Abstract:
Socially Responsible Investment (SRI) is a growing sector in the financial world. SRI
involves selecting and investing in stocks based on the ethical views of investors, and
then screening, negatively and positively, companies for investment. Some of the
ethical issues commonly addressed by SRI funds are alcohol, tobacco, gambling, and
environmental and social issues. A model was adapted from Spillers 4 P’s for Ethical
business to provide an analytical framework for generating qualitative theories about
socially responsible investment (SRI). The aim of the thesis was to use this analytical
framework as a starting point and develop/collapse it through constant comparison
with data, in line with the grounded theory approach. Semi structured interviews
were conducted with members of different groups with interests in SRI, and the
transcriptions were coded using the qualitative data analysis software programme
Atlas.ti. The results of the interviews confirm that the central driving force behind
SRI is the investor, and this has been the case since SRIs inception. However,
interviews with informants also reveal that there is an increasing influence from asset
managers, as they recognise that SRI can provide a more sustainable form of
investment. Changes in social attitudes about the role business plays in society are
also behind an increasing desire to make corporations more accountable. Funds that
use engagement as an investment strategy are trusted more by investors, because they
are seen to have a greater commitment to socially responsible issues, but informants
said that these funds need to be more transparent in their engagement policies. Many
of the interviewees believed that there was a need for the integration of social,
environmental, and ethical issues, with financial criteria when funds consider
investment decisions.
