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Can the UK Experience Provide Lessons for the Evolution of SRI in Japan?

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Author Info
Aris Solomon (Cardiff University)
Jill Solomon (BRASS, Cardiff Business School, Cardiff University, Cardiff, Wales, UK)
Megumi Suto (Graduate School of Finance, Accounting and Law, Waseda University in Tokyo, Japan)
Abstract

In this paper we review the growth of socially responsible investment (SRI) in the UK and in Japan. We consider the various factors which have given rise to the growth of SRI in both countries. As SRI is currently more mature in the UK than in Japan, we consider ways in which the UK experience may provide some lessons for the growth of SRI in Japan. Significantly, we consider that the use of corporate governance mechanisms such as engagement and dialogue by large shareholders, to solve social, ethical and environmental (SEE) problems in companies, is a realistic route for the development of SRI in Japan. However, these mechanisms need to be designed so that they may operate more efficiently. Pension funds and other investment institutions need to appreciate the value of engagement over screening as an SRI stra-tegy. Further, the disclosure of SRI strategies by pension funds in Japan may contribute to enhancing consciousness about the responsibility of shareholders for the SEE outcomes of corporate activities that they invest in indirectly. We acknowledge, however, that this suggestion may be difficult to implement in the near future. Copyright Blackwell Publishing Ltd. 2004.

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Publisher Info
Article provided by Blackwell Publishing in its journal Corporate Governance.

Volume (Year): 12 (2004)
Issue (Month): 4 (October)
Pages: 552-566
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Handle: RePEc:bla:corgov:v:12:y:2004:i:4:p:552-566

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  1. Eng Cheah & Wen Chan & Corinne Chieng, 2007. "The Corporate Social Responsibility of Pharmaceutical Product Recalls: An Empirical Examination of U.S. and U.K. Markets," Journal of Business Ethics, Springer, vol. 76(4), pages 427-449, December. [Downloadable!] (restricted)
  2. Jonas Nilsson, 2008. "Investment with a Conscience: Examining the Impact of Pro-Social Attitudes and Perceived Financial Performance on Socially Responsible Investment Behavior," Journal of Business Ethics, Springer, vol. 83(2), pages 307-325, December. [Downloadable!] (restricted)
  3. Henry Hongbo Jin & Olivia S. Mitchell & John Piggott, 2005. "Socially Responsible Investment in Japanese Pensions," NBER Working Papers 11747, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Wim Vandekerckhove & Jos Leys & Dirk Braeckel, 2008. "A Speech-Act Model for Talking to Management. Building a Framework for Evaluating Communication within the SRI Engagement Process," Journal of Business Ethics, Springer, vol. 82(1), pages 77-91, September. [Downloadable!] (restricted)
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