Can the UK experience provide lessons for the evolution of SRI in Japan?

Aris Solomon, Jill Solomon, Megumi Suto

    Research output: Contribution to journalArticle

    42 Citations (Scopus)

    Abstract

    In this paper we review the growth of socially responsible investment (SRI) in the UK and in Japan. We consider the various factors which have given rise to the growth of SRI in both countries. As SRI is currently more mature in the UK than in Japan, we consider ways in which the UK experience may provide some lessons for the growth of SRI in Japan. Significantly, we consider that the use of corporate governance mechanisms such as engagement and dialogue by large shareholders, to solve social, ethical and environmental (SEE) problems in companies, is a realistic route for the development of SRI in Japan. However, these mechanisms need to be designed so that they may operate more efficiently. Pension funds and other investment institutions need to appreciate the value of engagement over screening as an SRI strategy. Further, the disclosure of SRI strategies by pension funds in Japan may contribute to enhancing consciousness about the responsibility of shareholders for the SEE outcomes of corporate activities that they invest in indirectly. We acknowledge, however, that this suggestion may be difficult to implement in the near future.

    Original languageEnglish
    Pages (from-to)552-566
    Number of pages15
    JournalCorporate Governance
    Volume12
    Issue number4
    Publication statusPublished - 2004 Oct

    Fingerprint

    Shareholders
    Socially responsible investment
    Japan
    Screening
    Industry
    Investment strategy
    Pension funds
    Factors
    Consciousness
    Large shareholders
    Corporate governance mechanisms
    Responsibility
    Disclosure

    Keywords

    • Institutional investors
    • Japan
    • Socially responsible investment

    ASJC Scopus subject areas

    • Management of Technology and Innovation
    • Strategy and Management
    • Business, Management and Accounting(all)

    Cite this

    Solomon, A., Solomon, J., & Suto, M. (2004). Can the UK experience provide lessons for the evolution of SRI in Japan? Corporate Governance, 12(4), 552-566.

    Can the UK experience provide lessons for the evolution of SRI in Japan? / Solomon, Aris; Solomon, Jill; Suto, Megumi.

    In: Corporate Governance, Vol. 12, No. 4, 10.2004, p. 552-566.

    Research output: Contribution to journalArticle

    Solomon, A, Solomon, J & Suto, M 2004, 'Can the UK experience provide lessons for the evolution of SRI in Japan?', Corporate Governance, vol. 12, no. 4, pp. 552-566.
    Solomon, Aris ; Solomon, Jill ; Suto, Megumi. / Can the UK experience provide lessons for the evolution of SRI in Japan?. In: Corporate Governance. 2004 ; Vol. 12, No. 4. pp. 552-566.
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