A puzzle in Sri: The investor and the judge [Book Review]
Graduate studies at Western
Journal of Business Ethics 84 (2):221 - 235 (2009)
|Abstract||As Socially Responsible Investment (SRI) enters the mainstream of professional and institutional investment practice, some perplexities arise. Some SRI market participants are well schooled in finance but are hesitative as to how to apply non-financial criteria in the management of portfolios. Governments too are giving SRI more attention and, in some countries, are discussion whether and how to regulate the SRI market. Advocacy groups are targeting SRI projects through media campaigns using political discourse. Many of the pertinent questions that come with these perplexities are of the philosophical or ethical type and concern legitimisation, demarcation of responsibilities, interpretation of norms and policy formulation. The inclusion of non-financial criteria into investment decision-making leads to a 'puzzle in SRI' for which this article offers a solution. The puzzle arises when the day-to-day implementation of an SRIpolicy coincides with the process of administering justice. Three questions make up that puzzle: (1) what should an investor do when allegations arise about a corporation, (2) what should an investor do when a corporation is brought before a court, (3) what should an investor do when a corporation is found guilty by a court. This article argues, by distinguishing between the rationality of the investor and that of the judge, that allegations, court cases or court verdicts should not be reasons to disinvest from a corporation. This article offers examples from investor practice and points out in which way allegations, court cases and court verdicts make sense for investor behaviour|
|Keywords||socially responsible investment investment decision justice organisational malpractice organisational policy professionalism|
|Categories||categorize this paper)|
|Through your library||Configure|
Similar books and articles
Jonas Nilsson (2008). Investment with a Conscience: Examining the Impact of Pro-Social Attitudes and Perceived Financial Performance on Socially Responsible Investment Behavior. [REVIEW] Journal of Business Ethics 83 (2):307 - 325.
Jacob Park (2005). Beyond Good Intentions. International Corporate Responsibility Series 2:101-108.
Wim Vandekerckhove, Jos Leys & Dirk van Braeckel (2007). That's Not What Happened and It's Not My Fault Anyway! An Exploration of Management Attitudes Towards Sri-Shareholder Engagement. Business Ethics: A European Review 16 (4):403–418.
Josep M. Lozano, Laura Albareda & M. Rosario Balaguer (2006). Socially Responsible Investment in the Spanish Financial Market. Journal of Business Ethics 69 (3):305 - 316.
Karen L. Benson, Timothy J. Brailsford & Jacquelyn E. Humphrey (2006). Do Socially Responsible Fund Managers Really Invest Differently? Journal of Business Ethics 65 (4):337 - 357.
Peter Waring & John Lewer (2004). The Impact of Socially Responsible Investment on Human Resource Management: A Conceptual Framework. Journal of Business Ethics 52 (1):99-108.
Christopher J. Cowton & Joakim Sandberg (2012). Socially Responsible Investment. In Ruth Chadwick (ed.), Encyclopedia of Applied Ethics, 2nd ed. Academic Press.
Carmen Juravle & Alan Lewis (2008). Identifying Impediments to Sri in Europe: A Review of the Practitioner and Academic Literature. [REVIEW] Business Ethics 17 (3):285–310.
Wim Vandekerckhove, Jos Leys & Dirk Van Braeckel (2008). A Speech-Act Model for Talking to Management. Building a Framework for Evaluating Communication Within the Sri Engagement Process. Journal of Business Ethics 82 (1):77 - 91.
Shuangge Wen (2009). Institutional Investor Activism on Socially Responsible Investment: Effects and Expectations. Business Ethics 18 (3):308-333.
Added to index2009-01-28
Total downloads3 ( #213,434 of 722,941 )
Recent downloads (6 months)0
How can I increase my downloads?