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Investing in Corporate Social Responsibility

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Investing in Corporate Social Responsibility

A Guide to Best Practice, Business Planning and the UK's Leading Companies

Kogan Page,

15 min read
10 take-aways
Audio & text

What's inside?

Social investing is not a fad. It is here to stay. Today, ethical business is sound business, even for shareholders.

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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

This book describes in great detail how major British corporations have become more socially responsible. Editor John Hancock includes in-depth chapters from various British experts and executives on key topics related to social responsibility, including investing, the environment, corporate governance and improving the quality of life. The contributors describe how the corporate social responsibility (CSR) movement is changing the way many U.K. companies conduct their day-to-day operations. U.S. corporate managers who are contending with Sarbanes-Oxley compliance may feel somewhat challenged as they read about how their U.K. counterparts now feel obligated to conduct business in a way that meets CSR standards. In fact, many U.S. business leaders may feel that the CSR push smacks of unprecedented outside interference in company goals. Since this movement is likely to strengthen, getAbstract.com believes this book is essential for British executives, of great interest to their U.S. peers and important to all corporate strategists and leaders. Never mind that the text is dry, and the various authors’ subjects sometimes overlap. Senior executives who even skim it will get a pretty clear idea of capitalism’s next phase - and many may not like what they learn.

Summary

Ethics and Governance

Companies that practice corporate social responsibility (CSR) work to build profitable businesses while also improving conditions in their communities. Over the past two decades, CSR has become an increasingly powerful force in corporate governance. It has broadened beyond civic action and charity to include efforts to influence corporate policies affecting employee relations, the environment, community affairs, shareholder relations and executive compensation.

While CSR is considered important for many reasons, like everything else in business, it is impelled by bottom line profitability. Companies with positive CSR programs have posted more stable, higher stock prices than companies that lack CSR programs. A study conducted by Euronext and CSR Europe found that 51% of fund managers and 37% of equity analysts would pay more for stock in companies with social responsibility programs. Other studies found that investors similarly would pay more for shares of a company that followed a program of corporate accountability. Along the same lines, customers say they would patronize stores that endorse specific social programs or charities, and would ...

About the Author

John Hancock is an award winning financial reporter who has more than 20 years experience covering financial issues. He was the Ethical Investment Journalist of the Year in 1999 and is the editor of An Investor’s Guide to Ethical Funds and Ethical Money.

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