scholarly journals Sustainable Investment: Interrelated among Corporate Governance, Economic Performance and Market Risks Using Investor Preference Approach

2019 ◽  
Vol 11 (7) ◽  
pp. 2108 ◽  
Author(s):  
Ming-Lang Tseng ◽  
Phan Tan ◽  
Shiou-Yun Jeng ◽  
Chun-Wei Lin ◽  
Yeneneh Negash ◽  
...  
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Economic Performance ◽  
Economic Benefits ◽  
Socially Responsible ◽  
Board Diversity ◽  
Responsible Investment ◽  
Market Risks ◽  
The Social ◽  
Sustainable Investment

Prior studies are lacking on the drivers of sustainable investment. Hence, this study examines the relationship between the social aspects, environmental aspects, economic benefits, market conditions, and corporate governance issues on sustainable investment. Sustainable investment has been rising since the last decade. However, sustainable investment is preceded by ethical investment, green investment, and socially responsible investment. In order to understand the sustainability of an investment before decision-making, it proposed a set of attributes to measure its sustainability using investor’s linguistics preferences. The proposed attributes are interrelated and based on investor’s linguistic preferences. The study employs the fuzzy set theory to handle the uncertainty resulting from the vagueness of linguistic terms and applies decision making trial and evaluation laboratory (DEMATEL) to determine the nature of interrelationships among sustainable investment attributes. The result indicates that corporate governance, economic performance, and market risks are the causal aspects of sustainable investment. In addition, this study found that transparency, anti-corruption, and board diversity were the two most important criteria of corporate governance. Furthermore, the three most important criteria of economic performance presented the model were excess return, market value, and shareholder loyalty. The theoretical and practical implications of sustainable investment are discussed.

scholarly journals Socially responsible investment: A view from the social rating agencies of Vigeo-Eiris and MSCI ESG STATS

2018 ◽  
Vol 4 (1) ◽  
pp. 27-40 ◽  
Author(s):  
J. A. González Bueno ◽  
J. Núñez Rodríguez
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Socially Responsible Investment ◽  
Decision Making Process ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Rating Agencies ◽  
Investment Decision Making ◽  
The Social ◽  
Social Rating

The concern of investors for environmental, social and corporate governance issues is giving rise to certain changes in the investment decision-making process. Given this situation, socially responsible investment has received the attention of practitioners and academics, and has reached a significant level of development in financial community in recent years. The main goal of this paper is to examine social rating methodologies developed by the two most renowned agencies worldwide: MSCI ESG STATS and Vigeo-Eiris.

Sustainable and responsible investment funds in Europe

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jitka Sládková ◽  
Daniela Kolomazníková ◽  
Sylvie Formánková ◽  
Oldřich Trenz ◽  
Jan Kolomazník ◽  
...  
Keyword(s):  
Score Distribution ◽  
Investment Funds ◽  
Content Type ◽  
Responsible Investment ◽  
Responsible Investing ◽  
The Social ◽  
Sustainable Investment ◽  
Key Barrier ◽  
Sustainable And Responsible Investment ◽  
Rating Distribution

Purpose The sustainable and responsible investing (SRI) is the part of sustainable investment which focusses on mutual funds. The purpose of this paper is to map and evaluate all the active European SRI funds, their performances and correlation with the national identity. Design/methodology/approach The sample of the research was analysed with descriptive statistics, mainly the frequency, the mean and the correlation analysis. A well-known volatility is represented by the synthetic risk and reward indicator (SRRI). Other two ratings are the environmental, social and governance (ESG) funds score distribution and the ESG funds letter rating distribution. Findings SRI investment may seem to be performing better than in the funds with a different focus. The segment of SRI funds will grow for the next decade. Research limitations/implications There is a lack of definitions and clear metrics for sustainable investing. For better performance, it would be also appropriate to examine each country separately. Practical implications This paper is part of the project targeting to design a model and methodology of SI evaluation taking into account ESG factors and risks, including profitability in a selected sector. This model can be used by investors for better decision-making. Social implications The paper focusses on the funds selecting investments that fulfil ESG criteria, which are part of the social responsibility and sustainability. Originality/value An analysis of the current approaches to evaluating investments shows that the key barrier in the transitions to sustainable investment is not taking into account the ESG factors. The research in this paper includes the ESG factors in the evaluation.

Making Corporations Environmentally Sustainable: The Limits of Responsible Investing

2012 ◽  
Vol 13 (12) ◽  
pp. 1412-1437 ◽  
Author(s):  
Gail E. Henderson
Keyword(s):  
North America ◽  
Business Schools ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Non Profit ◽  
Environmentally Sustainable ◽  
Certificate Programs ◽  
Responsible Investing ◽  
Industry Standard ◽  
Sustainable Investment

Almost weekly, it seems, my inbox fills with dozens of academic articles on the topic of “socially responsible investing” or “SRI”. Non-profit organizations across Europe and North America promote SRI as the new investment industry standard. Business schools now offer certificate programs in “sustainable investment”. In 2006, the UN launched the Principles for Responsible Investment (PRI) to provide a framework for investors interested in practicing responsible investing. The PRI now boast over 1,000 signatories, including asset owners and investment managers.

scholarly journals Editorial: New horizons in corporate law and governance research

2021 ◽  
Vol 3 (1) ◽  
pp. 4-6
Author(s):  
Mehtap Aldogan Eklund
Keyword(s):  
Corporate Governance ◽  
Corporate Law ◽  
Governance System ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Commercial Code ◽  
Fictitious Capital ◽  
Wide Range ◽  
The Board Of Directors

Corporate governance and corporate law cover a wide range of eminent topics for the effective governance system. The articles published in this issue have focused particularly on the board configuration, commercial code regulations about the managers’ decision and compensation, the comparative perspective of the common law rule on pre incorporation contracts, and the responsibility of the company with the authorized fictitious capital from the evidence of emerging markets. Moreover, this issue includes a book review of the theoretical, essential, and international practices of corporate governance, which consists of various timely and interesting concepts, such as the role of institutional investors in corporate governance, the board of directors’ impact on performance and the role of non-executive directors, the audit function and the role of regulation international corporate governance, and socially responsible investment, etc.

scholarly journals “A Study On The Sustainable Investment Funds With Sepcial Reference To State Bank Of India Esg Mutual Fund Shcemes”

2021 ◽  
Vol 12 (6) ◽  
pp. 261-266
Author(s):  
Dr. A. Anis Akthar Sulthana Banu Et.al
Keyword(s):  
Mutual Fund ◽  
Social Impact ◽  
Secondary Data ◽  
Investment Portfolio ◽  
Socially Responsible ◽  
Equity Fund ◽  
Investment Funds ◽  
Responsible Investment ◽  
Sustainable Investment ◽  
Secondary Data Sources

Socially Responsible Investment (SRI) refers to the allocation of funds in certain practises that have a high social impact. It includes assessing businesses on the Environmental , Social and Governance (ESG) screens. A socially conscious investor may either invest directly in financial markets or through investment instruments such as mutual funds via ESG fund schemes. Very few of the numerous mutual fund organizations have implemented ESG Fund schemes to appeal to SRI investors. The SBI Mutual Fund is the first AMC to follow this and has been benchmarked against the Nifty 100 ESG indices. A correlation analysis is made among the results of the SBI Mutual Fund and the NIFTY to compare the four different types of SBI ESG funds and their sector wise participation in different industries. This research paper is methodological in nature as it interprets the published secondary data sources of the SBI Mutual Fund and the NIFTY indices. The goal of this paper is to assess the efficacy of the ESG Equity Fund in the investment portfolio of mutual fund investors and to enable small and medium-sized investors to contribute their money to ESG-driven mutual fund schemes.

scholarly journals Responsibilities of Companies towards Employees

2016 ◽  
Vol 18 (2) ◽  
Author(s):  
Monray Marsellus Botha
Keyword(s):  
Corporate Governance ◽  
Social Justice ◽  
Social Institution ◽  
Company Law ◽  
Economic Life ◽  
Best Interests ◽  
Socially Responsible ◽  
The Social ◽  
Labour Legislation

Central to company law is the promotion of corporate governance. An important question in company law still today is in whose interest the company should be managed. Corporate governance needs to address the entire span of responsibilities to stakeholders of the company such as customers, employees, shareholders, suppliers and the community at large. The promotion of human rights in the application of company law must also take place. This is extremely important given the significant role of enterprises within the social and economic life of the nation. The interests of various stakeholder groups in the context of the corporation as a "social institution" should be enhanced and protected. Because corporations are part of society and the community, like all of us, it is required of them to be socially responsible and have greater accountability to all stakeholders of the company. Although directors must act in the best interests of shareholders collectively they must also consider the interests of other stakeholders. Sustainable relationships with all the relevant stakeholders are thus important. The advancement of social justice is thus important to corporations in that they should take note of the Constitution, labour legislation and company law legislation when social justice issues are dealt with. Employees have become very important stakeholders of companies and their needs should be taken into account in the bigger corporate governance and social responsibility framework.

Corporate governance, workers' participation and CSR: the way to a good company

2008 ◽  
Vol 14 (1) ◽  
pp. 13-26 ◽  
Author(s):  
Norbert Kluge ◽  
Isabelle Schömann
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Social Responsibility ◽  
Wide Sense ◽  
Global Level ◽  
Socially Responsible ◽  
Interest Representation ◽  
Introductory Article ◽  
Financial Capitalism ◽  
National Borders

Enterprises and investors nowadays typically go beyond national borders. After a decade in which the interests of shareholders in increasing their profits were all that seemed to count, more and more transnational enterprises have come to recognise that they have to be socially responsible in the wide sense if they are not to lose legitimacy. This introductory article considers the link between tried and tested forms of interest representation and the demands for a more socially responsible corporate governance of transnational enterprises in the context of the new financial capitalism and globalisation. Currently, workers participate in decision making on the basis of existing European participation rights and they are involved in developing new kinds of agreement on social responsibility at the global level. These international framework agreements (IFAs) are increasingly forming part of the contemporary understanding of what constitutes a good company.

A Study on How Investors Decide on Socially Responsible Investments: Classification of Investment Behavior According to Companies’ Environmental Activities

2014 ◽  
Vol 8 (5) ◽  
pp. 677-687
Author(s):  
Nariaki Nishino ◽  
◽  
Kaoru Kihara ◽  
Kenju Akai ◽  
Tomonori Honda ◽  
...  
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Investment Decision ◽  
Sustainable Production ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Investment Decision Making ◽  
Socially Responsible Investments ◽  
People’S Attitudes

Environmental problems must be solved urgently, and sustainable production activities are desired. This study focuses on environmental finance, which is a method of promoting sustainable corporation activities. Environmental finance allows socially responsible investment to directly contribute to corporate activities and sustainable production activities. To clarify the mechanism of eco-friendly investment decision making, 4,843 respondents took a questionnaire survey on investment decision making, based on the framework of prospect theory. The results showed that prospect theory did not always work for environment issues and that people’s attitudes when they decide on eco-friendly investments could be classified to four clusters.

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