DISCUSSION PAPER PI-0504

Socially Responsible Investment by trustees of charities and occupational pension funds (SRI)

Paul Palmer

ABSTRACT

This paper initially explores the rationale and growth of corporate social responsibility by companies. The paper then charts the development and legislative background to the regulations to the Pensions Act 1995 and the forthcoming Charities Act 2005 which for the first time obliges charities and pension scheme trustees to state in their statement of investment principles a policy on SRI . But what is SRI? What are the current key SRI concerns. This paper then explores current information providers and performance indicators for charities and pension funds wishing to invest in socially responsible companies. The paper concludes with proactive strategies and observations on future developments in SRI. This paper does not consider legal issues or the current ethical funds now available.

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