Socially responsible investment (SRI) – sometimes termed “ethical investment” – refers to the practice of integrating social, environmental, or ethical criteria into financial investment decisions. Whereas conventional investment focuses upon financial risk and return from stocks and bonds, SRI includes other goals or constraints. It is the nature of the source, and not just the size, of the financial return that is of concern in SRI. This article introduces the principal investment strategies generally pursued under SRI, and then focuses specifically (...) on the ethical dimension – that is, whether current SRI practices constitute an ethically justified, perhaps even ethically superior, way of investing. (shrink)

MANY thinkers deny the possibility of businessmen having responsibilities or ethical obligations. A businessman has no alternative, in view of the competition of the market-place, to do anything other than buy at the cheapest and sell at the dearest price he can. In any case, it would be irrational-if, indeed, it were possible-not to do so. Admittedly, there is a framework of law within which he has to operate, but that is all, and so long as he keeps the law (...) he is free to maximise his profits without being constrained by any moral or social considerations, or any further sense of responsibility for what he does. (shrink)