Socially Responsible Investment in a Global Environment

Emerging Markets and Financial Resilience

“…The ethical benchmark is the Dow Jones Sustainability World Index (DJSWI), which is one of the categories from the Dow Jones Sustainability Indexes (DJSI), a subset of the world equity market that tracks the price movement of portfolios of SRI stocks (Copp et al, 2010). We chose DJWSI because it consists of leading companies, based on SRI criteria and ability to represent the performance of the best SRI portfolios (Fung et al, 2010). The conventional index is MSCI All Country Asia Pacific Index (MSCIAP), which represents the performance of conventional portfolios in the Asia Pacific region 7 .…”

“…Alternative terms include mission investing, responsible investing, double or triple bottom line investing, ethical investing, sustainable investing or green investing. 1 In total, there are four types of SRI portfolios: environmental, religious or ethical, social and corporate governance (Fung et al, 2010). SRI not only uses financial criteria solely to determine which investment to invest in but also takes into account the contribution and impact of that particular investment towards society, environment and people (Ballestero et al, 2011).…”

Market Reaction to Corporate Social Responsibility Announcements: Evidence from China

“…The interactions between CSRscore and the three growth proxies of sales, assets and return on assets are all positive and significant, supporting the idea that socially responsible firms have greater growth potential, which prompts higher abnormal returns. Thus, the results of the CSR analysis support the notion that engaging in CSR projects is akin to having real options that enable firms to capitalize on their growth potential (Fung et al, 2010). The dummy variable for each of the subranking groups of operating performance (DumOP), public image (DumPI) and philanthropy (DumPH) firms is not significant, implying…”

“…Some CSR activities that firms engage in are meant to ensure product safety, service quality, environmental protection and good communication. They help build up good branding for and the reputation of a firm, hence creating valuable social capital (Zu and Song, 2009;Fung et al, 2010;Talavera et al, 2012), which can also enhance corporate value or financial performance (Uzzi, 1997;Zhang and Fung, 2006;Fung et al, 2007;Doong et al, 2011;Qiao et al, 2013).…”

Green Investment and Sustainable Development: The Case of Islamic Finance

“…In order to promote justice and improve equity in Muslim societies, investment consideration must include both sustainability and responsibility. Sustainable and responsible investing involves building strategies that take into account a company's performance in three pillars (people, planet, and profit or social, environmental and financial) of sustainable development, when selecting and managing investment portfolios (Fung, Law, & Yau, 2010). Implementing such an investment will strengthen the principles of sustainable development to prolong resources availability and reduce poverty.…”