Essay 3: SOCIALLY RESPONSIBLE
INVESTMENTS
PURPOSE
Skills
· CLO2. Apply and analyze concepts showing relation to
improved personal and business decisions and firm performance, further
demonstrating understanding of social impact and ethical dimensions of decision
making.
· CLO6. Demonstrate interpersonal as well as effective oral
and written communication skills.
· CLO7. Hypothesize upcoming developments in capital markets
and regulations.
Knowledge
· MLO3:
Discuss and apply financial literacy
· MLO5:
Theorize and discuss potential upcoming regulations in capital markets
This assignment will also help you become familiar with the
following important content knowledge in FIN360 Capital Markets:
· The
need for broader deeper financial literacy accessible to all
· The
limits of human analytics without constant reinforcement, as evidenced in
behavioral finance studies
· The
limits of conflicts of interest and critical thinking before authority, beyond
the classical moral hazard of banks in relation to financial crises and
subsequent regulations
· The
discussions about how finance can systematically better serve society
·
The need for finance and business graduates in
general to develop critical thinking to anticipate
and discuss these issues in a reliable reference-based manner
TASK
In FIN360 we have introduced the origin of regulations,
different financial products and services, have discussed high frequency
trading, behavioral finance, moral malleability and risk vs return
considerations in firms from early-stage to mature state valuations. We have also discussed the origin of Socially
Responsible Investments.
Keeping in mind the material we have covered in Capital
Markets, and complementing it with your own referenced research, please answer
the following questions:
Question 1: What is the evidence to-date about whether SRIs
outperform or underperform non-SRIs? (40 to 75 words excluding references)
Question 2: Is there evidence of institutional “nudging”
within fiduciary duty benefiting Main Street regarding SRIs? (40 to 75 words
excluding references)
CRITERIA FOR SUCCESS – Rubric for each question
10 points: Within
range of 40 to75 words. Correct strong reasoning with all appropriate
references.
8.5 points: Within
length range. Correct but limited reasoning or lacking references.
7 points: Within
range but Incorrectly explained
5.5 points: Not
within range
0 points: Not
answered
