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The Heterogeneity of Socially Responsible Investment

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Abstract

Many writers have commented on the heterogeneity of the socially responsible investment (SRI) movement. However, few have actually tried to understand and explain it, and even fewer have discussed whether the opposite – standardisation – is possible and desirable. In this article, we take a broader perspective on the issue of the heterogeneity of SRI. We distinguish between four levels on which heterogeneity can be found: the terminological, definitional, strategic and practical. Whilst there is much talk about the definitional ambiguities of SRI, we suggest that there is actually some agreement on the definitional level. There are at least three explanations which we suggest can account for the heterogeneity on the other levels: cultural and ideological differences between different regions, differences in values, norms and ideology between various SRI stakeholders, and the market setting of SRI. Discussing the implications of the three explanations for the SRI market, we suggest that there is reason to be sceptical about the possibilities of standardisation if not standardisation is imposed top-down. Whether this kind of standardisation is desirable or not, we argue, depends on what the motives for it would be. To the extent that standardisation may facilitate the mainstreaming of SRI, it could be a good thing – but we entertain doubts about whether mainstreaming really requires standardisation.

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Acknowledgments

We gratefully acknowledge the funding support provided by Mistra, the Swedish Foundation for Strategic Environmental Research. This study is part of a larger programme, `Behavioural Impediments to Sustainable Investment', run in collaboration with researchers from the Department of Psychology and the Centre for Finance, School of Business, Economics and Law at University of Gothenburg, Sweden. We would also like to thank Professor Alan Lewis of the University of Bath (UK) who supervised the qualitative research project in the UK.

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Authors and Affiliations

  1. Department of Philosophy, University of Gothenburg, Box 200, SE-405 30, Gothenburg, Sweden

    Joakim Sandberg

  2. Department of Psychology, University of Bath, Bath, BA2 7AY, U.K.

    Carmen Juravle

  3. Department of Psychology, University of Gothenburg, Box 500, SE-405 30, Gothenburg, Sweden

    Ted Martin Hedesström

  4. Umeå School of Business, Umeå University, SE-901 87, Umeå, Sweden

    Ian Hamilton

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  1. Joakim Sandberg
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  4. Ian Hamilton
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Correspondence to Joakim Sandberg.

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Sandberg, J., Juravle, C., Hedesström, T.M. et al. The Heterogeneity of Socially Responsible Investment. J Bus Ethics 87, 519–533 (2009). https://doi.org/10.1007/s10551-008-9956-0

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