on august 31, fast company published a critique of socially responsible investing (sri) by timberlands jeff swartz. the new hampshire-based shoemaker is rightly famous for its commitment to corporate social responsibility (csr). mens timberland boots but, mr. swartz believes that too many investors c including social investors c ignore such efforts. (timberland has long been a kld index constituent.)

mr. swartz makes clear his support for sri. nonetheless, he argues, sri focuses too mens chukka boots much on punishing poor csr performers, rather than rewarding and encouraging firms that take environmental, social and governance (esg) issues seriously.

i asked kld indexes managing director tom kuh to consider mr. swartzs take on how investors integrate esg concerns into their strategies. tom has helped shape klds research and indexes since 1994.

tom says that mr. swartz is right to call on investors to pay closer attention to timberland footwear csr efforts, and explains how sri indexes can, in fact, reward as well as punish.