Does Sustainability Investment Provide Adaptive Resilience to Ethical Investors? Evidence from Spain

Ortas, Eduardo; Abadía, José Mariano Moneva; Burritt, Roger; Tingey-Holyoak, Joanne L.

doi:10.1007/s10551-013-1873-1

Cited by 38 publications

(29 citation statements)

References 43 publications

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“…The most commonly used SRI indices are Domini400 (based on KLD data), FTSE4Good (data from EIRIS), and Dow Jones Sustainability Index (data from SAM) and published in either the United States or United Kingdom. Other domestic stock indices tend to be used in studies that specifically examine SRI performance in a specific country (Chipeta & Gladysek, 2012;Ortas et al, 2012;Ortas, Moneva, Burritt, & Tingey-Holyoak, 2014).…”

Section: Esg Metrics As a Proxy For Sustainability Performancementioning

confidence: 99%

A systematic literature review of socially responsible investment and environmental social governance metrics

2019

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Socially responsible investment (SRI) encompasses both ethical and financial paradigms. This systematic literature review explores three key research themes within the SRI literature, identifying a significant disconnect between themes and a fixation on the financial (as opposed to ethical) paradigm. One of the foundations of SRI is environmental, social, and governance (ESG) metrics. This review confirms the importance of ESG metrics in the SRI field, as they play two crucial roles, namely, as a proxy for sustainability performance and an enabler of the SRI market. However, there are two main issues related to ESG metrics that undermine their reliability: a lack of transparency and a lack of convergence.

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Section: Esg Metrics As a Proxy For Sustainability Performancementioning

confidence: 99%

A systematic literature review of socially responsible investment and environmental social governance metrics

2019

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“…As Gao, Zuzul [3] suggest, corporate reputation can work as either a defense mechanism whereby it helps companies to buffer disruptions and threats, or offensive mechanisms whereby it further allows companies to capitalize environmental changes to create values. The engagement in CSR activities helps a firm to build its reputation and deep social foundation that can work as "meta resource" [3] to activate conventional business resources (e.g., technologies, labors, capitals and materials), thus allowing it to not only cushion environmental shocks and thus reduce financial volatility [46], but also create opportunities for business initiatives and therefore increase performance growth [6].…”

Section: Csr and Organizational Resiliencementioning

confidence: 99%

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Wei

et al. 2019

Sustainability

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Prior work on corporate social responsibility (CSR) has focused mainly on its effects on the short-term performance of firms from developed countries. In this article, we shed light on its effects on organizational resilience, which is defined as the firm's ability to positively cope with environmental turbulence, and operationalized by long-term, improved sales growth and financial volatility. In line with this operationalization, we adopt CSR's performance-enhancing and performance-insuring mechanisms to disentangle the relationship between CSR and organizational resilience. Furthermore, we divide CSR into five dimensions, namely shareholder, employee, business, society and environment-related CSR, and respectively examine their impacts on organizational resilience. The empirical study on a large sample of public firms in China from 2010 to 2017 shows that CSR as a whole significantly increases the firms' long-term growth and reduces their financial volatility. As for the five specific dimensions, they all have a significant negative effect on financial volatility, and the employee, business, environment-related CSR are positively associated with long-term growth. Yet, the empirical results did not indicate significant associations between shareholder and society-related CSR and firms' long-term growth. This study first explores the impacts of CSR's different dimensions on organizational resilience. Also, we contribute to enriching the literature on CSR by examining the long-term performance-insuring effect of CSR with a quantitative analysis of emerging markets. Finally, we discuss some important managerial implications, as well as promising directions for future research.2 of 23 conditions, unestablished industrial structures, and the intense, chaotic competition brought by rapid development, Chinese enterprises are likely to face more changes and uncertainties in their business environment, which makes them more vulnerable than those from developed countries. Second, as the concern about CSR in China comes far later than that in developed countries, the effect of Chinese CSR on organizational resilience may be different. The Kinder, Lydenberg, and Domini (KLD) database, for example, began to internationally provide ratings of corporate social performance in 1991. While, the first official research report on Chinese CSR was released in 2009, and then Chinese listed companies were required to issue their annual CSR reports. In line with this, we aim at providing some new insights of CSR and its effects on organizational resilience with evidence from emerging markets.In doing so, we first clarify the conceptualization and operationalization of organizational resilience. Defined as the ability of an organization to respond positively to environmental changes, organizational resilience is a latent, unobservable construct usually measured by its outcomes [6]. The most desired outcome of organizational resilience recognized in extant literature is a firm's persistent superior performance in the changing business en...

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“…Ethical climate is another important organizational variable that has been found to have some significant influence on employees' ethical decisions (Ortas et al 2013). Victor and Cullen (1988, p. 101) define it as ''the prevailing Table 1).…”

Section: Ethical Climatementioning

confidence: 99%

The Role of Individual Variables, Organizational Variables and Moral Intensity Dimensions in Libyan Management Accountants’ Ethical Decision Making

2014

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This study investigates the association of a broad set of variables with the ethical decision making of management accountants in Libya. Adopting a cross-sectional methodology, a questionnaire including four different ethical scenarios was used to gather data from 229 participants. For each scenario, ethical decision making was examined in terms of the recognition, judgment and intention stages of Rest's model. A significant relationship was found between ethical recognition and ethical judgment and also between ethical judgment and ethical intention, but ethical recognition did not significantly predict ethical intention-thus providing support for Rest's model. Organizational variables, age and educational level yielded few significant results. The lack of significance for codes of ethics might reflect their relative lack of development in Libya, in which case Libyan companies should pay attention to their content and how they are supported, especially in the light of the under-development of the accounting profession in Libya. Few significant results were also found for gender, but where they were found, males showed more ethical characteristics than females. This unusual result reinforces the dangers of gender stereotyping in business. Personal moral philosophy and moral intensity dimensions were generally found to be significant predictors of the three stages of ethical decision making studied. One implication of this is to give more attention to ethics in accounting education, making the connections between accounting practice and (in Libya) Islam. Overall, this study not only adds to the available empirical evidence on factors affecting ethical decision making, notably examining three stages of Rest's model, but also offers rare insights into the ethical views of practising management accountants and provides a benchmark for future studies of ethical decision making in Muslim majority countries and other parts of the developing world.

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Does Sustainability Investment Provide Adaptive Resilience to Ethical Investors? Evidence from Spain

Cited by 38 publications

References 43 publications

A systematic literature review of socially responsible investment and environmental social governance metrics

A systematic literature review of socially responsible investment and environmental social governance metrics

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

The Role of Individual Variables, Organizational Variables and Moral Intensity Dimensions in Libyan Management Accountants’ Ethical Decision Making

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