In the past few years, investors from different European countries have become increasingly interested in the new opportunities that socially responsible investing (SRI) can offer. Empirical research into this subject has often assumed as 'given' the meaning attributed to the terms 'ethical' or 'socially responsible', thus concentrating more on other elements (particularly financial performance). This paper, through the analysis of the characteristics of ethical funds traded in Italy, investigates the possible contents that the terms 'ethical' and/or 'socially responsible' can (...) assume in practice, with particular attention to the underlying values and to how these values are integrated into the selection process. This analysis brings to light the impressive variety of ethical funds traded in Italy. In particular, it reveals the 'Italian model', whose distinguishing characteristics seem to be the following: recentness of issue, options for charitable donations, almost exclusive use of screening strategies, use of 'best in class' and 'minimum tolerance quota' indications, preference for ethical indices, application of commissions no higher than the national average, presence of ethical committees and the utilization of consulting or rating agencies. (shrink)

To date, research into socially responsible investment (SRI), and in particular the socially responsible investment funds industry, has focused on whether investing in SRI assets has any differential impact on investor returns. Prior findings generally suggest that, on a risk-adjusted basis, there is no difference in performance between SRI and conventional funds. This result has led to questions about whether SRI funds are really any different from conventional funds. This paper examines whether the portfolio allocation across (...) industry sectors and the stock-picking ability of SRI managers are different when compared to conventional fund managers. The study finds that SRI funds exhibit different industry betas consistent with different portfolio positions, but that these differences vary from year to year. It is also found that there is little difference in stock-picking ability between the two groups of fund managers. (shrink)

Interest in the notion of the possible financial sacrifice suffered by socially responsible investment (SRI) fund investors for considering ethical, social and environmental issues in their investment decisions has spawned considerable academic interest in the performance of SRI funds. Both the Australian and international research literature have yielded largely mixed results. However, several of these studies are hampered by methodological problems which can obscure the significance of reported results, such as the use of small sample sizes, inconsistencies in the (...) time frames selected to analyse performance and different modelling frameworks used to estimate investment returns. This study attempts to redress some of these issues by investigating the returns performance of 89 ethical funds in Australia over the period 1986-2005. Using a multi-factor CAPM model [Fama, E. F., and K. R. French (1996) J. Finance 51(1), 55] (which controls for factors such as size, book-to-market value and momentum) we find that ethical funds significantly under-perform the market in Australia, particularly in the most recent 5 years of our sample period (2000-2005). Risk adjusted returns (using Jensen's alpha) indicate that average annual underperformance is around 1.52% in the 2000-2005 period for our sample and .88% over the whole sample period. Our results contrast with many previous studies (both Australian and international), which have not found statistically significant differences in the performance of ethical funds relative to market benchmarks and/or a matched sample of conventional funds. (shrink)

Can SRI be a means to make investors both virtuous and prosperous? This paper argues that there can be significant tensions between these goals, and that SRI (and indeed all investment) should not allow the pursuit of maximizing investment returns to prevail over an ethical agenda of promoting social and economic justice and environmental protection. The discourse on SRI has changed dramatically in recent years to the point where its capacity to promote social emancipation, sustainable development and other ethical goals (...) is in jeopardy. Historically, SRI was a boutique sector of the market dominated by religious-based investors who sought to invest in accordance with the tenets of their faith. From the early 1970s, the aspirations of the SRI movement morphed significantly in the context of the divestment campaign against South Africa's apartheid regime. No longer were social investors satisfied with just avoiding profit from immoral activities; instead, they also sought to change the behavior of others. Business case SRI is a problematic SRI benchmark for several reasons: often there is a countervailing business case for financing irresponsible activities, given the failure of markets to capture all social and environmental externalities; secondly, even if investors care about such concerns, there may be no means of financially quantifying their significance for investment purposes; and, thirdly, even if such factors can be financially quantified, they may be deemed to be such long-term financial costs or benefits that they become discounted and ignored. The ethics case for SRI and ethical business practices more generally takes the view that both investors and the companies they fund have ethical responsibilities that trump the pursuit of profit maximization. Ethical investment should be grounded on this foundation. However, it may not be enough. To keep ethical investment ethical will likely require institutionalizing new norms and governance standards, in such domains as reforming fiduciary duties and the internal governance of financial organizations. SRI's own codes of conduct including the UNPRI have yet to demonstrate the robustness to move the financial community beyond business as usual. (shrink)

Although the academic interest in ethical mutual fund performance has developed steadily, the evidence to date is mainly sample-specific. To tackle this critique, new research should extend to unexplored countries. Using this as a motivation, we examine the performance and risk sensitivities of Canadian ethical mutual funds vis-à-vis their conventional peers. In order to overcome the methodological deficiencies most prior papers suffered from, we use performance measurement approaches in the spirit of Carhart (1997, Journal of Finance 52(1): 57–82) and (...) Ferson and Schadt (1996, Journal of Finance 51(2): 425–461). In doing so, we investigate the aggregated performance and investment style of ethical and conventional mutual funds and allow for time variation in the funds’ systematic risk. Our␣Canadian evidence supports the conjecture that any␣performance differential between ethical mutual funds and their conventional peers is statistically insignificant. (shrink)

Empirical studies, which analyze the performance of socially responsible investment (SRI) funds relative to conventional funds, find contradictory results. The aim of this paper is to investigate, with the help of a meta-analysis, how selected primary study characteristics influence the probability of a significant under- or outperformance of SRI funds compared with conventional funds. 25 studies with more than 500 observations are included in the meta-analysis. The results of this paper suggest that the consideration of the (...) survivorship bias in a study increases (decreases) the probability of a significant outperformance (underperformance) of SRI funds relative to conventional funds. The focus on United States (US) SRI funds increases (decreases) the probability of a significant outperformance (underperformance) too. The time period influences the probability of a significant under- and outperformance of SRI funds as well, but based on the results of this paper, it is not possible to draw general conclusions on this variable. (shrink)

There is currently much debate in the economic literature about whether ethical investment involves a financial sacrifice or premium. One of the most common methods of testing this compares the financial performance of ethical investment funds with that of other funds not considered “socially responsible” or ethical. The majority of these research studies evaluate the performance of the ethical funds according to classic measures, whereby different financial markets, in different countries and for different periods of time serve (...) as reference for evaluation. The ultimate conclusion of all of these studies is that there are no significant differences between the performance results of one type of funds and the other. In Spain, ethical investment funds are still an incipient sector of investment. To date, the Spanish market has not been included in any type of analysis of these characteristics. Therefore the main objective of this article is to compare the financial performance of ethical investment funds to that of other funds in the Spanish retail market. We propose the aggregate type of analysis as the Spanish ethical investment funds have experienced a weaker development in comparison to those of other developed countries. In the first step we suggest the financial performance to be compared by style analysis since the asset distribution of the Spanish Social Return Investment (SRI) funds differs from the European trend. In particular, we use the multifactor regression model with style benchmarks. We found that their financial performance is in all cases superior or similar to that achieved by the rest of the funds. In the second step, to achieve a more robust and homogeneous comparison, we used the bootstrap method, comparing ethical and non-ethical fund subsamples by homogeneous groups. No significant differences between these two types of funds have been found. Thus, if we assume the positive o neutral effect of ethical investment on investor utility in the retail Spanish market the financial and social performance (FSP) of ethical funds will be, in aggregate, superior to the FSP achieved by conventional funds. In conclusion, the financial performance of ethical mutual funds in Spain is no sacrifice. (shrink)

We introduce nudges in order to incite investors to choose Socially Responsible Investment funds instead of traditional funds. We have set up two online experiments with a total of 713 US retail investors, using three types of nudges to elicit their effects on investors’ SRI investments level: making SRI the default investment, introducing a SRI explanation message, and priming ethical values by displaying shocking images. Making SRI the default option is the most efficient nudge to influence investors towards (...) SRI. Its effect is twofold. First, around 50% of investors do not opt-out of the default allocation. Second, even investors who opt-out of the default allocation invest more in SRI than those in the control group, an effect that appears driven by anchoring. Although investors subjected to both priming and message content marginally increase their SRI investment, priming or message content in isolation appears to have a non-significant influence. For choice architects who want to steer retail investors towards SRI funds, making them the default option appears to be the most powerful nudge. (shrink)

We investigate the performance and risk of Socially Responsible Investment (SRI) equity funds in the Australian market and find no significant difference between the returns of SRI and conventional funds. In an extension to prior literature, we examine the impact of the number of positive, negative and total screens funds impose on performance and risk. We find little evidence of positive or negative screening impacting total return, but find weak evidence that funds with more screens overall (...) provide better risk-adjusted performance. Positive screening significantly reduces funds’ risk. However, negative screening significantly increases risk and reduces funds’ abilities to form diversified portfolios. (shrink)

>With assets of over US$1.0 trillion and growing, public pension funds in the United States have become a major force in the private sector through their holding of equity positions in large publicly traded corporations. More recently, these funds have been expanding their investment strategy by considering a corporations long-term risks on issues such as environmental protection, sustainability, and good corporate citizenship, and how these factors impact a companys long-term performance. Conventional wisdom argues that the fiduciary responsibility of (...) the pension funds trustees must be solely focused on their beneficiaries and, therefore, their investment criteria must be based strictly on narrowly defined financial measures. It is also asserted that well-established financial measurements of corporate performance already include long-term risk assessment through discounted present value of future flow of earnings. Consequently, all other criteria are contrary to the best interest of the pension funds beneficiaries. In this paper, we assert that, contrary to conventional wisdom, pension funds, and for that matter other mutual funds, must be concerned with the long-term survival and growth of corporations. These measures are generally referred to socially responsible investing (SRI) and when applied to corporations, it is termed socially responsible corporate conduct (SRCC). We demonstrate that current measurement of future risk assessment invariably understates, and quite often completely overlooks, these long-term risks because of the inherent bias towards short-run on the part of financial intermediaries whose compensation depends greatly on short-term results. Furthermore, there is ample evidence to suggest that these intermediaries have been engaging in self-serving practices and thus failing in their duties to serve their clients, i.e. pension funds, best interests. Because of their large holdings in the total market as well as individual companies, these funds cannot easily divest from poorly performing companies without destabilizing the companies stock and overall markets. Hence, they must opt for a strategy of emphasizing investment criteria that encourage companies to take into account long-term aspects of their operations in terms of their impact on environment, sustainability, and community welfare, to name a few. We argue that an exclusionary, and even a primary, focus on short-term financial criteria is no longer a viable option. It also calls for the pension funds to encourage greater transparency and accountability of the entire corporate sector through improved corporate governance. Thus socially responsible investing practices are not merely discretionary and desirable activities; they are a necessary imperative, which both the corporations and public pension funds, and other large institutional holders, will ignore at serious peril to themselves. Finally, the paper considers some of the recent developments where corporations have been responding to these challenges and how their actions might be strengthened through greater disclosure and transparency of corporate activities. It also makes recommendations for the pension funds to support further research in creating new measurement standards that further refine the concept of socially responsible investing as a necessary ingredient of long-term corporate survival and growth in the context of a changing economic, environmental and socio-political dynamic. (shrink)

We provide a comprehensive analysis of differences between socially responsible investment and conventional funds in terms of manager characteristics, performance and fund styles. We use holdings-based analysis to evaluate fund performance and style, which allows us to perform a more in-depth analysis than the extant literature. We find that SRI managers have longer tenure and are more likely to be a female. However, these differences do not result in any significant difference in the performance of SRI and conventional (...) class='Hi'>funds. Further, it is possible to find an SRI fund of any style, although these funds are under-represented in value styles. (shrink)

Increased concern for the environment has increased the number of investment opportunities in mutual funds specialized in promoting responsible environmental attitudes. This article examines the performance and risk sensitivities of US green mutual funds vis-à-vis their conventional peers. We also analyze and compare this performance relative to other socially responsible investing (SRI) mutual funds. In order to implement this analysis, we apply a CAPM-based methodology and find that in the 1987–2009 period, environ- mental funds had lower (...) performance than conventional funds with similar characteristics. However, if we focus on a more recent period (2001–2009), green funds achieved adjusted returns not significantly different from the rest of SRI and conventional mutual funds. (shrink)

The objective of the paper is to examine the role of the two donor agencies, the IMF and the World Bank in the formulation of social welfare policies in the post-independence Sri Lanka. The ideologies of the two major parties in Sri Lanka, the United National Party (UNP) and the Sri Lanka Freedom Party (SLFP), became the determining factor in the formulation of social welfare policies before 1977. In this context, the IMF and the World Bank played two different roles (...) before 1977. Meanwhile, the ideological gap existed between the two major parties began to disappear after 1977 with the introduction of liberalized economic policies. The IMF and the World Bank played an important role during the post-1977 period. There was evidence that these funding bodies influenced in the formulation of social welfare programmes under the two major parties. The guideline recommended by these two organizations adversely affected the subsidized rice ration, one of the major welfare programmes, in the country. (shrink)

In this article, we shed light on the debate about the financial performance of socially responsible investment (SRI) mutual funds by separately analyzing the contributions of before-fee performance and fees to SRI funds' performance, and by investigating the role played by fund management companies in the determination of those variables. We apply the matching estimator methodology to obtain our results and find that in the period 1997–2005, US SRI funds had better beforeand after-fee performance than conventional (...) class='Hi'>funds with similar characteristics. The differences, however, are driven exclusively by SRI funds run by management companies specialized in SRI. While these funds significantly outperform similar conventional funds, funds run by companies not specialized in SRI underperform their matched conventional funds. We find no significant differences in fees between SRI and conventional funds except in one case: SRI funds are cheaper than conventional funds run by the same management company. (shrink)

This study elucidates the link and effect of ethical reinforcement in the post‐financial crisis era by taking two congruent directions to demonstrate that ethical reinforcement can be accomplished by either a continuous ethical training or a meticulous code of business ethics—which members of the mutual fund industry claim they adhere to—as both have a positive effect on the funds’ performance, including sizeable gains to investors. Furthermore, evidence divulges that ethical reinforcement moderates the performance of ethical or socially responsible investments (...) (SRI) funds more than nonethical investments, suggesting that a perspective of ethical or SRI classification of a fund alone is not sufficient, but it is necessary to have the institutional ethical environment and/or managers’ continuous ethical training. This result supports the notion of financial market discipline and reveals some factors behind SRI or ethical funds returns, notably during the period following the recent financial crisis. (shrink)

The Life Divine explores for the Modern mind the great streams of Indian metaphysical thought, reconciling the truths behind each and from this synthesis ...

A critical issue for the future growth of socially responsible investment (SRI) is to what extent institutional investors such as pension funds can be persuaded to engage in it. This paper considers attempts at justifying such engagement stemming from a range of (re-)interpretations of the fiduciary duties owed by pension funds to their beneficiaries, and thereby develops a hypothesis concerning the most effective political or legal remedy. Previous commentary suggests that fiduciary duty either already mandates SRI for pension (...) funds, or at least can be made to do so rather easily. In contrast with this, however, this paper finds that none of the considered interpretations is able to justify engagement on social and environmental issues across the board. Indeed, the problem to some extent seems rooted in the very concept of fiduciary duty. The paper is relevant to current attempts at justifying SRI through reinterpretations of fiduciary duty, provided mainly by legal scholars and practitioners. By addressing the more philosophical issue of how far the concept of fiduciary duty can be “stretched” to accommodate SRI (a project of conceptual rather than legal clarification), it provides an evaluation of the contemporary debate which is independent of squabbles about existing law. The paper shows that there are conceptual limits to attempts at redefining fiduciary duty. But this does not mean that pension funds' engagement in SRI is unjustified or unjustifiable more generally. A more promising way to legally mandate SRI may be through what is dubbed independent social and environmental obligations. (shrink)

Most studies on the choices, motivations and behavior of investors consist of segmentations focused on socio-demographic characteristics such as age, income, education level, etc. Such approaches seem to simplify, even mutilate, reality by aggregating data about observable variables and considering investors as homogeneous groups. These perspectives are inspired by a scientific approach that consists of separating in order to better understand the observed phenomena. By considering individual as a “homo economicus”, that is to say, a rational and autonomous individual who (...) makes decisions motivated by material gains, these studies fail to recognize all the complexity that shapes human behavior. This paper argues that to understand the behavior and choices of investors in regards to socially responsible investing, we must consider social investors as complex individuals. In addition, we should take into account influence that the institution may exercise throughout the role of advisors and SRI promotion strategies. Our research builds on a multidimensional approach that explores to what extent demographic, environmental, social and governance issues, the trade-offs between financial return and social values, the attitudes and the role of the institution influence the decisions of individual social investors. Moreover, it adopts a more open approach by exploring the characteristics and behaviors of individual social investors in relation to those of conventional investors. Our research provides evidence from the Desjardins Fund. Qualitative and quantitative data gathered by Desjardins from online surveys are subjected to bivariate and multivariate analyses and are complimented by ten semi-structured interviews with managers, analysts, and advisors who provided further insight into SRI investment behavior and choice. The results show that while demographic characteristics still remain important in understanding the behavior and attitudes of social investors, it is their social values, ESG issues, financial return considerations and the role played by the institution in mediating investment decisions that are significantly associated with SRI portfolios. Our research highlights the complexity surrounding the phenomenon of SRI and has several implications both in terms of theory and practice. (shrink)

This book contains 82 questions and answers on the inner life, talks on reincarnation and the soul's evolution, sin, science, individuality, morality, inner peace, God's plan, and the universality of religion.

This article presents a framework intended to provide pension funds with practical guidance for the successful implementation of a sustainable investing strategy. The framework is developed with respect to the UK and US pension funds (as these share certain common legal characteristics) and focuses on the changes that pension funds adopting such a strategy should make to their investment strategies and governance (particularly through the formulation and articulation of clear investment mission and strong investment beliefs). The article (...) proceeds with a review of socially responsible investment (SRI) and more recent responsible investment (RI) literature, in the context of growing public awareness (but not necessarily understanding) of the concept of sustainability ("Literature review of SRI field: SRI, RI and sustainable investing" section). It then examines the literature on pension fund governance, arguing the need for more detailed practical guidance for funds moving towards sustainable investing, especially for those implementing a sustainable investing strategy ("Anglo-American pension fund governance" section). It presents the framework for the practical implementation of sustainable investing in the "Sustainable investing framework" section. Finally, we review the relevant Anglo-American legal backdrop, outlining how pension funds adopting our framework should approach their fiduciary obligations, and then discussing potential regulatory enablers of sustainable investment ("Legal context: barriers to and enablers of sustainable investing" section). (shrink)

Correspondence with a disciple revealing an altogether unknown facet of Sri Aurobindo's personality: his great sense of humour.

On Javanese philosophy written in Javanese literary works.

On Ki Ageng Suryamentaram and his thoughts on Javanese philosophy and ethics.

Here is a book with poses, breathing exercises and meditations for the pregnant woman. Photos enhance clear and easy instructions for the poses. Attention to safety, mental, physical and emotional benefits of the poses, and variations are discussed very thoroughly. It is in clear and simple language. A safe and natural way to prepare for a wonderful birth experience. The book could also serve as a reference for midwives. The authors follow-up with their detailed three part course of yogic and (...) breathing exercises for women- before, during and after pregnancy. It is a complete self help book for parents, especially mothers to be and covers both the practical as well as the emotional aspects of conception, pregnancy and childbirth. (shrink)

Purpose The purpose of this paper is to examine the factors that influence the intention of students to pirate academic e-books by integrating three main theories: ethics theory, deterrence theory, and the theory of planned behavior. The study also examines the moderating role of past piracy behavior on the relationship between the factors in the previously mentioned theories and students’ piracy intention. Design/methodology/approach The data were collected using a convenience sample of 662 university students. Based on their past behaviors, the (...) students were grouped into “no piracy” and “piracy” groups. Findings The result shows that the piracy intention of both the no-piracy and piracy groups has a similar influence based on the moral obligation in ethics theory. The factors in the deterrence theory, which includes fear of legal consequences and perceived likelihood of punishment, have no significant impact on the attitudes of the two groups toward piracy. While the intention of the no-piracy group is not influenced by other internal factors, such as self-efficacy, or by external factors, such as subjective norms and facilitating conditions, the behavioral intention of the piracy group is significantly influenced by these three factors. Research limitations/implications This study only focuses on piracy attitude and behavior in the context of e-books. Practical implications In Indonesia, the insignificant impact of factors from deterrence theory indicates weak law enforcement to combat digital piracy. Thus, it is imperative that law enforcement, especially regarding piracy, should be enhanced. Social implications The significant role of ethics in the attitudes toward piracy indicates that morality serves as a moral compass to fight piracy behavior. The strong impact of subjective norms, especially in the piracy group, suggests that families should raise children and educate youth with beliefs that align with the concepts of morality. Originality/value The study integrates three theories that are most often used in piracy behavior studies: ethics theory, deterrence theory, and theory of planned behavior. In addition, the study provides empirical evidence on the moderating role of past experience in piracy behavior. (shrink)

The seminal treatise and guide to Ashtanga yoga by the master of this increasingly popular discipline There is a yoga boom in America, and Sri K. Pattabhi Jois is at the heart of it. One of the great yoga figures of our time, Jois brought Ashtanga yoga to the West a quarter of a century ago and has been the driving force behind its worldwide dissemination. Based on flowing, energetic movement, Ashtanga and the many forms of vinyasa yoga that grow (...) directly out of it--have become the most widespread and influential styles of practice in the United States today. Mala means "garland" in Sanskrit, and Yoga Mala--a "garland of yoga practice"--is Jois's distillation of Ashtanga. He first outlines the ethical principles and philosophy underlying the discipline and explains its important terms and concepts. Next he guides the reader through Ashtanga's versions of the Sun Salutation and its subsequent sequence of forty-two asanas, or poses, precisely describing how to execute each position and what benefits each provides. Brought into English by Eddie Stern, a student of Jois's for twelve years and director of the Patanjali Yoga Shala in New York City, Yoga Mala will be an indispensable handbook for students and teachers of yoga for years to come. (shrink)

Initiation into yoga.--Symbolism and knowledge.--The sacred marriage.--The forgotten land.--Doubts and their removal.--Past, present and future.--Superstition.--The violence of war.--Religion and philosophy.

Impact of interfaith marriage on the ethics in Bali Province.

Abstrak: Jacques Rancière, pemikir Prancis kelahiran Aljazair (1940-sekarang), konsisten dengan gagasannya tentang kesetaraan bagi setiap orang dan semua orang. Baginya, demokrasi bukanlah bentuk pemerintahan atau tatanan sosial. Kesetaraan yang kontingen dalam tatanan sosial, menurut Rancière, menjadikan demokrasi dapat terjadi kapan saja dan di mana saja, tidak dapat diprediksi. Rancière mengajak kita untuk terbuka pada gangguan-gangguan demos dan kemunculan subyek-subyek baru di masa datang sebagai dinamika dalam tatanan sosial yang tidak perlu ditumpas atau dihambat. Politik demokrasi adalah sebuah perselisihan. Namun perselisihan (...) tersebut bukan tindakan revolusi untuk menghancurkan tatanan sosial yang telah ada menjadi tatanan yang sama sekali baru. Demokrasi adalah subyektivasi politik yang mengganggu tatanan sosial dominan yang dilakukan oleh demos untuk memverifikasi kesetaraan. Kemunculan demos mentransformasi tatanan sosial menjadi bentuk yang berbeda, yang mengakomodasi keberadaan mereka yang tidak terhitung (the wrong, yang salah). Kata-kata Kunci: Demokrasi, kesetaraan, demos, perselisihan, subyektivikasi, yang salah. Abstract: Jacques Rancière, a French philosopher born in Algeria (1940-present), affirms the equality of anyone and everyone. He analyzes the so-called democracy not as a kind of state or social order. Equality which is contingent in the social order, for Rancière, shows that democracy could occurs everytime and everywhere, democracy could not be predicted. Rancière brings us to have an open eye in front of dispute of the demos and the subjectification of any new subjects. This is an inherent and a dynamic of the social order that should not be repressed or stopped. The democratic politics is a dispute. But the dispute is not an act of revolution to destroy the existing social order to create an entirely new order. Democracy is the political subjectification that disrupts the police order by the demos to verify the equality of anyone and everyone. The emergence of the demos transforms the social order into a different form when this order accommodates the existence of the wrong. Keywords: Democracy, equality, demos, dispute, subjectification, the wrong. (shrink)

On Ki Ageng Suryomentaram and his thoughts on Javanese philosophy.