6. International and Cultural Views

  1. H. Kent Baker and
  2. John R. Nofsinger
  1. Astrid Juliane Salzmann

Published Online: 12 SEP 2012

DOI: 10.1002/9781118524015.ch6

Socially Responsible Finance and Investing: Financial Institutions, Corporations, Investors, and Activists

Socially Responsible Finance and Investing: Financial Institutions, Corporations, Investors, and Activists

How to Cite

Salzmann, A. J. (2012) International and Cultural Views, in Socially Responsible Finance and Investing: Financial Institutions, Corporations, Investors, and Activists (eds H. K. Baker and J. R. Nofsinger), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118524015.ch6

Author Information

  1. Research Associate, RWTH Aachen University

Publication History

  1. Published Online: 12 SEP 2012
  2. Published Print: 28 AUG 2012

ISBN Information

Print ISBN: 9781118100097

Online ISBN: 9781118524015

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Keywords:

  • cultural views;
  • responsible finance and investing;
  • economic consequences;
  • legal origin;
  • ethical behavior

Summary

Even though public and corporate interest in investment with social and environmental considerations is growing, the current literature remains vague about the underlying motives of investors. This chapter investigates the effect of the institutional environment on the social and ecological behavior of firms and investors around the world. It reviews four structural theories—legal origin, endowments, religion, and cultural values—and examines their usefulness to explain cross-country differences in social responsibility. Despite some isolated findings, where research has given explanations for developments in the field of sustainable finance, a deeper understanding of their general determinants remains incomplete. Existing research has primarily focused on religion and culture as explanatory factors for ethical issues in finance. Exploring the impact of the legal origin and endowments might also seem fruitful, but elaboration on the relevance of these theories remains a field for future research.