Sovereign Wealth Funds and Socially Responsible Investing: An Emerging Public Fiduciary

2012 ◽  
Vol 1 (2) ◽  
pp. 125-162 ◽  
Author(s):  
Benjamin J. Richardson
Keyword(s):  
Financial Markets ◽  
Environmental Sustainability ◽  
Global Economy ◽  
Global Financial Crisis ◽  
Socially Responsible Investing ◽  
Socially Responsible ◽  
Sovereign Wealth Funds ◽  
Responsible Investing ◽  
Significant Phenomenon ◽  
The Global Financial Crisis

The dramatic growth of sovereign wealth funds (SWFs) in recent decades has made them a significant phenomenon in global financial markets and raised the prospect of more enlightened investing that respects the environmental underpinnings of economic prosperity. Until the Global Financial Crisis of 2008, the movement for socially responsible investing (SRI) had been the only noteworthy dissenting voice to the traditional complacency about the financial economy’s wider impacts. That financial calamity not only unveiled a systemic malaise in the financial alchemy of the global economy but also highlighted its social and environmental sequelae. The rise of SWFs, several of which are legally mandated to practice SRI, gives hope that states may reclaim some public oversight over finance capitalism. The purpose of this article is to investigate the governance of some SWFs with a view to assessing their capacity to contribute to environmental sustainability. As public financial institutions empowered by a broader conception of investment that takes account of social and environmental factors, SWFs have the incipient markings of ‘public fiduciaries’. SWFs could provide a novel way to interpolate the public trust environmental responsibilities of the state into the governance of the financial economy. This article focuses on the French and Norwegian SWFs, which arguably have the most comprehensive SRI practices of all SWFs. Both, however, have struggled to reconcile their ethical and financial mandates into a coherent investment philosophy. But their putative fiduciary responsibilities to society through an increasingly long-term investing perspective suggest a new normative direction to reconcile these tensions and to thereby help institutionalize the principles of intergenerational equity and sustainable development in the context of financial markets.

Socially Responsible Investing for Sustainability: Overcoming Its Incomplete and Conflicting Rationales

2013 ◽  
Vol 2 (2) ◽  
pp. 311-338 ◽  
Author(s):  
Benjamin J. Richardson
Keyword(s):  
Financial Markets ◽  
Environmental Sustainability ◽  
Global Financial Crisis ◽  
Socially Responsible Investing ◽  
Ecological Impacts ◽  
Socially Responsible ◽  
Temporal Perspective ◽  
Environmentally Sustainable ◽  
Responsible Investing ◽  
The Global Financial Crisis

AbstractIn the wake of the Global Financial Crisis and worsening collateral social and environmental problems, socially responsible investing (SRI) has garnered more interest internationally as a potential civilizing influence on the financial economy. In particular, SRI is increasingly conceptualized as a means to promote environmentally sustainable development by disciplining financial markets to be more attentive to their ecological impacts. In this sense, SRI emerges as a putative form of transnational governance that utilizes non-state actors and mechanisms to promote sustainability in an economic sector that traditionally has had little accountability for its environmental performance. But as a largely voluntary movement, with rudimentary legal support, SRI so far has wielded limited clout.A hindrance to the aspirations of SRI is deficiencies in its rationales. This article critiques the main theories advanced to justify SRI from the perspective of their contribution to promoting environmental sustainability: the complicity-based doctrine, leverage-based responsibility, and the universal owner thesis. Apart from gaps or limitations shown in each rationale, the article demonstrates that they conflict with the existing parameters of fiduciary law responsibility of financial institutions. An alternative rationale that emphasizes the temporal perspective to invest over the long term is suggested as a better approach for SRI if it is to be relevant to the pressing challenges of promoting sustainability and governing global financial markets.

Ocena antykryzysowej polityki gospodarczej Stanów Zjednoczonych i wybranych państw członkowskich Unii Europejskiej w latach 2005–2014

2016 ◽  
pp. 26-46
Author(s):  
Marcin Jan Flotyński
Keyword(s):  
United States ◽  
European Union ◽  
Financial Markets ◽  
Global Economy ◽  
Global Financial Crisis ◽  
The United States ◽  
The European Union ◽  
High Volatility ◽  
The Global Financial Crisis ◽  
Domestic Products

The global financial crisis in 2007–2009 began a period of high volatility on the financial markets. Specifically, it caused an increased amplitude of fluctuations of the level of gross domestic products, the level of investment and consumption and exchange rates in particular countries. To address the adverse market circumstances, governments and central banks took actions in order to bolster the weakening global economy. The aim of this article is to present the anti-crisis actions in the United States and selected member states of the European Union, including Poland, and an assessment of their efficiency. The analysis conducted indicates that generally the actions taken in the United States in response to the crisis were faster and more adequate to the existing circumstances than in the European Union.

The Fiscal Response to the Global Crisis

2009 ◽  
Vol 34 (3) ◽  
pp. 47-52
Author(s):  
Errol D'Souza
Keyword(s):  
Financial Markets ◽  
Global Economy ◽  
Financial Integration ◽  
Global Financial Crisis ◽  
Global Crisis ◽  
Fiscal Stimulus ◽  
Subprime Mortgage ◽  
Direct Exposure ◽  
The Global Financial Crisis ◽  
Lack Of Commitment

India's banks had no direct exposure to the subprime mortgage assets. Yet India was affected by the global financial crisis as its economy has significantly integrated with the global economy in the recent past in terms of the globalization of trade and financial integration. The global crisis resulted in a reversal of capital flows to India and a slump in the demand for its exports. This caused a deceleration in growth and the policy response was a fiscal and monetary stimulus that resulted in the fiscal deficit being the highest since 1993–94, the revenue deficit that is the largest ever in India's history, and an aggressive reduction in monetary policy rates. The massive government borrowing programme has resulted in a hardening of the yield on government securities which adversely affects aggregate output. As financial markets have factored in a lack of commitment to fiscal correction, the intentions of the fiscal stimulus have been impeded. The fiscal stimulus lacks sustainability, states Errol D'Souza.

The Market for Socially Responsible Investments

2020 ◽  
pp. 171-188
Author(s):  
Mark Anthony Camilleri
Keyword(s):  
Financial Markets ◽  
Positive Impact ◽  
Socially Responsible Investing ◽  
Future Research ◽  
Socially Responsible ◽  
Responsible Investing ◽  
Socially Responsible Investments ◽  
The Subject ◽  
Public Organisations ◽  
Sustainable Investments

This chapter explains how socially responsible investing (SRI) has evolved in the last few decades and sheds light on its latest developments. It describes different forms of SRI in the financial markets and deliberates on the rationale for the utilisation of positive and negative screenings of listed businesses and public organisations. It also presents key theoretical underpinnings on the subject and reports that the market for the responsible investments has recently led to an increase in contractors, non-governmental organisations (NGOs), and research firms who are involved in the scrutinisation of the enterprises' environmental, social, and governance (ESG) credentials. This contribution raises awareness on the screenings of positive impact and sustainable investments. It puts forward future research avenues in this promising field of study.

Crisis in the Global Economy: Financial Markets, Social Struggles, and New Political Scenarios, edited by Andrea Fumagalli and Sandro Mezzadra, Los Angeles: Semiotext(e), 2010; Finanza bruciata, Christian Marazzi, Bellinzona: Casagrande, 2009; Il comunismo del capitale. Finanziarizzazione, biopolitiche del lavoro e crisi globale, Christian Marazzi, Verona: Ombre corte/UniNomade, 2010; Dall’euforia al panico. Pensare la crisi finanziaria e altri saggi, André Orléan, Verona: Ombre corte/UniNomade, 2010

2013 ◽  
Vol 21 (3) ◽  
pp. 229-245
Author(s):  
Damiano Palano
Keyword(s):  
Los Angeles ◽  
Financial Crisis ◽  
Financial Markets ◽  
Global Economy ◽  
Global Financial Crisis ◽  
Theoretical Framework ◽  
Review Article ◽  
Rich Variety ◽  
The Law ◽  
The Global Financial Crisis

AbstractThe article considers the research developed by the UniNomade project concerning the global financial crisis within the theoretical framework of Italian ‘workerism’ and post-workerist theory. On the whole, the UniNomade project offers a rich variety of stimuli to debate. However, in the work of UniNomade, there are some problematic elements, particularly when the authors invoke a series of ‘excesses’ in ‘cognitive capitalism’. This review-article argues that the old post-workerist thesis of an obsolescence of the law of value introduces into UniNomade’s work an ambiguous determinism.

The market for socially responsible investing: a review of the developments

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mark Anthony Camilleri
Keyword(s):  
Financial Markets ◽  
Financial Services ◽  
Positive Impact ◽  
Socially Responsible Investing ◽  
Future Research ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investing ◽  
Non Governmental Organizations ◽  
Sustainable Investments

Purpose This study aims to explain how socially responsible investing (SRI) has evolved in the past few decades and sheds light on its latest developments. It describes different forms of SRI in the financial markets, and deliberates on the rationale for the utilization of positive and negative screenings of listed businesses and public organizations. Design/methodology/approach A comprehensive literature review suggests that the providers of financial capital are increasingly allocating funds toward positive impact and sustainable investments. Therefore, this descriptive paper provides a factual summary of the proliferation of SRI products in financial markets. Afterwards, it presents the opportunities and challenges facing the stakeholders of SRI. Findings This research presents a historic overview on the growth of SRI products in the financial services industry. It clarifies that the market for responsible investing has recently led to an increase in a number of stakeholders, including contractors, non-governmental organizations and research firms who are involved in the scrutinization of the businesses’ environmental, social and governance (ESG) behaviors. Originality/value This discursive contribution raises awareness on the screenings of positive impact and sustainable investments. The researcher contends that today’s socially responsible investors are increasingly analyzing the businesses’ non-financial performance, including their ESG credentials. In conclusion, this paper puts forward future research avenues in this promising field of study.

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