Investment Decision Making
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... Decision Making
Applying nonfinancial selection criteria to investment decisions, where such criteria relate to social, political, environmental or ethical objectives, has existed for over 100 years. This style investing has traditionally been labeled socially responsible investing (SRI) and includes the processes of screaming portfolios, engaging management through shareholder advocacy programs, community investing and social venture capital.
Screened portfolios, the most common form of SRI, typically involve exclusion of certain industry sectors that are deemed by the investment manager to be "objectionable." For example, 83% of Canadian SRI funds exclude companies that produce tobacco products, a...