Cyber Times International Journal of Technology & Management

The role of Environmental, Social and Governance (ESG) Practices in protecting the interests of investors has been recognised more than ever before, especially after the worldwide corporate financial failures like World com, Enron, Tyco, Parmalat and Satyam Computers. Good ESG practices are necessary for the integrity of corporations, financial institutions, and markets; and contribute to the growth and stability of the economy. The present paper attempts to gauge the relationship between Environmental, Social and Governance standards and the foreign investment in Indian industry. The study shows that the significant reforms in the field of Environment, Social and Governance practices have contributed to the FII inflows. The competitive prices of portfolios, the trade based exchange rate and higher interest rates are also important to attract more FII inflows.