Hummels, Harry2019-09-252019-09-252010-02-182008http://hdl.handle.net/20.500.12424/173877The characteristic of responsible or ethical shareholders is that they do not merely acquire a risk-bearing share in the financial operation of a company, but deliberately opt to invest their money in firms which, as well as having good financial prospects, also take account of social, ethical and/or environmental aspects. The commonest form of responsible investment is investment in listed companies. Non-financial considerations also apply in the selection of fixed-income securities such as government and corporate bonds. An interesting asset class that explicitly addresses social, ethical, or environmental considerations is currently emerging: targeted investments with a specific non-financial goal. Examples are: microfinance, responsible timber investments, or clean energy. This paper will address the topic of responsible investment from the viewpoint of the institutional investor. Retail investments are disregarded. This paper is structured as follows. In section 2 I will outline the various meanings of CSR. Section 3 views the concept of CSR in practical terms, involving restrictions on the management’s freedom to decide the course pursued by the company. In section 4 I look at the significance of this practical interpretation for institutional investors – and particularly for pensions funds.engWith permission of the license/copyright holderresponsibility ethicsEconomic ethicsBusiness ethicsPreprint