"Socially Responsible" Investing and Pension Funds
Welcome Reform or Fiduciary Nightmare?

“Socially responsible” investing (SRI), which incorporates nonfinancial social and ethical criteria, has attracted significant publicity in recent years and sparked interest among some institutional investors, public pension funds, and Social Security reform advocates, particularly in the wake of recent corporate scandals. SRI adherents claim that one of every ten dollars in United States markets is invested using SRI principles. Although those claims are widely disputed, there is no question that public and some private pension programs are being asked to consider if and when they should include social and ideological screens when making investments. Social investing is not an exclusively American phenomenon. It is popular in Britain and Europe, and governments from Malaysia to Sweden to Canada have utilized pension funds to support stock markets or to make loans or create incentives with explicit social goals. Is this trend welcomed or a threat to fiduciary independence and responsibilities? This conference will examine social investing and its public policy implications.

About the Author

 

Jon
Entine
  • Jon Entine, a former Emmy-winning producer for NBC News and ABC News, researches and writes about corporate responsibility and science and society. His books include No Crime But Prejudice: Fischer Homes, the Immigration Fiasco, and Extra-Judicial Prosecution (TFG Books, May 2009), about prosecutorial excesses; Abraham's Children: Race, Identity, and the DNA of the Chosen People (Grand Central Publishing, 2007), which focuses on the genetics of race; Let Them Eat Precaution: How Politics Is Undermining the Genetic Revolution in Agriculture (AEI Press, 2006), about the genetic modification of food and farming; Pension Fund Politics: The Dangers of Socially Responsible Investing (AEI Press, 2005), which reveals the effects of social investing on pension funds; and the best-selling Taboo: Why Black Athletes Dominate Sports and Why We're Afraid to Talk about It (Public Affairs, 2000), based on an award-winning NBC News documentary. Currently, Mr. Entine is an adviser to Global Governance Watch (GGW), a project that examines transparency and accountability issues at the United Nations (UN), in nongovernmental organizations (NGOs), and in related international organizations. GGW also analyzes the impact of UN agencies and NGOs on government and corporations. He is also working on a book exploring the revolutionary impact of genomic research on medical treatments and traditional perceptions of human limits and capabilities.
  • Phone: 513-319-8388
    Email: jentine@aei.org
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