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Robust Corporate Social Responsibility investment screening

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  • Van den Bossche, Filip
  • Rogge, Nicky
  • Devooght, Kurt
  • Van Puyenbroeck, Tom

Abstract

Although a priori company screening is a constitutive feature of Socially Responsible Investment (SRI) funds, it is not easy to substantiate that such screening effectively differentiates between companies on the basis of their Corporate Social Responsibility (CSR) calibre. Fundamentally, this is because CSR comprises several dimensions for which an undisputed aggregative model is lacking. We assess the robustness of companies' CSR rankings with respect to several modelling assumptions. We then build on Gini's transvariation concept to select/reject specific companies in the SRI eligible universe of assets. We illustrate our approach with some specific screening issues as confronted by the ethical advisory committee of a large Belgian bank.

Suggested Citation

  • Van den Bossche, Filip & Rogge, Nicky & Devooght, Kurt & Van Puyenbroeck, Tom, 2010. "Robust Corporate Social Responsibility investment screening," Ecological Economics, Elsevier, vol. 69(5), pages 1159-1169, March.
    • Handle: RePEc:eee:ecolec:v:69:y:2010:i:5:p:1159-1169
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    References listed on IDEAS

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    1. Paredes-Gazquez, Juan Diego & Rodriguez-Fernandez, José Miguel & de la Cuesta-Gonzalez, Marta, 2016. "Measuring corporate social responsibility using composite indices: Mission impossible? The case of the electricity utility industry," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 19(1), pages 142-153.
    2. Rogge, Nicky, 2018. "Composite indicators as generalized benefit-of-the-doubt weighted averages," European Journal of Operational Research, Elsevier, vol. 267(1), pages 381-392.
    3. Luluk Widyawati, 2021. "Measurement concerns and agreement of environmental social governance ratings," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 1589-1623, April.
    4. Jean-Marie De Corte & Marc Labie & Ludovic Urgeghe & Jean-Claude Vansnick, 2012. "Microfinance Investment Vehicles and Social Performance: Moving forward with the MACBETH Approach," Working Papers CEB 12-025, ULB -- Universite Libre de Bruxelles.
    5. Oliveira, Renata & Zanella, Andreia & Camanho, Ana S., 2019. "The assessment of corporate social responsibility: The construction of an industry ranking and identification of potential for improvement," European Journal of Operational Research, Elsevier, vol. 278(2), pages 498-513.

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