The EIRIS Foundation
What is Socially Responsible Investment?
What does the EIRIS Foundation do?
What are our areas of interest?
The EIRIS Foundation is a charity that supports ethical investment. It researches the social and ethical aspects of companies and provides other charities with information and advice to enable them to choose investments which do not conflict with their work. The Foundation funds specific projects to achieve these charitable aims. EIRIS Ltd is the Foundation’s subsidiary – it helps to deliver the charitable aims and provides information services to investors.
The history of EIRIS and the history of ethical investment are closely intertwined. EIRIS was established in 1983 as a collaborative research venture by a group of churches and charities that needed to put their own principles into practice. In 1984 Friends Provident launched the Stewardship Fund, the UK’s first ethical unit trust and EIRIS provided, and still provides, the research. As the ethical investment market has grown so has EIRIS, researching an increasing number of global companies and improving the quality of its information and advice.
What is Socially Responsible
Investment?
Ethical or
socially responsible investment (SRI) describes the process where the principles
of the investor influence which company or institution they choose to invest in
or place their money with, or how they use their power as a shareholder. We use
the terms not just to refer to screening equities for investment but also to
describe engagement with companies, banking, investment in debt instruments and
“cause-based investments” in enterprises with social, environmental or ethical
objectives.
SRI has a long history with its roots in
nineteenth century religious organisations such as the Methodists and the
Quakers. The movement really took off in the 1970s and 80s with the
international campaign against apartheid in South Africa and growing concern
over environmental issues. The first UK ethical unit trust was launched in
1984, by the end of the decade there were 44 ethical funds. Interest continued
to grow in the nineties with an increase in engagement between SRI funds and
companies, a growing number of shareholder resolutions and greater pressure for
companies to be transparent about their social and environmental impacts.
Recent years have seen SRI becoming entrenched in the world’s financial
centres. In 2000 UK pension law came into effect requiring trustees to state
which social, environmental and ethical factors are considered in the selection
of investments and in 2001 the Association of British Insurers (whose members
control about 20% of the shares listed in London) issued SRI guidelines.
What does the EIRIS Foundation do?
We provide information about a wide range of possible ethical criteria to allow individuals and organisations to apply their own ethical judgements
We comment on, or research, the relationship between, financial and ethical criteria but we do not give financial advice.
We co-operate with other similar organisations both in the UK and overseas. In recent years we have worked with the UK Social Investment Forum, Charities Aid Foundation and Corporate Accountability.
We fund other bodies to undertake work on our behalf where this will enable us to achieve our aims most effectively.
We seek funding to increase the scope of our work.
We maintain our independence from both the subsidiary’s clients and the companies we research.
EIRIS Foundation projects have included:
The Charity Project offering information, advice and support to charities interested in ethical investment.
The publication of several briefing papers including a paper on the effectiveness of environmental management systems and one on corporate codes of business ethics.
Funding for the UK Social Investment Forum to support the development of better online public information about socially responsible investment.
What are our areas of interest?
Governance issues such as board practice and codes of ethics
Environmental issues such as performance and reporting
Social issues such as human rights and labour standards
Globalisation
Exploring the impact and progress of SRI and corporate social responsibility (CSR)
New ethical concerns
Corporate disclosure – tracking levels of disclosure and working to improve disclosure
Exploring whether SRI and CSR can help provide solutions to current problems such as climate change, poverty and conflict
· Individuals –we have written many publications about SRI, CSR and related issues. Some are issued regularly others are one offs. We can add you to our mailing list and send you past copies.
· Charities – would you like to discuss an ethical investment approach for your charity?
· Like minded organisations – do you have projects planned that fit with our aims as well as yours? We could discuss how we could work together to increase the impact of our work.
· Funders – The EIRIS Foundation continues to lead the way in the development of SRI and CSR. We could discuss funding opportunities for new projects.