7. Social, Environmental, and Trust Issues in Business and Finance

  1. H. Kent Baker and
  2. John R. Nofsinger
  1. Christoph F. Biehl1,
  2. Andreas G. F. Hoepner2 and
  3. Jianghong Liu3

Published Online: 12 SEP 2012

DOI: 10.1002/9781118524015.ch7

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

Biehl, C. F., Hoepner, A. G. F. and Liu, J. (2012) Social, Environmental, and Trust Issues in Business and Finance, 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.ch7

Author Information

  1. 1

    Ph.D. Candidate, Centre for Responsible Banking and Finance, School of Management, University of St Andrews and Academic Network Knowledge Manager, United Nations–backed Principles for Responsible Investment

  2. 2

    Lecturer in Banking and Finance and Deputy Director, Centre for Responsible Banking and Finance, School of Management, University of St Andrews and Academic Fellow, Principles for Responsible Investment, United Nations

  3. 3

    Ph.D. Candidate, Centre for Responsible Banking and Finance, School of Management, University of St Andrews

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:

  • business history;
  • corporate social responsibility;
  • environmental management;
  • responsible investment;
  • trust

Summary

This chapter discusses social, environmental, and trust (SET) issues relating to business and finance in an historical context. Social issues relating to the concerned societal groups emerged beginning in the mid-twentieth century and have had an increasing impact on business ever since. Recently, societal groups have expressed anxiety about the trustworthiness of certain businesses, especially large financial institutions. These societal trends can be business relevant in both a positive and negative way. Managing these stakeholder concerns can, for instance, build trust and consumer loyalty, but such efforts also cost corporate resources. Due to a consistently increasing complexity of business and finance and a similarly consistently increasing speed of information exchange among concerned stakeholders (e.g., via social media), a common belief is that trust-based businesses such as financial institutions will be increasingly faced with the challenges and opportunities resulting from societal concerns about SET issues.