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Socially Directed Investment Case Study

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Socially Directed Investment Case Study
Introduction:
Sparkes and Cowton (2004) reported that the socially responsible investing and faith-based investments has expanded and developed altogether since the early 2000. They demonstrated that socially responsible investing and faith-based businesses are currently mainstream investments. Socially responsible investing and faith-based investing have developed from an activity managed by a small number of specialty retail investment funds into an investment philosophy adopted by a developing extent of some of the expansive venture establishments, for instance large pension funds and insurance agencies(Beer, Estes, & Munte, 2011).
According to the modern . portfolio theory, socially responsible …show more content…
She believes that the large amount of different terms is because of the fund managers attempting to differentiate their funds from others(O’Rourke, 2003). Sparkes (2001) describes another term, called Socially Directed Investments (SDI), which he defines as: “Socially Directed Investments occurs when a subnormal return is voluntarily accepted for community development or other purposes.” These investments seem to overlook the financial aspect, and therefore a distinction between SDI and SRI can be made, which has also been done by Hudson(Hudson, …show more content…
In his study, Hawken reported that 90 percent of the organizations in the Fortune 500 index are included in SRI portfolios, which mean that basically any publicly-held organization can be seen as qualified for inclusion. Moreover, Hawken said the following about the socially responsible investment-industry: Socially responsible investment has no criteria, no specific definitions, and no regulations other than financial regulations. Anyone can join to this kind of investment.” (Hawken, 2004) Anyone can name their fund as an socially responsible investment fund and subsequently pick up a potential promoting marketing edge, despite the fact that they might not even have genuine moral values. This could probably lead to a serious blow to the truthfulness of the socially responsible investment markets. As indicated by Hawken (2004), socially responsible investment is confronting the danger of turning into pointless term(Hawken,
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