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Lecture / Week No. 09: Course Code: MGT 304 Course Title: Corporate Social Responsibility

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23 views

Lecture / Week No. 09: Course Code: MGT 304 Course Title: Corporate Social Responsibility

Uploaded by

Rana Zain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Course Code: MGT 304

Course Title: Corporate Social Responsibility

Lecture / Week No. 09

Department of Management Sciences


Socially Responsible Investing
Contents

Socially Responsible Investing


Modules of Socially Responsible Investing
Equity Selection Process
Socially Responsible Investing SRI Indexes
Fixed Income Investments for SRI
Selecting Alternative Investments
Community Investments
Who are SRI Investors
Reference No. 1
Socially Responsible Investing

 The US SIF Foundation is a 501 organization that carries out


educational, research and programmatic activities to support
the public education mission of US SIF: The Forum for
Sustainable and Responsible Investment.

US SIF is the membership association for professionals, firms,


institutions and organizations engaged in sustainable and
responsible investing (SRI) in the United States.
Reference No. 1 Socially Responsible Investing

The information provided in Fundamentals of Sustainable and


Responsible Investment does not constitute investment advice. The
choice of course speakers, instructors, examples and case studies
should not be construed as an offer to invest or a form of marketing.

In no way should this course or the reference to firms who provided
support for the course be construed as an offer to invest or a form of
marketing.

This slide presentation includes highlighted content of the US SIF


Foundation's Fundamentals of Sustainable & Responsible Investment
course.
Reference No. 1
Modules of Socially Responsible Investing

The course Fundamentals of Sustainable and Responsible


Investment consists of four modules
Module I: An Overview of Socially Responsible Investing
Module II: SRI Portfolio Construction and Shareowner Advocacy
Module III: Academic Studies and Trends
Module IV: Communicating Your SRI Expertise with Clients
Reference No. 1
Socially Responsible Investing (SRI) Overview

• SRI recognizes that corporate responsibility and societal


concerns are valid parts of investment decisions. SRI considers both
the investor's financial needs and an investment’s impact on
society. • SRI has grown considerably in the United States,
outpacing the broader universe of conventional investment under
professional management
Reference No. 1
Equity Selection Process

Establishing an Investment Universe


Identifying Opportunities Within Industries
Selecting Individual Securities
Setting Sell Criteria
Reference No. 2
SRI Indexes

Calvert Social Index


DJSI Series
FTSE4Good Index Series
MSCI ESG Index Series (formerly KLD)
Standard & Poor’s ESG Index Series
STOXX Sustainability Index Series
Reference No.1
Fixed Income Investments for SRI

Bonds and bond mutual funds that are suitable for SRI portfolios
are readily available. In selecting individual bonds, the steps are
Determine the client’s time frame and risk tolerance, financial
situation and ESG preferences
Consider the client’s tax status and local investing goals to
determine the suitability of municipal bonds
Reference No. 1
Selecting Alternative Investments

 Alternative investments include: venture capital, private equity,


responsible property and hedge funds.
 The market for alternative investments appropriate for SRI
investors has expanded rapidly.
Alternative Investments incorporating ESG criteria total $132.3
billion at the beginning of 2012, more than tripling from the $37.8
billion identified two years earlier. (Source: Trends 2012)
Reference No. 2
Community Investments

Cash and Short-Term Fixed Income


Community Development Banks & Credit Unions Fixed Income Funds/Intermediaries
Community Development Bond Funds Fixed Income Community Loan Funds (most for accredited
investors)
Domestic Loan Funds
International Loan Funds / Vehicles Alternative Investments (Accredited Investors Only)
Community Development Venture Capital Funds
Real Estate Development Funds
Private Equity: timber, farmland, or conservation
Private Debt or Equity in social enterprises
Reference No. 2
Who are SRI Investors

SRI investors include:

Accredited/non-accredited investors
Mission-driven organizations
Faith-based organizations
Companies (B corp., etc.)
Retirement plan sponsors/participants
 Millennial investors
Reference No. 2
CORPORATE SOCIAL RESPONSIBILITY GREEN BUILDINGS CASE
STUDY

CASE STUDY 1:

Green Buildings: The LEED certification by the US Green building


Council has caused the growth of green building movement.
Emphasis on green manufacturing in order to reduce the emissions
of greenhouse gases and environmental pollutions. Green products
initiatives in order to reduce the toxic chemicals. Product
stewardship encourages everyone in the value chain to contribute
to product sustainability from producers to regulators to retailers to
consumers thereby achieving zero waste and sustainable
production
References / Resources

1. Groether, R. (2008). Corporate Social Responsibility . Retrieved from


http://safaribooksonline.com

2. Siddiq & Javed, (2014). Impact of CSR on Organizational Performance . ISSN 2222-1905
(Paper) ISSN 2222-2839 (Online) Vol.6, No.27, 2014

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