Socially responsible investments: A retrospective review and future research agenda

Beloskar, Ved Dilip; Haldar, Arunima; Rao, Sandeep

doi:10.1002/bse.3396

Cited by 10 publications

(5 citation statements)

References 127 publications

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“…Implications for society at large is that since we observe a low level of co‐authorship (see Table 1), greater collaboration across nations and organizations could be useful to boost research and to develop a global theoretical framework/regulation (Beloskar et al, 2023). Indeed, the lack of evidence of the ESG rating impacts on society and the environment are still the greatest challenges facing the field (Cunha et al, 2021).…”

Section: Research Agendamentioning

confidence: 99%

Anatomy of the chimera: Environmental, Social, and Governance ratings beyond the myth

Lucarelli,

Severini

2024

Bus Strat Env

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Environmental, Social, and Governance (ESG) ratings were developed to account for the multidimensional nature of the sustainability of firms. Research on ESG ratings suggests that working towards sustainability means engaging in a utopian effort, as in the chimera myth. We developed a conceptual framework of corporate activities that guides a systematic literature review based on 79 papers. Our analysis confirms that ESG ratings remain a black box, explored mainly from a purely monetary perspective and with contradictions on value created for companies and collective well‐being. Therefore, we deduce that research is still “chasing a chimera,” being this incomplete knowledge due to divergences in (1) theories, (2) regulations, (3) geographic and (4) corporate culture, (5) constructs/metrics, and (6) corporate attitude towards disclosure. Consequently, we identify research gaps and avenues for future research to foster corporations' responsible behaviours and socially responsible investing.

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Section: Research Agendamentioning

confidence: 99%

Anatomy of the chimera: Environmental, Social, and Governance ratings beyond the myth

Lucarelli,

Severini

2024

Bus Strat Env

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“…about how their funds are invested and to accessibly discuss financial risk-return expectations as well as ethical outcomes. The current paradigm dictates that managers are guided primarily by financial metrics in their investment decisions (Beloskar et al ., 2023), whereas investors consider ESG parameters but mostly because of their financial implications (Amir and Serafeim, 2018). Evidence suggests that the biggest asset managers are more likely to obstruct improving environmental governance at fossil fuel companies (Baines and Hager, 2022), which might be going against the intentions of their institutional investors.…”

Section: Recommendations For Asset Managersmentioning

confidence: 99%

Decarbonizing an energy-hungry world: the dilemma of investing in fossil fuels

Nikolaeva,

Field,

Tskhay

2024

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PurposeThe study examines the diversity of ethical motivations for investments in fossil fuels amid growing calls to decarbonize. Faced with the dilemma between energy needs and net-zero commitments, managers need to reconcile seemingly irreconcilable external pressures. The purpose is to provide insights into the ethics justifying their investment decisions.Design/methodology/approachThe authors draw on ethnographic research, participant observation and interviews with oil and gas executives, private equity partners, managing directors, bankers, lawyers, consultants and engineers in the US and the UK.FindingsThe findings show how managers in the oil and gas ecosystem motivate their actions in response to external pressures for decarbonization. The leitmotif is that they do the right thing even if they acknowledge that not all stakeholders agree. The findings provide insights into why net-zero pledges have failed to stem the flow of capital into fossil fuels.Practical implicationsThe authors propose a nuanced engagement with stakeholders that goes beyond risk-return calculations on investments in hydrocarbons. Recognizing the diversity of ethical perspectives, money managers have the opportunity to engage institutional constituents as owners of the collective pools of capital rather than just as beneficiaries in making investment decisions.Social implicationsMoney managers should be more engaged with stakeholders whose well-being depends on the funds' investments. They could facilitate the creation of partnerships with public and private organizations such as banks, national funds, city governments, pension funds, foundations, universities and religious organizations. It would be beneficial to all stakeholders to understand the nuanced and varied ethical frameworks that inform hydrocarbon investment and divestment decisions.Originality/valueThe article uses timely in-depth interview data on an issue of existential importance. The authors contribute a better understanding of how and why institutional investor capital is flowing into hydrocarbons at a time when calls to divest are louder than ever.

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“…Literature on socially responsible investments has parallel grown in recent years, with a specific focus on comparing the financial performance of SRI to that of conventional financial assets (Beloskar et al, 2023). Besides, a recent research field involves the issue of greenwashing, focusing on both companies greenwashing behaviors (e.g., Yu et al, 2020) and the development of strategies aimed at preventing greenwashing, such as the definition of clear and standardized ESG ratings to evaluate corporate social responsibility (Arvidsson and Dumay, 2022).…”

Section: Introductionmentioning

confidence: 99%

In search of socially responsible investors: a Latent Profile Analysis

Robba,

Sorgente,

Iannello

2024

Front. Behav. Econ.

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IntroductionSocially responsible investments (SRI) increased their popularity among investors over the last two decades. However, there is still a lack of knowledge on socially responsible investors' characteristics and motivations behind the decision to invest in SRI. The present paper aims at filling this gap by profiling current and potential sustainable investors.MethodCross-sectional data from a representative sample of Italian consumers (N = 1,002) was used to perform a Latent Profile Analysis (LPA), a clustering technique, and identify various sub-groups within the respondents. Subsequently, chi-square test and one-way ANOVA were performed to determine which profile(s) was mostly associated with current and potential socially responsible investing.Results and discussionFive profiles of consumers were identified through the LPA, each one differently associated with the likelihood of investing in socially responsible products. The profile that best describes sustainable investors is characterized by high levels of knowledge toward SRI, risk appetite, positive attitudes on SRI, personal norms, perceived behavioral control, environmental concerns, and connectedness to nature. These findings suggest that non-financial aspects, namely psychological characteristics such as attitudes and personal values, play a key role in the decision to invest responsibly as well.

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Socially responsible investments: A retrospective review and future research agenda

Cited by 10 publications

References 127 publications

Anatomy of the chimera: Environmental, Social, and Governance ratings beyond the myth

Anatomy of the chimera: Environmental, Social, and Governance ratings beyond the myth

Decarbonizing an energy-hungry world: the dilemma of investing in fossil fuels

In search of socially responsible investors: a Latent Profile Analysis

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