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Case Study example - Socially Responsible Investing
Pages 2 (502 words)
The uncertain nature of the world has prompted investors to think beyond the statistics represented by the stock prices and the balance sheet. An emerging criterion in evaluating a company fit for investing in is quickly gaining ground. …
Extract of sample
This concept is known as sustainable responsible investing, and it involves evaluating the company on the basis of social responsibilities. As a result, investors seek information on how a company rates in terms of GRI and ESG factors. The rating companies thus consider several factors when rating the companies in terms of ESG and GRI in order to ensure that they provide accurate and viable information to the investors. One of the factors considered by these rating companies is ESG aspects and corporate strategy. This requires that the corporate strategy of a company includes the development and publishing of ESG and GRI strategy. Publishing information in the stock market ensures transparency about exposures such as risk exposure (DVFA, 2008). In addition, the company should make the information available online so that potential investors have access and opportunity to view. Furthermore, the company should ensure that there is communication of current, as well as future ESG and GRI topics relating to its business activities such as ESG reports of information availed via the internet. When designing and implementing a corporate strategy, it should mention the importance of ESG aspects and why they are taken into account. The second factor to be taken into consideration by the rating companies is the ESG management. ...
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