Identifying the Determinants of the Decision to Create Socially Responsible Funds: An Empirical Investigation

Peillex, Jonathan; Ureche-Rangau, Loredana

doi:10.1007/s10551-014-2507-y

Cited by 23 publications

(14 citation statements)

References 54 publications

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“…For the French private equity sector, Crifo and Forget (2013) find that SRI funds aim primarily at risk and return characteristics. Equally, “change aspirations” are not even among the primary motives to launch a new SRI fund; instead, Peillex and Ureche-Rangau (2016) state increased media visibility and reputation of the corporate sponsor as the main non-financial drivers.…”

Section: Diverging Socially Responsible Investment Perspectivesmentioning

confidence: 99%

A plea for a stronger role of non-financial impact in the socially responsible investment discourse

Diener

Habisch

2020

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Purpose This paper aims to emphasize the importance and current deficits of non-financial impact (NFI) assessment of socially responsible investment (SRI) with reference to the action plan of the European Commission (EC) for a greener and cleaner economy. Design/methodology/approach The importance and current deficits of NFI assessment are evaluated theoretically and condensed to an equilibrated socially responsible investment (ESRI) perspective, based on a narrative literature review of highly ranked academic journals. Findings Due to a deficient exploration of NFI in theory and practice, the role of SRI funds for sustainability transition has not yet been adequately discussed. This has enabled a situation where a constantly rising market share of SRI has not led to similar sustainability achievements. This strongly contrasts with investors’ expectations, the self-portrayal of the sector and the goals of the EC’s action plan. As a solution, the developed ESRI perspective elevates NFI as a second cornerstone for theory and practice. ESRI, contrary to the EC, sets a primer on the role of SRI fund management for achieving sustainability goals. Originality/value This study reveals how SRI theory and practice neglect the importance of NFI. The presented ESRI perspective enables scholars to examine SRI practices more holistically through a new theoretical lens. One special focus is on the role of SRI fund management as a transmission mechanism to push portfolio companies’ business practices toward more sustainable behavior.

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Section: Diverging Socially Responsible Investment Perspectivesmentioning

confidence: 99%

A plea for a stronger role of non-financial impact in the socially responsible investment discourse

Diener

Habisch

2020

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“…Therefore, we consider the buyers' resource scarcity as another major predictor of their SSR strategy. This argument is reinforced by a number of studies showing that availability of slack resources drives managerial choices in favor of sustainability-related issues, such as the scope and scale of environmental-friendly initiatives (Bansal, 2003), socially responsible funds (Peillex and Ureche-Rangau, 2016) and social engagement and corporate social responsibility expenditures (Seifert et al , 2004; Surroca et al , 2010). Particularly, Cousins et al (2004) propose that the stock of resources available to the purchasing functions is a crucial enabler of their environment-related supplier management initiatives.…”

Section: Managing Ssr At the Buyer–supplier Dyad Levelmentioning

confidence: 99%

Mitigating sustainability risk in supplier populations: an agent-based simulation study

Hajmohammad

Shevchenko

2020

IJOPM

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PurposeMany modern firms strive to become sustainable. To this end, they are required to improve not only their own environmental and social performance but also the performance of their suppliers. Building on population ecology theory, we explore how buyers' exposure to supplier sustainability risk and their subsequent risk management strategies at the buyer–supplier dyad level can lead to adherence to sustainability by the supplier populations.Design/methodology/approachWe rely on a bottom-up research design, in which the actions of buyers within buyer–supplier dyads lead to population-wide changes on the supplier side. Specifically, we use experimental data on managing sustainability risk to build an agent-based simulation model and assess the effect of evolutionary processes on the presence of sustainable/unsustainable business practices in the supplier population.FindingsOur findings suggest that buyers' cumulative actions in managing sustainability risk do not necessarily result in effective population-wide improvements (i.e. at a high rate and to a high degree). For example, in high risk impact conditions, the buyer population is usually able to decrease the population level risk in a long run, but they would need both power and resources for quickly achieving such improved outcomes. Importantly, this positive change, in most cases, is due to the fact that the buyer population selects out the suppliers with high probability of misconduct (i.e. decreased supplier population density).Originality/valueDrawing on the organizational population ecology theory, we explore when, to what degree and how quickly the buyers' cumulative efforts can lead to population-wide changes in the level of supplier sustainability risk, as well as the composition and density of supplier population. Methodologically, this paper is one of the first studies which use a combination of experimental data and agent-based modeling to offer more valuable insights on supply networks.

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“…It is defined as an excess of material, financial, or human resources that are available for a firm (Bourgeois, 1981). These available resources provide a buffer from potential external shocks and risks, such as the pressure from environmental regulations (Peillex & Ureche-Rangau, 2016). If firms hold more slack resources, the magnitude of the effects of environmental regulations on innovation and diversification could change.…”

Section: Theories and Hypothesesmentioning

confidence: 99%

Trading Your Diversification Strategy for a Green One: How Do Firms in Emerging Economies Get on the Green Train?

Wang

Yang

2018

Organization & Environment

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Many studies have been performed to explore how firms transform from a nongreen strategy to a green one, but there is no definitive answer. Aiming to untangle this complex process in the context of the strategy and belief that being green is an important endeavor, this study details how firms implement green strategy from product diversification to innovation under the pressure of environmental regulations. Consistent with our arguments, data from Chinese listed firms reveal that environmental regulations create pressure for resources and managerial skills to be split between diversification and innovation strategies, which leads to innovation at the cost of diversification. This tension is strengthened when the firm has insufficient slack resources and faces strong environmental dynamism. Furthermore, we find that the innovation strategy increasingly substitutes the loss of the downsized diversification strategy. In addition, these effects show the differences between sectors and the dynamic change over time.

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Identifying the Determinants of the Decision to Create Socially Responsible Funds: An Empirical Investigation

Cited by 23 publications

References 54 publications

A plea for a stronger role of non-financial impact in the socially responsible investment discourse

A plea for a stronger role of non-financial impact in the socially responsible investment discourse

Mitigating sustainability risk in supplier populations: an agent-based simulation study

Trading Your Diversification Strategy for a Green One: How Do Firms in Emerging Economies Get on the Green Train?

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