Question

1. Does socially responsible, sustainable, or ethical investing seem to you to be a legitimate way in which the average citizen might demonstrate her or his concern for CSR? Why is it also called impact investing? Discuss.

Answer 1

Yes and it is obvious for organizations to think ethically and act as such. They definitely impact the potential investors to the company. In fact CSR is interlinked with impact investing they have many things in common.

Both of them use same techniques and market methods but in some different ways.Both are a part of the process in integrating the main goals of the organizations with that of the society or the environment. It is clearly evident that CSR will bring market to the impact investing.Both are created on a common base that the company's business can be used to bring positive social and environmental affects. Apart from common points they have some differences too.

Impact investing has been recently introduced to the business culture but CSR has been since ages into the business culture. So CSR is like a big brother to the impact investing though they share some common feature in the environment. And also one of the main difference is that Impact investing must derive some financial return where as CSR doesn't have any so this will be major difference in between the CSR and impact investing.

Apart from the above differences, CSR and Impact investing have many common points. Hence it is also called as impact investing.