The Corporate Social Responsibility on Capital Market

Abstract

The challenges generated by climate change have led to a greater involvement of companies in promoting the principles of sustainable development, one of the tools used being social responsibility programs. International organizations have launched various initiatives or principles to support companies in this complex process of transition to the green economy. The authors focused their analysis on the involvement of stock exchanges in the process of promotion of corporate social responsibility. The objective of this chapter is to identify the main tools used by stock exchanges in order to model the behavior of listed companies. In particular, the activity of the Bucharest Stock Exchange was analyzed. Even if it is an emerging market, the efforts made by this stock exchange and the results obtained can be used as a benchmark by stock exchanges in the region.

A Framework for Short- vs. Long-Term Risk Indicators for Outsourcing Potential for Enterprises Participating in Global Value Chains: Evidence from Western Balkan Countries

“…Furthermore, as an adequate response of companies and organizations of various types to complex challenges is integrated as a defining element of business strategies, a principle of responsible management called social responsibility is established (Popescu et al 2022), which is carried out by most companies in the EU (Hysa et al 2020;Khan et al 2021;Matei 2013;Panait et al 2019Panait et al , 2021Panait et al , 2022aVoica and Stancu 2021). These companies have to discover balanced treatment between the fulfillment of their own financial objectives and the social obligation contributed by these entities to the sustainable development of the economy in which they operate.…”

The Bucharest Stock Exchange: A Starting Point in Structuring a Valuable CSR Index

“…In this way, capital market investors have the opportunity to track the financial performance of shares issued by companies with sustainable behavior. Gradually, the interest of investors has really increased and, nowadays, the concept of socially responsible investments is well known, both on the financial market (Gjølberg 2009;Batista and Carlos de Francisco 2018;Wu et al 2018;Panait et al 2021;Ur Rehman et al 2021) and in academic plans. The universe of socially responsible investments is constantly expanding.…”

“…The selection criteria of companies for these indices are based on the responsible behavior of issuers, as a rule, from the first category of the stock exchange, excluding companies from sectors, such as tobacco production or weapons (Daszy ńska-Żygadło 2019). These indices are important for the business world because they capture the economic, environmental, and social performances of companies in different fields of activity (Arribas et al 2019;Panait et al 2021), including:…”

“…This initiative is intended to be a platform not only for dialogue and exchange of good practices among stock exchanges, financial supervisors, issuers, and portfolio investors but for financing the business opportunities presented by Sustainable Development Goals (SDGs). Achieving these bold goals will not only involve multiple categories of stakeholders but novel financing solutions, given that, at least in some cases, the transition to the low-carbon economy supposes high costs that call into question the competitive pressures faced by companies (Panait et al 2021). The public authorities must facilitate the involvement of companies in this process by supporting the corporate sector in this bold step by creating the legal, institutional, and financial framework in which this step will be taken (Zaman and Goschin 2010;Brezoi 2018;Drăgoi et al 2018;Apostu et al 2019;Frone et al 2020;Vasile et al 2021).…”

Do green finance, low‐carbon energy transition, and economic growth help in environmental investment?: Empirical evidence from emerging economies in Asia

“…To meet the Paris Agreement's goals, carbon dioxide emissions must be reduced by at least 15% by 2025 (Biasmara & Srijayanti, 2021). The current European Commission has committed to achieving carbon neutrality by 2050, and researchers have offered technically viable transition scenarios (Abbas & Dogan, 2022; Panait et al, 2021). However, adjustments that are both technologically viable and politically required must be made to accomplish these goals.…”