Fiduciary and Other Legal Duties

Richardson, Benjamin J.

doi:10.1002/9781118524015.ch5

Cited by 7 publications

(2 citation statements)

References 12 publications

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“…However, negative screens, such as removing all fossil‐fuel companies from the portfolio, are more of an issue. As Richardson () points out, beyond pursuit of the mission, it is not the responsibility of board members to use their authority to influence environmental policy.…”

Section: Institutional Backgroundmentioning

confidence: 99%

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Socially Responsible Investing by Universities and Colleges

Smith

2016

Financial Management

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We analyze the socially responsible investing (SRI) practices of universities and colleges. Although SRI may align with an institution's mission and enhance its “brand,” these activities may also arise from agency problems. We find evidence of both effects. Consistent with branding effects, we find significant differences between independent and church‐affiliated schools, we find that highly selective and elite schools do not seek differentiation through SRI and are unlikely to sacrifice returns for SRI, and we find that Less Selective schools appear to regard costs of SRI as branding investments. Consistent with agency problems, attributes of investment committees bear on policy choices. For independent schools, larger committees and those where professional representation is low are likely to screen, allow sustainability considerations to influence investment choices, and vote proxies along SRI lines. “Social boards,” those with more alumni and less investments expertise, appear more oriented toward generating donations and less focused on investment policy.

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Section: Institutional Backgroundmentioning

confidence: 99%

“…Richardson's () strong position does not mean that taking SRI positions is always inappropriate. The history of SRI demonstrates that some university boards see value in being recognized as vanguards of social change.…”

Section: Institutional Backgroundmentioning

confidence: 99%