Today, there is no uniform definition of what an ethical fund is. Fund management companies choose themselves what they believe is ethical and not. The lack of the definition makes it difficult for consumers to understand why these funds are special compared to other funds. The purpose of this study is to examine three Swedish companies; KPA Pension, Swedbank Robur and Folksam, to obtain a clearer picture of the concept ethical funds and its definition. The study describes each company's view of Ethics and how they may affect other companies to work for a more sustainable world. The paper will also discuss how fund companies make a good balance between ethics and profit. The study is based on interviews with people involved in Corporate Social Responsibility and Responsible Investments. The results suggest that companies themselves have difficulties to define what an ethical fund is, but they all believe they have a good chance to influence the various companies. Research on ethical funds and their returns have shown different results. This makes it difficult to determine if ethics and returns go hand in hand or if ethical funds instead leads to a lower risk, with a smaller yield. / I dagsläget finns det ingen enhetlig definition för vad en etisk fond är. Fondbolagen väljer själva vad de anser är etiskt och inte. Den uteblivna definitionen gör det svårt för konsumenter att förstå vad som utmärker just de här fonderna, gentemot andra. Syftet med den här studien är att undersöka tre svenska företag, KPA Pension, Swedbank Robur och Folksam, för att på så sätt få en klarare bild av etiska fonder och dess definition. Studien beskriver vad de olika företagen har för syn på etik och hur de kan påverka de företag de är delägare i. Uppsatsen kommer även att diskutera hur fondbolagen kan få en bra balans mellan etik och avkastning. Studien bygger på intervjuer med personer som arbetar med Corporate Social Responsibility och ansvarsfulla investeringar. Resultatet tyder på att företagen själva har svårt att definiera vad en etisk fond är, men att de alla anser att de har en bra chans att påverka de olika företagen. Forskningen angående etiska fonder och dess avkastning har visat olika resultat. Vilket gör det svårt att bestämma om etik och avkastning går hand i hand eller om etiska fonder istället medför en mindre risk, med en mindre avkastning.

Changes in economic, environmental and social conditions have exposed our society to many challenges such as hunger and poverty, epidemic diseases and dramatic climate changes. As business entities operating within the community, companies have the immense task of assisting the community to address these challenges. To carry out this task, companies use socially responsible investment (SRI) initiatives in the effort to give back to local communities. These initiatives focus on environmental, social and economic activities that seek to improve the wellbeing of the community at large. The theoretical explanations behind SRI strategies tend to stimulate discussions and contestations about the motive behind SRI initiatives and their relevance to the companies and the community concerned. Some theories purport that a company should have a sole social responsibility goal of creating wealth for its shareholders, while others consider SRI initiatives as a means of interaction between a company and its immediate community. Despite these different views, SRI theories concur that companies’ SRI initiatives can contribute to economic development. The study reported in this document used a combination of qualitative and quantitative research methods to analyse the effects of the SRI sector on micro- and macroeconomic development in South Africa. The key empirical objectives of the study were to: assess the effect of SRI initiatives on the financial performance of South African companies; determine the volatility of the SRI Index relative to the overall stock market; establish the interactions between various macroeconomic variables and the South African SRI sector; identify the involvement of the local community in designing SRI initiatives; determine local communities’ perceptions towards implementation of SRI initiatives; and assess how various socioeconomic and demographic characteristics of community members affect their perceptions towards SRI initiatives. Primary data were collected through interviews and quetiapine; while secondary data running from May 2004 to June 2014 was obtained from the JSE, McGregor BFA and SARB. The data include variables such as the share returns of companies in the SRI Index and various macroeconomic variables. The econometric models used to analyse the data included the Johansen co-integration test, vector error correction model (VECM), generalised autoregressive conditional heteroscedasticity (GARCH), autoregressive distributed lag (ARDL) model, Granger causality test, the event study methodology and binary logistic regression. Results of the event study methodology showed that an improvement in companies’ involvement in SRI initiatives is linked with positive returns; however, such positive returns were not statistically significant. On the contrary, a decline in a company’s involvement in SRI initiatives is associated with significant negative abnormal returns. Further analysis showed that the South African SRI index is not exposed to any unique volatility. The analysis on the relationship between the SRI Index (a proxy for the sector) and macroeconomic variables suggests that development of the South African SRI sector is linked with macroeconomic growth and stability. To analyse the effect of SRI initiatives at a microeconomic level, an SRI initiative of implemented by a specific company in Bophelong Township formed the basis of the analysis. Findings revealed that this initiative benefited less privileged community members through the creation of temporary employment and provision of skills that created opportunities for future employment. Households with low economic status, those headed by a female or unemployed head were the most satisfied with the SRI initiative compared to others beneficiaries of the SRI initiative. Thus, the SRI initiative positively impacted the relationship between the company and community members, while at the same time creating expectations for future initiatives within the community. This study concluded that SRI initiatives must be aligned with the needs of the community in order to contribute to both micro- and macroeconomic development. As much as companies are expected to implement socially responsible initiatives, community members should also be encouraged to meet these companies halfway through programmes such as volunteering. Findings of this study can assist policy makers and companies in aligning SRI initiatives with the needs of the community, improving the involvement of community members in SRI initiatives, developing strategies to reduce the costs associated with SRI initiatives and, hence, increasing the impact of SRI initiatives. / PhD (Economics)--North-West University, Vaal Triangle Campus, 2015.

Changes in economic, environmental and social conditions have exposed our society to many challenges such as hunger and poverty, epidemic diseases and dramatic climate changes. As business entities operating within the community, companies have the immense task of assisting the community to address these challenges. To carry out this task, companies use socially responsible investment (SRI) initiatives in the effort to give back to local communities. These initiatives focus on environmental, social and economic activities that seek to improve the wellbeing of the community at large. The theoretical explanations behind SRI strategies tend to stimulate discussions and contestations about the motive behind SRI initiatives and their relevance to the companies and the community concerned. Some theories purport that a company should have a sole social responsibility goal of creating wealth for its shareholders, while others consider SRI initiatives as a means of interaction between a company and its immediate community. Despite these different views, SRI theories concur that companies’ SRI initiatives can contribute to economic development. The study reported in this document used a combination of qualitative and quantitative research methods to analyse the effects of the SRI sector on micro- and macroeconomic development in South Africa. The key empirical objectives of the study were to: assess the effect of SRI initiatives on the financial performance of South African companies; determine the volatility of the SRI Index relative to the overall stock market; establish the interactions between various macroeconomic variables and the South African SRI sector; identify the involvement of the local community in designing SRI initiatives; determine local communities’ perceptions towards implementation of SRI initiatives; and assess how various socioeconomic and demographic characteristics of community members affect their perceptions towards SRI initiatives. Primary data were collected through interviews and quetiapine; while secondary data running from May 2004 to June 2014 was obtained from the JSE, McGregor BFA and SARB. The data include variables such as the share returns of companies in the SRI Index and various macroeconomic variables. The econometric models used to analyse the data included the Johansen co-integration test, vector error correction model (VECM), generalised autoregressive conditional heteroscedasticity (GARCH), autoregressive distributed lag (ARDL) model, Granger causality test, the event study methodology and binary logistic regression. Results of the event study methodology showed that an improvement in companies’ involvement in SRI initiatives is linked with positive returns; however, such positive returns were not statistically significant. On the contrary, a decline in a company’s involvement in SRI initiatives is associated with significant negative abnormal returns. Further analysis showed that the South African SRI index is not exposed to any unique volatility. The analysis on the relationship between the SRI Index (a proxy for the sector) and macroeconomic variables suggests that development of the South African SRI sector is linked with macroeconomic growth and stability. To analyse the effect of SRI initiatives at a microeconomic level, an SRI initiative of implemented by a specific company in Bophelong Township formed the basis of the analysis. Findings revealed that this initiative benefited less privileged community members through the creation of temporary employment and provision of skills that created opportunities for future employment. Households with low economic status, those headed by a female or unemployed head were the most satisfied with the SRI initiative compared to others beneficiaries of the SRI initiative. Thus, the SRI initiative positively impacted the relationship between the company and community members, while at the same time creating expectations for future initiatives within the community. This study concluded that SRI initiatives must be aligned with the needs of the community in order to contribute to both micro- and macroeconomic development. As much as companies are expected to implement socially responsible initiatives, community members should also be encouraged to meet these companies halfway through programmes such as volunteering. Findings of this study can assist policy makers and companies in aligning SRI initiatives with the needs of the community, improving the involvement of community members in SRI initiatives, developing strategies to reduce the costs associated with SRI initiatives and, hence, increasing the impact of SRI initiatives. / PhD (Economics)--North-West University, Vaal Triangle Campus, 2015.

The sustainability of Social Responsible Investments (SRI) markets is highly dependent on the accuracy of social and environmental information. Surprisingly, and in contrast to financial information, there exists no methodological standard for gathering social and environmental information in SRI markets. This work is a first contribution to the understanding of how SRI-analysts verify the accuracy of social and environmental information. A second aim of this thesis is to evaluate if SRI-analysts can produce an accurate output with their respective methodologies. To do so, a case study was performed comparing the assessment of social and environmental information at SRI-screening firms to the more regulated financial auditing process, using legal a categorization of evidence strengths as a model. The findings of this study suggest that practices are not standardized amongst SRI-analysts. Therefore, investors are unlikely to receive an equal degree of information accuracy from one analyst to the next. Moreover, when comparing SRI-screening and financial auditing using the legal categorization of evidence, it was found that screening firms tend to produce outputs that are less carefully verified than seen in their financial counterparts. Nevertheless, the findings also reveal that SRI-analysts generally acknowledge the importance of assessing sources of evidence when controlling information accuracy. In conclusion, a standardized methodology should be welcomed by SRI-analysts, and the legal categorization of evidence strengths could be a good starting point to manage information accuracy in their screening process.

Responsible Investments is currently paving new paths in the financial industry. UnitedNation´s Principles for Responsible Investment (UN PRI) has in four years attracted over 700signatories in 36 countries. The principles are voluntary and kept in an open non-governingstructure. The lack of formal definitions and the actual value or effects of the UN PRIadoption is difficult to assess. Many researchers today are involved in attempts to measure thefinancial performance of responsible investments. This study takes a different stand point andinvestigates the motivation for joining UN PRI, how the implementation has been carried outand what the effects are, by the use of a case study. The six largest investors in terms of assetunder management (AUM) among the Swedish UN PRI signatories were interviewed, and aqualitative based semi structured interview was used. A structural analysis was carried out onthe results. Institutional Theory was used to explain the motivation for joining UN PRI andserved as the theoretical framework. Interpretation of UN PRI´s implementation differed insome instances to a large degree between the respondents. Transparency was uncovered as amajor success factor to the investors in support of decision making. All interviewedsignatories had developed their own way of working with UN PRI in terms of organization,priorities and the attempts to measure its effects. There is still a great need for moreknowledge around how these principles shall be implemented successfully and become part ofmainstream investments.The target audience for this paper is academics or business professionals with an interest inwhy and how UN´s principles for responsible investments are adopted by the financialindustry.

Magister Legum - LLM

Cette thèse examine les relations, et particulièrement les interactions, entre la responsabilité sociale des entreprises et leur risque financier. Elle propose un schéma conceptuel de ces relations et 4 études empiriques. La première examine les relations entre la performance sociétale, mesurée par les scores Vigeo, et le risque financier de 544 entreprises de l'indice Stoxx Europe 600, de 2004-2011. Elle montre que les entreprises les plus performantes du point de vue sociétal ont un risque spécifique et total faible, et une volatilité du taux de rentabilité (Roa) moindre, notamment pour les ressources humaines. La relation est positive et fortement significative si l'on considère le bêta du titre et la dispersion des prévisions des analystes. La deuxième étude porte sur la réaction des marchés financiers européens à l'émission d'alertes sociétales. Elle analyse l'apport informationnel de ces alertes par rapport à l'annonce publique des évènements qui les ont déclenchées. L'analyse de 480 alertes émises par Vigeo de 2004 à 2011 montre que les investisseurs réagissent positivement à la première alerte pour une entreprise donnée. L'alerte réduit l'asymétrie d'information entre managers et investisseurs ; en limitant le risque d'estimation des investisseurs, elle diminue leur incertitude. Les alertes relatives à l'environnement constituent un cas particulier, dans la mesure où elles ont un impact négatif sur les cours. La troisième étude teste et valide la théorie du management du risque : en cas d'occurrence d'un risque RSE (référencé par Vigeo) les entreprises les plus performantes du point de vue sociétal enregistrent des rentabilités anormales moins importantes et leur volume anormal est plus faible. La quatrième étude examine l'interaction entre risque financier et engagement RSE. Elle dépasse l'échelle européenne en considérant 23 194 observations d'Asset4 au sujet de 3 787 entreprises dans 67 pays. Elle montre que de bonnes performances ESG réduisent significativement le risque financier, spécifique et total, ainsi que la volatilité du Roa, et que les performances ESG sont positivement associées au risque si l'on considère le bêta du titre et la dispersion des prévisions des analystes. Elle met en évidence un cercle vertueux entre performance ESG et risque financier. Les pratiques sociales et de gouvernance réduisent le plus fortement ce risque. Un faible risque financier incite l'entreprise à investir en priorité dans des mesures environnementales et de gouvernance, puis dans le social.Mots clés: Risque financier de l'entreprise, responsabilité sociale de l'entreprise (RSE), Risque RSE, performance sociétale, interaction. / This dissertation examines the relations between Corporate Social Responsibility and financial risk, with a particular focus on their interactions. It proposes a conceptual scheme of these relations and 4 empirical studies. The first study examines the relation between the corporate social performance, measured by Vigeo scores, and the financial risk of 554 companies pertaining to the Stoxx Europe 600 Index, from 2004-2011. It shows that companies with higher corporate responsibility have lower specific and total risks, and lower volatility of return on assets (Roa), particularly in human resources. The relation is positive and strong when we consider the investments' beta and the analysts' forecasts dispersion. The second study examines the reaction of the European stock market to CSR alerts. It examines the alerts' informational contribution compared to the public announce¬ments of the triggering events. Based on a sample of 480 alerts released by Vigeo over the period 2004-2011, we find a positive stock market reaction to the first alert for the affected company. The alert reduces the information asymmetry between managers and investors. It limits the investors' estimation risk and thus their uncertainty. Environmental alerts are a specific case, as they affect negatively the stock prices. The third study tests and confirms the risk management theory: when a CSR risk occurs (referenced by Vigeo), higher CSR performers have lower abnormal returns and lower abnormal trading volumes. The fourth study examines the interaction between financial risk and CSR commitment. It goes beyond Europe by considering 23,194 Asset4 scores related to 3,787 companies in 67 countries. It shows that prior aggregate ESG scores are associated with reduced subsequent specific and total risks and Roa volatility, thus confirming that high ESG performers have lower financial risk. CSR performances are positively associated with the risk if we consider the investments' beta and the analysts' forecasts dispersion. The study evidences a virtuous cycle between financial risk and ESG performance. Social and governance performances contribute more significantly to reduce this risk. Prior low financial risks incite firms to invest in CSR, first in environmental and governance, then in social policies or activities.Keywords: Financial risk, corporate social responsibility, corporate social performance, corporate social responsibility risk, interaction.

The leaders of all countries of each sector and level of society are compelled to work together to address [social and environmental] challenges by maintaining sustainable human development and ensuring that the benefits of globalization are shared more widely. It is in the interests of businesses that these benefits continue both for companies and for others in society.   The Venture Capital is a financial capital provided to the startup firms in their early stages which has a high potential for growth but also entail high risk. The Venture capital firms typically look for new and small businesses with a perceived long term growth potential that will result in a high payout for investors. Venture capital is a subset of private equity of the firms. On other hand, Private equity is an asset class consisting of equity securities, which are not quoted in the stock market. An investment in private equity most often involves either an investment of capital in a mature firms as well as buyout firms.             The purpose of this study is to explore the gap between UK and U.S venture capital and private equity firms on the base of ESG criteria into investment decision making process. To find a relationship between venture capital and private equity firms mainstream investment with ESG criteria and also highlight new trends and the issues, which are potential barrier of ESG criteria implementation in UK and US firms. The authors used different academic literature, previous studies to find a gap and a relationship of ESG criteria into mainstream investment decision making process in UK and U.S firms.   The research is based on both primary & secondary data under descriptive nature of study. A technique with the name of content analysis was used to collect the quantitative data from the U.K and U.S Venture Capital and Private Equity firms. These firms are further categorized in the sample size under the umbrella of clean tech and non-clean tech. Total sample size is 120 firms (60 VC & 60 PE), where 56 are clean tech and 64 are Non-clean tech firms. The find a relationship between variables regression analysis technique is used through SPSS for verifying the validity and variability of collected Data.   We found that, an ESG criterion is on development stage, and there is no such technique and standards that are developed by the venture capital and private equity firms. We found, that firms are mostly focusing on responsible investment strategy; it is somehow same like whole ESG for purpose of their investment screening process. We found that ESG consideration in some UK and U.S venture capital and private equity firms exist, but vary from firms to firms. Some firms are considering just one factor while some other firms consider more than one.  Large firms have more focus on ESG as compared to small firms; due to the nature of business and size, and number of employees, focus is only limited towards investment options and development of strategies for the firm. The result of this study interpret that the U.S firms are focusing more on investment returns, and pay less attention towards ESG as compared to U.K firms, Where UK Venture capital and private equity firms results shows that, they are more focused towards ESG and feel free to incorporate ESG criteria into their investment strategies without incurring any cost in terms of risk and returns.

Made available in DSpace on 2016-06-02T19:24:47Z (GMT). No. of bitstreams: 1 3302.pdf: 2414321 bytes, checksum: 36b084be0141c31869c52c6e1583fdbe (MD5) Previous issue date: 2010-10-08 / Financiadora de Estudos e Projetos / The launch of the Brazilian Corporate Sustainability Index in Sao Paulo s Stock Market, analyzed through an economic approach, can be reduced to a new financial tool which measures the profitability of Sustainable listed companies. However, through a sociological approach, the launch of this index is equivalent to the creation of the Brazilian Socially Responsible Investment Market. The creation of this market demonstrates the emergence of new polarizations in the Economic Field, particularly in the Financial Field. These new polarizations indicate a change in the Financial Field, which presents a new way of thinking the Financial Market based on taking account of social, environmental and financial criteria. This change emerges from an elite convergence which challenges the limits of the Financial Field, at the same time trying to reinvent the Financial Market through a proposal of a Sustainable Capitalism. This thesis indicates that it s possible to understand the creation of Socially Responsible Investment Market by studying the actors and institutions that participate in the Corporate Sustainability Index s Committee. As a result, this study emphasizes the urge of developing a Sociology of Indexes. At last, this thesis concludes that the Sustainability insertion in the Financial Field is legitimated by a group acting in the financial area, which converges with the Corporate Social Responsibility s and The Environmental Movement s elite, in an attempt to turn the table of mainstream finance. However, this mainstream turn does not push towards the ending of financial market, but it s strengthening instead. / A criação do Índice de Sustentabilidade Empresarial na Bolsa de Valores do Estado de São Paulo consistiu, pelo viés econômico, em mais um indicador de rentabilidade das empresas sustentáveis listadas na bolsa. Pelo viés sociológico, a criação deste índice equivale à criação do mercado do Investimento Socialmente Responsável no Brasil. A criação deste mercado evidencia o surgimento de novas polarizações no mundo econômico e, em particular, no mundo financeiro. Estas novas polarizações evidenciam portanto uma mudança no habitus financeiro apresentando uma nova forma de pensar o mundo das finanças a partir da tríade economia, meio-ambiente e sociedade. Essa mudança só é possível a partir da convergência de diferentes frações de elites as quais colocam em xeque a autonomia do campo financeiro ao mesmo tempo em que procuram reinventá-lo a partir da proposta de um capitalismo sustentável. Deste modo, esta tese demonstra que é possível compreender a construção do Mercado de Investimento Socialmente Responsável no Brasil a partir do Estudo sociológico dos atores e das instituições que compõem o Conselho do Índice de Sustentabilidade Empresarial apontando a necessidade de se desenvolver no Brasil uma sociologia dos índices. Assim, esta tese conclui que a inserção da Sustentabilidade no mercado financeiro se legitima a partir de um grupo atuante na esfera das finanças, o qual converge com atores ligados à Responsabilidade Social Empresarial e ao Movimento Ambiental, na tentativa de inverter o jogo dominado por financistas mainstream. No entanto, esta tentativa de virar o jogo não pressupõe o fim do mercado financeiro, mas sim o seu fortalecimento e conseqüente reprodução no campo global do poder.