Journal of Business Ethics

, Volume 95, Issue 1, pp 145–150 | Cite as

Information Asymmetry and Socially Responsible Investment



Selecting, applying and reporting on investment screens for socially responsible investing (SRI) presents challenges for companies, investors and fund managers. This article seeks to clarify the nature of these challenges in developing an understanding of the foundations of ethical investment screens. At a conceptual level this work argues that there is a common element to the ethical foundations of SRI, even with very different apparent motivations and investment restrictions. Establishing this commonality assists in explaining the information asymmetry problem inherent in SRI. A market-facilitated solution illustrates how these insights might foster the development of socially responsible investment.


accounting conventions fund management information asymmetry social policy socially responsible investing 



Socially responsible investment


Ethical Investment Research Service


Global Reporting Initiative


Capital Asset Pricing Model


Social Investment Forum


Corporate social responsibility


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Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  1. 1.University of East LondonLondonU.K.

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