SRI Indices and Responsible Corporate Behavior

Abstract

This dissertation abstract and the reflection commentary present the work of Dr. Rieneke Slager. The dissertation addresses the influence of Corporate Social Responsibility (CSR) metrics on responsible corporate behavior, through a case study of a prominent metric in the Socially Responsible Investment (SRI) market, namely, the FTSE4Good Index. This extended dissertation abstract introduces the research questions, theoretical framework, methods, and findings. The author's views on successful completion of a PhD are discussed in the appendix.

Can environmental, social, and governance rating agencies favor business models that promote a more sustainable development?

“…More specifically, ESG rating agencies have emerged as relevant market actors for CSP assessment and, consequently, for companies' management. Only a few previous studies have analyzed the relationship between ESG rating agencies and corporate sustainability practices (Collison et al, 2009;Mackenzie et al, 2013;Slager, 2015); however, the results are inconclusive. However, little research has been done on whether raters measure corporate sustainability accurately and how they do it (Delmas, Etzion, & Nairn-Birch, 2013;Escrig-Olmedo, Muñoz-Torres, & Fernandez-Izquierdo, 2010).…”

“…However, little research has been done on whether raters measure corporate sustainability accurately and how they do it (Delmas, Etzion, & Nairn-Birch, 2013;Escrig-Olmedo, Muñoz-Torres, & Fernandez-Izquierdo, 2010). Only a few previous studies have analyzed the relationship between ESG rating agencies and corporate sustainability practices (Collison et al, 2009;Mackenzie et al, 2013;Slager, 2015); however, the results are inconclusive.…”

“…Although knowledge is limited on how ESG rating agencies and indices are used within companies to produce organizational change (Slager, 2015), several studies show that sustainability index membership influences the behavior of companies (Collison, Cobb, Power, & Stevenson, 2009;Mackenzie, Rees, & Rodionova, 2013;Pätäri, Jantunen, Kyläheiko, & Sandström, 2012). Although knowledge is limited on how ESG rating agencies and indices are used within companies to produce organizational change (Slager, 2015), several studies show that sustainability index membership influences the behavior of companies (Collison, Cobb, Power, & Stevenson, 2009;Mackenzie, Rees, & Rodionova, 2013;Pätäri, Jantunen, Kyläheiko, & Sandström, 2012).…”

“…3. Although knowledge is limited on how ESG rating agencies and indices are used within companies to produce organizational change (Slager, 2015), several studies show that sustainability index membership influences the behavior of companies (Collison, Cobb, Power, & Stevenson, 2009;Mackenzie, Rees, & Rodionova, 2013;Pätäri, Jantunen, Kyläheiko, & Sandström, 2012).…”

“….com] sustainability aspects of performance into their decision-making process and to obtain accurate information regarding ESG aspects in order to invest in sustainable companies and (b) improve the ESG company performance, although asSlager (2015) points out, knowledge is limited about how metrics for responsible investment is used within companies to achieve organizational change. Assessment methods followed by ESG rating agencies could contribute to the creation of sustainable value through the encouragement of new business models.…”