What type of controlling investors impact on which elements of corporate social responsibility?

Journal of Sustainable Finance and Investment

Volumn 3, Issue 3, 2013, Pages 238-263

  Rees, William ^a   Rodionova, Tatiana ^a  

^a UNIVERSITY OF EDINBURGH BUSINESS SCHOOL   (United Kingdom)

Author keywords

Climate Change; Corporate Social Responsibility; Environment; Governance; Human Rights; Institutional Investor; Social

Indexed keywords

EID: 84928567417     PISSN: 20430795     EISSN: 20430809     Source Type: Journal    
DOI: 10.1080/20430795.2013.791143     Document Type: Article

References (70)

1. Aguilera, R. V., Rupp, D. E., Williams, C. A., and Ganapathi, J., 2007. Putting the S Back in Corporate Social Responsibility: A Multilevel Theory of Social Change in Organizations. Academy of Management Review, 32: 836–863. (doi:10.5465/AMR.2007.25275678)
2. Aguilera, R. V., Williams, C. A., Conley, J. M., and Rupp, D. E., 2006. Corporate Governance and Social Responsibility: A Comparative Analysis of the UK and the US. Corporate Governance: An International Review, 14: 147–158. (doi:10.1111/j.1467-8683.2006.00495.x)
3. Anderson, R. C., Mansi, S. A., and Reeb, D. M., 2003. Founding Family Ownership and the Agency Cost of Debt. Journal of Financial Economics, 68: 263–285. (doi:10.1016/S0304-405X(03)00067-9)
4. Andres, C. 2008. Large Shareholders and Firm Performance–An Empirical Examination of Founding-Family Ownership. Journal of Corporate Finance, 14: 431–445. (doi:10.1016/j.jcorpfin.2008.05.003)
5. Armstrong, C. A., Jagolinzer, A. D., and Larcker, D. F., 2010. Chief Executive Officer Equity Incentives and Accounting Irregularities. Journal of Accounting Research, 48 (2): 225–271. (doi:10.1111/j.1475-679X.2009.00361.x)
6. Bansal, P., and Roth, K., 2000. Why Companies Go Green: A Model of Ecological Responsiveness. Academy of Management Journal, 43 (4): 717–736. (doi:10.2307/1556363)
7. Barnea, A., and Rubin, A., 2010. Corporate Social Responsibility as a Conflict Between Shareholders. Journal of Business Ethics, 97: 71–86. (doi:10.1007/s10551-010-0496-z)
8. Barontini, R., and Caprio, L., 2006. The Effect of Ownership Structure and Family Control on Firm Value and Performance. Evidence from Continental Europe. European Financial Management, 12 (5): 689–723. (doi:10.1111/j.1468-036X.2006.00273.x)
9. Becht, M., Franks, J., Mayer, C., and Rossi, S., 2009. Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund. The Review of Financial Studies, 22 (8): 3093–3129. (doi:10.1093/rfs/hhn054)
10. Becker-Olsen, K. L., Cudmore, B. A., and Hill, R. P., 2006. The Impact of Perceived Corporate Social Responsibility on Consumer Behaviour. Journal of Business Research, 59: 46–53. (doi:10.1016/j.jbusres.2005.01.001)
11. Caliendo, M., and Kopeinig, S., 2008. Some Practical Guidance for the Implementation of Propensity Score Matching. Journal of Economic Surveys, 22 (1): 31–72. (doi:10.1111/j.1467-6419.2007.00527.x)
12. Cespa, G., and Cestone, G., 2007. Corporate Social Responsibility and Managerial Entrenchment. Journal of Economics and Management Strategy, 16: 741–771. (doi:10.1111/j.1530-9134.2007.00156.x)
13. Chatterji, A. K., D.I. Levine, and M. W. Toffel. 2009. “How well do Social Ratings Actually Measure Corporate Social Responsibility?” Journal of Economics and Management Strategy 18 (1): 125–169
14. Chatterji, A. K., and Toffel, M. W., 2010. How Firms Respond to Being Rated. Strategic Management Journal, 31 (9): 917–945
15. Chen, X., Harford, J., and Li, K., 2007. Monitoring: Which Institutions Matter?. Journal of Financial Economics, 86: 279–305. (doi:10.1016/j.jfineco.2006.09.005)
16. Cheng, B., I. Ioannou, and G. Serafeim. 2011. Corporate Social Responsibility and Access to Finance. Working Paper, 02163. Soldiers Field, Boston, MA: Harvard Business School
17. Chung, R., Firth, M., and Kim, J., 2002. Institutional Monitoring and Opportunistic Earnings Management. Journal of Corporate Finance, 8 (1): 29–48. (doi:10.1016/S0929-1199(01)00039-6)
18. Clark, G. L., and Hebb, T., 2005. Why Should They Care? The Role of Institutional Investors in the Market for Corporate Global Responsibility. Environment and Planning A, 37: 2015–2031. (doi:10.1068/a38116)
19. Collison, D., Cobb, G., Power, D., and Stevenson, L., 2009. FTSE4Good: Exploring Its Implications for Corporate Conduct. Accounting, Auditing & Accountability Journal, 22 (1): 35–58. (doi:10.1108/09513570910923006)
20. Cornett, M. M., Marcus, A. J., Saunders, A., and Tehranian, H., 2007. The Impact of Institutional Ownership on Corporate Operating Performance. Journal of Banking and Finance, 31: 1771–1794. (doi:10.1016/j.jbankfin.2006.08.006)
21. Cox, P., Brammer, S., and Millington, A., 2004. An Empirical Examination of Institutional Investor Preferences for Corporate Social Performance. Journal of Business Ethics, 52 (1): 27–43. (doi:10.1023/B:BUSI.0000033105.77051.9d)
22. Dam, L., and Scholtens, B., 2012. Does Ownership Type Matter for Corporate Social Responsibility?. Corporate Governance: An International Review, 20: 233–252. (doi:10.1111/j.1467-8683.2011.00907.x)
23. Davis, K. 1973. “The Case for and Against Business Assumption of Social Responsibilities.” Academy of Management Journal 16: 312–323
24. Delgado-García, J. B., de Quevedo-Puente, E., and de la Fuente-Sabaté, J. M., 2010. The Impact of Ownership Structure on Corporate Reputation: Evidence from Spain. Corporate Governance: An International Review, 18: 540–556. (doi:10.1111/j.1467-8683.2010.00818.x)
25. Del Guercio, D., Cole, L. S., and Woidtke, T., 2008. Do Boards Pay Attention When Institutional Investor Activists ‘Just Vote No’?. Journal of Financial Economics, 90: 84–103. (doi:10.1016/j.jfineco.2008.01.002)
26. Del Guercio, D., and Hawkins, J., 1999. The Motivation and Impact of Pension Fund Activism. Journal of Financial Economics, 52: 293–340. (doi:10.1016/S0304-405X(99)00011-2)
27. Demsetz, H., and Lehn, K., 1985. The Structure of Corporate Ownership: Causes and Consequences. Journal of Political Economy, 93: 1155–1177. (doi:10.1086/261354)
28. Elyasiani, E., Jia, J., and Mao, C., 2010. Institutional Ownership Stability and the Cost of Debt. Journal of Financial Markets, 13: 475–500. (doi:10.1016/j.finmar.2010.05.001)
29. Friedman, M. 1970. “The Social Responsibility of Business is to Increase Profit.” New York Times Magazine, Sept 13: 122–126
30. Gjessing, O. P. K., and H. Syse. 2007. “Norwegian Petroleum Wealth and Universal Ownership.” Corporate Governance: An International Review 15: 427–437
31. Godfrey, P. C., Merrill, C. B., and Hansen, J. M., 2009. The Relationship Between Corporate Social Responsibility and Shareholder Value: An Empirical Test of the Risk Management Hypothesis. Strategic Management Journal, 30: 425–445. (doi:10.1002/smj.750)
32. Godfrey, P. C., Hatch, N. W., and Hansen, J. M., 2010. Toward a General Theory of CSRs: The Roles of Beneficence, Profitability, Insurance, and Industry Heterogeneity. Business & Society, 49 (2): 316–345. (doi:10.1177/0007650308315494)
33. Harjoto, M. A., and Jo, H., 2011. Corporate Governance and CSR Nexus. Journal of Business Ethics, 100: 45–67. (doi:10.1007/s10551-011-0772-6)
34. Hartzell, J. C., and Starks, L. T., 2003. Institutional Investors and Executive Compensation. The Journal of Finance, 58 (6): 2351–2375. (doi:10.1046/j.1540-6261.2003.00608.x)
35. Hillman, A. J., and Keim, G. D., 2001. Shareholder Value, Stakeholder Management, and Social Issues: What's the Bottom Line?. Strategic Management Journal, 22: 125–140. (doi:10.1002/1097-0266(200101)22:2<125::AID-SMJ150>3.0.CO;2-H)
36. Ioannou, I., and S. Serafeim. 2010. What Drives Corporate Social Performance? International Evidence from Social, Environmental and Governance Scores. Working Paper, 11-016. Boston, MA: Harvard Business School
37. Jara-Bertín, M., López-Iturriaga, F. J., and López-De-Foronda, O., 2008. The Contest to the Control in European Family Firms: How Other Shareholders Affect Firm Value. Corporate Governance: An international Review, 16 (3): 146–159. (doi:10.1111/j.1467-8683.2008.00677.x)
38. Jensen, M. C., and Meckling, W. H., 1976. Theory of the Firm: Managerial Behaviour, Agency Costs and Ownership Structure. Journal of Financial Economics, 3: 305–360. (doi:10.1016/0304-405X(76)90026-X)
39. Jo, H., and Harjoto, M. A., 2011. Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility. Journal of Business Ethics, 103 (3): 351–383. (doi:10.1007/s10551-011-0869-y)
40. Jo, H., and Harjoto, M. A., 2012. The Causal Effect of Corporate Governance on Corporate Social Responsibility. Journal of Business Ethics, 106 (1): 53–72. (doi:10.1007/s10551-011-1052-1)
41. Johnson, R. A., and Greening, D. W., 1999. The Effects of Corporate Governance and Institutional Ownership Types on Corporate Social Performance. Academy of Management Journal, 42: 564–576. (doi:10.2307/256977)
42. Jones, T. M., 1995. Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics. Academy of Management Review, 20: 404–437
43. Kiernan, M. J., 2007. Universal Owners and ESG: Leaving Money on the Table?. Corporate Governance: An International Review, 15: 478–485. (doi:10.1111/j.1467-8683.2007.00580.x)
44. La Porta, R. F., Lopez-De-Silanes, F., Shleifer, A., and Vishny, R., 2000. Investor Protection and Corporate Governance. Journal of Financial Economics, 58: 3–27. (doi:10.1016/S0304-405X(00)00065-9)
45. PSMATCH2: Stata Module to Perform Full Mahalanobis and Propensity Score Matching, Common Support Graphing, and Covariate Imbalance TestingLeuven, E., and B. Sianesi. 2010. Accessed April 2, 2012. http://ideas.repec.org/c/boc/bocode/s432001.html. This version 4.0.4
46. Lydenberg, S. 2007. Universal Investors and Socially Responsible Investors: A Tale of Emerging Affinities. Corporate Governance: An International Review, 15: 467–477. (doi:10.1111/j.1467-8683.2007.00579.x)
47. Mackenzie, C., and F. Ascui. 2009. Investor Leadership on Climate Change: An Analysis of the Investment Community's Role on Climate Change, and Snapshot of Recent Investor Activity. UN Global Compact report, 2009. Accessed April 10, 2012. http://www.unpri.org/files/climate.pdf
48. The FTSE4Good Effect: The Impact of Responsible Investment Indices on Environmental ManagementMackenzie, C., W. Rees, and T. Rodionova. 2011. Accessed November 30, 2011. Available at SSRN: http://ssrn.com/abstract=1966474
49. Margolis, J. D., H. A. Elfenbein, and J. P. Walsh. 2007. Does It Pay to be Good? A Meta-Analysis and Redirection of Research on the Relationship Between Corporate Social and Financial Performance. Working Paper. Cambridge, MA: Harvard University
50. Mattingly, J. E., and Berman, S., 2006. Measurement of Corporate Social Action: Discovering Taxonomy in the Kinder Lydenberg Domini Ratings Data. Business and Society, 45 (1): 20–46. (doi:10.1177/0007650305281939)
51. Behind the Scenes: The Corporate Governance Preferences of Institutional InvestorsMcCahery, J. A., Z. Sautner, and L. T. Starks. 2009. ECGI Working Paper Series in Finance. Brussels, Belgium: European Corporate Governance Institute
52. McWilliams, A., and Siegel, D., 2001. Corporate Social Responsibility: A Theory of the Firm Perspective. The Academy of Management Review, 26 (1): 117–127
53. Moskowitz, M. 1972. Choosing Socially Responsible Stocks. Business and Society, 1: 71–75
54. OECD. 2010. Taxation, Innovation and the Environment, Paris: OECD
55. Orlitzky, M., Schmidt, F. U., and Rynes, S. L., 2003. Corporate Social and Financial Performances: A Meta-Analysis. Organizational Studies, 24 (3): 403–441. (doi:10.1177/0170840603024003910)
56. Prior, D., Surroca, J., and Tribó, J. A., 2008. Are Socially Responsible Managers Really Ethical? Exploring the Relationship Between Earnings Management and Corporate Social Responsibility. Corporate Governance: An International Review, 16: 160–177. (doi:10.1111/j.1467-8683.2008.00678.x)
57. Rees, W., and C. Mackenzie. 2011. Corporate Social Responsibility and the Open Society. Accessed November 29, 2011. Available at SSRN: http://ssrn.com/abstract=1966030
58. Renneboog, L., Ter-Horst, J., and Zhang, C., 2008. Socially Responsible Investments: Institutional Aspects, Performance, and Investor Behaviour. Journal of Banking and Finance, 32: 1723–1742. (doi:10.1016/j.jbankfin.2007.12.039)
59. Rosenbaum, P., and Rubin, D., 1983. The Central Role of the Propensity Score in Observational Studies for Causal Effects. Biometrika, 70 (1): 41–55. (doi:10.1093/biomet/70.1.41)
60. Corporate Environmental Performance: Consistency of Metrics and Identification of DriversSemenova, N. 2010. SIRP WP 10-09 Working paper. Accessed May 10, 2012. Available at http://swoba.hhs.se/sicgwp/abs/sicgwp2010_009.htm
61. Sethi, S. P., 2005. Investing in Socially Responsible Companies is a Must for Public Pension Funds - Because there is no Better Alternative. Journal of Business Ethics, 56 (2): 99–129. (doi:10.1007/s10551-004-5455-0)
62. Shleifer, A., and Vishny, R. W., 1986. Large Shareholders and Corporate Control. Journal of Political Economy, 94: 461–488. (doi:10.1086/261385)
63. Shleifer, A., and Vishny, R. W., 1997. A Survey of Corporate Governance. Journal of Finance, 52: 737–783. (doi:10.1111/j.1540-6261.1997.tb04820.x)
64. Siegel, D. S., and Vitaliano, D. F., 2007. An Empirical Analysis of the Strategic Use of Corporate Social Responsibility. Journal of Economics & Management Strategy, 16: 773–792. (doi:10.1111/j.1530-9134.2007.00157.x)
65. Slager, R., Gond, J.-P., and Moon, J., 2012. Standartization as Institutional Work: The Regulatory Power of a Responsible Investment Standard. Organization Studies, 33: 763–790. (doi:10.1177/0170840612443628)
66. Solomon, A., Solomon, J., and Suto, M., 2004. Can the UK Experience Provide Lessons for the Evolution of SRI in Japan?. Corporate Governance: An International Review, 12: 552–566. (doi:10.1111/j.1467-8683.2004.00393.x)
67. Starks, L. T., 2009. Corporate Governance and Corporate Social Responsibility: What Do Investors Care About? What Should Investors Care About?. Financial Review, 44: 461–468. (doi:10.1111/j.1540-6288.2009.00225.x)
68. Sullivan, R., and C. Mackenzie. 2008. “Can Investor Activism Play a Meaningful Role in Correcting Market Failures?” Journal of Corporate Citizenship 31: 77–88
69. Turban, D. B., and Greening, D. W., 1997. Corporate Social Performance and Organizational Attractiveness to Prospective Employees. Academy of Management Journal, 40: 658–672. (doi:10.2307/257057)
70. Wahal, S., and McConnell, J. J., 2000. Do Institutional Investors Exacerbate Managerial Myopia?. Journal of Corporate Finance, 6: 307–329. (doi:10.1016/S0929-1199(00)00005-5)