Investing in Socially Responsible Companies is a must for Public Pension Funds ? Because there is no Better Alternative

Sethi, S. Prakash

doi:10.1007/s10551-004-5455-0

Cited by 157 publications

(117 citation statements)

References 78 publications

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“…But there are other opinions. Sethi (2005), for instance, claims that current measurement of future risk understates or overlooks long-term risks because of the inherent short-run bias of financial intermediaries whose compensation depends on short-term results. He therefore finds evidence to suggest that these intermediaries engage in self-serving practices and thus fail in their duties to serve their clients' -i.e., pension funds' -best interests.…”

Section: Sri In the Norwegian Context: The Norwegian Government Pensimentioning

confidence: 99%

Attitudes towards ethical pension management among Norwegians

Ditlev-Simonsen

Wenstøp

2016

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SammendragI denne studien har vi kartlagt nordmenns holdninger til etisk forvaltning av pensjonsfond som kan innebaere redusert pensjon. Vi studerer folks holdning til etikk angående eget pensjonsfond samt deres forestillinger hvilke holdninger andre har.Fokuset er på hvordan politisk partipreferanse og tilhørende verdier påvirke holdninger. Vi analyserer dataene med tre velkjente verdisystemer beskrevet av henholdsvis Inglehart, Welzel og Hellevik.Vi finner at 40 % sier de ville velge etisk investering selv om det betyr at deres egen pensjon vil bli redusert, mens 32 % sier nei. Det er uvisst hvor de 28 % som sier de ikke vet, vil ende opp, men dette kan tolkes som en generell positiv holdning i befolkningen til etisk pensjonsforvaltning.Holdningene er avhengig av verdier, og Helleviks verdisystem er en litt bedre indikator enn de andre. Funnene viser at viljen til å investere etisk øker med idealisme, venstreorientering og utdanningsnivå, og synker med inntekt. De samme verdiene er ikke relatert til folks oppfatning av hvordan de tror andre ville valgt når det gjelder villighet til etisk pensjonsforvaltning. Nøkkelord: Social Responsible Investment (SRI), pensjon fond, verdisystemer, holdninger, World Values Survey (WVS), Inglehart, Welzel, Hellevik, Petroleumsfondet utland AbstractWe have surveyed the attitudes of Norwegians toward ethical pension management that carries an opportunity cost. We study attitude regarding own pension fund as well as belief about other people's attitudes. Our findings show that 40% of the respondents claim they would choose ethical investment, even though it implies reduced pension. 28% would not choose ethical investment. It is unclear how those who say they do not know would end up, still the findings can be interpreted as a general positive attitude among people to ethical pension management.Attitudes depend on values, and Hellevik's value system is a slightly better predictor than the two other value systems. The findings show that willingness to invest ethically increases with idealism, leftist position and education level, and sinks with income. However, the values are not related to people's perception of other people's attitudes.

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Section: Sri In the Norwegian Context: The Norwegian Government Pensimentioning

confidence: 99%

Attitudes towards ethical pension management among Norwegians

Ditlev-Simonsen

Wenstøp

2016

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“…Second, it provides a clear signal about the stance and beliefs of the firm, reducing uncertainty about future actions and long-term risks (Sethi, 2005). Third, ethical disclosure attends the investors' need for ethical and social information (Hummels and Timme, 2004), which in turn helps to achieve better long-term investment decisions (Sethi, 2005).…”

Section: Hypothesis 3a: Stakeholders Satisfaction Mediates the Relatimentioning

confidence: 99%

Corporate Ethical Identity as a Determinant of Firm Performance: A Test of the Mediating Role of Stakeholder Satisfaction

2007

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In this article, we empirically assess the impact of the Corporate Ethical Identity (CEI) on the firm's financial performance. Drawing on formulation of both normative and instrumental stakeholder theory, we argue that firms with a strong ethical identity achieve greater degree of stakeholder satisfaction, which in turn, positively influence the firms' financial performance. We further analyze two different dimensions of the CEI of firms: corporate revealed ethics and corporate applied ethics. Our results indicate that while revealed ethics has informational worth and enhance shareholder value, applied ethics has a positive impact through the improvement of stakeholder satisfaction. However, revealed ethics by itself (i.e. decoupled from ethical initiatives) is not sufficient to boost economic performance.

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“…First, SR represents an investment strategy that delivers attractive risk-adjusted returns (Clark and Hebb 2005;Sethi 2005;Kiernan 2007). Second, pension funds and other institutional investors own the majority of global financial assets and performance depends on financial markets.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Specifically, the concept is that pension funds are powerful institutional investors that may ensure economic stability and stable environmental, social and corporate governance conditions in the global economies. As a consequence, as Clark and Hebb (2005), Sethi (2005), and Hawley and Williams (2007) indicate, this stability leads to more prosperous economies and healthier financial returns for pension funds.…”

Section: Introductionmentioning

confidence: 99%