Socially responsible investment funds shape corporate conduct by applying political criteria to investment decisions

Evidence

The emerging movement of socially responsible investment is also employing a similar tactic. Socially responsible investment funds exert significant influence on corporate behaviors as well as global political issues by subjecting investment decisions to explicitly political criteria (Sparkes & Cowton 2004). — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 95

Categorization

  • SEED: Angle: how ESG investing is both a weapon against financialization and a financial tool itself — the irony that shareholder activism uses the logic of finance to attack finance.
  • XREF: connects to: Socially responsible investing cannot fully escape the financialized regime. — Natascha van der Zwan, Making Sense of Financialization, 82

Broader Connections