What is Responsible Investment?
Responsible investment (also known as ethical investment) can be simply defined as the application of ethical principles to the investment of capital. Individuals can utilise responsible investment to support those businesses that invest and operate in a responsible manner and to avoid businesses that contravene their principles. By investing in responsible business and avoiding unethical business the responsible investor is able to demonstrate concern about the use of his or her money. Responsible investment involves thinking not merely about financial returns but also about the social, cultural and environmental results of investment decisions.
The above picture from Rodger Spiller's PhD, shows how responsible investors and the businesses in which they invest are paradigm pioneers; adopting a stakeholder perspective and defining success in terms of environmental and social as well as financial performance. See the Research section for more details.
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