ABSTRACT
In July 2001, FTSE Group (ftse), the global index company, created the FTSE4Good Index in response to the increasing attention being paid to responsible investment from a broad range of investors. FTSE is one of the world's leading index calculation, management and distribution vendors. The company is a joint venture, owned equally by the London Stock Exchange and the Financial Times. Stock market indices are used by investors and market commentators to describe the collective price performance of a group of assets be it stocks, bonds or any other tradable commodity. A number of factors have contributed to the effectiveness of FTSE4Good—peer-group pressure, media coverage, legislation, and transparency and disclosure. From an investment perspective, FTSE4Good provides investors with exposure to a broad range of companies that are doing more to manage their environmental and social impacts and that are capitalising on the benefits of good corporate social responsibility practice.
