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From Preaching to Investing: Attitudes of Religious Organisations Towards Responsible Investment

Author

Listed:
  • Céline Louche

    (Vlerick Leuven Gent Management School)

  • Daniel Arenas

    (ESADE - École supérieure d'administration et de direction d'entreprises = Escola Superior d'Administració i Direcció d'Empreses [Ramon Llull University])

  • Katinka C. van Cranenburgh

    (ESADE - École supérieure d'administration et de direction d'entreprises = Escola Superior d'Administració i Direcció d'Empreses [Ramon Llull University])

Abstract

Religious organisations are major investors with sometimes substantial investment volumes. An important question for them is how to make investments in, and to earn returns from, companies and activities that are consistent with their religious beliefs or that even support these beliefs. Religious organisations have pioneered responsible investment. Yet little is known about their investment attitudes. This article addresses this gap by studying faith consistent investing. Based on a survey complemented by interviews, we investigate religious organisations' attitudes towards responsible investment including opinions, practices and the impediments for implementing faith consistent investing. Although our results cannot be generalised because of the non-random character of our sample, six main characteristics of faith consistent investing are drawn: investing is not perceived as being in contradiction with religious values, religious values are important drivers, there is a strong community around faith consistent investing, religious investors are pioneering impact investing, implementing faith consistent investing is not without difficulties, and practices vary across regions. The survey also reveals that faith consistent investing has many commonalities with secular responsible investors.

Suggested Citation

  • Céline Louche & Daniel Arenas & Katinka C. van Cranenburgh, 2012. "From Preaching to Investing: Attitudes of Religious Organisations Towards Responsible Investment," Post-Print hal-01098144, HAL.
    • Handle: RePEc:hal:journl:hal-01098144
    DOI: 10.1007/s10551-011-1155-8
    Note: View the original document on HAL open archive server: https://audencia.hal.science/hal-01098144
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    19. Gunnar Gutsche & Anja Köbrich León & Andreas Ziegler, 2016. "On the relevance of psychological motives, values, and norms for socially responsible investments: An econometric analysis," MAGKS Papers on Economics 201641, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
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    21. Timo Busch & Peter Bruce-Clark & Jeroen Derwall & Robert Eccles & Tessa Hebb & Andreas Hoepner & Christian Klein & Philipp Krueger & Falko Paetzold & Bert Scholtens & Olaf Weber, 2021. "Impact investments: a call for (re)orientation," SN Business & Economics, Springer, vol. 1(2), pages 1-13, February.
    22. Beatriz Cuadrado‐Ballesteros & Jennifer Martínez‐Ferrero & Isabel M. García‐Sánchez, 2017. "Board Structure to Enhance Social Responsibility Development: A Qualitative Comparative Analysis of US Companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 524-542, November.
    23. Auzepy, Alix & Bannier, Christina E. & Martin, Fabio, 2023. "Walk the talk: Shareholders' soft engagement at annual general meetings," CFS Working Paper Series 689, Center for Financial Studies (CFS).
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