In June 2009 Ethix SRI Advisors, Insight Investment and Oxfam International co-hosted an investor workshop in Stockholm to discuss possibilities for investors to encourage and engage in initiatives aimed at promoting corporate social responsibility within the arms industry.

Leading European institutional investors have taken a significant role in the movement for a global ban on cluster munitions. However, institutional investors have done relatively little work on other aspects of the arms trade. This is a likely reflection of the fact that the role and responsibilities of the arms industry in furthering peace and stability have received surprisingly little attention in the current debate on corporate responsibility.
 
The workshop focused on two key issues of concern:

•  the traditionally high level of corruption in the arms industry, and
•  irresponsible supplies of arms exacerbating or prolonging armed conflict or diverting scarce resources.
 
The briefing paper that served as a basis for discussion is available here.
 
Ethix SRI Advisors, Insight Investment and Oxfam International continue to discuss this topic with various stakeholders. 

The findings will be published in the conclusion paper of the Better Returns in a Better World Project – an Oxfam project with the investment industry that aims to assess the potential for investors to contribute to poverty alleviation through their investment activities.

For an overview of the Better Returns in a Better World Project, see http://www.oxfam.org.uk/resources/issues/privatesector/investment.html.
 
For questions and comments please contact Reinhilde Weidacher on +46 8 407 00 15.