Understanding socially responsible investing and its implications for Islamic investment industry

Social, ethical and environmental concerns have been used as important consideration for investment decision by an increasing number of investors. This can be seen by the size and growth of the socially responsible investment (SRI) industry in the developed economies. At the same time, scholars and...

Full description

Bibliographic Details
Main Author:	Barom, Mohd Nizam
Format:	Article
Language:	English
Published:	UiTM 2019
Subjects:	BP173.75 Islam and economics HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/72993/ http://irep.iium.edu.my/72993/ http://irep.iium.edu.my/72993/1/MN%20Barom%20%282019%29_Understanding%20SRI%20and%20Its%20Implications%20for%20Islamic%20Investment%20Industry_JEEIR%20Vol.%207.1%2C%20pp.%201-13.pdf

id	iium-72993
recordtype	eprints
spelling	iium-729932019-07-03T00:22:14Z http://irep.iium.edu.my/72993/ Understanding socially responsible investing and its implications for Islamic investment industry Barom, Mohd Nizam BP173.75 Islam and economics HG3368 Islamic Banking and Finance Social, ethical and environmental concerns have been used as important consideration for investment decision by an increasing number of investors. This can be seen by the size and growth of the socially responsible investment (SRI) industry in the developed economies. At the same time, scholars and commentators of Islamic finance have also called for Islamic investment industry to learn from the experience of SRI in incorporating social responsibility issues in the investment process, in line with the ethical principles of Islam and the overall objective of the Shari’ah (Maqasid al-Shari’ah). This would require Islamic investment sector to have a clear understanding of the SRI industry in order to effectively benefit from its experience. This is particularly critical due to the significant diversity of investors and complexity in the issues and strategies adopted in the SRI industry. Hence, this paper adds to the Islamic investment literature by providing an extensive and systematic survey of SRI industry in terms of its (i) underlying motivations and values; (ii) issues of concerns; (iii) types of investors; and (iv) screening strategies. It then synthesizes these components within the context of the ‘value-based’ investors. This synthesized framework offers a useful tool for Islamic investment practitioners to understand the theoretical and practical aspects of SRI. Subsequently, the paper highlights important implications of the findings for Islamic investment industry in terms of the issues that it needs to consider in emulating SRI practices and a number of lessons that it can learn from the SRI experience. Keywords: Socially responsible investing; Islamic investment; Islamic finance; Ethic; Social responsibility UiTM 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/72993/1/MN%20Barom%20%282019%29_Understanding%20SRI%20and%20Its%20Implications%20for%20Islamic%20Investment%20Industry_JEEIR%20Vol.%207.1%2C%20pp.%201-13.pdf Barom, Mohd Nizam (2019) Understanding socially responsible investing and its implications for Islamic investment industry. Journal of Emerging Economies and Islamic Research, 7 (1). pp. 1-13. E-ISSN 2289-2559 http://www.jeeir.com
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	BP173.75 Islam and economics HG3368 Islamic Banking and Finance
spellingShingle	BP173.75 Islam and economics HG3368 Islamic Banking and Finance Barom, Mohd Nizam Understanding socially responsible investing and its implications for Islamic investment industry
description	Social, ethical and environmental concerns have been used as important consideration for investment decision by an increasing number of investors. This can be seen by the size and growth of the socially responsible investment (SRI) industry in the developed economies. At the same time, scholars and commentators of Islamic finance have also called for Islamic investment industry to learn from the experience of SRI in incorporating social responsibility issues in the investment process, in line with the ethical principles of Islam and the overall objective of the Shari’ah (Maqasid al-Shari’ah). This would require Islamic investment sector to have a clear understanding of the SRI industry in order to effectively benefit from its experience. This is particularly critical due to the significant diversity of investors and complexity in the issues and strategies adopted in the SRI industry. Hence, this paper adds to the Islamic investment literature by providing an extensive and systematic survey of SRI industry in terms of its (i) underlying motivations and values; (ii) issues of concerns; (iii) types of investors; and (iv) screening strategies. It then synthesizes these components within the context of the ‘value-based’ investors. This synthesized framework offers a useful tool for Islamic investment practitioners to understand the theoretical and practical aspects of SRI. Subsequently, the paper highlights important implications of the findings for Islamic investment industry in terms of the issues that it needs to consider in emulating SRI practices and a number of lessons that it can learn from the SRI experience. Keywords: Socially responsible investing; Islamic investment; Islamic finance; Ethic; Social responsibility
format	Article
author	Barom, Mohd Nizam
author_facet	Barom, Mohd Nizam
author_sort	Barom, Mohd Nizam
title	Understanding socially responsible investing and its implications for Islamic investment industry
title_short	Understanding socially responsible investing and its implications for Islamic investment industry
title_full	Understanding socially responsible investing and its implications for Islamic investment industry
title_fullStr	Understanding socially responsible investing and its implications for Islamic investment industry
title_full_unstemmed	Understanding socially responsible investing and its implications for Islamic investment industry
title_sort	understanding socially responsible investing and its implications for islamic investment industry
publisher	UiTM
publishDate	2019
url	http://irep.iium.edu.my/72993/ http://irep.iium.edu.my/72993/ http://irep.iium.edu.my/72993/1/MN%20Barom%20%282019%29_Understanding%20SRI%20and%20Its%20Implications%20for%20Islamic%20Investment%20Industry_JEEIR%20Vol.%207.1%2C%20pp.%201-13.pdf
first_indexed	2023-09-18T21:43:30Z
last_indexed	2023-09-18T21:43:30Z
_version_	1777413296308092928

Understanding socially responsible investing and its implications for Islamic investment industry

Similar Items