IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v158y2019i2d10.1007_s10551-017-3751-8.html
   My bibliography  Save this article

Investment Ethics and the Global Economy of Sports: The Norwegian Oil Fund, Formula 1 and the 2014 Russian Grand Prix

Author

Listed:
  • Hans Erik Næss

    (Westerdals Oslo School of Arts, Communication and Technology)

Abstract

As a sovereign wealth fund, the $1 trillion Norwegian Government Pension Fund-Global (‘the Oil Fund’), which is managed by Norges Bank Investment Management on behalf of the welfare of Norway’s citizens, is supposed to be a flagship for socially responsible investments through its Council of Ethics. However, its investment in Delta Topco, the holding company of Formula 1 world championship that, through Formula One Group, brokered a deal with Russia to host a Formula 1 Grand Prix in 2014, raises the question of whether the Oil Fund should enhance its due diligence processes. Although no evidence of corruption related to the race is introduced, the complex relation between financial logic and the world of sports still raises questions about the ethical solidity of the Oil Fund’s investment. Drawing upon reports of the relationship between political economy and sporting events, this paper therefore analyses, in light of the Oil Fund’s ethical guidelines, the complexities of its investment in Delta Topco. As a result, it is argued that a new set of examination methods by the Council of Ethics may be warranted.

Suggested Citation

  • Hans Erik Næss, 2019. "Investment Ethics and the Global Economy of Sports: The Norwegian Oil Fund, Formula 1 and the 2014 Russian Grand Prix," Journal of Business Ethics, Springer, vol. 158(2), pages 535-546, August.
    • Handle: RePEc:kap:jbuset:v:158:y:2019:i:2:d:10.1007_s10551-017-3751-8
    DOI: 10.1007/s10551-017-3751-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-017-3751-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-017-3751-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gordon L Clark & Ashby H B Monk, 2010. "The Legitimacy and Governance of Norway's Sovereign Wealth Fund: The Ethics of Global Investment," Environment and Planning A, , vol. 42(7), pages 1723-1738, July.
    2. Riikka Sievänen & Hannu Rita & Bert Scholtens, 2013. "The Drivers of Responsible Investment: The Case of European Pension Funds," Journal of Business Ethics, Springer, vol. 117(1), pages 137-151, September.
    3. Noel Castree & Brett Christophers, 2015. "Banking Spatially on the Future: Capital Switching, Infrastructure, and the Ecological Fix," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 105(2), pages 378-386, March.
    4. Øyvind Ihlen & Heidi Weltzien Hoivik, 2015. "Ye Olde CSR: The Historic Roots of Corporate Social Responsibility in Norway," Journal of Business Ethics, Springer, vol. 127(1), pages 109-120, March.
    5. Fairley, Sheranne & Tyler, B. David & Kellett, Pamm & D'Elia, Kari, 2011. "The Formula One Australian Grand Prix: Exploring the triple bottom line," Sport Management Review, Elsevier, vol. 14(2), pages 141-152, May.
    6. Jayoti Das & Cassandra DiRienzo, 2009. "The Nonlinear Impact Of Globalization On Corruption," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 3(2), pages 33-46.
    7. Sheranne Fairley & B. David Tyler & Pamm Kellett & Kari D’Elia, 2011. "The Formula One Australian Grand Prix: Exploring the triple bottom line," Sport Management Review, Taylor & Francis Journals, vol. 14(2), pages 141-152, April.
    8. Gordon L. Clark & Adam D. Dixon & Ashby H. B. Monk, 2013. "Sovereign Wealth Funds: Legitimacy, Governance, and Global Power," Economics Books, Princeton University Press, edition 1, volume 1, number 10003.
    9. Wladimir Andreff, 2000. "Financing Modern Sport in the Face of a Sporting Ethic," Post-Print halshs-00274660, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gulijiazi Yeerkenbieke & Chunci Chen & Guizhen He, 2021. "Public Perceived Effects of 2022 Winter Olympics on Host City Sustainability," Sustainability, MDPI, vol. 13(7), pages 1-20, March.
    2. Nicholas Wise, 2020. "Urban and Rural Event Tourism and Sustainability: Exploring Economic, Social and Environmental Impacts," Sustainability, MDPI, vol. 12(14), pages 1-5, July.
    3. Kobe Helsen & Marijke Taks & Jeroen Scheerder, 2022. "Involvement, Social Impact Experiences, and Event Support of Host Residents Before, during, and after the 2021 UCI Road World Championships," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    4. Kai-Michael Griese & Kim Werner & Johannes Hogg, 2017. "Avoiding Greenwashing in Event Marketing: An Exploration of Concepts, Literature and Methods," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(4), pages 1-15, December.
    5. Sergi Cerezo-Esteve & Eduard Inglés & Jordi Segui-Urbaneja & Francesc Solanellas, 2022. "The Environmental Impact of Major Sport Events (Giga, Mega and Major): A Systematic Review from 2000 to 2021," Sustainability, MDPI, vol. 14(20), pages 1-15, October.
    6. Ester Gutiérrez & Sebastián Lozano, 2020. "Benchmarking Formula One auto racing circuits: a two stage DEA approach," Operational Research, Springer, vol. 20(4), pages 2059-2083, December.
    7. Mallen, Cheryl & Chard, Chris, 2012. "“What could be” in Canadian sport facility environmental sustainability," Sport Management Review, Elsevier, vol. 15(2), pages 230-243.
    8. Hildegunn Mellesmo Aslaksen & Clare Hildebrandt & Hans Chr. Garmann Johnsen, 2021. "The long-term transformation of the concept of CSR: towards a more comprehensive emphasis on sustainability," International Journal of Corporate Social Responsibility, Springer, vol. 6(1), pages 1-14, December.
    9. Andreas G. F. Hoepner & Lisa Schopohl, 2020. "State Pension Funds and Corporate Social Responsibility: Do Beneficiaries’ Political Values Influence Funds’ Investment Decisions?," Journal of Business Ethics, Springer, vol. 165(3), pages 489-516, September.
    10. Riikka Sievänen & Hannu Rita & Bert Scholtens, 2017. "European Pension Funds and Sustainable Development: Trade‐Offs between Finance and Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 912-926, November.
    11. Lalountas, Dionisios A. & Manolas, George A. & Vavouras, Ioannis S., 2011. "Corruption, globalization and development: How are these three phenomena related?," Journal of Policy Modeling, Elsevier, vol. 33(4), pages 636-648, July.
    12. Zac J. Taylor, 2020. "The real estate risk fix: Residential insurance-linked securitization in the Florida metropolis," Environment and Planning A, , vol. 52(6), pages 1131-1149, September.
    13. Tamas Barko & Martijn Cremers & Luc Renneboog, 2022. "Shareholder Engagement on Environmental, Social, and Governance Performance," Journal of Business Ethics, Springer, vol. 180(2), pages 777-812, October.
    14. Stephanie Farmer & Chris D Poulos, 2019. "The financialising local growth machine in Chicago," Urban Studies, Urban Studies Journal Limited, vol. 56(7), pages 1404-1425, May.
    15. Salma Karim & Md. Qamruzzaman & Ishrat Jahan, 2023. "Nexus between Government Debt, Globalization, FDI, Renewable Energy, and Institutional Quality in Bangladesh," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 443-456, May.
    16. Mishra, Sudhanshu K, 2018. "A Simultaneous Equation Model of Globalization, Corruption, Democracy, Human Development and Social Progress," MPRA Paper 84213, University Library of Munich, Germany.
    17. Clark Gordon L. & Dixon Adam D. & Monk Ashby H.B., 2013. "What is modern about sovereign wealth funds? A reply to Pete Moore," Business and Politics, De Gruyter, vol. 15(4), pages 561-565, December.
    18. Yu, Wei & Zheng, Ying, 2020. "Does CSR reporting matter to foreign institutional investors in China?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    19. Neef Andreas, 2014. "Law and Development Implications of Transnational Land Acquisitions: Introduction," The Law and Development Review, De Gruyter, vol. 7(2), pages 187-205, December.
    20. Meghna Dutta, 2018. "Globalisation, Corruption and Women Empowerment," Economic Papers, The Economic Society of Australia, vol. 37(3), pages 327-343, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:158:y:2019:i:2:d:10.1007_s10551-017-3751-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.