What are the driving forces of the socially responsible investment?

Résumé du document

The last few years were particularly difficult by the financial world. So many people using the financial markets to invest their savings, their pensions indispensable. However, greed and short-term view of some market players have weakened in many positions. Today, new areas of investment are available, but it is difficult to make a choice. However, one area seems to pull out of the game, the socially responsible investment. Created in the mid-1960s, they are becoming more and more prevalent in the financial markets, because they combine profitability, growth potential and good conscience, the latter being very important for investors in times of crisis.

They want to feel to help the world in its development. Today, three main approaches governing this type of investment: the value-based approach, the value-seeking approach and value-enhancing approach. Each has its own characteristics, although they have many things in common. We will see how is the market for socially responsible investment and what are the challenges for the coming years.

Extraits

[...] Quoting Christian WEISTROFFER, head of the research department at Deutsche Bank : "One of the biggest challenges for the development of the market for responsible investments is the establishments of [ . ] standards [ . ] that assure an adequate level of product transparency and strengthen investors' readiness to invest in this segment. Here, there is a need both to standardize the reporting at the company level and to increase the transparency of the investment products" 18 (SCHMIDT & WEISTROFFER p. 14) REFERENCES LIST IV. References List EUROSIF. (n.d.). Eurosif. Retrieved from Eurosif.org: http://www.eurosif.org/ EUROSIF. (n.d.). [...]

[...] This is a European network which is responsible for SRIs issues. In 2004, the 16 (EUROSIF) 11 agency published a Transparency Guidelines, whose goals was to set up SRIs principles and practices rules for investments funds . We can sum up the main principles as the following17 : - Clear information about fund and fund's management - Investment criteria - Information on research process (methodology, timing, publication ) - Evaluation and implementation of the research results - Details of the engagement - Details of voting behavior - Reports of the fund's activities We realize then that socially responsible investing is a growing market, but that many regulations are needed to ensure that this area does not become shrinking too quickly, as each time a sector is takers too quickly, seeking high returns on investment, and causing financial bubbles burst (and subprime internet being the most recent examples). [...]

[...] M. (1920). The Economic Consequence of the Peace. KINDER, P. D. (2005). Socially Responsible Investing : An evolving concept in a changing world. Boston, MA: KLD Research & Analytics, INC. KINDER, P. D. (2007). [...]

[...] Pensions and the Companies They Own. In R. W. KOLB, Corporate Retirement Security : Social and Ethical Issues (pp. 13-18). Blackwell Publishing. SCHMIDT, S., & WEISTROFFER, C. (2010). Responsible Investment : an new investment trend here to stay. Deutsche Bank Research. Frankfurt am Main: Bernard SPEYER. [...]

[...] USFSRI. (2011). Report on Socially Responsible Investment Trends in the United States. Social Investment Forum. Washington, DC. USSIF. (2003). Report on Socially Responsible Investment Trends in the United States. Social Investment Forum. Washington, DC APPENDIXES 1 Appendix I : A General Categorization of SRI Approaches P.D. [...]