Responsible Investing as Social Innovation

Stefanie Hiss ()
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Stefanie Hiss: Department of Sociology, Friedrich Schiller University Jena, Bachstr

A chapter in Social Innovation, 2013, pp 229-237 from Springer

Abstract: Abstract The 2008 financial crisis led to an enormous loss of financial assets. Exuberant profits in the private sector before the crisis were followed by immense public costs, caused in particular by a rise in unemployment. Apart from this, the precrisis financial system can generally be characterized by high private incomes, on the one hand, and immense negative externalities, on the other hand. Responsible investing (RI) attempts to reduce this burden and decrease negative externalities. Initiated mainly by entrepreneurs from outside the financial sector, it can be considered an innovation responding to a pressing societal problem, a social innovation. The main idea of RI is quite easy, to broaden the perspective of investors from a narrow focus on purely financial indicators to a broader focus which integrates nonfinancial aspects, such as social, ecological, or ethical ones into the investment process. RI aims to develop tools that financial firms use to recognize, assess, and implement these non-financial concerns into their investment processes.

Keywords: Financial Market; Negative Externality; Social Entrepreneur; Sustainability Report; Responsible Investing (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:csrchp:978-3-642-36540-9_20

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DOI: 10.1007/978-3-642-36540-9_20

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