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Author: | Leys, J. Vandekerckhove, W. Liedekerke, L. van |
Title: | A puzzle in SRI: the investor and the judge |
Journal: | Journal of Business Ethics
2009 : JAN II, VOL 84:2, p. 137-149 |
Index terms: | investments social responsibility justice |
Language: | eng |
Abstract: | As social responsible investments (SRIs) are becoming more and more in common, the use of non-financial criteria in investment decision-making creates a "puzzle of SRI". The puzzle arises from when the the day-to-day management of the corporation is interrupted by administrating process of justice. The puzzle includes the following questions for the investor: What should be done when the corporation is accused of something unethical? What should be done when the corporation faces a law suit? What should be done when the corporation is found guilty? The authors argue that these situations should not be reasons for disinvestment. Examples from investor practices are provided. |
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