When you begin exploring the world of responsible investment, you will come across terms that you need to understand. That’s okay. It’s part of the journey. One of the most important terms you will see and hear is impact investing. In this space, I will offer you a deeper understanding of the term, its meaning and the context in which it gets used.
Socially Responsible Investing (SRI) is a strategy or philosophy that encourages investors to consider their personal outlook and moral code when they make an investment decision. Other terms that may come up when you talk about or research SRI include: Values Investing; Environmental, Social and Governance (ESG) investing; Sustainable Investing; or Responsible Investing
Social Investing
Impact Investing
Positive investing; Community Investment; Ethical Investments
Governance is the third tenet of ESG and generally refers to the internal workings of a corporation and its impact on that company’s overall performance and public reputation.
This is where scandal is most likely to crop up, often suddenly and without warning, mainly because not enough attention is spent examining its roots.
And political and historical examples of the impact of scandals like this are not hard to find. One of the most prominent in Canadian history almost destroyed MacDonald while he was in office. Other events during his second tenure as Prime Minister have served to seriously damage his legacy.
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