Social responsibility investment: An en-route to attain social responsibility objectives by the corporations

The mindless usage of resources in the name of industrialization has caused several imbalances in the ecology and the environment which has resulted in various natural hazards. This called for an equitable balance between industrialization and environmental protection. The rising environmental concerns and plethora of causes affecting the same has become a debate in the recent years. All the above made the industries to take up ‘Corporate Social Responsibility’ as a mandate and the same was appropriately brought in the Companies Act 2013 in India. Though the socially concern companies were following voluntary CSR practices, the new Companies Act 2013 made it mandatory so as to impose responsibility on the corporations to protect the environment through CSR practices. Meanwhile, the concept of ‘Social Responsibility Investment’ is taking strides across the globe as an avenue for deriving financial return as well as achieving ESG (Environmental, Social and Governance) objectives. Investors concerned about environment are presumed to be interested to invest more in a firm adopting CSR as it will serve both the purposes. By making about a ‘socially conscious’ investment, not only the shareholders but the entire stakeholder community can be benefited. The present paper focuses on significance, evolution of theory and research, social-responsibility screening, investor preference and the future prospects of SRI (Socially Responsible Investment) in India. The methodology adapted is descriptive in nature and data is collected from secondary sources. The study concludes that the significance of Green Investment strategy needs to be popularized to the maximum to bring about an overall positive change in the economy.