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Collective beliefs for responsible investment

Author

Listed:
  • Christel Dumas

    (ICHEC)

  • Céline Louche

    (Audencia Business School)

Abstract

The financial community does not seem to have shifted yet to greater sustainability, despite increasing awareness and concerns around social and environmental issues. In this paper, we provide insights to help understand why. Building on responsible investment (RI) data from the UK financial press between 1982 and 2010, we examine the collective beliefs which financial actors rely on to take decisions under uncertainty, as a way of understanding the status of and implications for RI mainstreaming. Our results identify five periods that characterize RI over time. The "civil rights" years (1982-1991), the "green niche" years (1992-1997), the "professionalization" years (1998-2000), the "SRI" years (2001-2004) and the "ESG" years (2005-ongoing) follow each other with specific representations and practices for RI. The analysis of the collective beliefs leads us to define two theoretical dimensions – justifying RI and practicing RI—that allow us to characterize how mainstream actors collectively make sense of RI. Our data confirm the existence of collective beliefs around RI and highlights changes in the content of the collective beliefs throughout the five periods, demonstrating a dynamic in the RI field. Our analysis reveals that the RI collective beliefs currently (1) do not provide a favorable environment for RI mainstreaming and (2) need to be taken into account when discussing the value of sustainability.

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  • Christel Dumas & Céline Louche, 2016. "Collective beliefs for responsible investment," Post-Print hal-01183744, HAL.
    • Handle: RePEc:hal:journl:hal-01183744
    DOI: 10.1177/0007650315575327
    Note: View the original document on HAL open archive server: https://hal.science/hal-01183744
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    Cited by:

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    2. Céline LOUCHE & Guillaume DELAUTRE & Gabriela BALVEDI PIMENTEL, 2023. "Assessing companies' decent work practices: An analysis of ESG rating methodologies," International Labour Review, International Labour Organization, vol. 162(1), pages 69-97, March.
    3. Gunnar Friede, 2019. "Why don't we see more action? A metasynthesis of the investor impediments to integrate environmental, social, and governance factors," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1260-1282, September.
    4. Ali Murad Syed, 2017. "Environment, social, and governance (ESG) criteria and preference of managers," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1340820-134, January.
    5. Tommy Gärling & Magnus Jansson, 2021. "Sustainable Investment: Consequences for Psychological Well-Being," Sustainability, MDPI, vol. 13(16), pages 1-10, August.
    6. Gaurav Talan & Gagan Deep Sharma, 2019. "Doing Well by Doing Good: A Systematic Review and Research Agenda for Sustainable Investment," Sustainability, MDPI, vol. 11(2), pages 1-16, January.
    7. Dimmelmeier, Andreas, 2021. "Sustainable Finance as a Contested Concept: Tracing the Evolution of Five Frames Between 1998 and 2018," SocArXiv 7jhgp, Center for Open Science.
    8. Andreas Hoepner & Arleta Majoch, 2016. "Pension Funds and the Principles for Responsible Investment: Multiplying Stakeholder Salience?," ICMA Centre Discussion Papers in Finance icma-dp2016-07, Henley Business School, University of Reading.
    9. Luluk Widyawati, 2020. "A systematic literature review of socially responsible investment and environmental social governance metrics," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 619-637, February.

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    Keywords

    collective beliefs; Responsible investment; media studies; mainstreaming;
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