Volume 2, 2005
Perspectives On International Corporate Responsibility
Beyond Good Intentions
New Directions for Investing in Sustainability
This paper examines the rise of socially responsible investment (SRI) as a sustainable finance mechanism and discusses the potential of SRI in steering the banking and financial services industry toward a more socially responsible and environmentally sound model of commerce. I argue in this paper that the potential of SRI to serve as a sustainable business mechanism to steer the global financial market toward a new ethical architecture depends on two related factors: (a) continuing institutional and social pressures for
greater corporate transparency, and (b) the ability of SRI to become a viable financial instrument outside its traditional markets in emerging and developing economies.