|
Socially
Responsible Investment
In the ongoing global war
against terror, companies are expected to behave in a socially responsible
manner. Companies may even face sharp fall in share prices if they are
found to have dealings with less-than-wholesome regimes. The concept of
socially responsible investment (SRI) is not new. For example, for quite
sometime now, public charges of environmental risk have had an influence
on companies’ stock market fortunes.
Post-September 11, however, the
concept of SRI has taken a new meaning. A Washington based research group,
Investor Responsibility Research Centre (IRRC) has compiled a list of
companies doing business with, what the US government classifies as,
countries supporting terrorism and developing weapons of mass destruction.
In April 2002, IRRC launched a database called the Global Security
Monitor of such companies. If a company is found to be associated with any
terror effort, it will suffer a huge reputational hit. It is expected that
the possibility of such a risk will force companies to refrain from having
any dealings with terror efforts.
IRRC’s
clients include fund managers, pension funds and investment firms. The
group expects their clients to gain knowledge on the issue of global
security and then develop their own criteria for investing.
For many people, other issues of
SRI, such as environmental degradation, labour standards and transparency
in accounting standards are more important than terrorism. Unfortunately,
the data on social behaviour of companies is not adequate. Greater
research and investigation into company performances should be undertaken.
Such information must be disseminated among the people so as to enable
them to judge a company’s social behaviour and possibly decide on its
fate in the stock market.
The
IFD Project
About
the Project
The
‘Investment for Development’ (IFD) project aims to create awareness
and build capacity of the civil society on investment regimes and
international investment issues of developing and transition economies.
For more www.cuts-international.org/ifd-indx.htm
Project
Update
Reports
The
following reports of the project are available on our website. www.cuts-international.org/ifd-cr-lm-htm
1.
Finalised Investment Policy Country Reports (Report A).
2. Draft Synthesis Report A.
3. Draft
Performance and Perceptions Country Reports (Report B).
National
Reference Group (NRG) Meetings
The
reports of the NRG meetings are available on our website www.cuts-international.org/ifd-indx-htm
Online
Forum
IFD
E-Forum, an online discussion forum has been launched under the project.
For more: http://groups.yahoo.com/group/ifd_eforum
or write to IFD_eforum@yahoogroups.com
News
Conference
on FDI and Environment
As a
follow-up to a conference on "Foreign Direct Investment and the
Environment", held in The Hague in January 1999, the Organisation for
Economic Co-operation and Development (OECD) organised a major conference
on 7-8 February 2002 to focus on the mining sector. The conference
discussed the different challenges faced by the sector and the effects of
FDI on the environment.
For more
http://www.oecd.org/oecd/pages/home/displaygeneral/0,3380,EN-documents-677-12-no-9-no-677,00.html
Stakeholder
Responsibility
Most
discussions of stakeholder theory typically begins with the
responsibilities of the firm towards its
stakeholders.
A special issue of ‘The Journal of Corporate Citizenship’ has been
dedicated to discuss the theories of stakeholder responsibility. For more http://www.greanleaf-publishing.com/jcc/jcc6.htm
The
Carthage Investment Forum
The
Ministry of International Cooperation and Foreign Investment and the
Foreign Investment Promotion Agency (FIPA) of Tunisia in cooperation with
the European Union are organising the 4th edition of the
Carthage Investment Forum on 10-12 October 2002 in Tunis (Tunisia).
The forum is aimed at foreign corporations foreseeing oversees investment.
For more http://www.investintunisia.tn
Publications
Foreign
Direct Investment in India and South Africa: A Comparison of Performance
and Policy
This
Briefing Paper published by CUTS, India with the support of DFID, UK,
tries to identify some of the reasons for the poor performance of India
and South Africa in attracting FDI. It also offers some tentative policy
recommendations that might help them to address their problems.
Regulating
Corporate Behaviour
This
briefing paper discusses the issue of conduct codes for TNCs. It broadly
discusses the general principles found in different codes, outlines the
debate surrounding the codes and argues for mandatory codes of conduct.
This paper is produced by CUTS, India with the support of DFID, UK.
For Subscription and Orders Please Write To
CUTS
Centre for Competition, Investment and Economic Regulation
D-217, Bhaskar Marg, Bani Park, Jaipur 302016, India
Ph: 91.141.2282821
Fax: 91.141.2282823/220 3998
Email: ifd_cuts@rediffmail.com
& cuts@cuts.org
Web:
www.cuts-international.org
|
