SOCIALLY RESPONSIBLE INVESTING TOWARDS IMPACT INVESTMENTS: RECENT DEVELOPMENTS IN SOCIAL FINANCE

Purpose - Socially responsible finance has emerged as a growing area of interest. In this study, the objective is to define the conceptual framework of socially responsible investing and impact investments and to discuss the recent approaches which have become prominent. Methodology – We discussed the current literature by reviewing published academic studies and practitioners’ reports. Findings- We determined that various non-governmental organizations and international organizations endeavored to promote the development of socially responsible investing globally. While the conceptual framework has been growing recently, measuring social impact has been the area in which the most important developments have been seen. Conclusion- A perception, that prioritizes social impact, sustainability and corporate governance rather than individual benefit, has been advancing theoretically and practically. Concordantly, new approaches should be designed; new financial instruments, which address various social needs, should be innovated. Moreover, new regulations should be adopted. It is promising that a financial model, which pursues the whole society’s benefit and cares about sustainability issues such as environment, is progressing