Responsible Investment in Emerging Markets: Priorities for Action

"Engaged investors... create long-term value for companies and wider society" - Rory Sullivan.

“Engaged investors… create long-term value for companies and wider society.” – Rory Sullivan

In recent years, investors have argued that “responsible investment” allows investors to maximise the financial and social benefits of their activities, and, simultaneously, to mitigate the negative impacts of their investments. As yet, however, little has been written in the practitioner or in the academic literature about the responsibilities of investors in emerging markets, about the practicalities of implementing responsible investment in emerging markets, or about the outcomes (financial and social) that result.

The latest issue of the Journal of Corporate Citizenship addresses this gap in the literature by presenting a series of major articles that analyse the implications, for investors and for society, of investors seeking to take a more responsible approach to their investments. The articles highlight the potential contribution of foreign investment to economic development and to wider society (e.g. through skills development, local economic development, local employment). They also explain that foreign investment is not unambiguously positive for developing countries, with many such investments being criticised for their negative impacts on local communities and the local environment, for the lack of local benefits and for their volatility.
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