SIO conference update: Fund manager offers strategies to combat SRI naysayers

Corporate governance focus seen as opportunity for social investment State of the SRI nation: SIO boss reviews social investment industry on eve of conference (June 4, 2003) The average mainstream investor remains skeptical about socially responsible investing (SRI). While there will always be critics, advisors can respond positively to some of their clients’ concerns about […]

By Doug Watt | June 4, 2003 | Last updated on June 4, 2003
3 min read
  • Corporate governance focus seen as opportunity for social investment
  • SRI advisors bemoan lack of product
  • Fund manager offers strategies to combat SRI naysayers
  • SRI – Time for a new name?

    Bonus tool A template letter to discuss SRI with your clients and prospects Back to CSIC Coverage main page

    For example, SRI critics are fond of pointing to Enron, which was heralded as a leading corporate citizen before its infamous fall from grace. But Enrons also happen in the mainstream investing world, Sutton noted, pointing to Bre-X, which was also highly rated by analysts before its collapse.

    However, there are some valid concerns about SRI, Sutton suggested, recommending that the industry take a second look at some of its advertising and communication strategies.

    “Some of the advertising paints this bucolic picture that every single company in their portfolio is a treasure to mankind and can do no wrong,” he said. There’s no such thing as a perfect company, and Sutton added, “SRI is about encouraging companies to become better corporate citizens.”

    “We’re perpetuating a myth of perfection and creating unrealistic expectations.”

    • • •

    Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca

    (06/04/03)

    Doug Watt

  • State of the SRI nation: SIO boss reviews social investment industry on eve of conference
  • Corporate governance focus seen as opportunity for social investment
  • SRI advisors bemoan lack of product
  • Fund manager offers strategies to combat SRI naysayers
  • SRI – Time for a new name?

    Bonus tool A template letter to discuss SRI with your clients and prospects Back to CSIC Coverage main page

    For example, SRI critics are fond of pointing to Enron, which was heralded as a leading corporate citizen before its infamous fall from grace. But Enrons also happen in the mainstream investing world, Sutton noted, pointing to Bre-X, which was also highly rated by analysts before its collapse.

    However, there are some valid concerns about SRI, Sutton suggested, recommending that the industry take a second look at some of its advertising and communication strategies.

    “Some of the advertising paints this bucolic picture that every single company in their portfolio is a treasure to mankind and can do no wrong,” he said. There’s no such thing as a perfect company, and Sutton added, “SRI is about encouraging companies to become better corporate citizens.”

    “We’re perpetuating a myth of perfection and creating unrealistic expectations.”

    • • •

    Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca

    (06/04/03)