Explain stakeholder theory and how can stakeholder theory

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1. Define SRI.

2. Explain stakeholder theory. How can stakeholder theory be reconciled with a theory that says a firm's sole purpose is to maximize shareholder wealth?

3. List and explain at least four issues that an investor would consider when deciding whether a corporation is socially responsible.

4. Discuss the ways in which firms can treat employees well, and explain why "good" treatment of employees might be beneficial to shareholders. When would good treatment of employees be at odds with maximizing shareholder returns?

5. What are the potential costs of being socially responsible to a firm? How can these costs affect shareholder returns?

6. Explain how negative and positive screens work in SRI.

7. List three problems with creating SRI screens.

8. What are sin stocks?

9. What are three indexes available to monitor the risk and return characteristics of SRI?

10. How do the risk-return characteristics of SRI compare with traditional investing? Explain how targeted divestment varies from more traditional divestment movements. 12. Explain how the Grameen Bank works.

11. Discuss how microfinance lending and community investing can help alleviate poverty.

12. What is Islamic finance?

13. What is a Shariah Board?

Reference no: EM13690398

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