The Development of the Social Responsible Investment Analysis Toolkit

<p>This investigation is essential for the efficiency analysis of socially responsible investment projects. Despite the fact that this problem is a newly involving branch, numerous attempts have been made to find the most appropriate method of the social responsible investment projects efficiency analysis. However, these methods seem not to be quite suitable for the Russian practice. Among the existing criteria a number of indicators can be identified in order to make a certain social responsible investment evaluation, but these methods are not integrated into the system and do not allow to make a full analysis for the final conclusions formation about the effectiveness of this type of the investments.</p><p>In this research the attempt has been made to use a range of social indexes and universal methods for project efficiency evaluating in order to stress the necessity of making more sophisticated measurements. The relevance of this study is that it provides the procedures for assessing the socially responsible investment that is highly needed in the Russian investment practice.</p><p>The general purpose of the investigation involves the necessity to initial consideration of the general problems of the social investment evaluation and to work out ways that can help to undertake the social investment analysis. It seems reasonable to characterize these problems and to elaborate a new technique in order to find a unique approach, which could be helpful for practical purposes in the Russian reality. To achieve this goal several immediate tasks have been formulated. The main task is to give recommendations in regard to the modification of evaluation criteria for the socially responsible investment.</p><p>The main issue of the investigation is the lack of financial mechanisms, which compensate the increased risks of social investment projects. Therefore in the investigation a list of factors are elaborated, which can make a large contribution in the development of the socially responsible investment analysis toolkit. In addition, the paper presents algorithms for the social responsible investment projects evaluation.</p><p>The practical approach includes evaluation of socially responsible investment projects using Special social indexes and Economic Value Added method. The findings presented in the research demonstrate the fruitfulness of the application of these actions.</p><p>Further studies would give impetus for elaborating of an improved indicators system, which provides opportunities for qualitative assessment of socially responsible investment projects and creating a range of innovations that contribute to this process.&nbsp;</p>