"The interests of investors are thus often balanced with other stakeholders and the businesses may not seek to maximise profits above other considerations," he explains.
While most investments are generally unlisted companies, or unauthorised collective investment vehicles, they tend to be more risky, smaller and more illiquid.
Mr David adds: "At Rathbone Greenbank Investments, they typically form a smaller part of our portfolios, and are not considered suitable for all investors."
Anna Sofat, founder and managing director of Addidi Wealth, comments: "While social enterprises can be invested in, they tend to be more about just returning the investment, plus a very modest rate of interest.
"However, these will arguably provide more ‘social return’ – the feeling you’re doing something good or useful with your investment. Personal return or social return is typically the choice investors need to make."
CSR and return on investment
Meanwhile, companies taking CSR seriously are also serious about making a profit - or at least, they should be if they want to continue being a publicly listed entity.
Leon Kamhi, head of responsibility for Hermes Investment Management, is unequivocal about where investment value lies for investors wanting to invest more ethically or responsibly: "We believe the greatest opportunity is in integrating CSR into mainstream companies, as given their scale, this will likely have the largest positive environmental and social impact."
This does not mean that companies with positive CSR have to be specifically 'ethical' in terms of what they produce or the service they provide, as long as the core values of CSR are fully embedded in them, running from top management through to the lowliest staff member, like 'Brighton' through a stick of rock.
However, they do need to provide a return to investors, whether in terms of capital growth or dividend income (or both). As Ms Sofat states: "Companies committed to CSR typically comprise firms that still exist to make a profit.
"If you’re interested in making a return, a company with strong CSR will give you that."
Mr David says: "There are several high-profile examples of major corporates which have embraced CSR as a fundamental value, and have delivered social and environmental benefits at a genuinely impressive scale, which smaller start-ups would struggle to match.
"A well-worn but nonetheless impressive example is Unilever, with its Sustainable Living Plan which has the stated goal of improving the health and wellbeing of more than one billion people. When big business gets CSR right, its impact is seismic."
Ms Crowl advocates looking for companies that follow good ESG practices, while also aiming to create value for shareholders.
She says there is plenty of choice for the CSR-savvy investor. "Today, retail investors can invest in open Ucits or Oeic funds offering both positive impact and returns," she comments.
