Responsible Investment in Emerging Markets : A special theme issue of The Journal of Corporate Citizenship (Issue 48)

There is huge investor interest in the growth and investment potential of emerging markets, and there has been a significant increase in the scale of the investments being made in these markets.

While concerns have been raised about the potential negative consequences of such investments in the context of specific projects and at the macroeconomic level, investors have suggested that these are necessary, albeit painful, steps towards greater economic welfare over the longer term. In recent years, investors have argued that "responsible investment" allows investors to maximize the financial and social benefits of their activities, and, simultaneously, to mitigate the negative impacts of their investments.

As yet, however, little has been written - in either the practitioner or in the academic literature - about the responsibilities of investors in emerging markets, about the practicalities of implementing responsible investment in emerging markets, or about the outcomes (financial and social) that result. This special issue addresses this gap in the literature by presenting a series of major articles that analyse the implications - for investors and for society - of investors seeking to take a more responsible approach to their investments. Dr Sullivan notes: "The journal also opens up wider questions around the implications of foreign investment for the stability of emerging markets.

As we reflect on the causes and consequences of the global financial crisis, we need to be aware that the inflows of foreign investment into emerging markets may have the perverse effect of increasing their vulnerability to future financial shocks."