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Promoting responsible business conduct in the financial sector
Promoting responsible business conduct in the financial sector
March 2017

Promoting responsible business conduct in the financial sector is vital to building a sustainable global economy. However, inherent complexities in the sector such as extensive and complex business relationships or the rapidity of transactions make practical application of effective due diligence systems challenging. This paper explains the application of the OECD Guidelines for Multinational Enterprises in the context of institutional investors. It highlights key considerations for institutional investors in carrying out due diligence that will help to identify and respond to environmental and social risks.

Key information
Carrying out due diligence will help investors to avoid negative impacts of their investments on society and the environment
Carrying out due diligence will help investors to avoid financial and reputational risks, respond to the expectations of their clients and beneficiaries and contribute to global goals on climate and sustainable development
Failing to consider long-term investment value drivers, which include environmental, social and governance issues, in investment practice is increasingly seen to be a failure of fiduciary duty