ONTOLOGY OF SOCIALLY RESPONSIBLE INVESTING. APPLYING GLOBAL FRAMEWORKS FOR AN EMERGING MARKET IN RUSSIA

This article considers the evolution of socially responsible investing (SRI) in Russia. We seek to track the development of SRI practices and then examining how adopting ESG does measures can affect the firm valuation within the market and how does it affect its financial performance, risk management and equity prices. From a complementary perspective, we seek to evaluate to which extent SRI and other relevant socio-economic factors can reframe the business practices of Russian corporations and business communities to comply with ESG principles. We conclude that while financial instruments already show the advantages of SRI in Russia, social pressure influencing business is not sufficient for the widespread adoption of the ESG principles by both management and investors. This gap indicates that there are opportunities for investors and stakeholders willing to create value based on the principles of socially responsible business and investment ahead of the market.