Sunday 25 March 2012

How sure investors are on their SRI?

Socially responsible investors encourage corporate to engage in practices that promote environmental stewardship, consumer protection, human rights and diversity or in other words to they promote attain sustainable, ethical investments. Though most investors are seeking to find SRI on their investments, but they can never be sure as the information that investors could access is limited. Their decisions mostly tend to depend on company annual reports and publications.

Therefore I see the concept of SRI as promoting element by big companies to attract investors and not that they really practice the meaning.
Today BBC reported that most big multinational companies start their main supply chain at mostly under unethical grounds. One company I noted was Mark & Spencer. Mark & Spencer is well known for ethical investment. However suppose it is not a 100% ethical business. The report on BBC said that most of cloth makers get their raw materials like cotton from India and most of the cotton farms that employed by children. They have no safety cloths, no proper wages. Mostly these children do not have the chance of going to school.

Somewhere in the middle of the supply chain though it gets better, but there is no one to take care of these children, who are engaged in the initial process of creating cotton cloths.  Companies charge high from consumers for their ethical business, but the benefit of the extra charge does not seem to help those poor farmers at the initial stage of the supply chain. 


In reality no any investor who will get in to with such details at the bottom.  

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