David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jonathan Jenkins Ichikawa
Jack Alan Reynolds
Learn more about PhilPapers
Business Ethics Quarterly 15 (4):641-657 (2005)
“Ethical investing” is interpreted in the following paper to be the use of non-financial normative criteria by investors in the choice ofsecurities for their portfolios.Ethical investors may aim at fulfilling duties they feel they have, possibly including increasing the amount of good in society through theconsequences of their buying and selling behavior. The main duties are those of not-profiting from bad corporate behavior and of punishing bad (or rewarding good) firms. The main consequence desired is that managers manage corporations in a more ethical manner. But ethical investors (as opposed to some other kinds of investors who are also interested in normative issues) also aim at receiving returns based on the market risk of their investments.If the aim of managers is to maximize shareholder wealth, then ethical investors can fulfill their duties or achieve their desired consequences only if their trading activities affect shareholder wealth, i.e., share price. A theoretical argument is presented to show that this trading activity will not affect share price or return. In addition, reference is made to results of empirical studies which show that ethical stocks yield market returns, i.e., that the share price of ethical firms is unaffected by the actions of ethical investors.If the trading activity of ethical investors fails to affect share price and return, then these investors fail to fulfill any of their goals or to achieve their ends
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
Joakim Sandberg (2011). Socially Responsible Investment and Fiduciary Duty: Putting the Freshfields Report Into Perspective. [REVIEW] Journal of Business Ethics 101 (1):143-162.
Muel Kaptein (forthcoming). The Battle for Business Ethics: A Struggle Theory. Journal of Business Ethics.
R. H. Berry & F. Yeung (2013). Are Investors Willing to Sacrifice Cash for Morality? Journal of Business Ethics 117 (3):477-492.
Tjai M. Nielsen & Liesl Riddle (2009). Investing in Peace: The Motivational Dynamics of Diaspora Investment in Post-Conflict Economies. [REVIEW] Journal of Business Ethics 89 (4):435 - 448.
Similar books and articles
Rodger Spiller (2000). Ethical Business and Investment: A Model for Business and Society. [REVIEW] Journal of Business Ethics 27 (1-2):149 - 160.
Marc J. Epstein, Ruth Ann McEwen & Roxanne M. Spindle (1994). Shareholder Preferences Concerning Corporate Ethical Performance. Journal of Business Ethics 13 (6):447 - 453.
Joakim Sandberg (2008). The Ethics of Investing: Making Money or Making a Difference? Dissertation, University of Gothenburg
Alan Lewis & Craig Mackenzie (2000). Support for Investor Activism Among U.K. Ethical Investors. Journal of Business Ethics 24 (3):215 - 222.
Joakim Sandberg (2007). Should I Invest with My Conscience? Business Ethics: A European Review 16 (1):71–86.
Jonathan McLachlan & John Gardner (2004). A Comparison of Socially Responsible and Conventional Investors. Journal of Business Ethics 52 (1):11-25.
Alan Lewis (1999). Morals and Markets. Business Ethics Quarterly 9 (3):439-452.
Mark S. Schwartz (2003). The "Ethics" of Ethical Investing. Journal of Business Ethics 43 (3):195 - 213.
Jeffrey S. Miller (2009). Opportunistic Disclosures of Earnings Forecasts and Non-GAAP Earnings Measures. Journal of Business Ethics 89 (1):3 - 10.
Garry D. Bruton, J. Kay Keels & Elton Scifres (1999). The Ethics of the Complete Management Buyout Cycle: A Multi-Perspective Analysis. [REVIEW] Journal of Business Ethics 19 (4):403 - 413.
Sirkku Hellsten & Chris Mallin (2006). Are 'Ethical' or 'Socially Responsible' Investments Socially Responsible? Journal of Business Ethics 66 (4):393 - 406.
Karen Paul & Dominic A. Aquila (1988). Political Consequences of Ethical Investing: The Case of South Africa. [REVIEW] Journal of Business Ethics 7 (9):691 - 697.
Eileen P. Kelly, Alka Bramhandkar & Hormoz Movassaghi (2009). A Case Study of Ethics and Mutual Funds Mismanagement at Putnam. Ethics and Behavior 19 (1):25 – 35.
Anna M. Cianci & S. Kaplan (2008). The Effects of Management's Preannouncement Strategies on Investors' Judgments of the Trustworthiness of Management. Journal of Business Ethics 79 (4):423 - 444.
Rocío Marco Crespo (2009). Spanish Mutual Fund Fees and Less Sophisticated Investors: Examination and Ethical Implications. Business Ethics 18 (3):224-240.
Added to index2011-01-04
Total downloads19 ( #243,042 of 1,926,176 )
Recent downloads (6 months)7 ( #132,762 of 1,926,176 )
How can I increase my downloads?