SRI has long suffered from the view in some quarters that it is at best a preoccupation of (some) Anglo-Saxon investors. Certainly the best-established ‘ethical’ funds are based around London and New York. News that Tel-Aviv has launched an SRI index, along with other news we report here, show this is changing. That’s to be expected, as some drivers of SRI are universal: sustainable development, good corporate governance and a pragmatic approach to risk. But scratch below the surface and it’s noticeable that most interest is coming from countries closest to the ethical and cultural values of the Judeo-Christian tradition. Indeed ethical investment started in 1920s Britain with the Methodist church avoiding so-called ‘sin stocks’ in alcohol and gambling. It is driven in today’s America by similar religious concerns. We’ll know SRI has arrived big time, when the Mumbai and Jakarta stock exchanges feature funds reflecting Hindu and Muslim sensibilities – and that will challenge western views about what ethical investment really is.
Corporate Citizenship Briefing, issue no: 81 – April, 2005
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