There are several number of ethical practices in market products ranging from bank accounts with low interest rates but which invest in developing projects;
to ethical funds that scrutinize companies in which they invest. A number of investors are planning to play an increasing role in governance and the strategic direction of the companies in which they invest. It is suggested that activist investors need to incorporate corporate social responsibility (CSR) more directly in their approaches in companies. Investors need to use different tactics to interact with companies including proposing or supporting shareholder resolutions;
publicizing areas of disagreement with company management;
encouraging reporting and disclosure;
and assessing company performance. It is suggested that institutional investors need to increasingly adopt a stewardship approach to their investments and become more focused on longer term performance issues rather than taking a short-term approach;