Corporate Social Responsibility, Ethics And Sustainable Prosperity 9811206872, 9789811206870
Corporate activities are not only drivers of economic growth but also key actors of the changes towards more sustainable
293 30 11MB
English Pages 500 [501] Year 2019
Table of contents :
Contents
Preface
About the Editors
Acknowledgments
List of Contributors
Part I: ESG and Ethical Issues in Corporate Decision-Making
Chapter 1. What Drives Corporate Social Performance? The Role of Espoused National Cultural Values
1. Introduction
2. Hypotheses
2.1. Hofstede’s Four Dimensions of National Culture
2.2. Power Distance Index (PDI)
2.3. Individualism (IDV)
2.4. Masculinity (MAS)
2.5. Uncertainty Avoidance Index (UAI)
3. Data and Methodology
3.1. Data
3.2. Empirical Strategy
4. Results
4.1. Descriptive Statistics
4.2. Paired Samples t-test
4.3. Pearson Product–Moment Correlation Coefficient
4.4. OLS Regression: Effect of National Culture on CSR
5. Discussion and Conclusion
5.1. Noticeable Facts
5.1.1. Noticeable fact 1
5.1.2. Noticeable fact 2
5.2. Main Findings
5.2.1. Main finding 1
5.2.2. Main finding 2
5.2.3. Main finding 3
5.2.4. Main finding 4
6. Implications and Future Research
References
Chapter 2. Corporate Social Performance and Financial Risk: Evidence from European Firms
1. Introduction
2. Relationship Between Corporate Social Performance and Financial Risk: Theoretical and Empirical Literature
2.1. CSP and Specific Risk
2.2. CSP and Systematic Risk
2.2.1. CSP’s effect on systematic risk
2.2.2. CSP as a new systematic risk factor
2.3. CSP and Accounting Risk
2.4. CSP and Analysts’ Earnings Forecast Dispersion
3. Data, Sample Description and Methodology
3.1. Data
3.1.1. Vigeo ratings
3.1.2. Financial and accounting data
3.2. Sample Description
3.3. Methodology
3.3.1. Dependent variables
3.3.2. Independent variables
3.3.3. Control variables
4. Results and Analysis
4.1. Summary Statistics
4.2. Univariate Analysis
4.3. Bivariate Analysis
4.4. Multivariate Regressions Analysis
4.5. Robustness Checks
4.5.1. Factorial analysis of CSR fields
4.5.2. Omitted variables
5. Discussion and Conclusion
Appendix: Vigeo Fields
References
Chapter 3. Determinants of Internal Fraud and Improper Business or Market Practices in Financial Institutions
1. Introduction
2. Main Hypothesis
3. Data and Methodology
3.1. Data
3.2. Methodology
4. Results
5. Conclusion
Acknowledgments
References
Chapter 4. Financial and Social Efficiencies of Microfinance Institutions: A Malmquist Productivity Index (MPI) Approach
1. Introduction
2. Microfinance: Towards a Double-Bottom Line
3. DEA–MPI: An Under-Exploited Technique
3.1. The Motives
3.2. The DEA–MPI Technique
4. A Comprehensive Illustration of the Efficiencies of Microfinance Institutions
4.1. The Data
4.2. The Models
4.3. The Application of the DEA–MPI Technique in Microfinance
4.4. The Financial Efficiency Favored in the Hard Times
5. Conclusion
References
Chapter 5. Corporate Governance and Environmental Performance: A Systematic Overview
1. Introduction
2. Methodology
3. Analysis of Results
4. The Effects of Micro-level Corporate Governance
4.1. Ownership
4.2. Board of Directors
4.3. Top Management
5. The Effects of Macro-level Corporate Governance
5.1. Institutional and Regulatory Environments
5.2. Takeover Market
6. Conclusions
Appendix: Summary Table
References
Chapter 6. Why Do Firms Engage in CSR? Theories, Institutions, and Models of Capitalism
1. Introduction
2. A Brief Historical Outline
3. Some Attempts to Conceptualize CSR
4. CSR Theories
4.1. Instrumental Theories
4.2. Political Theories
4.3. Ethical Theories
4.4. Integrative Theories
5. Stakeholder Theory and CSR
6. Institutional Theory
7. Stakeholders’ Institutional Entrenchment
8. CSR and Models of Capitalism
9. Conclusions
References
Chapter 7. Convergence of Corporate Governance and CSR: Ideological Perspectives
1. Introduction
2. Corporate Governance Ideology
3. CSR Ideology
4. Methodology
5. Analysis of Results
6. Conclusions
Appendix: Summary Table
References
Part II: Towards Sustainable Prosperity
Chapter 8. Value Creation Through a Circular Economy
1. Introduction
2. Overview of the Circular Economy
2.1. The Linear Economy vs. The Circular Economy
3. The Roles of Individuals, Corporations, and Governments in the Circular Economy
3.1. Government Progress Towards a Circular Economy
4. The Role of Design and Innovation
5. Value Creation Through the Circular Economy
6. The Circular Economy Across Different Industries
7. The Shared Economy
7.1. Shared Value Creation
8. Challenges Associated with the Circular Economy
9. Conclusion: Moving Towards a Circular Economy
References
Chapter 9. The Future of Financing for Sustainability in Asia and the Potential Role of the Asian Infrastructure Investment Bank
1. Introduction
2. The Role of Green MDBs and Green Investor Networks in Sustainable Development Finance
2.1. Greening the MDBs
2.2. Establishing Green Investor Networks
2.3. The Green Climate Fund
3. The Emerging Role of the Asian Infrastructure Investment Bank (AIIB)
3.1. Introduction
3.2. The AIIB and GCF Accreditation Standards
3.2.1. Fiduciary principles and standards
3.2.2. Environmental and social safeguards
3.2.3. Gender policy
3.2.4. AIIB energy strategy issue note
4. Influences Shaping the Emerging Role of the AIIB
4.1. Institutional Perspectives: Forming Alliances in Global Development Finance
4.2. Regional Perspectives: Belts and Roads
4.3. Emerging Role of the AIIB: The Domestic Context
5. Conclusion
References
Chapter 10. Towards a Global Financial System for Sustainability: Implications for an Emerging Global Financial Center
1. Introduction
2. Literature Review
2.1. CSR and Sustainability as Global Concerns
2.2. CSR and Sustainability Reporting as a Global Trend
2.3. Institutionalization of CSR and Sustainability Reporting
2.4. Concerns about Accountability for Sustainability
2.5. Investment Decision and Risk Consideration
2.6. Mounting Interests in Responsible Investing
2.7. UNPRI
3. Framework for Institutionalization of CSR and Sustainability Initiatives
4. The Case of Hong Kong
4.1. The Global Financial Center of China
4.2. Towards a “Green” Capital Market?
4.3. Strategic Imperatives of the “One Belt, One Road” Initiative
4.4. Complementary Efforts of Financial Institutions
5. Concluding Remarks
Acknowledgment
References
Chapter 11. Green Finance: Across the Universe
1. Introduction
2. Green Finance: What is it?
3. The Rise of Green Finance
3.1. Green Banking
3.2. Green Bond Market
3.3. Structured Funds
4. Important Actors for Greening Financial Markets
4.1. Institutional Investors
4.2. International Financial Institutions
4.3. Central Banks and Regulatory Authorities
5. Challenges to Mainstreaming Green Finance
6. Conclusions and Policy Recommendations
6.1. Banks
6.2. Central Banks
6.3. Regulatory Authorities
6.4. International Financial Institutions
6.5. Institutional Investors
References
Chapter 12. The History of Ethical, Environmental, Social and Governance-oriented Investments as a Key to Sustainable Prosperity in the Finance World
1. Introduction
2. Socially Responsible Investment (SRI)
2.1. Historical Emergence
2.2. International Differences
2.2.1. North America
2.2.2. Europe
2.2.3. The pacific rim
2.2.4. Emerging markets
2.3. Institutional Harmonization of SRI
2.4. SRI in the aftermath of the 2008/2009 World Financial Crisis
3. Conclusions and Future Perspectives
Acknowledgment
References
Chapter 13. Towards Sustainable Finance Conceptualization
1. Introduction
1.1. Background
2. Tentative Definitions of the Sustainable Finance Concept
3. Sustainable Finance Principles
4. Discussion
5. Conclusion
References
Chapter 14. Sustainable Value Money: Why it is Needed, How to Get it?
1. Introduction
2. Stability of Electricity as a Reference Value
3. Improving Prosperity with De-growth
4. Neglected Inequality Sources and Remedies
5. SVM Not a Store of Value
6. How to Get SVM — On a Local Basis
References
Chapter 15. Extended Corporate Sustainability Disclosure: Turkish Banking Sector
1. Introduction
2. Sustainable Development
3. Extended Corporate Sustainability Disclosure
4. Corporate Sustainability in Financial Sector
5. Overview of Turkish Banking Sector
6. Evaluation of Corporate Sustainability Disclosure in Turkish Banking Sector
7. Conclusion
Acknowledgment
References
Chapter 16. Bank Use of Corporate Social Responsibility and Sustainability Information in Lending Decisions
1. Introduction
2. Sample and Data
3. Environmental Information in Lending Decisions
4. Use of Environmental Information: Internal Factors
4.1. Managers’ Perceptions and Attitudes
4.2. The Need for Training Programs
5. Use of Environmental Information: External Factors
5.1. The Attitude of the State to Environmental Issues
5.2. The Attitudes of other Banks
5.3. Legislation and Risks Associated with Environmental and Social Issues
5.4. Effectiveness of the Mechanism for Implementing Legislation
5.5. Public Awareness and Pressure of Civil Society Organizations
5.6. Credibility of Information
5.7. Demand for CSED in Lending Decisions
6. Conclusion
References
Index
Contents
Preface
About the Editors
Acknowledgments
List of Contributors
Part I: ESG and Ethical Issues in Corporate Decision-Making
Chapter 1. What Drives Corporate Social Performance? The Role of Espoused National Cultural Values
1. Introduction
2. Hypotheses
2.1. Hofstede’s Four Dimensions of National Culture
2.2. Power Distance Index (PDI)
2.3. Individualism (IDV)
2.4. Masculinity (MAS)
2.5. Uncertainty Avoidance Index (UAI)
3. Data and Methodology
3.1. Data
3.2. Empirical Strategy
4. Results
4.1. Descriptive Statistics
4.2. Paired Samples t-test
4.3. Pearson Product–Moment Correlation Coefficient
4.4. OLS Regression: Effect of National Culture on CSR
5. Discussion and Conclusion
5.1. Noticeable Facts
5.1.1. Noticeable fact 1
5.1.2. Noticeable fact 2
5.2. Main Findings
5.2.1. Main finding 1
5.2.2. Main finding 2
5.2.3. Main finding 3
5.2.4. Main finding 4
6. Implications and Future Research
References
Chapter 2. Corporate Social Performance and Financial Risk: Evidence from European Firms
1. Introduction
2. Relationship Between Corporate Social Performance and Financial Risk: Theoretical and Empirical Literature
2.1. CSP and Specific Risk
2.2. CSP and Systematic Risk
2.2.1. CSP’s effect on systematic risk
2.2.2. CSP as a new systematic risk factor
2.3. CSP and Accounting Risk
2.4. CSP and Analysts’ Earnings Forecast Dispersion
3. Data, Sample Description and Methodology
3.1. Data
3.1.1. Vigeo ratings
3.1.2. Financial and accounting data
3.2. Sample Description
3.3. Methodology
3.3.1. Dependent variables
3.3.2. Independent variables
3.3.3. Control variables
4. Results and Analysis
4.1. Summary Statistics
4.2. Univariate Analysis
4.3. Bivariate Analysis
4.4. Multivariate Regressions Analysis
4.5. Robustness Checks
4.5.1. Factorial analysis of CSR fields
4.5.2. Omitted variables
5. Discussion and Conclusion
Appendix: Vigeo Fields
References
Chapter 3. Determinants of Internal Fraud and Improper Business or Market Practices in Financial Institutions
1. Introduction
2. Main Hypothesis
3. Data and Methodology
3.1. Data
3.2. Methodology
4. Results
5. Conclusion
Acknowledgments
References
Chapter 4. Financial and Social Efficiencies of Microfinance Institutions: A Malmquist Productivity Index (MPI) Approach
1. Introduction
2. Microfinance: Towards a Double-Bottom Line
3. DEA–MPI: An Under-Exploited Technique
3.1. The Motives
3.2. The DEA–MPI Technique
4. A Comprehensive Illustration of the Efficiencies of Microfinance Institutions
4.1. The Data
4.2. The Models
4.3. The Application of the DEA–MPI Technique in Microfinance
4.4. The Financial Efficiency Favored in the Hard Times
5. Conclusion
References
Chapter 5. Corporate Governance and Environmental Performance: A Systematic Overview
1. Introduction
2. Methodology
3. Analysis of Results
4. The Effects of Micro-level Corporate Governance
4.1. Ownership
4.2. Board of Directors
4.3. Top Management
5. The Effects of Macro-level Corporate Governance
5.1. Institutional and Regulatory Environments
5.2. Takeover Market
6. Conclusions
Appendix: Summary Table
References
Chapter 6. Why Do Firms Engage in CSR? Theories, Institutions, and Models of Capitalism
1. Introduction
2. A Brief Historical Outline
3. Some Attempts to Conceptualize CSR
4. CSR Theories
4.1. Instrumental Theories
4.2. Political Theories
4.3. Ethical Theories
4.4. Integrative Theories
5. Stakeholder Theory and CSR
6. Institutional Theory
7. Stakeholders’ Institutional Entrenchment
8. CSR and Models of Capitalism
9. Conclusions
References
Chapter 7. Convergence of Corporate Governance and CSR: Ideological Perspectives
1. Introduction
2. Corporate Governance Ideology
3. CSR Ideology
4. Methodology
5. Analysis of Results
6. Conclusions
Appendix: Summary Table
References
Part II: Towards Sustainable Prosperity
Chapter 8. Value Creation Through a Circular Economy
1. Introduction
2. Overview of the Circular Economy
2.1. The Linear Economy vs. The Circular Economy
3. The Roles of Individuals, Corporations, and Governments in the Circular Economy
3.1. Government Progress Towards a Circular Economy
4. The Role of Design and Innovation
5. Value Creation Through the Circular Economy
6. The Circular Economy Across Different Industries
7. The Shared Economy
7.1. Shared Value Creation
8. Challenges Associated with the Circular Economy
9. Conclusion: Moving Towards a Circular Economy
References
Chapter 9. The Future of Financing for Sustainability in Asia and the Potential Role of the Asian Infrastructure Investment Bank
1. Introduction
2. The Role of Green MDBs and Green Investor Networks in Sustainable Development Finance
2.1. Greening the MDBs
2.2. Establishing Green Investor Networks
2.3. The Green Climate Fund
3. The Emerging Role of the Asian Infrastructure Investment Bank (AIIB)
3.1. Introduction
3.2. The AIIB and GCF Accreditation Standards
3.2.1. Fiduciary principles and standards
3.2.2. Environmental and social safeguards
3.2.3. Gender policy
3.2.4. AIIB energy strategy issue note
4. Influences Shaping the Emerging Role of the AIIB
4.1. Institutional Perspectives: Forming Alliances in Global Development Finance
4.2. Regional Perspectives: Belts and Roads
4.3. Emerging Role of the AIIB: The Domestic Context
5. Conclusion
References
Chapter 10. Towards a Global Financial System for Sustainability: Implications for an Emerging Global Financial Center
1. Introduction
2. Literature Review
2.1. CSR and Sustainability as Global Concerns
2.2. CSR and Sustainability Reporting as a Global Trend
2.3. Institutionalization of CSR and Sustainability Reporting
2.4. Concerns about Accountability for Sustainability
2.5. Investment Decision and Risk Consideration
2.6. Mounting Interests in Responsible Investing
2.7. UNPRI
3. Framework for Institutionalization of CSR and Sustainability Initiatives
4. The Case of Hong Kong
4.1. The Global Financial Center of China
4.2. Towards a “Green” Capital Market?
4.3. Strategic Imperatives of the “One Belt, One Road” Initiative
4.4. Complementary Efforts of Financial Institutions
5. Concluding Remarks
Acknowledgment
References
Chapter 11. Green Finance: Across the Universe
1. Introduction
2. Green Finance: What is it?
3. The Rise of Green Finance
3.1. Green Banking
3.2. Green Bond Market
3.3. Structured Funds
4. Important Actors for Greening Financial Markets
4.1. Institutional Investors
4.2. International Financial Institutions
4.3. Central Banks and Regulatory Authorities
5. Challenges to Mainstreaming Green Finance
6. Conclusions and Policy Recommendations
6.1. Banks
6.2. Central Banks
6.3. Regulatory Authorities
6.4. International Financial Institutions
6.5. Institutional Investors
References
Chapter 12. The History of Ethical, Environmental, Social and Governance-oriented Investments as a Key to Sustainable Prosperity in the Finance World
1. Introduction
2. Socially Responsible Investment (SRI)
2.1. Historical Emergence
2.2. International Differences
2.2.1. North America
2.2.2. Europe
2.2.3. The pacific rim
2.2.4. Emerging markets
2.3. Institutional Harmonization of SRI
2.4. SRI in the aftermath of the 2008/2009 World Financial Crisis
3. Conclusions and Future Perspectives
Acknowledgment
References
Chapter 13. Towards Sustainable Finance Conceptualization
1. Introduction
1.1. Background
2. Tentative Definitions of the Sustainable Finance Concept
3. Sustainable Finance Principles
4. Discussion
5. Conclusion
References
Chapter 14. Sustainable Value Money: Why it is Needed, How to Get it?
1. Introduction
2. Stability of Electricity as a Reference Value
3. Improving Prosperity with De-growth
4. Neglected Inequality Sources and Remedies
5. SVM Not a Store of Value
6. How to Get SVM — On a Local Basis
References
Chapter 15. Extended Corporate Sustainability Disclosure: Turkish Banking Sector
1. Introduction
2. Sustainable Development
3. Extended Corporate Sustainability Disclosure
4. Corporate Sustainability in Financial Sector
5. Overview of Turkish Banking Sector
6. Evaluation of Corporate Sustainability Disclosure in Turkish Banking Sector
7. Conclusion
Acknowledgment
References
Chapter 16. Bank Use of Corporate Social Responsibility and Sustainability Information in Lending Decisions
1. Introduction
2. Sample and Data
3. Environmental Information in Lending Decisions
4. Use of Environmental Information: Internal Factors
4.1. Managers’ Perceptions and Attitudes
4.2. The Need for Training Programs
5. Use of Environmental Information: External Factors
5.1. The Attitude of the State to Environmental Issues
5.2. The Attitudes of other Banks
5.3. Legislation and Risks Associated with Environmental and Social Issues
5.4. Effectiveness of the Mechanism for Implementing Legislation
5.5. Public Awareness and Pressure of Civil Society Organizations
5.6. Credibility of Information
5.7. Demand for CSED in Lending Decisions
6. Conclusion
References
Index
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