Assets held and invested locally by community development financial institutions (CDFIs) based in the United States totaled $14 billion in 2003, up from $7.6 billion in 2001. A community development financial institution, or CDFI, is a unique entity established to provide credit, financial services, and other services to underserved markets or populations. ...
Investing strategies Social investors use four basic strategies to maximize financial return and attempt to maximize social good.
Screening excludes certain securities from investment consideration based on social and/or environmental criteria. For example, many socially responsible investors screen out tobacco company investments. This is an example of a social screen at work. We dont have an article called Screening (economics) Start this article Search for Screening (economics) in. ...
Divesting is the act of removing stocks from a portfolio based on mainly ethical, non-financial reasons. An investor divests upon realizing that, at some point, “the cup of endurance runs over, and (is)..no longer willing to be plunged into an abyss of despair”[citation needed] over certain business activities of a corporation. Recently, CalSTRS (California State Teachers' Retirement System) announced the removal of more than $237 million in tobacco holdings from its investment, portfolio after 6 months of financial analysis and deliberations. In finance and economics, divestment or divestiture is the reduction of some kind of asset, for either financial or social goals. ...
Shareholder activism efforts attempt to positively influence corporate behavior. These efforts include initiating conversations with corporate management on issues of concern, and submitting and voting proxy resolutions. These activities are undertaken with the belief that social investors, working cooperatively, can steer management on a course that will improve financial performance over time and enhance the well being of the stockholders, customers, employees, vendors, and communities. An activist shareholder uses an equity stake in a corporation to put public pressure on its management. ...
Positive investing involves making investments in activities and companies believed to have a high and positive social impact. Positive investing activities tend to target underserved communities. These efforts may support activities designed to provide mortgage and small business credit to minority and low-income communities.
Satire and market response At least one mutual fund, the Vice Fund (VICEX), was created specifically to contrast with the trend in socially responsible investing. [3] VICEX specializes in investing in the defense, alcohol, tobacco, and gambling industries, and has greatly outperformed both the S&P 500 and most socially responsible mutual funds. [4]
In addition, the Free Enterprise Action Fund files shareholder resolutions which oppose the general trend of socially responsible investing, for example by asking GE to "justify lobbying for global warming regulation." [5]
See also This article does not cite any references or sources. ...
The Interfaith Center on Corporate Responsibility (ICCR) is a coalition of 275 faith-based institutional investors. ...
A mutual fund is a form of collective investments that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments, and/or other securities. ...
This article does not cite any references or sources. ...
Business ethics is a form of the art of applied ethics that examines ethical rules and principles within a commercial context, the various moral or ethical problems that can arise in a business setting, and any special duties or obligations that apply to persons who are engaged in commerce. ...
References - ^ The Evolution of Socially Responsible Investing. Retrieved on Oct 30, 2006.
- ^ The Investment FAQ - Strategy - Socially Responsible Investing. Retrieved on Oct 30, 2006.
- ^ Students for Bhopal Student Power Crushes Dow
- ^ Gray, Hillel. New Directions in the Investment and Control of Pension Funds. DC: Investor Responsibility Research Center, 1983. p.36-37
- ^ Gray 1983, p.34
- ^ According to figures published by Celent 13 March 2007.
- ^ Interfaith Center on Corporate Responsibility
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Year 2006 (MMVI) was a common year starting on Sunday (link displays full 2006 calendar) of the Gregorian calendar. ...
October 30 is the 303rd day of the year (304th in leap years) in the Gregorian Calendar, with 62 days remaining. ...
Year 2006 (MMVI) was a common year starting on Sunday (link displays full 2006 calendar) of the Gregorian calendar. ...
is the 72nd day of the year (73rd in leap years) in the Gregorian calendar. ...
Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ...
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