ABSTRACT
Chapter 5 analysed how companies report on their corporate responsibility performance and the implications for investors seeking to use this information. In contrast, this chapter examines the implications of investment practice for corporate responsibility reporting and, more importantly, for corporate practice. It focuses on three issues: (a) the manner in which investors decide what is or is not financially material, (b) the manner in which social issues are treated in investment decision-making, and (c) the relative importance of investors versus other stakeholders in the debate around corporate responsibility reporting.
