Socially Responsible Investing

1. In order to implement an organizations commitment to social responsibility it is necessary to identify what social problem the organization intends to address, develop policies on what the organization plans to do to successfully fulfill its obligation and ensure stakeholder buy-in. The main obstacles an organization faces when implementing socially responsible policies is pressure from stockholders and business analysis who want steady increase in earnings. Without steady increase in profits, it becomes difficult to reinvest money in these areas. The following actions can be taken toward increased social responsibility:

Another challenge for companies when considering social responsibility is the possible negative perception of shareholders. Historically, publicly-owned companies had a primary focus of maximizing shareholder value. Now, they must balance the financial expectations of company owners with the social and environmental

Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.

or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.

Many believe that business entities should have an ethical duty to be socially responsible, to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations look for opportunities to be socially responsible while also creating shareholder wealth.

The potential benefits of social investments to society are significant. Companies could use their cash, employees, products and skills to challenge global problems such as health, poverty, hunger and many more. Not only do social investments help make the world a better place, but research has proven that such actions have positive impacts on both the community and profitability of the business itself. According to KPMG, the terminologies used for social investment differ from one company to another with “Community investment”, “Charitable philanthropy” and “Corporate citizenship” among the most widely used. Other terminologies include “ Corporate Social Responsibility” which is abbreviated by CSR.

After reviewing the stock strategies sheet I concluded that I used a two of the strategies. When I first invested into the market I chose companies that I was familiar with but also morally aligned with my personal beliefs. According to the stock strategy sheet this is considered Social Responsible Investing. I demonstrated this through investing in stocks such as Facebook, Starbucks and Coca-Cola. All of these companies had released either advertisements, public statements or took initiative to make a difference in our country. For example my first stock Facebook Mark Zuckerberg and his wife planned to donate 99% of their Facebook shares which at the time was about 45 billion dollars. In the statement Zuckerberg said the donations were to

Corporate Social Responsibility are actions taken by a corporation that have positive and lasting impact for all stakeholders associated with the organization, seeking to strike a balance between profits and helping to establish lasting investment in the community (Carrol, 2015). In the 1980’s, then President Reagan challenged the business community to take on more responsibility to address social problems (Carrol, 2015). Socially responsible actions can benefit local communities as well as the greater societal good.

In the business world, social responsibility refers to accountability. There is the accountability of the company to itself, and to the communities where they have a presence. Especially when a business is as large and far reaching as Marriott, they have a responsibility to give back and help to improve society. It is also believed that by engaging in socially responsible activities, the company will improve its image and increase profit.

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

CORPORATE SOCIAL RESPONSIBILITY (CSR) is a term describing a company’s obligation to be accountable to all of its stakeholder in all its operation and activities. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholder with their need to make profit.

Social responsible programs are growing very rapidly. “Over the last two years, SRI investing has grown by more than 22% to $3.74 trillion in total managed assets, suggesting that investors are investing with their heart, as well as their head” (Chamberlain, 2013). Investors are caring about their

GENERAL INTRO In the past decades, SRI and ESG-focus have been heavily covered in the literature with mixed results. Bauer et al. (2002) compare performance of mutual funds that follow social responsible investment strategies against those that do not. By applying a four-factor Carhart (1997) model, the results are depends widely on the country of operation of the

Access to capital enables a company to grow and make timely investment. Companies with good CSR standing are likely able to secure equity and debt capital with most ease. The growth emphasis in Socially Responsible Investment (SRI) is a clear indication of likely future trends