How Financial Markets Can Boost CSR: Green and ethical investing. By the CoBS Learning Solutions team.

Research on South America reveals a surge in local-specific sustainability indexes for investors seeking a clearer picture of firms’ responsible business practices. Can the model of green and ethical investing be applied to other countries?

This has mainly come about through a combination of two factors – the limited nature of stock exchanges in South America and the cost of obtaining ESG data.

In developed markets, this assessment data is collected by investment funds or by social rating agencies which makes the cost of obtaining it high for investors in developing countries. By using indexes created by their local stock markets and whose composition is freely distributed so that any investor can use the information at no cost, Brazil, Mexico and Chile have creatively detoured this onerous aspect.

As green and ethical investing becomes an ever-increasing option for small to large investors with a wish to both earn returns and create positive impact, how can investors make their choice?   

How Financial Markets Can Boost CSR: Green and ethical investing

Professor Adrian Zicari, recognised international researcher in the fields of CSR and social and environmental accounting at ESSEC Business School, shares his research. A focus on the developments in socially responsible investing across the world with a practical framework to guide your green or ethical investments.

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How financial markets can boost CSR: The latest in an ongoing series of Council on Business & Society Research Pods. Condensed learning capsules inspired from internationally published research. Fields covered include CSR, management & leadership, HR, sustainable finance & reporting, social enterprise, entrepreneurship, philanthropy, and sustainable business practices.

The 3 Ps in a CoBS Pod

How Financial Markets Can Push for CSR. Download the CoBS Research Pod

Learning objective: Understand developments in Socially Responsible Investing and use a guideline framework for selecting which green or ethical investment to invest in.  

Related research: ZICARI, A. Responsabilidad social empresaria en mercados financieros: una perspectiva desde América Latina [publié en 2014]. Cuadernos de RSO, 3(2), pp. 31-40.

• Go further and read the full, 2-part article on the topic: Part 1: :https://cobsinsights.org/2017/10/17/can-financial-markets-push-for-csr-part-1/ – Part 2: https://cobsinsights.org/2017/10/19/can-financial-markets-push-for-csr-part-2/
• Discover ESSEC Business School – France-Singapore-Morocco

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The Council on Business & Society (The CoBS), visionary in its conception and purpose, was created in 2011, and is dedicated to promoting responsible leadership and tackling issues at the crossroads of business and society including sustainability, diversity, ethical leadership and the place responsible business has to play in contributing to the common good.  

In 2020, member schools now number 7, all “Triple Crown” accredited AACSB, EQUIS and AMBA and leaders in their respective countries.

• ESSEC Business School, France-Singapore-Morocco
• FGV-EAESP, Brazil
• School of Management Fudan University, China
• IE Business School, Spain
• Keio Business School, Japan
• Trinity Business School, Trinity College Dublin, Ireland
• Warwick Business School, United Kingdom.