What is “Responsible Investing”?
Responsible investing:
(a) Recognizes that stewards of investor’s assets have an obligation to attempt to meet investor’s objectives, based on trust and confidence.
(b) Acknowledges that investments can have indirect costs and benefits that may not be reflected in an asset’s price and that these “externalities” can have societal effects.
Do conflicts arise between fiduciary obligations and externalities in investing?
Responsible investing balances fiduciary duties with the consideration of externalities. It is based in the belief that some people may be willing to pay more for investments that offer non-monetary benefits aligned with their preferences.
What are the goals of the Center for Responsible Investing?
1. Generate, interpret, and share responsible investing knowledge with a community of interested practitioners.
2. Provide tools and information for making informed decisions about responsible investments.
3. Encourage collaboration between academic researchers and practitioners to deepen understanding of responsible investing in both theory and practice.
