Hello Manu
good question....socially responsible investments is one of those terms which mean different thing to different people depending on where you're coming from- moral/ethical or governance/financial angle. ethical investments, responsible investing, social investing are some other terms used for describing the same thing. the definitions are debatable too...
the 'returns' (had to come from an investment banker
generated by SRI depends on the SRI strategy adopted...broadly there are three strategies:
1. Screening
2. Engagement
3. Venture capital/economically targeted investments
Not to mention that monetary/financial gains are still the primary objective of the entities which adopt SRI. It has nothing to do with investing in charities/ngos. Nowadays many institutional investors like insurance companies and pension funds are looking at SRI options as its thought not to compromise the returns and infact its is used as a risk management tool to enhance/protect investment returns.
I am focusing on Pension funds and how they are going about SRI. there has been a lot of civil society pressure on pension funds in the UK to consider the social, ethical and environmental impacts of their investments. The scene in canada and the US is a bit different as over there some institutional investors have historically been involved in social investing based on their values.
I'll be happy to chat with you more on this.....
which investment bank are you working for?? I am sure it will have somebody working on SRI/engagement etc...
Priti