The contribution of the FTSE4Good Index to socially responsible investment
A FTSE Group case study

Page 1: Introduction

In a fast moving world, individuals and organisations need to make quick decisions based on sound judgement supported by accurate data. As a result, one of the most important products in the modern world is reliable, up-to-date information. Governments, businesses and individuals all depend on it.This is particularly true for companies working in the financial markets. The markets provide a...
Read full page

Page 2: Financial indices

Index values are used to show how a particular average figure changes over time. For example, the FTSE 100 Index sets out the average figure for the value of a basket of the shares of the top 100 UK companies quoted on the London Stock Exchange (LSE). This index serves as a useful indicator of how the UK economy is performing. A rising index signals investors' increasing confidence in the...
Read full page

Page 3: Types of organisation and growth

FTSE produces many different global indices of company shares e.g. by region or by industrial sector. Companies included in these indices are public companies - their shares can be traded on a stock exchange. The origins of the public company may have been as a sole trader. As they grow, sole traders may incorporate to become private limited companies. Incorporation gives owners limited liability...
Read full page

Page 4: The work of FTSE

FTSE Group is a world-leader in the creation and management of equity indices and associated data services. It manages and develops globally recognised indices ranging from the FTSE All-World Index to the recently launched FTSE4Good Index Series. FTSE is owned by The Financial Times and the London Stock Exchange. FTSE became a limited company in 1995, although it has calculated indices since the...
Read full page

Page 5: Creating a standard for socially responsible investment (SRI) - FTSE4Good

In February 2001, FTSE launched a new family of indices named FTSE4Good. These are designed to help create a global standard enabling investors to identify and measure the performance of companies who practice a recognised, acceptable standard and social behaviour. Investment in ethical and socially responsible funds had grown rapidly. FTSE responded to this investor interest by creating the...
Read full page

Page 6: Conclusion

The modern global economy relies on information systems that enable appropriate decision making. FTSE provides innovative indices and data services to assist global investors develop successful investment strategies. In a world in which social responsibility is essential to all our futures, the FTSE4Good indices of socially responsible companies are more important than ever.
Read full page

Related: Building Societies Association
Case studies in Business Case Studies