How to foster REAL responsible investment

It’s often said that companies should at least 'do no harm' to society and ideally take on a positive responsibility for people and the planet. But in practice, not every company can live up to this standard. Our project explores how strong corporate governance can pave the way for truly ethical decisions and long-term sustainability. Over the past few weeks, our team has been laying the foundation for this work. We set our team norms, met with our client to better understand their needs, defined the scope, and built a clear work plan. These early steps have not only shaped the direction of our research but also given me space to reflect on how structure and collaboration are essential for tackling such a complex project.

Project overview:

Ethical and responsible investing has been receiving increasing attention in recent years. Although the field is rapidly evolving, it remains a central focus in finance. Before coming to Columbia University, I interned at a Chinese investment firm as an ESG investment researcher. During that experience, our work centered largely on regulatory requirements and approached ESG primarily from a risk-averse perspective, with an emphasis on metrics such as the Sharpe ratio and long-term returns.

What makes this project stand out is that it provides a fresh perspective on responsible investment. Rather than limiting the discussion to risk mitigation and legal compliance, we will explore business ethics more deeply, including principles such as 'do no harm' principle and Freeman’s Stakeholder Theory, and then carefully benchmark the best practices from peer companies and global development finance institutions. The goal is to examine how strong corporate governance can foster ethical decision-making that promotes long-term sustainability and advances the well-being of both society and the planet.

Team establishment:

All of our team members are very excited about this project. After being assigned, we quickly set up a group chat for coordination. Following the professor’s advice, our first meeting was held over dinner, which created a more open atmosphere and helped us get to know each other better.

Our team comes from diverse backgrounds, and establishing clear team norms has helped us maintain cohesion. The two norms we agreed are most important for successful collaboration are clear task delegation and punctuality. By keeping these principles in mind, we can ensure that our project is carried out efficiently and with accountability.

Communication with the client:

Efficient communication with the client is crucial for the success of the project. One of our team members took the initiative to serve as the primary contact person, which significantly improved coordination. Prior to the first meeting, we prepared a team portfolio and circulated a meeting note for the client’s reference, making sure that we can make the most from the meeting.

During the meeting, we introduced ourselves and outlined our areas of interest, while the client shared her background and project goals, giving us a deeper understanding of expectations. We also reviewed the overall project structure to identify potential adjustments. As a result, we integrated the four deliverables into three for greater consistency, while leaving room for flexibility as the project evolves. In addition, we set tentative deadlines for each deliverable based on the estimated workload.

In the second week, we had the opportunity to meet the client in person in a more informal coffee-chat setting, where we exchanged experiences from the climate week. This conversation not only deepened our relationship but also reinforced our commitment to the project’s theme. It inspired us to think beyond framing responsible investment merely in terms of risk and returns but consider how ethical principles can be meaningfully applied.

Work scope and plan:

After communicating with our client, we agreed that the project will consist of three main deliverables.

The first deliverable focuses on theory: we will examine the legal and ethical foundations of responsible investment, with particular attention to the 'do-no-harm' principle and Freeman’s Stakeholder Theory. We will also provide an overview of existing application frameworks for responsible investment.

The second deliverable involves benchmarking the corporate governance frameworks of peer investment firms. This will include a review of their governance structures, policies, and procedures, in order to identify best practices and areas of differentiation. Within this part, we will also focus on Development Financial Institutions (DFIs) to evaluating relevant global corporate governance standards, best practices, and requirements.

Finally, we will integrate these analyses into a comprehensive governance and investment framework, tailored to our client’s company, and present it as a practical roadmap for strengthening responsible investment practices.

Personal reflections and next steps:

Over the first few weeks, I have learned a lot from collaborating and communicating with both my teammates and the client. First, creating an open space where everyone can share their honest thoughts is essential. This not only helps us understand each other better but also allows us to find the most effective ways to collaborate. Second, I realized that truly understanding a client’s needs often takes time and requires active listening. Third, investing time upfront to develop a clear work plan is extremely valuable. It ensures that we can deliver on schedule while also giving us a clearer perspective on the project as a whole.

Beyond the research itself, I have also been reflecting on the tension between a fixed work plan and the evolving nature of a large team project. A detailed Gantt chart is important for structure and accountability, but the project can inevitably shift in new directions. Learning how to manage these changes and integrate them effectively into our framework is something I am eager to continue exploring.