Social Impact Investing

EthicalQuote (CEQ) tracks reputation of the world's largest companies on
Environmental, Social, Governance (ESG), Corporate Social Responsibility,
ethics and sustainability.
The Islamic Reporting Initiative (IRI) is a not-for-profit organization which leads
the creation of the IRI framework; the guiding integrated CSR reporting
framework based on Islamic principles and values.
In nations such as France, legal requirements for social accounting, auditing and
reporting exist, though international or national agreement on meaningful
measurements of social and environmental performance has not been achieved. Many
companies produce externally audited annual reports that cover Sustainable
Development and CSR issues ("Triple Bottom Line Reports"), but the reports vary
widely in format, style, and evaluation methodology (even within the same industry).
Critics dismiss these reports as lip service, citing examples such as Enron's yearly
"Corporate Responsibility Annual Report" and tobacco companies' social reports.
In South Africa, as of June 2010, all companies listed on the Johannesburg Stock
Exchange (JSE) were required to produce an integrated report in place of an annual
financial report and sustainability report. An integrated report reviews environmental,
social and economic performance alongside financial performance. This requirement
was implemented in the absence of formal or legal standards. An Integrated Reporting
Committee (IRC) was established to issue guidelines for good practice.
Verification
Corporate social responsibility and its resulting reports and efforts should be verified by
the consumer of the goods and services. The accounting, auditing and reporting
resources provide a foundation for consumers to verify that their products are socially
sustainable. Due to an increased awareness of the need for CSR, many industries have
their own verification resources. The include organizations like the Forest Stewardship
Council (paper and forest products), International Cocoa Initiative, and Kimberly
Process (diamonds). The United Nations also provides frameworks not only for
verification, but for reporting of human rights violations in corporate supply chains.
Ethics Training
The rise of ethics training inside corporations, some of it required by government
regulation, has helped CSR to spread. The aim of such training is to help employees
make ethical decisions when the answers are unclear. The most direct benefit is
reducing the likelihood of "dirty hands", fines and damaged reputations for breaching
laws or moral norms. Organizations see increased employee loyalty and pride in the
organization.
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