Screening Investments of Stakeholders: Socially Responsible Investing in the United States

Abstract:     
The goal of socially responsible investing (SRI) is to provide capital to the companies that are socially and environmentally responsible and to deny capital to the ones that are not. SRI involves integrating personal values and societal concerns with investment decisions so as to promote greater corporate responsibility. This technical note discusses the concept and three key strategies of SRI: screening, shareholder advocacy, and community investment. It also traces recent developments in SRI, from the 1960s to 2003. The note gives students an understanding of the rapid growth and performance of socially and environmentally screened investment funds.

Keywords: environment, entrepreneurship, investment management, social responsibility, strategy, ethics

JEL Classifications:

Case and Teaching Paper Series