Are Social Investors Influential?

European Company Law, Kluwer Law International, Special Issue on CSR and SRI, 2012, volume 9, issue 2, pp 133-140.

University of Oslo Faculty of Law Research Paper No. 2012-14

9 Pages Posted: 13 Jun 2012 Last revised: 8 Nov 2012

Multiple version iconThere are 2 versions of this paper

Date Written: June 13, 2012

Abstract

This article investigates the influence of socially responsible investment (SRI) on the social and environmental impact of the market and corporate behavior. It assesses SRI's influence through five means: (i) to promote SRI as a profitable alternative to conventional investment (ii) to alter the cost of capital of targeted companies, such as by divestment, and thereby to create pressure for improved corporate behavior; (iii) to advocate change within companies as shareholders or lenders, such as by filing shareholder resolutions and informal engagement with corporate management; (iv) to draft codes of conduct for systemic changes across domestic or global financial markets; and (v) to lobby for reform of public policy and official regulation pertaining to the financial economy. The article finds that in all of these means SRI has so far failed to wield exert significant influence, but its most promising means of influence is through advocating legal and policy changes.

Suggested Citation

Richardson, Benjamin J., Are Social Investors Influential? (June 13, 2012). European Company Law, Kluwer Law International, Special Issue on CSR and SRI, 2012, volume 9, issue 2, pp 133-140. ; University of Oslo Faculty of Law Research Paper No. 2012-14. Available at SSRN: https://ssrn.com/abstract=2083483 or http://dx.doi.org/10.2139/ssrn.2083483

Benjamin J. Richardson (Contact Author)

University of Tasmania - Faculty of Law ( email )

Private Bag 89
Hobart, Tasmania 7001
Australia

HOME PAGE: http://www.utas.edu.au/law

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