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Journal of Business Ethics

, Volume 136, Issue 1, pp 101–117 | Cite as

Identifying the Determinants of the Decision to Create Socially Responsible Funds: An Empirical Investigation

  • Jonathan Peillex
  • Loredana Ureche-Rangau
Article

Abstract

This paper proposes an empirical assessment of the main factors behind the decision of a corporate sponsor to launch a socially responsible (SR) fund. Our analysis is performed on a database that encompasses 414 SR fund creations by 46 corporate sponsors between 1990 and 2012. We provide evidence that economic and human resources slack, leverage, low media coverage and high extra-financial performance of the corporate sponsor contribute to an increase of the probability to propose SR funds. These results lead us to argue that the introduction of such funds goes beyond the economic objective of enlarging the market share of the corporate sponsor. It may thus be seen as a particular strategy in terms of communication and signaling, due to the specific characteristics of SR funds.

Keywords

Corporate sponsor Ethical finance SR funds Slack resources theory Resource-based perspectives 

Abbreviations

CSR

Corporate social responsibility

DJSI

Dow Jones Sustainability Index

ESG

Environmental, social and governance

PRI

Principles for responsible investment

RBP

Resource-based perspectives

SR

Socially responsible

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Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  1. 1.CRIISEAUniversity of Picardie Jules VerneAmiens Cedex 1France

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