Abstract
In common law legal systems, such as in the United Kingdom and the United States, fiduciary duties exert an important influence on institutional investors' latitude to practice socially responsible investment (SRI). Obligations on fund managers, trustees, and others who have custody of investors' money generally require that they invest prudently in their best financial interests. In limited circumstances, this legal framework may allow SRI such as when these investments offer comparable returns, the fund's constitution mandates SRI, or if beneficiaries consent to SRI. Recent statutory reforms in some jurisdictions have created a more enabling legal environment for SRI than in the past.
| Original language | English |
|---|---|
| Title of host publication | Socially Responsible Finance and Investing |
| Subtitle of host publication | Financial Institutions, Corporations, Investors, and Activists |
| Editors | H. Kent Baker, John R. Nofsinger |
| Place of Publication | Hoboken, NJ |
| Publisher | John Wiley & Sons |
| Pages | 69-85 |
| Number of pages | 17 |
| ISBN (Electronic) | 9781118524015, 9781118237014, 9781118262054, 9781118223758 |
| ISBN (Print) | 9781118100097 |
| DOIs | |
| Publication status | Published - 2012 |
| Externally published | Yes |
Keywords
- Beneficiaries
- Fiduciary duties
- Legislative reform
- Social responsibility
- Trust law
- Trustees