Recent trends suggest that both corporations and investors are taking socially responsible investing (SRI) more seriously. A study released by the Social Investment Research Analysts Network on July 11 reveals that 34 companies listed on the S&P 100, a weighted index of 100 major blue chip companies, now base their corporate social responsibility (CSR) reports on a recognized third-party standard—the Global Reporting Initiative’s Sustainability Reporting Guidelines. The use of uniform reporting criteria is critical to helping SRI firms select appropriate companies in which to invest. Other indicators similarly point to corporations’ greater embrace of social responsibility: according to the same study, 79 of the S&P 100 firms now have CSR websites, up 34 percent from last year.
The growth of CSR among major corporations has been spurred by a parallel development in social consciousness among investment firms. In April, the United Nations launched its new Principles for Responsible Investment, a series of guidelines on how to integrate environmental, social, and corporate governance issues into the financial industry. As of August 1, the diverse signatories to the Principles together controlled more than $5 trillion in assets. This enormous quantity of money, expected to grow as the initiative wins new adherents, will make SRI central to the practices of the financial investment industry.
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