Responsible Investing Values-Driven and Profit-Seeking (S)RI Dr. Jeroen Derwall November 20‚ 2012 Equity Analysis and Portfolio Management (EBC4112) – Week 4 Agenda What is (S)RI and related concepts Equity RI: theory and evidence “Values” and “social norms”: what are the effects of ethical exclusion on returns? What do we need to know to obtain positive returns/alpha? Errors in expectations Segmentation of the SRI movement solves “performance puzzle” Both controversial
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Green Banking In an increasingly eco-conscious market‚ many small businesses are finding creative ways to go green. Whether it’s improving their energy efficiency‚ buying organic products‚ composting or just turning off electronics at night‚ being green means all sorts of things to different people. One small thing you may not have considered is green banking. Most banks have at least one green initiative in place (or claim to)‚ and a few have made the extra effort to distinguish themselves
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reputations of the company -> causes the fall of the stock price He did not make principled decisions or risk management but to withdraw all his capital before the stock crashed -> devaluating the shareholder value by committing fraud and not being responsible Example Ethics Moral code of conduct for what is right and wrong Example 1: Enron – hid financial losses using the mark to market accounting Made their projected profits listed under their actual profits within their financial books Shareholders
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SOCIALLY RESPONSIBLE INVESTMENT: IS IT PROFITABLE?∗ PHOEBUS J. DHRYMES Columbia University July 1997; revised June 1998 1 What is Socially Responsible? Before we can answer the question we posed in the title‚ we need to define just what is “socially” responsible. Evidently‚ the meaning varies with time and place‚ since social responsibility is defined by a group’s cultural and ethical values. For example in the middle ages lending with interest was not considered ethical‚ let alone “socially
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with it. Ethical investment or socially responsible investment is broadly defined as the integration of personal values‚ social considerations and economic factors into the investment decision. Investors in ethical funds appear to spread their investment across wide range with verities of risk-return profiles. Better performing ethical funds attract the investor who have ethics and also the conventional investors. Persons who are attached to their socially responsible investments and who care their
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Roxanne J. Pagaduan Mkm 2-2 Corporate Social Responsibility Corporate social responsibility (CSR)‚ also called corporate conscience‚ corporate citizenship‚ social performance‚ or sustainable responsible business/ Responsible Business is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in‚ self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law‚ ethical standards‚ and international norms
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obligation. CSR is a business intention focusing on minimizing the harmful effects and maximizing the benefit for the society (Mohr‚ Webb and Harris‚ 2001‚ p. 47). According to the Triple Bottom Line Concept of Elkington (1997)‚ a company should be responsible for its social‚ environmental as well as financial performances‚ which is also known as the“profit‚ people and planet” approach. This concept encourages a company to take both the contributions and impacts they make to the social and environmental
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important for businesses to make clear before their stakeholders the businesses actual role in the society. Today without being socially responsible a corporation is not going to sustain itself properly and every large business organization today‚ in order to taste success and secure the social license‚ must operate in an economically‚ socially‚ and environmentally responsible manner adhering to the principles of Corporate Social Responsibility. In this era of globalization and transnationalization
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To what extent is Corporate Social Responsibility (CSR) beneficial to a company’s performance? An investigation of the correlation between Corporate Social Responsibility and key company stakeholders – customers‚ employees and investors. After years of investigation‚ the European Commission‚ which defined Corporate Social Responsibility as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on
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business? – the location of corporate social responsibility • Do you agree with that “others have a legitimate claim on the corporation (a reply by Freeman to Friedman’s remark)”? • The idea of socially responsible corporations • Which are the major stakeholders to which corporation should be responsible to? • List: ▫ CSR companies (in HK and other countries) ▫ Non-CSR companies (in HK
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