scholarly journals STRUCTURAL-FUNCTIONAL APPROACH TO IDENTIFICATION OF RESPONSIBLE INVESTMENT

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
A. Vorontsova ◽  
A. Rudychenko ◽  
L. Zakharkina
Keyword(s):  
Social Issues ◽  
Functional Approach ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Main Requirement ◽  
Initial Stage ◽  
Analysis And Synthesis ◽  
Integrated Concept ◽  
Social Environmental

Numerous environmental problems, the consequences of the financial crisis, the aggravation of social issues (such as poverty, unemployment, other consequences of the COVID-19 pandemic etc) cause the need for the evolution of financial instruments in the field of investment. The main requirement is a reasonable investment, which involves focusing not only on financial benefits but also to promote social, environmental and economic (or sustainable) development. This work is devoted to the use of structural and functional approach to the identification of responsible investment. This allows us to consider such an investment concept as a complex system formed of interconnected functional elements. To do this, the author conducted a study of the essence of responsible investing and its main criteria. These primarily include consideration of various environmental, social and managerial factors (ESG-factors) in making management decisions. The next step is to analyze the approaches of domestic and foreign scientists to determine the main forms of responsible investment. Based on this, the stage formation of the concept of responsible investing is formed in the work. At the initial stage, there is the use of various forms of responsible investing, depending on the purpose of investors and the period time: ethical, green, thematic, impact investing. In the second stage, the idea of socially responsible investment was developed, and later - sustainable investment. The final stage is the allocation of responsible investment as a separate integrated concept that meets modern requirements. To better understand the distinction between certain forms of responsible investment in the work, their gradation depending on the orientation on financial or social goals has been studied. The study is theoretical and involved the use of general scientific methods: structural and functional approach, analysis and synthesis, grouping and logical generalization. The provisions formed in the article allow forming a theoretical basis within the research, which will be used for further work in this direction.

scholarly journals The Environmental, Social and Governance Aspects of Social Responsibility Indices – A Comparative Analysis of European SRI Indices

2018 ◽  
Vol 21 (3) ◽  
pp. 25-44
Author(s):  
Magdalena Mikołajek-Gocejna
Keyword(s):  
Comparative Analysis ◽  
Stock Exchange ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
National Initiatives ◽  
The Social ◽  
Social Environmental ◽  
Definition Of

An increasing number of investors want to invest their capital not only with profit but also responsibly, and they pay significant attention to the formula of socially responsible investing (SRI), which means that they consciously engage their funds in companies operating in accordance with CSR principles. An important influence on the development of CSR is the role of stock exchange indices on socially responsible companies. These indices can be considered specific tools for adapting this concept in practice, in particular in the field of socially responsible investment. This article provides a comparative analysis of the social, environmental and governance criteria underlying the definition of the composition of selected European SRI indices. The research will cover the following indices: the DJSI Europe Index, the FTSE4Good Europe 40, the FTSE4Good Europe 50, the EURO STOXX Sustainability 40 and the Solactive Sustainability Index Europe. This paper also intends to set an index reflecting the degree to which companies of certain European countries are represented in major European SRI indices. Consequently, global and national initiatives and ratings were excluded, as well as sector‑and industry‑specific initiatives and ratings. The proposed index is standardized by introducing the GDP of each country into the calculation formula as a way to a achieve comparable result. We believe that the proposed metric will reflect the state of the art in SRI and provide an overall picture of SRI practices across nations.

Understanding Socially Responsible Investing and Its Implications for Islamic Investment Industry

2019 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Mohd Nizam Barom
Keyword(s):  
Investment Decision ◽  
Socially Responsible Investing ◽  
Clear Understanding ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Developed Economies ◽  
Responsible Investing ◽  
Screening Strategies ◽  
Investment Process ◽  
Islamic Investment

Understanding Socially Responsible Investing and Its Implications for Islamic Investment Industry // // // // // Social, ethical and environmental concerns have been used as important consideration for investment decision by an increasing number of investors. This can be seen by the size and growth of the socially responsible investment (SRI) industry in the developed economies. At the same time, scholars and commentators of Islamic finance have also called for Islamic investment industry to learn from the experience of SRI in incorporating social responsibility issues in the investment process, in line with the ethical principles of Islam and the overall objective of the Shari’ah (Maqasid al-Shari’ah). This would require Islamic investment sector to have a clear understanding of the SRI industry in order to effectively benefit from its experience. This is particularly critical due to the significant diversity of investors and complexity in the issues and strategies adopted in the SRI industry. Hence, this paper adds to the Islamic investment literature by providing an extensive  and systematic survey of SRI industry in terms of its (i) underlying motivations and values; (ii) issues of concerns; (iii) types of investors; and (iv) screening strategies. It then synthesizes these components within the context of the ‘value-based’ investors. This synthesized framework offers a useful tool for Islamic investment practitioners to understand the theoretical and practical aspects of SRI. Subsequently, the paper highlights important implications of the findings for Islamic investment industry in terms of the issues that it needs to consider in emulating SRI practices and a number of lessons that it can learn from the SRI experience.  

A Special-Purpose Taxonomy of Corporate Social Performance Concepts

2001 ◽  
Vol 1 (1) ◽  
pp. 42-72 ◽  
Author(s):  
Brett A. Stone
Keyword(s):  
Mutual Fund ◽  
Corporate Social Performance ◽  
Social Issues ◽  
Social Performance ◽  
Socially Responsible ◽  
Fund Managers ◽  
Responsible Investing ◽  
Research Areas ◽  
Socially Responsible Mutual Funds ◽  
Corporate Social

The first iteration of a nonstatic special-purpose taxonomy of corporate social performance concepts is developed from a mailed, self-administered survey completed by managers of U.S. socially responsible mutual funds. The study combines the traditionally disparate research areas of Corporate Social Performance and Socially Responsible Investing. As a partial update of Rockness and Williams (1988), a descriptive account is presented of what mutual fund managers regard as the social issues that constitute corporate social performance. The resulting taxonomy represents an empirically derived framework useful in considering social accounting in general and accounting standard setting in particular.

Making Corporations Environmentally Sustainable: The Limits of Responsible Investing

2012 ◽  
Vol 13 (12) ◽  
pp. 1412-1437 ◽  
Author(s):  
Gail E. Henderson
Keyword(s):  
North America ◽  
Business Schools ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Non Profit ◽  
Environmentally Sustainable ◽  
Certificate Programs ◽  
Responsible Investing ◽  
Industry Standard ◽  
Sustainable Investment

Almost weekly, it seems, my inbox fills with dozens of academic articles on the topic of “socially responsible investing” or “SRI”. Non-profit organizations across Europe and North America promote SRI as the new investment industry standard. Business schools now offer certificate programs in “sustainable investment”. In 2006, the UN launched the Principles for Responsible Investment (PRI) to provide a framework for investors interested in practicing responsible investing. The PRI now boast over 1,000 signatories, including asset owners and investment managers.

scholarly journals Islamic Bonds (Sukuk) in Malaysia

ICR Journal ◽  
2015 ◽  
Vol 6 (4) ◽  
pp. 489-508
Author(s):  
Inam Ullah Khan
Keyword(s):  
Middle East ◽  
Social Impact ◽  
Socially Responsible Investment ◽  
Secondary Market ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Social Impact Bonds ◽  
Sustainable And Responsible Investment

This article introduces the various types of sukuk that exist in the Malaysian secondary market. The Malaysian sukuk market was initially debt-based which attracted criticism from the Shariah scholars from the Gulf and Middle East. However, the Malaysian sukuk market made a turn towards equity and ijarah sukuk and ventured into “green sukuk” or socially responsible investment (SRI) sukuk. To facilitate the financing of sustainable and responsible investment initiatives, the Securities Commission of Malaysia (SC) has launched the Sustainable and Responsible Investment (SRI) sukuk Framework in 2014. The introduction of the SRI sukuk framework is seen to be in line with the rising trend of “green bonds” and “social impact bonds” that have been introduced globally to facilitate and promote sustainable and responsible investing. The writer has presented different examples from both regions to show that the gap has been bridged. However, despite this convergence the author recommends a revisit of the controversial debt-based instruments by Malaysian Shariah scholars.  

Socially Responsible Investment, Microfinance and Banking: Creating Value by Synergy

2018 ◽  
Vol 11 (1) ◽  
pp. 69-87
Author(s):  
Challapalli Praseeda
Keyword(s):  
Present Article ◽  
Social Consciousness ◽  
Low Risk ◽  
Investment Opportunity ◽  
Socially Responsible ◽  
Going Public ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Different Dimensions ◽  
Funding Opportunities

Socially responsible investing (SRI) is fast catching the imagination of the ever increasing social consciousness of the investor community. Emergence of SRI can be traced back to the 1970s to few socially conscious investors who wanted to invest in bonds other than war, arms and ammunition and alcohol. Traditionally, SRI has focused on the economic social and governance (ESG) areas. Dieckmann (2007) who authored; Microfinance an emerging investment opportunity as a part of the Deutsche Bank Research, indicates that the SRI sector is witnessing the emergence of novae entrants like the microfinance (MF). The report also states that MF is scanning the environment for new funding opportunities by securitising MF opportunities and moving to the extent of going public. The scenario suggests microfinance to be robust, low risk profiled and growing investment avenue, which is fast emerging in the field of SRI. The purpose of the present article is to explore into the different dimensions of this emerging phenomenon and understand the emerging opportunities for banks in creating value using the synergy of SRI and MF.

Making a Difference or Making a Statement? Finance Research and Socially Responsible Investment

2003 ◽  
Vol 13 (3) ◽  
pp. 271-287 ◽  
Author(s):  
Pietra Rivoli
Keyword(s):  
Empirical Research ◽  
Equity Markets ◽  
Social Outcomes ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Portfolio Returns ◽  
Making A Difference ◽  
Research Findings ◽  
Finance Theory

Abstract:What does socially responsible investing (SRI) accomplish for investors and for society? Proponents of SRI claim that the practice yields competitive portfolio returns for investors, while at the same time achieving better outcomes for society at large. Skeptics view SRI as ineffective at best and ill-conceived marketing hype at worst. My objective in this paper is to apply mainstream finance research findings to the question of whether SRI may be expected to lead to superior social outcomes. I conclude that under the perfect markets assumptions underlying most finance theory, SRI will not affect social outcomes. However, given well documented imperfections in equity markets, the claim that SRI “makes a difference” to society is a reasonable one that is consistent with current theoretical and empirical research in finance.

Socially responsible investing: a review of the critical issues

2015 ◽  
Vol 41 (11) ◽  
pp. 1176-1201 ◽  
Author(s):  
Joan Junkus ◽  
Thomas D. Berry
Keyword(s):  
Mutual Funds ◽  
Firm Value ◽  
Socially Responsible Investing ◽  
Model Specification ◽  
Future Research ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment ◽  
Definitive Answer ◽  
Responsible Investing

Purpose – The purpose of this paper is to provide a review of the most recent work in major finance journals on socially responsible investment (SRI). While SRI involves individual investors, firms, and investment managers, the authors concentrate primarily on the investment view. Design/methodology/approach – The authors briefly review the development of socially responsible investing (SRI) and the theoretical issues related to SRI and investment choice. This is followed by a review of the empirical results concerning firm value. The question of whether SR mutual funds and SR indexes differ in performance or other characteristics from their conventional counterparts is discussed next, and lastly the authors present suggestions for future research directions. Findings – Despite the large and extensive amount of empirical research published on SRI in recent years, the authors find no definitive answer to the question of SR actions for either the firm or the investor. For firms, evidence linking corporate social responsibility (CSR) rankings with higher value is mixed, and depends on the type of CSR behavior studied as well as the measures of firm performance used. The performance of SR mutual funds and indexes generally are not significantly different from conventional funds or indexes, but again these results are also highly dependent on model specification, time period, benchmark, and other characteristics of the study. Practical implications – The value of SR investing has not been definitely proved. This means, however, that there is room for further on this important topic. Originality/value – This paper synthesizes and presents the most recent research on SRI from a wide variety of refereed sources.

scholarly journals TRENDS IN THE DEVELOPMENT OF SOCIALLY RESPONSIBLE INVESTING IN THE WORLD: THEORETICAL AND PRACTICAL ASPECTS

2020 ◽  
pp. 74-83
Author(s):  
Maryna Dielini
Keyword(s):  
Statistical Study ◽  
Socially Responsible Investing ◽  
Scientific Article ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Historical Factors ◽  
Socially Responsible Investments ◽  
The World ◽  
The Subject

The subject of this scientific article is the theoretical study of socially responsible investment (SRI) and development in the world and countries of Europe. The purpose of the research is to study the essence of socially responsible investing, its strategies and to analyze statistically the development of socially responsible investing in the world and in Europe in particular. Research methods. The methods of synthesis, analysis, comparison, generalization, statistical data processing, graphical and tabular methods of presentation of scientific results were used. The result of the work is a theoretical and statistical study of the subject of the article. The essence of socially responsible investing is defined as investing in socially responsible entrepreneurships with the purpose of profit. Historical factors of socially responsible investing have been investigated, among which the religious aspect and the increasing importance of human values have been highlighted. Have been described main strategies that investors use in decision-making process about financing companies or projects, outlined their differences and purposes. On the basis of abovementioned, a statistical study was conducted to analyze the overall status of the SRI in the world, what strategies are most represented and to explore more deeply the state of development of SRI in Europe, as the region with the highest volume of SRI. The results of the research can be used by companies that search an outside investor or, conversely, invest in other businesses to understand the request of today’s business society. Taking into account the world experience will allow to increase the company's own image and a positive effect on the society and the environment. Conclusion. Socially responsible investments are gaining ground in the world, as this is required by the global community. Entrepreneurs understand the importance of earning socially responsible profits, which is generated by investing in responsible enterprises and projects.

scholarly journals The Reasoning of a Responsible Investment Position in the Structure of the Stock Exchange Market

2021 ◽  
Vol 29 (4) ◽  
pp. 232-240
Author(s):  
Anna Vorontsova ◽  
Alex Plastun ◽  
Hanna Filatova ◽  
Elena Kostenko ◽  
Eldar Dzhobava
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Socially Responsible Investment ◽  
Stock Exchanges ◽  
Exchange Market ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Market Transformation

Purpose: To substantiate the place and role of the responsible investment in the structure of the stock exchange market. Methods: Structure-functional in order to form an idea of the structure of the stock exchange market, determining the place and role of responsible investment elements in the stock market organization; systematic analysis to identify current trends and patterns in the functioning of the socially responsible investment segment by geographical regions of the world; statistical and graphical methods for quantitative and visual presentation of the results of the stock market sectors analysis, represented by responsible investment elements. Findings: The definition of «responsible investment» and «stock market» has been clarified; a number of subjects, objects and forms of responsible investment, which are elements of the stock market, are singled out and substantiated; the generalization of activities of stock exchanges in the field of responsible investing is carried out; the dynamics of stock market sector indicators, which are represented by elements of responsible investment, are analyzed; key reporting standards used by stock exchanges in disclosing ESG issues are analyzed. Theoretical Implications: A comprehensive assessment of the functioning of socially responsible investment segment as part of the stock market is carried out, the place and role of responsible investing in the stock market structure are substantiated, which creates a basis for the development of effective measures to increase the stock market efficiency of Ukraine and its transformation into an effective and stable source of investment resources. Future Research: The results can be used in the context of further study of the stock market transformation in Ukraine on the basis of a socially responsible trajectory and fractal analysis. Paper Type: Theoretical.   The study was performed within the state budget research «Fractal model of the stock market transformation in Ukraine: socially responsible investment to achieve the Sustainable Development Goals» № 0121U100473.

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