Chapter 7

Why might II be interested in SRI?

SRI is no longer a niche investment option nor it can be
neglected
Sustainable and long term investment
Its an integral part of CG policies
Green Environmental awareness
Increasing concern about Human rights
Employment condition
Client demand
Corporate citizenship
Potential economic benefit
Why are more companies becoming interested in their
Social and environmental policies?

Client demand
Corporate citizenship
Potential economic benefit
Growing interest in special fund

In what ways might II decide on which companies to invest

in when considering their Social Responsibility policies?
EIRIS has identified three basic strategies for SRI Engagement,
Preference & Screening
Do you think investor should be willing to sacrifice
financial return, if necessary, in order to have a comprised
SRI portfolio?
I think investors should sacrifice financial return if necessary for a
comprised SRI portfolio. Because, in the long run this comprised
SRI portfolio will generate more economic benefit than present.
SRI guidelines identifies risk arising from social, environmental

and ethical issues that may affect short term or long term
business value. SRI implication ensures corporate responsibility
by encompassing environment, ethical, social, governance and
relationship management effectively. Which in turn maximizes
shareholder value in the long term rather than as an end in itself.
Companies are about making money, not about social
responsibility discuss critically
In recent years profit objective of companies has lost interest
prominently. With boards responsibility for relation with
stakeholders Social responsibility has gained more interest.
Business and society are related to each other. Companies should
not pursue profit without regard to the impact on wider societal
interests. Purely financial aspects of business are no longer
appropriate in an evolving society like in present. Encompassing
economic profit is not enough anymore. Social, environmental
performance, human rights, ethical issues are now more
concerning than before. These demand from various aspects of
business, individual and social area becoming more important.

*** Notes:
II: Institutional Investors
CG: Corporate Governance