Investing in socially responsible companies

Goldberg, Jennifer; Goldberg, Stephen R.; Ratliff-Miller, Paulette

doi:10.1002/jcaf.20451

Cited by 3 publications

(6 citation statements)

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“…Past studies relating better financial performance to environmental performance appear to support that when business is slow, environmental investment is often one of the first areas cut from corporate budgets (Goldberg et al, 2008;Kazim, 2007). Regulatory stringency refers to the frequency of environmental compliance inspections a firm undergoes.…”

Section: Control Variablesmentioning

confidence: 97%

Choice and control of international joint venture partners to improve corporate environmental performance

Shah

2015

Journal of Cleaner Production

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Section: Control Variablesmentioning

confidence: 97%

Choice and control of international joint venture partners to improve corporate environmental performance

Shah

2015

Journal of Cleaner Production

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“…The Social Investment Forum is currently encouraging all investors to invest at least 1% in community investment. (Goldberg, Goldberg, & Ratliff-Miller, 2008).…”

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confidence: 99%

“…An SRI portfolio can contain mutual funds, ETFs, bonds, and stocks just as a conventional portfolio might contain (Mincer, 2008). There are a number of other ways to invest in SRI as well, such as venture capital, hedge funds, and international funds (Goldberg, Goldberg, & Ratliff-Miller, 2008). In 2007, 11% of assets under professional management in the US were invested in companies based on their environmental or social records (Leahy, 2008).…”

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confidence: 99%

“…The Social Investment Forum 2007 Report stated that nearly 1 in 9 dollars of professionally managed assets was invested in SRI; and, between 2005 and 2007 these investments increased by over 18%, compared to 3% for other professionally managed assets (Goldberg, Goldberg, & Ratliff-Miller, 2008). The Social Investment Forum also reported that in 1995 there were 55 SRI funds worth $639 billion, and in 2007 there were 260 funds worth $2.71 trillion.…”

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confidence: 99%

“…While there might not be a relationship between social responsibility and financial performance, people have experienced competitive returns with SRI. A study by Goldman Sachs Group in 2008 found that stocks of companies with solid social responsibility policies outperformed their peers by 70% over the past two years (Goldberg, Goldberg, & Ratliff-Miller, 2008). The Winslow Green Growth Fund is the best performing no-load SRI, with 3 year annualized returns of 35%.…”

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confidence: 99%

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Socially Responsible Investing

Jansen¹

2012

Second Generation Biofuels and Biomass

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PurposeThis study aims to answer the question, "Are people willing to forgo a portion of financial return for social good?" In other words, this study sought to report whether investors would be willing to accept less return, if the invested money could achieve a desired socially-driven outcome. MethodsAn experiment was conducted at the Wharton Behavioral Lab, asking participants to make a tradeoff decision between lower paying and socially responsible option and higher paying and socially irresponsible option. Participants received payment based on their decisions. ResultsFifty-two people participated in the experiment over the course of three separate rounds. Findings can be organized into three points: 1.) Higher percentage of return results in the greater number of invested tokens; 2.) Women are more likely to allocate more tokens into the socially responsible option than men; and 3.) People behave differently according to the order of options presented. ConclusionsInvestors interested in socially responsible investing do not necessarily expect to sacrifice a portion of their gains. Thus, to encourage socially responsible investing, its returns should be comparable to returns for conventional investing. Abstract PurposeThis study aims to answer the question, "Are people willing to forgo a portion of financial return for social good?" In other words, this study sought to report whether investors would be willing to accept less return, if the invested money could achieve a desired socially-driven outcome. MethodsAn experiment was conducted at the Wharton Behavioral Lab, asking participants to make a tradeoff decision between lower paying and socially responsible option and higher paying and socially irresponsible option. Participants received payment based on their decisions. ResultsFifty-two people participated in the experiment over the course of three separate rounds.Findings can be organized into three points: 1.) Higher percentage of return results in the greater number of invested tokens; 2.) Women are more likely to allocate more tokens into the socially responsible option than men; and 3.) People behave differently according to the order of options presented. 3 ConclusionsInvestors interested in socially responsible investing do not necessarily expect to sacrifice a portion of their gains. Thus, to encourage socially responsible investing, its returns should be comparable to returns for conventional investing.

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