Skip to main content
SpringerLink
Log in

Ethical Investment Processes and Outcomes

Journal of Business Ethics Aims and scope Submit manuscript

Cite this article

Abstract

There is a growing body of literature on ethical or socially responsible investment across a range of disciplines. This paper highlights the key themes in the field and identifies some of the major theoretical and practical challenges facing both scholars and practitioners. One of these challenges is understanding better the complexity of the relationship between such investment practices and corporate behaviour. Noting that ethical investment is seldom characterised by agreement about what it actully constitutes, and that much of the extant research focuses on a narrow set of issues, the paper argues that there are benefits associated with examining ethical investment as a process.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

References

  • Angel, J. J. and P. Rivoli: 1997, ‘Does Ethical Investing Impose a Cost Upon the Firm? A Theoretical Perspective’, Journal of Investing 6(4), 57–61.

    Google Scholar 

  • Baker, D. and A. Fung: 2001, ‘Collateral Damage: Do Pension Fund Investments Hurt Workers?’ in A. Fung, T. Hebb, and J. Rogers, (eds.), Working Capital: The Power of Labor's Pensions (Cornell University Press, Ithaca).

    Google Scholar 

  • Bushee, B.: 2001, ‘Do Institutional Investors Prefer Near-Term Earnings over Long Run Value?’, Contemporary Account Research 18(2), 207–242.

    Article  Google Scholar 

  • Carswell, A.: 2002, ‘Crisis of Conscience’, Australian CPA 72(3), 26–27.

    Google Scholar 

  • Cready, W.: 2001, ‘The Seperation Theorem, Investor ‘Mypoia’, and Market Prices: A Discussion of “Do Institutional Investors Prefer Near-Term Earnings over Long-Run Value?”’, Contemporary Accounting Research 18(2), 247–256.

    Article  Google Scholar 

  • Cullis, J. G., A. Lewis and A. Winnett: 1992, ‘Paying to be Good? U.K. Ethical Investments’, Kyklos 45(1), 3–23.

    Google Scholar 

  • Cummings, L. A.: 2000, ‘The Financial Performance of Ethical Investment Trusts: An Australian Perspective’, Journal of Business Ethics 25(1), 79–92.

    Article  Google Scholar 

  • Dillenburg, S., T. Greene and H. Erekson: 2003, ‘Approaching Socially Responsible Investment with a Comprehensive Ratings Scheme: Total Social Impact’, Journal of Business Ethics 43(3), 167–177.

    Article  Google Scholar 

  • Drury, B.: 2003, ‘Green with Envy’, Sydney Morning Herald.

  • Dunfee, T. W.: 2003, ‘Social Investing: Mainstream or Backwater?’, Journal of Business Ethics 43(3), 247–252.

    Article  Google Scholar 

  • Hickman, K. A., W. R. Teets and J. J. Kohls: 1999, ‘Social Investing and Modern Portfolio Theory’, American Business Review 17(1), 72–78.

    Google Scholar 

  • Hirschman, A. O.: 1970, Exit, Voice, and Loyalty (Harvard University Press, Cambridge, US).

    Google Scholar 

  • Hoggett, J. and M. Nahan: 2002, ‘Ethical Investment-Deconstructing the Myth’, IPA Review 54(3), 3–6.

    Google Scholar 

  • Hollingworth, S.: 1998, ‘Green Investing: A Growing Concern?’, Australian CPA 68(4), 28–30.

    Google Scholar 

  • Irvine, W. B.: 1987, ‘The Ethics of Investing’, Journal of Business Ethics 6(3), 233–242.

    Article  Google Scholar 

  • Lazonick, W. and M. O'Sullivan: 2000, ‘Maximising Shareholder Value: A New Ideology for Corporate Governance’, Economy and Society 29(1), 13–35.

    Google Scholar 

  • Lewis, A.: 2002, Morals, Markets and Money: Ethical, Green and Socially Responsible Finance (Financial Times-Prentice Hall, Harlow, UK).

    Google Scholar 

  • Lewis, A. and C. Mackenzie: 2000a, ‘Morals, Money, Ethical Investing and Economic Psychology’, Human Relations 53(2), 179–191.

    Google Scholar 

  • Lewis, A. and C. Mackenzie: 2000b, ‘Support for Investor Activism among U.K. Ethical Investors’, Journal of Business Ethics 24(3), 215–222.

    Article  Google Scholar 

  • Mackenzie, C. and A. Lewis: 1999, ‘Morals and Markets: The Case of Ethical Investing’, Business Ethics Quarterly 9(3), 439–452.

    Google Scholar 

  • Mallin, C. A., B. Saadouni and R. Briston: 1995, ‘The Financial Performance of Ethical Investment Funds’, Journal of Business Finance and Accounting 22(4), 483–496.

    Google Scholar 

  • Murray, L.: 2003, ‘Making Money with God on your Side’, Australian Financial Review 6, October.

  • Rivoli, P.: 2003, ‘Making a Difference or Making a Statement? Finance Research and Socially Responsible Investment’, Business Ethics Quarterly 13(3), 271–287.

    Google Scholar 

  • Schepers, D. H. and S. P. Sethi: 2003, ‘Do Socially Responsible Funds Actually Deliver what they Promise? Bridging the Gap Between the Promise and Performance of Socially Responsible Funds’, Business and Society Review 108(1), 11–32.

    Article  Google Scholar 

  • Schlegelmilch, B.: 1997, ‘The Relative Importance of Ethical and Environmental Screening: Implications for the Marketing of Ethical Investment Funds’, International Journal of Bank Marketing 15(2), 48–53.

    Article  Google Scholar 

  • Schueth, S.: 2003, ‘Socially Responsible Investing in the United States’, Journal of Business Ethics 43(3), 189–194.

    Article  Google Scholar 

  • Schwartz, M. S.: 2003, ‘The “Ethics” of Ethical Investing’, Journal of Business Ethics 43(3), 195–213.

    Article  Google Scholar 

  • Social Investment Forum: 2001, Report on Socially Responsible Investing Trends in the United States (available at: www.socialinvest.org).

  • Solomon, J., A. Solomon and S. Norton: 2002, ‘Socially Responsible Investment in the UK: Drivers and Current Issues’, Journal of General Management 27(3), 1–13.

    Google Scholar 

  • Sparkes, R.: 2001, ‘Ethical Investment: Whose Ethics, Which Investment?’, Business Ethics: A European Review 10(3), 194–205.

    Article  Google Scholar 

  • Spiller, R.: 2000, ‘Ethical Business and Investment: A Model for Business and Society’, Journal of Business Ethics 27(1/2), 149–160.

    Article  Google Scholar 

  • Stone, B. A.: 2001, ‘Corporate Social Responsibility and Institutional Investment’, Business and Society 40(1), 112–117.

    Google Scholar 

  • Taylor, R.: 2001, ‘Putting Ethics into Investment’, Business Ethics: A European Review 10(1), 53–60.

    Article  Google Scholar 

  • Tippet, J.: 2001, ‘Performance of Australia's Ethical Funds’, Australian Economic Review 34(2), 170–178.

    Google Scholar 

  • Tippet, J. and P. Leung: 2001, ‘Defining Ethical Invest-ment and its Demography in Australia’, Australian Accounting Review 11(3), 44–55.

    Google Scholar 

  • Total Environment Centre (TEC): 2003, Ethical? Investment: A Review of the Socially Responsible Investment Industry in Australia (TEC, Sydney).

    Google Scholar 

  • Useem, M.: 1993, Executive Defense: Shareholder Power and Corporate Reorganization (Harvard University Press, Cambridge, MA).

    Google Scholar 

  • Useem, M.: 1996, Investor Capitalism: How Money Managers are Changing the Face of Corporate America (Basic Books, New York).

    Google Scholar 

  • Useem, M.: 1998, ‘Corporate Leadership in a Globalizing Equity Market’, Academy of Management Executive 12(4), 43–59.

    Google Scholar 

  • Webley, P., A. Lewis and C. Mackenzie: 2001, ‘Commitment Among Ethical Investors: An Experimental Approach’, Journal of Economic Psychology 22(1), 27–42.

    Article  Google Scholar 

  • Williams, C. and L. Sharamitaro: 2002, ‘Building a Model for Culturally Responsible Investment’, Journal of Arts Management, Law and Society 32(2), 144–158.

    Google Scholar 

  • Williams, S.: 1999, ‘U.K. Ethical Investment: A Coming of Age’, Journal of Investing 8(2), 58–75.

    Google Scholar 

  • Yach, D., S. Brinchmann and S. Bellet: 2001, ‘Healthy Investments and Investing in Health’, Journal of Business Ethics 33(3), 191–198.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Work and Organisational Studies, School of Business, Faculty of Economics and Business, University of Sydney, Sydney, NSW, 2006, Australia

    Grant Michelson, Nick Wailes, Sandra Van Der Laan & Geoff Frost

Authors
  1. Grant Michelson
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Nick Wailes
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Sandra Van Der Laan
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Geoff Frost
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Michelson, G., Wailes, N., Van Der Laan, S. et al. Ethical Investment Processes and Outcomes. Journal of Business Ethics 52, 1–10 (2004). https://doi.org/10.1023/B:BUSI.0000033103.12560.be

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/B:BUSI.0000033103.12560.be

search

Navigation