Socially responsible investing drives CSR

Investors today have now become as concerned about corporate ethics as they are with how profits have been earned. Following this trend, industry surveys by organisations such as KPMG and Business in the Community (BITC) confirm that more than half of the world's 250 largest companies now issue separate Corporate Social Responsibility reports as standard.

The emergence of sustainability indexes such as the Dow Jones Sustainability Index (DJS) and the FTSE4 Good Index have encouraged companies to produce sustainability reports including aspects of social, ethical, environmental and economic issues.

Kosta Petrov, Conference Manager, said, "The business case for CSR is being driven by Socially Responsible Investing (SRI). Investors not only want transparent reporting, they want to see CSR programmes that address both social and environmental issues. Whilst SRI criteria are ethical, they address more than just ethical issues, it relates to the long-term performance of companies. More and more investors feel these are crucial to identify well-managed companies that are well positioned for future success."

Socially Responsible Investing (SRI) is now an integral and growing part of CSR affecting not only corporate companies but also the international investment industry. SRI is a process that evaluates the social and environmental consequences of investments within the context of rigorous financial analysis. Companies that meet the exacting standards of CSR are regarded as morally sound investment opportunities that deliver value to society at large, as well as to stakeholders.

According to industry experts, the three key criteria of SRI are economic, environmental and social. Corporate governance is a crucial factor for the long-term success of companies. Global warming too is now an inconvenient truth for many organisations. Measuring, reporting and reducing carbon footprints are now being integrated into environmental stewardship programmes, driven by sustainable long term CSR strategy. Regarding social issues, human capital is a critical factor for the long-term success of companies and so more investors are starting to look at that issue when analysing companies and deciding where to invest.

Hamad Malik, Director Corporate Communications, LG Electronics Middle East, commented,

"Aligning and integrating CSR with business strategy is the key challenge today for corporate cultures to absorb. Investors and consumers have become more enlightened and have started to demonstrate a gradual preference towards products, services and organisations that are associated with a social or environmental benefit."

This year's Summit features 41 speakers from 17 different countries, with the programme split into four main categories mirroring the key principles of CSR; Promoting CSR In The workplace; Positioning CSR In The Market; Contributing To The Community and Emphasising Global Warming And Climate Change And Their Impact On Business.

An impressive line-up of international and regional expert speakers has been assembled which include amongst others, Anna E. Roosevelt, VP Global Corporate Citizenship, The Boeing Company, USA; Jan Buckingham, Director Global Values, The Body Shop, UK; Ian Kiernan, Chairman And Founder, Clean Up Austrailia And Clean Up The World, Australia; Matthias Gelber, Board Member, International Network Of Environmental Management, Malaysia;

In association with Shell Middle East, the event has also attracted premium sponsors with Abu Dhabi-based Al Qudra Holding Company and internationally renowned Dow Chemical Company, confirming their support.