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Socially Responsible Investing

Socially Responsible Investing. Ashneil Jain Mircea Cernev SRI Associates. What SRI is?. Investment Strategy Maximize Return Increasing Social Good Societal Investing Corporate Governance Avoiding “Sin stocks” alcohol, tobacco, gambling, weapons. SRI Index.

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Socially Responsible Investing

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  1. Socially Responsible Investing Ashneil Jain Mircea Cernev SRI Associates

  2. What SRI is? • Investment Strategy • Maximize Return • Increasing Social Good • Societal Investing • Corporate Governance • Avoiding “Sin stocks” • alcohol, tobacco, gambling, weapons

  3. SRI Index • Index designed to quantify social responsibility of a stock • 3 Criteria • Societal • Corporate Governance • Company Product • Each receives a score on a 1-10 scale • Weighted averages attain total score

  4. SRI Index • Overall Score Recommendation • 1-4: Strongly negative • 4-5: Weak/Medium negative • 6-7: Weak/Medium positive • 7-10: Strong positive • Criteria Weight • Societal: 35% • Corporate Governance: 35% • Company Product: 30%

  5. SRI Applied to NVIDIA • Generally, fortune 500 companies have strong SRI programs, small companies do not • Societal Investment: 7.5 • CUDA Center of Excellence (CCOE) Research Program • Academic Partnership Program for Grants and Donations • Very Weak corporate governance: 2 • Investigation into Fraud Allegations • Company Products: 4 • Essentially a IT company, average in terms of product

  6. Overall Stock Score 4.5

  7. Recommendation: Weak Negative

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