Costs Of Socially Responsible Investing
Socially responsible investing (SRI) aligns ethical and financial concerns for investors. SRI has gradually developed over time to include the consideration of firms’ environmental, social and governance (ESG) performance. Of note is that, while SRI has evolved, the original practice of negative screening for the stocks of companies involved in harmful or controversial activities (so-called sin stocks) remains the most common SRI strategy today.
Pieter Jan Trinks and Bert Scholtens contribute to the literature on SRI investing with their study, “The Opportunity Cost of Negative Screening in Socially Responsible Investing,” which appears in the May 2015 issue of the Journal of Business Ethics.
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