CSR & Investor Relations (IR)

Corporate Social Responsibility and Stock Market Efficiency

By Prof. Leonardo Becchetti (University of Rome Tor Vergata), Dr. Rocco Ciciretti (University of Rome Tor Vergata)

Leonardo Becchetti, Rocco Ciciretti and Alessandro Giovannelli investigates the relationship between Corporate Social Responsibility (hereafter CSR) and I/B/E/S Details analysts’ earnings per share (EPS) forecasts using a large sample of US firm forecasts for the 1997-2004 period. They shows that the net difference between CSR strengths and weaknesses significantly reduces both the absolute earning forecast error and its standard deviation after controlling for standard regressors and year, industry, and firm/broker effects. Their findings are consistent with the hypothesis that reduced transaction costs (and conflicts) with stakeholders and more transparent accounting practices implied by CSR significantly affect the bias. more[...] login_required

Corporate Responsibility in Times of Crisis

By Georg Kell (United Nations Global Compact)

2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. more[...] login_required

The link between CSR and CFI

Operationalizing Sustainability Targets: An Introduction to the Sustainable Value Approach

Prof. Dr. Frank Figge

Over the last decades, sustainability has been accepted by policy makers and corporate managers alike as a relevant and legitimate goal. In this context, the current UN-level efforts to formulate Sustainable Development Goals (SDGs) can be expected to further consolidate the sustainability agenda and to help relevant actors to address today’s key global sustainability challenges. more[...]

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Green Business Assessment - The link between environmental and company performance

Philip Thormark, ÅF AB
André Månsson, Lund University

Over the years the general attitude towards environmental management has shifted. From a reactive stance, in which accidents and release of pollutions were at the center stage, to a proactive one in which environmental performance is sometimes regarded as a vital factor for the success of the company. Better environmental performance may increase the competitive advantage of a company in numerous ways. more[...]

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Findings Show Endowments Doing Less Than Expected Given History as ESG Pioneers

IRRC Institue

A new report finds the college and university endowments’ environmental, social and corporate governance (ESG) investments are less prevalent than often believed, particularly given their history as sustainable investing pioneers dating back to 1970s anti-apartheid campaigns. These findings are particularly surprising at a time when active incorporation of ESG factors into investment decisions is increasingly widespread among mainstream investors. more[...]

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Investor Influence on Firms’ Environmental, Social and Governance Performance

Prof. Bill Rees, University of Edinburgh Business School

Whilst corporate social responsibility has been much studied there is little evidence concerning the factors that encourage or hinder environmental, social and governance investment. Willam Rees takes the view that climate change, the failure of corporate governance contributing to the financial crisis and problems with the ethical approach of firms and wealth inequalities, particularly in developing economies, all point to the importance of corporate social responsibility in general and ESG in particular. more[...]

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Opinion

It Is Time For A Social Stock Exchange

Prof Muhammad Yunus, Yunus Centre

Many of the problems in the world today persist because of a too-narrow interpretation of capitalism. Most businesses today are run based on the assumption that people are selfish and interested solely in maximizing their own profit. This is a very one-dimensional view of humans who in reality are very multidimensional. As much as selfishness is part of us, so is selflessness, but the selfless dimension is not taken into account in economic theory. more[...]

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Financial Services Professionals Feel Unethical Behavior May Be A Necessary Evil

Labaton Sucharow LLP announced the results of its survey of 500 financial services professionals across the United States and United Kingdom. Conducted by Populus in June, Wall Street, Fleet Street and Main Street: Corporate Integrity at a Crossroads reveals startling data on corporate ethics, the regulatory landscape, and individuals' willingness to blow the whistle on wrongdoing. more[...]

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Link CSR & SRI better!

Prof. Hanns Michael Hölz

Stock markets and economies are collapsing worldwide. Politicians are fervently putting together rescue packages. And the public is carrying on heated discussions about morality, bonuses and the new modesty. We talked to the sustainability expert at Deutsche Bank, Hanns-Michael Hölz, about the financial crisis, its lessons and the consequences for sustainable investment. more[...]

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CSR Reporting of European Banks and Insurance Companies still Needs Improvement

Novethic analysed the reporting of 31 European banks and insurance companies in four areas of CSR (Corporate Social Responsibility): environmental, social and governance issues and their products and services. The study examines how the financial sector has reacted to the questions it has raised since the crisis. The companies surveyed provide detailed reporting on their social policy or their direct environmental impacts, but information is sparse on sensitive governance issues such as executive compensation or tax havens. more[...]

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European Commision Proposal Promoting ESG Investment Disclosure

European Forum for Sustainable Investment

Eurosif, the European Forum for Sustainable Investment, strongly supports the Proposal of the European Commission, for a Regulation making it mandatory for retail investors to be informed about how environmental, social and governance (ESG) concerns are taken into account in their investment, whether in a mutual fund or other investment-linked products. Eurosif believes that this Proposal represents a major milestone in terms of developing sustainability through European financial markets. more[...]

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