Responsible Investment

Front Cover
Rory Sullivan, Craig Mackenzie
Greenleaf Publishing, Jan 1, 2006 - Business & Economics - 382 pages

Most investment today is conducted by a relatively small number of institutional investors – pension funds and investment managers – who manage the pensions and saving funds of millions of ordinary people. The manner in which these institutional investors invest and discharge their responsibilities as the owners of companies is, therefore, of critical importance to society as a whole.

In recent years, some of the biggest institutional investors have actively encouraged companies to improve their management of social, ethical and environmental issues. A number have also sought to explicitly analyse companies' performance on these issues and to incorporate this analysis into investment decision-making. These activities have contributed to important changes: a number of companies have committed to stabilising or reducing greenhouse gas emissions from their activities and operations, labour conditions in many retail supply chains have improved significantly, and many companies have significantly improved their governance of corporate responsibility issues.

However, to date, there has been little systematic analysis of fundamental questions such as: Do responsible investment strategies systematically result in improvements in the social, ethical and environmental performance of companies? To what extent is it in investors' interest to encourage higher standards of corporate responsibility? Do responsible investment strategies enhance financial performance for investors?

In this ground-breaking collection, Rory Sullivan and Craig Mackenzie have brought together some of the leading practitioners and commentators in the field of responsible investment to explore these questions. The contributors to this book present their views on the practicalities of implementing responsible investment strategies, the outcomes that have been achieved, the practical issues and barriers faced in implementing such strategies, and the challenges to be faced if responsible investment is to become a mainstream investment approach. The results are both unique and surprising.

This book will be mandatory reading for all those involved in the field of social and environmentally responsible investment, corporate governance and corporate social responsibility whether they be academics, researchers or practitioners.

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Contents

Foreword
9
The scope for investor action on corporate social and environmental impacts
20
A historical perspective on the growth of socially responsible investment
39
Copyright

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About the author (2006)

Rory Sullivan has been Director, Investor Responsibility with Insight Investment (the asset management arm of HBOS plc) since October 2002. He has over 15 years' experience in environmental management and public policy, having worked for private-sector and government agencies in Australia, South-East Asia, Africa and Europe. His experience includes evaluating development-focused partnerships (health, education, water) on behalf of the World Bank's Business Partners for Development programme, advising Environment Australia and the OECD on the design of pollution release and transfer registers, and assisting public- and private-sector organisations with the implementation of environmental and risk management systems. He has written widely on corporate responsibility and responsible investment issues and has written/edited four books on these issues, including Business and Human Rights: Dilemmas and Solutions (editor, 2003) and Rethinking Voluntary Approaches in Environmental Policy (2005). He is also the co-editor of Putting Partnerships to Work: Strategic Alliances for Development between Government, the Private Sector and Civil Society (2004).

Craig Mackenzie is Head of Investor Responsibility at Insight Investment. He leads the team that is responsible for conducting research, company engagement and voting on corporate governance and corporate responsibility issues on behalf of Insight's74 billion of assets. Previously, Craig led the creation of the highly regarded governance and SRI team at Friends Ivory & Sime (now F&C). He is a leading advocate of investor engagement and activism strategies to encourage more responsible and sustainable approaches to value creation by companies. Craig is chair of the FTSE4Good criteria development committee, a member of the steering group for the Business in the Community Corporate Responsibility Index and the technical advisory committee for the Global Reporting Initiative. He is a former member of the advisory boards of the UK Social Investment Forum and AccountAbility.

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