Complete the fill-in-the-blank questions below to test your knowledge of the material in chapter 7 of the textbook.
1
Socially responsible investment (SRI) involves considering the ethical, social and performance of companies as well as their financial performance.
Companies which are socially responsible investments will have regard to the interests of their various stakeholder groups and act in an ethical manner.
Page reference: 96
2
There are three basic strategies for socially responsible investment. These are engagement, preference and .
Screening may be either negative whereby companies are screened out, for example as they employ child labour, or positive screening whereby they are screened in, for example, they have good environmental policies.
Page reference: 98
3
The UK stock market index which is designed to reflect the performance of socially responsible equities is called the .
The FTSE4Good index covers four markets and, to decide on inclusion of companies in the index, uses criteria based on three areas: human rights, stakeholder relations, and the environmental impact of a company's activities.
Page reference: 102
4
The UN Global Compact consists of nine principles relating to the areas of human rights, standards, and environmental practices.
The UN Global Compact is an initiative to encourage businesses across the world to adopt, and report on, sustainable and socially responsible policies.
Page reference: 101
5
Corporate social responsibility (CSR) was conceptualized by (1979).
He viewed the social responsibilities of business as encompassing the economic, legal, ethical and discretionary (including philanthropic) expectations of society.
Page reference: 103
