Socially Responsible Investment Law: Regulating the Unseen Polluters by Benjamin J. Richardson
| DOI | http://doi.org/10.1111/j.1468-2230.2010.00814-3.x |
| Date | 01 July 2010 |
| Author | David Collins |
| Published date | 01 July 2010 |
the plurality of the regulatory environment, its communication £ows and net-
works of stakeholders.
Again the emphasis is on the shortcomings of ¢delityto existing methods and
norms of regulation.What makes the book so refreshing is that it sidesteps well-
rehearsed arguments for improving the scienti¢c basis of policy-making. Of
course, there is no denying the importance of good science in regulatory deci-
sions, but recognising the magnitude of policy uncertainties is crucial if regula-
tors are to ¢nd better ways of confronting technological development. This
notion of embracing rather than defying uncertainty crystallises in the closing
chapterby Justice Kirby, which serves as a salutary reminder of ourlimited capa-
city to regulate. RegulatingTechnologies is not the ¢nal word on atopic as kaleido-
scopic as this, nor does it claim to be, but it is an initial and novel attempt at a
systematic and more comprehensive analysisof regulationat the frontiersof mod-
ern technology.
Elen Stokes
n
Benjamin J. Richardson, Soci ally Responsible Investment Law: Regulating the
Unsee n Polluters,Oxford: Oxford University Press, 2008, 600 pp, hb d45.00.
Socially Responsible Investment (‘SRI’) was until recently a relatively unexplored
phenomenon but o ne that has drawn much attention of late, possibly as a consequence
of the internet’s capacity to provide investors with information about the ways in
which ¢nancial institutions direct their capital in order to turn pro¢ts.The regulation
of SRI is an equally uncharted discipline, making Richardson’s comprehensive study
the instant leading authority on this emerging, largely inchoate ¢eld of law.While not
fully conveyed in its title, Socially Responsible Investment Law investigates e¡orts to
encourage ethically themed indirect investment, meaning how money is put to use
by banks, fu nds and i nsurance compani es. It concentrates primarily on environmental
protection including the recently maligned concept ofcl imate change as well as tradi-
tional issues such as localised pollution from oil spills and particulate emissions.The
book does not discuss the associated, enormous topic of regulation of direct invest-
ment, mean ing the co ntrol of companie s who operate the projects that damage the
environment,a ndcomparativelylittle time is spe nton other harmful results of unethi-
cal investments such the treatment of workers and human rights. At one with the
spirit of our time, Richardson levels much, arguably deserved, criticism on banks
around the world for failing to acknowledge or identify the ha rmful conseque nces
of their support of projects that have wreaked untold damage on the planet.
Oneoftheprimarythemesofthebookisthenotionof‘re£exive’governance,in
which banks and other ¢nancial institutions self-regulate as a consequence of
enhanced awareness and recognition of the social implications of the channelling of
capital. Key to this phenomenon is transparency through record keeping, disclosure
and public accountability. Allowing ¢duciaries s ome room to take into account
environmental concerns as an alternative to bottom-line pro¢t-making is another
n
Law School,Cardi¡ University.
Reviews
689
r2010The Authors. Journal Compilation r2010The Modern Law ReviewLimited.
(2010)73(4) 679^696
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