This research applies the notion of sustainability (Barney, 1991; Braa, Monteiro, & Sahay, 2004) to the mechanisms used by socially responsible investment(SRI) firms with respect to their stakeholders (investors and target firms). A contrast is developed between US and UK SRI firms. It is noted that screens, while maintaining a strong investor base, are less sustainable from the perspective of the firms targeted by SRI funds, whereas advocacy has stronger elements of sustainability with respect to the relations with corporations.

This article discusses the development and application of various types of corporate social monitoring systems. Boycotts are a relatively simple form of social monitoring system which aim to produce changes in corporate social behavior. Boycotts may be organized by a single group, or by a number of groups simultaneously. Rating systems may be organized around a single issue, such as the Sullivan Principles rating scheme, or may include multiple companies and multiple issues, such as shopping guides or ethical investment systems.Monitoring (...) systems may be unidimensional or multidimensional, qualitative or quantitative, and absolute or relative. Consumers and investors appear to be the groups most likely to be targeted in these schemes. The importance of these monitoring systems appears to be increasing as both consumers and investors become more interested in using social criteria in decision-making. (shrink)

The paper focuses on the development and practices of Socially Responsible Investment (SRI) in the US and Europe. The aim is to explore the historical, cultural and political embeddedness of SRI. Based on secondary sources of information, it offers a comparative analysis of the development and current practicesof SRI on both sides of the Atlantic and discusses the future implications for SRI. The paper shows that SRI movements in both regions present differences in terms of definitions, actors involved, vocabulary and (...) motivations, and strategies implemented. Nonetheless, they also share a common underlying purpose and seek similar goals of improving corporations’ policies and practices on social and environmental issues. (shrink)