ABSTRACT
Consumers, especially in developed countries, are becoming more responsive to product-labelling schemes, and some of them are even willing to pay more for a product if its production process is more ‘friendly’ to the environment. Not only does this kind of consumer activism affect consumption demands for goods labelled as environmentally friendly, it is also reflected in some investment choices, as exemplified by the ‘socially responsible investing’ (SRI) principles. As of 3 July 2000 British pension funds have been required by law to disclose whether they will take account of the environmental, ethical, and social impacts of their investments.
