Abstract:

Purpose - Socially responsible finance has emerged as a growing area of interest. In this study, the objective is to distinguish the concepts such as responsible investing, impact investments, environmental, social and governance criteria investments and to discuss the recent approaches. Methodology – We surveyed the current literature by reviewing published academic studies and reports. Findings- Social finance is still growing and developing. Various international organizations and networks have proceeded pioneering works. While the conceptual framework has been growing recently, social impact investments have been the area in which the most important developments occurred. Conclusion- In the wake of the Global Financial Crisis, finance, which aims to maximize return and individual wealth, is criticized severely. A perception, that prioritizes social impact, sustainability and corporate governance rather than individual benefit, has been advancing theoretically and practically. In this context, it is required to design new approaches and new financial instruments, which address various social needs. Furthermore, new regulations should be adopted.

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