This ethical investing approach is a comparative investment style that involves investing only in companies that lead their peer groups in respect of environmental and social performance.
A firm may not be considered as a leader in social practices, but versus it's direct peers, it may be industry leading, thus would qualify for investment.
Corporate Governance involves the execution of the responsibilities of share ownership. Practical execution of corporate governance typically involves the execution of voting policy and challenging the policies and processes a company has in place.
Corporate governance is highly important to ensure managers avoid abusing their power or undertaking improper actions that could result in questionable behaviours and practices within organisations.
This is where the provision of capital and financial services is given to communities that are underserved by traditional financial services and particularly to low-income individuals, small businesses and community services such as child care, affordable housing, and healthcare.
Investing in the equity of microfinance institutions that promote local economic development at the ‘bottom of the pyramid’ through the issuance of ‘micro-loans’ and ‘micro-insurance’.