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Nilanjan Dey

Kolkata , Feb. 9

ROTARY International's latest most-wanted list has just a single entry: Socially responsible investors. A worldwide search, which has already hit Indian shores, has been launched to locate relevant data about socially responsible investments. It covers mutual funds (MFs) and companies that follow certain value-based policies.

Large quantities of electronic data are being generated to churn out authentic information on socially responsible investment, a subject that is seriously researched and discussed in some investment circles.

Ms Tiffany Woods, based at Rotary International's (RI) headquarters in Illinois, the US, has already written to select Rotarians to identify people who can be interviewed for the purpose. Among the recipients is the chairperson of the Environment Fellowship of Rotarians.

The attempt, RI has stated, is to dwell on investments based on values, especially MFs and corporates that respect human rights, protect the environment or treat their workers fairly. Among the examples that have been provided are Domini's and Calvert's funds — both names that Indian investors are not quite familiar with.

The aim is to discuss with Rotarians who invest in financial instruments such as these, it is pointed out. Interestingly, RI would like to spot members who, despite knowing about such instruments, prefer not to direct their money into them. Talking to members who manage socially responsible funds is also on the agenda.

Socially responsible funds are completely unknown in India, a country where most investors opt for aggressive and growth-driven strategies. No fund house, except perhaps an early and unsuccessful attempt by JM Mutual Fund, has attempted to work out a scheme appropriate for local socially responsible investors.

Domini Funds, to elaborate on one of the examples cited by RI, claims to engage companies on issues like global warming, sweatshop labour and product safety. It prefers companies that do not pollute or discriminate and those producing useful and safe products. Such outfits are more likely to turn out to be sound investments in the long run. At another level, Domini states that it does not invest in companies that derive revenues from the manufacture of tobacco products, regardless of any positive quality that they may display in other areas.

Ms Woods of RI has sensed that some Rotarians might be allocating their assets to funds that are environmentally conscious. One purpose is "to learn about these Rotarians' experiences with such investments and to find out their reasons for investing (or not investing) in them," she has mentioned by way of providing the necessary background.

"The ultimate goal is to help Rotarians decide if they should invest in these funds and stocks. Given that Rotary is made up of business people and other professionals who engage in humanitarian works and who are largely financially savvy, I would think that the topic would be of interest to its members," she said.

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