ABSTRACT

Savings—meaning the disposable income that is directly invested and funds located in the reserves of insurance companies or pension funds—serve largely to finance corporations via the equity and bond markets. Thus, it makes sense that savings be invested in enterprises concerned with their performance on a social, environmental, and economic level. The role played by financial ratings agencies, or, more precisely, the disproportionate importance accorded such ratings by investors, is undoubtedly an aggravating factor when it comes to the financial crisis. Taking into account social and environmental impact requires that traders, savers, pension funds, corporations, and institutional investors reconnect with a culture of investment. That every individual have access to the financial markets via an online trading site may well be a good thing; however, the economy needs to maintain conduits for channeling savings toward the long term.