Considering what is going right now, SRI is crucial. We need to make sure that we are only investing in stable, responsible companies.
It is important to be wary of corporate equity or debt that may support firms that leverage questionable labor practices. This is most prevalent in unregulated emerging economies where astronomical GDP growth is overshadowing labor issues that include high risk activities and child labor. Today, the returns coming from developing economies can cloud even the most grounded fund manager’s judgment.
Many international organizations and think-tanks are striving to keep pace with developing economies by creating new and updated labor indices to assist investors with ethical decision making:
- International Labour Organization Child Labour Database
- The US Bureau of International Labor Affairs
- Calvert Social Index (great for on-shore portfolios)
Please add any other great resources.