Advertisement

Socially Responsible and Sustainable Investing

  • Mark Anthony Camilleri
Chapter

Abstract

Socially responsible investment (SRI) is the practice of incorporating social and environmental goals into investment decisions. Therefore, SRI is a strategy that encourages corporate practices that promote social responsibility and laudable initiatives such as impact investing, shareholder advocacy and community investing (Guay, Doh, & Sinclair, 2004; Sparkes & Cowton, 2004; Schueth, 2003). The rationale behind SRI is to consider both financial return as well as responsible investments for societal development. Its goals are based upon environmental issues, human rights, community involvement and labour relations (Friedman & Miles, 2001; Ooi & Lajbcygier, 2013; Sparkes, 2003).

References

  1. Arnold, P., & Hammond, T. (1994). The role of accounting in ideological conflict: Lessons from the South African divestment movement. Accounting, Organizations and Society, 19(2), 111–126.Google Scholar
  2. Auer, B. R. (2016). Do socially responsible investment policies add or destroy European Stock Portfolio value? Journal of Business Ethics, 135(2), 381–397.Google Scholar
  3. Barber, R. (1982). Pension funds in the United States issues of investment and control. Economic and Industrial Democracy, 3(1), 31–73.Google Scholar
  4. BCC. (2009). Why wall street is wooing women and their future wealth. Time Magazine. Retrieved May 12, 2016, from http://time.com/money/2992759/what-do-women-investors-want/
  5. Becchetti, L., & Salustri, F. (2015). The vote with the wallet as a Multiplayer Prisoner’s Dilemma (Working Papers 141). Retrieved May 14, 2016, from http://www.aiccon.it/file/convdoc/wp141.pdf
  6. Bengtsson, E. (2008). Socially responsible investing in Scandinavia–A comparative analysis. Sustainable Development, 16(3), 155–168.Google Scholar
  7. Benjamin, L., Rubin, J. S., & Zielenbach, S. (2004). Community development financial institutions: Current issues and future prospects. Journal of Urban Affairs, 26(2), 177–195.Google Scholar
  8. Benijts, T. (2010). A framework for comparing socially responsible investment markets: An analysis of the Dutch and Belgian retail markets. Business Ethics: A European Review, 19(1), 50–63.Google Scholar
  9. Berry, T. C., & Junkus, J. C. (2013). Socially responsible investing: An investor perspective. Journal of Business Ethics, 112(4), 707–720.Google Scholar
  10. Bilbao-Terol, A., Arenas-Parra, M., Cañal-Fernández, V., & Bilbao-Terol, C. (2013). Selection of socially responsible portfolios using hedonic prices. Journal of Business Ethics, 115(3), 515–529.Google Scholar
  11. Blue & Green Tomorrow. (2012). Positive investing is the way forward for ethical investors. Retrieved May 12, 2016, from http://blueandgreentomorrow.com/features/positive-investing-is-the-way-forward-for-ethical-investors/
  12. Brundtland, G. H. (1989). Global change and our common future. Environment: Science and Policy for Sustainable Development, 31(5), 16–43.Google Scholar
  13. Bugg-Levine, A., & Emerson, J. (2011). Impact investing: Transforming how we make money while making a difference. Innovations, 6(3), 9–18.Google Scholar
  14. Camilleri, M. A. (2015a). Environmental, social and governance disclosures in Europe. Sustainability Accounting, Management and Policy Journal, 6(2), 224–242.Google Scholar
  15. Camilleri, M. A. (2015b). Valuing stakeholder engagement and sustainability reporting. Corporate Reputation Review, 18(3), 210–222.Google Scholar
  16. Carroll, A. B. (1999). Corporate social responsibility evolution of a definitional construct. Business & Society, 38(3), 268–295.Google Scholar
  17. CSRA. (2017). Socially responsible investing. Corporate social responsibility association. Retrieved May 15, 2016, from http://csra.shuttlepod.org/page-537991
  18. Domini, A. (2011). Want to make a difference? Invest responsibly. Huffington Post. Retrieved May 13, 2016, from http://www.huffingtonpost.com/amy-domini/want-to-make-a-difference_b_834756.html
  19. Eccles, R. G., Ioannou, I., & Serafeim, G. (2012). The impact of a corporate culture of sustainability on corporate behavior and performance (No. W17950). Cambridge, MA: National Bureau of Economic Research.Google Scholar
  20. Elkington, J. (1997). Cannibals with forks. The triple bottom line of 21st century. Oxford: Capstone Publishing.Google Scholar
  21. Emmelhainz, M. A., & Adams, R. J. (1999). The apparel industry response to “sweatshop” concerns: A review and analysis of codes of conduct. Journal of Supply Chain Management, 35(2), 51–57.Google Scholar
  22. Entine, J. (2003). The myth of social investing: A critique of its practice and consequences for corporate social performance research. Organization & Environment, 16(3), 352.Google Scholar
  23. EUROSIF. (2014). Press release: 6th sustainable and responsible investment study 2014. Europe-based National Sustainable Investment Forums. Retrieved May 14, 2016, from http://www.eurosif.org/wp-content/uploads/2014/09/Press-Release-European-SRI-Study-2014-English-version.pdf
  24. Friedman, A. L., & Miles, S. (2001). Socially responsible investment and corporate social and environmental reporting in the UK: An exploratory study. The British Accounting Review, 33(4), 523–548.Google Scholar
  25. Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1–2), 51–71.Google Scholar
  26. Ghoul, W., & Karam, P. (2007). MRI and SRI mutual funds: A comparison of Christian, Islamic (morally responsible investing), and socially responsible investing (SRI) mutual funds. Journal of Investing, 16(2), 96.Google Scholar
  27. Gillan, S. L., & Starks, L. T. (2000). Corporate governance proposals and shareholder activism: The role of institutional investors. Journal of Financial Economics, 57(2), 275–305.Google Scholar
  28. Gray, H. (1983). New directions in the investment and control of pension funds (pp. 36–37). Washington DC: Investor Responsibility Research Centre.Google Scholar
  29. Guay, T., Doh, J. P., & Sinclair, G. (2004). Non-governmental organizations, shareholder activism, and socially responsible investments: Ethical, strategic, and governance implications. Journal of Business Ethics, 52(1), 125–139.Google Scholar
  30. Halvorssen, A. M., & Eldredge, C. (2014). Investing in sustainability: Reform proposals for the ethics guidelines of the Norwegian Sovereign Wealth Fund. European Company Law, 11(2).Google Scholar
  31. Hockerts, K., & Moir, L. (2004). Communicating corporate responsibility to investors: The changing role of the investor relations function. Journal of Business Ethics, 52(1), 85–98.Google Scholar
  32. Hong, H., & Kacperczyk, M. (2009). The price of sin: The effects of social norms on markets. Journal of Financial Economics, 93(1), 15–36.Google Scholar
  33. Jackson, E. T. (2013). Interrogating the theory of change: Evaluating impact investing where it matters most. Journal of Sustainable Finance & Investment, 3(2), 95–110.Google Scholar
  34. Jemel-Fornetty, H., Louche, C., & Bourghelle, D. (2011). Changing the dominant convention: The role of emerging initiatives in mainstreaming ESG. Finance and Sustainability: Towards a New Paradigm, 85–117.Google Scholar
  35. Kempf, A., & Osthoff, P. (2007). The effect of socially responsible investing on portfolio performance. European Financial Management, 13(5), 908–922.Google Scholar
  36. Krumsiek, B. J. (1997). The emergence of a new era in mutual fund investing: Socially responsible investing comes of age. The Journal of Investing, 6(4), 25–30.Google Scholar
  37. Lane, M. J. (2015). The mission-driven venture: Business solutions to the world’s most vexing social problems. Hoboken, NJ: Wiley.Google Scholar
  38. Lemke, T. P., & Lins, G. T. (2014). Regulation of investment advisers. Securities law handbook series. New York, NY: Clark Boardman Callaghan.Google Scholar
  39. Lemke, T. P., Lins, G. T., Hoenig, K. L., & Rube, P. S. (2015). Hedge funds and other private funds: Regulation and compliance. In press.Google Scholar
  40. Lobe, S., & Walkshäusl, C. (2011, May 9). Vice vs. virtue investing around the world. Virtue Investing Around the World.Google Scholar
  41. Logue, A. C. (2009). Socially responsible investing for dummies. Indianapolis, IN: Wiley.Google Scholar
  42. Lydenberg, S. D. (2002). Envisioning socially responsible investing. Journal of Corporate Citizenship, 7, 57–77.Google Scholar
  43. Mansuri, G., & Rao, V. (2004). Community-based and-driven development: A critical review. The World Bank Research Observer, 19(1), 1–39.Google Scholar
  44. Maretick, M. (2015). Women rule: Why the future of social, sustainable and impact investing is in female hands. Triple Pundit. Retrieved June 2, 2016, from http://www.triplepundit.com/2015/04/women-rule-future-social-sustainable-impact-investing-female-hands/#
  45. Matten, D., & Moon, J. (2008). “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33(2), 404–424.Google Scholar
  46. McCann, L., Solomon, A., & Solomon, J. (2003). Explaining the growth in UK socially responsible investment. Journal of General Management, 28(4), 15–36.Google Scholar
  47. Miller, A. (1992). Green investment. In D. Owen (Ed.), Green reporting: Accountancy and the challenge of the nineties (pp. 242–255). London: Chapman and Hall.Google Scholar
  48. Nayar, M. G. (1978). Human rights: The United Nations and United States Foreign Policy: Introduction. Harvard International Law Journal, 19, 813.Google Scholar
  49. Ooi, E., & Lajbcygier, P. (2013). Virtue remains after removing sin: Finding skill amongst socially responsible investment managers. Journal of Business Ethics, 113(2), 199–224.Google Scholar
  50. Pienitz, R., & Vincent, W. F. (2000). Effect of climate change relative to ozone depletion on UV exposure in subarctic lakes. Nature, 404, 484–487.Google Scholar
  51. Pivo, G. (2008). Responsible property investment criteria developed using the Delphi Method. Building Research & Information, 36(1), 20–36.Google Scholar
  52. Porter, M. E., & Kramer, M. R. (2011). The big idea: Creating shared value. Harvard Business Review, 89(1), 2.Google Scholar
  53. Renneboog, L., Ter Horst, J., & Zhang, C. (2008). Socially responsible investments: Institutional aspects, performance, and investor behavior. Journal of Banking & Finance, 32(9), 1723–1742.Google Scholar
  54. Reynolds, P., Goldberg, D. E., & Hurley, S. (2004). Prevalence and patterns of environmental tobacco smoke exposures among California teachers. American Journal of Health Promotion, 18(5), 358–365.Google Scholar
  55. Rhodes, M. J. (2010). Information asymmetry and socially responsible investment. Journal of Business Ethics, 95(1), 145–150.Google Scholar
  56. Richardson, B. J. (2008). Socially responsible Investment Law: Regulating the Unseen Polluters. Oxford: Oxford University Press.Google Scholar
  57. Rojas, M., M’zali, B., Turcotte, M., & Merrigan, P. (2009). Bringing about changes to corporate social policy through shareholder activism: Filers, issues, targets, and success. Business and Society Review, 114(2), 217–252.Google Scholar
  58. Schepers, D. H., & Prakash Sethi, S. (2003). Bridging the gap between the promise and performance of socially responsible funds. Business and Society Review, 108(1), 11–32.Google Scholar
  59. Scholtens, B. (2005). Style and performance of Dutch socially responsible investment funds. The Journal of Investing, 14(1), 63–72.Google Scholar
  60. Scholtens, B., & Sievänen, R. (2013). Drivers of socially responsible investing: A case study of four Nordic countries. Journal of Business Ethics, 115(3), 605–616.Google Scholar
  61. Schueth, S. (2003). Socially responsible investing in the United States. Journal of Business Ethics, 43(3), 189–194.Google Scholar
  62. Smith, M. P. (1996). Shareholder activism by institutional investors: Evidence from CalPERS. The Journal of Finance, 51(1), 227–252.Google Scholar
  63. Sparkes, R. (2001). Ethical investment: Whose ethics, which investment? Business Ethics: A European Review, 10(3), 194–205.Google Scholar
  64. Sparkes, R. (2003). Socially responsible investment: A global revolution. Chichester: Wiley.Google Scholar
  65. Sparkes, R., & Cowton, C. J. (2004). The maturing of socially responsible investment: A review of the developing link with corporate social responsibility. Journal of Business Ethics, 52(1), 45–57.Google Scholar
  66. Statman, M. (2000). Socially responsible mutual funds (corrected). Financial Analysts Journal, 56(3), 30–39.Google Scholar
  67. Sullivan, L. (1983). Agents for change: The mobilization of multinational companies in South Africa. Law & Pol’y Int’l Bus, 15, 427.Google Scholar
  68. USSIF. (2017). SRI basics: What is sustainable, responsible and impact investing. The forum for sustainable and responsible investment. Retrieved May 14, 2016, from http://www.ussif.org/sribasics
  69. Walker, H., & Brammer, S. (2009). Sustainable procurement in the United Kingdom public sector. Supply Chain Management: An International Journal, 14(2), 128–137.Google Scholar
  70. Wright, P., & Ferris, S. P. (1997). Research notes and communications agency conflict and corporate strategy: The effect of divestment on corporate value. Strategic Management Journal, 18, 77–83.Google Scholar

Copyright information

© Springer International Publishing AG 2017

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 2.5 International License (http://creativecommons.org/licenses/by-nc/2.5/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

The images or other third party material in this chapter are included in the chapter's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the chapter's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder.

Authors and Affiliations

  • Mark Anthony Camilleri
    • 1
  1. 1.Department of Corporate CommunicationUniversity of MaltaMsidaMalta

Personalised recommendations