ABSTRACT
The integration of products and financial markets has increased the interdependence of economic actions. Transnational corporations operate in an international scenario in which regulation is missing or inevitably weaker than in the domestic economic scenario. These factors may help to explain why individual and institutional investors are increasingly demanding corporations to act in a socially responsible way. Socially responsible investment (SRI) refers to investments through which investors combine financial objectives with their commitment to social concerns. In the absence of well-established and enforceable international regulatory frameworks, corporate social responsibility (CSR) can be a useful investment criterion to avoid potential negative externalities in the market (Siegel and Vitaliano 2007). Therefore, corporations are facing an increased demand not only to achieve robust economic growth, but to also pursue this goal in a more ethical and responsible manner.
