The UK Alternative Investment Market (AIM) was launched in 1995 and has been a great success with over 1200 companies now listed. In this article, we examine the development of AIM as it reaches its 15th year and discuss the potential pitfalls of the light touch regulation that is one of the attractions of AIM and identify potential corporate governance and ethical issues that may arise as a result of light touch regulation. We examine the central role (...) of the nominated advisor (NOMAD) and draw on the findings of in depth interviews with 25 AIM participants including AIM company directors, institutional investors, nominated advisors and brokers. We highlight the influence of the NOMAD on these participants and potential governance and ethical implications. We also discuss some of the concerns that AIM participants have about the market. We examine some of the recent scandals on AIM to determine why these scandals occurred — were they, for example, attributable to corporate governance weaknesses? Finally, we offer some concluding comments to discuss the future of AIM. The findings of the article have important implications for investors and policymakers alike. (shrink)

While the existing literature focuses on the disclosure of social information mainly by large companies, this paper concentrates on the disclosure of social information by small- and medium-sized companies (SME) listed on the Alternative Investment Market (AIM) in the U.K. The paper investigates the prevalent view that SMEs are unlikely to report social information due to their financial constraints and the perception that they have very little social conduct on which to report. Our overall evidence illustrates that, (...) contrary to this view, SMEs report social information regardless of their financial constraints, most likely in the same manner as large companies do, because they realise the significance of social reporting in establishing and retaining their corporate reputation. (shrink)

>With assets of over US$1.0 trillion and growing, public pension funds in the United States have become a major force in the private sector through their holding of equity positions in large publicly traded corporations. More recently, these funds have been expanding their investment strategy by considering a corporations long-term risks on issues such as environmental protection, sustainability, and good corporate citizenship, and how these factors impact a companys long-term performance. Conventional wisdom argues that the fiduciary responsibility of the (...) pension funds trustees must be solely focused on their beneficiaries and, therefore, their investment criteria must be based strictly on narrowly defined financial measures. It is also asserted that well-established financial measurements of corporate performance already include long-term risk assessment through discounted present value of future flow of earnings. Consequently, all other criteria are contrary to the best interest of the pension funds beneficiaries. In this paper, we assert that, contrary to conventional wisdom, pension funds, and for that matter other mutual funds, must be concerned with the long-term survival and growth of corporations. These measures are generally referred to socially responsible investing (SRI) and when applied to corporations, it is termed socially responsible corporate conduct (SRCC). We demonstrate that current measurement of future risk assessment invariably understates, and quite often completely overlooks, these long-term risks because of the inherent bias towards short-run on the part of financial intermediaries whose compensation depends greatly on short-term results. Furthermore, there is ample evidence to suggest that these intermediaries have been engaging in self-serving practices and thus failing in their duties to serve their clients, i.e. pension funds, best interests. Because of their large holdings in the total market as well as individual companies, these funds cannot easily divest from poorly performing companies without destabilizing the companies stock and overall markets. Hence, they must opt for a strategy of emphasizing investment criteria that encourage companies to take into account long-term aspects of their operations in terms of their impact on environment, sustainability, and community welfare, to name a few. We argue that an exclusionary, and even a primary, focus on short-term financial criteria is no longer a viable option. It also calls for the pension funds to encourage greater transparency and accountability of the entire corporate sector through improved corporate governance. Thus socially responsible investing practices are not merely discretionary and desirable activities; they are a necessary imperative, which both the corporations and public pension funds, and other large institutional holders, will ignore at serious peril to themselves. Finally, the paper considers some of the recent developments where corporations have been responding to these challenges and how their actions might be strengthened through greater disclosure and transparency of corporate activities. It also makes recommendations for the pension funds to support further research in creating new measurement standards that further refine the concept of socially responsible investing as a necessary ingredient of long-term corporate survival and growth in the context of a changing economic, environmental and socio-political dynamic. (shrink)

With assets of over US$1.0 trillion and growing, public pension funds in the United States have become a major force in the private sector through their holding of equity positions in large publicly traded corporations. More recently, these funds have been expanding their investment strategy by considering a corporation's long-term risks on issues such as environmental protection, sustainability, and good corporate citizenship, and how these factors impact a company's long-term performance. Conventional wisdom argues that the fiduciary responsibility of the (...) pension funds' trustees must be solely focused on their beneficiaries and, therefore, their investment criteria must be based strictly on narrowly defined financial measures. It is also asserted that well-established financial measurements of corporate performance already include long-term risk assessment through discounted present value of future flow of earnings. Consequently, all other criteria are contrary to the best interest of the pension funds' beneficiaries. In this paper, we assert that, contrary to conventional wisdom, pension funds, and for that matter other mutual funds, must be concerned with the long-term survival and growth of corporations. These measures are generally referred to "socially responsible investing" and when applied to corporations, it is termed "socially responsible corporate conduct." We demonstrate that current measurement of future risk assessment invariably understates, and quite often completely overlooks, these long-term risks because of the inherent bias towards short-run on the part of financial intermediaries whose compensation depends greatly on short-term results. Furthermore, there is ample evidence to suggest that these intermediaries have been engaging in self-serving practices and thus failing in their duties to serve their clients', i.e. pension funds', best interests. Because of their large holdings in the total market as well as individual companies, these funds cannot easily divest from poorly performing companies without destabilizing the companies' stock and overall markets. Hence, they must opt for a strategy of emphasizing investment criteria that encourage companies to take into account long-term aspects of their operations in terms of their impact on environment, sustainability, and community welfare, to name a few. We argue that an exclusionary, and even a primary, focus on short-term financial criteria is no longer a viable option. It also calls for the pension funds to encourage greater transparency and accountability of the entire corporate sector through improved corporate governance. Thus socially responsible investing practices are not merely discretionary and desirable activities; they are a necessary imperative, which both the corporations and public pension funds, and other large institutional holders, will ignore at serious peril to themselves. Finally, the paper considers some of the recent developments where corporations have been responding to these challenges and how their actions might be strengthened through greater disclosure and transparency of corporate activities. It also makes recommendations for the pension funds to support further research in creating new measurement standards that further refine the concept of socially responsible investing as a necessary ingredient of long-term corporate survival and growth in the context of a changing economic, environmental and socio-political dynamic. (shrink)

Engaging with the work of C. Wright Mills and Eve Sedgwick, in this article I theorize how homoerotic relations facilitate the flow of global capital into risky market economies. Drawing on interview data with more than 60 financial professionals managing foreign investments in Vietnam, I examine the co-constitution of gender and global capital by identifying three categories of deal brokers. System maintainers are men and women who accept that women’s bodies are necessary for male homosocial bonding between political and (...) economic elites. System transformers are men and women who disrupt the status quo and develop alternative ways of deal brokering outside of erotic spaces. System defectors are those break the triangle altogether and work to create new markets. (shrink)

Ethical investment (also known as social investment, socially responsible investment [SRI], or sustainable investment) typically refers to the practice of integrating putatively ethical, social, or environmental considerations into a financial investment process – for instance, a pension fund's process of deciding what stocks or bonds to buy or sell. Whereas conventional or mainstream investment focuses solely upon financial risk and return, ethical investment thus also includes various nonfinancial goals or constraints in typical (...) class='Hi'>investment decisions. This type of investment has grown to be a well-established feature of many stock markets in the past two decades or so. A recurring point of debate, however, is to what extent this phenomenon indeed constitutes a more ethical alternative to conventional types of financial behavior. (shrink)

Which goods should we be able to buy and sell on the market and, alternatively, which goods should remain sheltered from the market? For many goods in modern societies, this has proven to be a thorny question. Moreover, it is a question that cannot be answered by way of a theoretical shortcut, that is, by attributing certain general values (or disvalues) to the market and inferring from these general attributes that the market is (or isn’t) the (...) best institution to govern the provision of a specific good. Therefore, in the first part of this work, three theoretical building blocks are proposed to frame the way we should handle the market question. First, a social theory is formulated which treats the market as one out of five main socio-economic modes of provision, the others being public provision, professional provision, informal provision and self-provision. Second, in choosing the best institutional framework for a specific good, it is argued that we should not restrict ourselves to the option of implementing one of these modes of provision only. Special attention should be paid to the option of ‘institutional pluralism’, i.e. instituting a market and a non-market alternative simultaneously for the same good. Both the attractions and the limits of such an institutional pluralism are discussed. Third, in making institutional choices about these modes of provision, we need a normative theory providing the moral criteria to guide our choices. Here a capability theory is proposed, which consists of three central principles, parallel to a distinction between three types of capabilities: those that are ‘immoral’, those that are ‘morally required’ and those that are merely ‘morally permissible’. The principles prescribe avoiding the realization of the immoral capabilities and promoting the realization of morally required and permissible capabilities. In the second part, this threefold framework is applied to three specific goods. These are security (protection against criminal threats), media (mass communication by media such as television, radio and the press) and care (caring activities provided on a structural basis to dependents such as care for children, chronically ill and elderly people). For each of these goods a capability analysis shows that the most appropriate institutional framework is institutional pluralism. In the case of security this is a pluralism of market and public provision, in the case of media a pluralism of market and professional provision and in the case of care a pluralism of market and informal provision. In the final chapter I investigate the conditions that have to be fulfilled for these institutionally pluralist arrangements to be stable, that is, to have a robust chance of survival. The main challenge to stability comes from the dynamic toward capital accumulation that is inherent in contemporary capitalism, and if left unchecked requires an ongoing conversion of non-market practices into markets. Two solutions are proposed to counter this threat: a general working time reduction which reduces capital accumulation and a strategy of publicly funded investment of accumulated capital in non-market parts of institutionally pluralist practices. (shrink)

Social media commentary, satellite imagery and GPS data are a part of ‘alternative data’, that is, data that originate outside of the standard repertoire of market data but are considered useful for predicting stock prices, detecting different risk exposures and discovering new price movement indicators. With the availability of sophisticated machine-learning analytics tools, alternative data are gaining traction within the investment management and algorithmic trading industries. Drawing on interviews with people working in investment management and (...) algorithmic trading firms utilizing alternative data, as well as firms providing and sourcing such data, we emphasize social media-based sentiment analytics as one manifestation of how alternative data are deployed for stock price prediction purposes. This demonstrates both how sentiment analytics are developed and subsequently utilized by investment management firms. We argue that ‘alternative data’ are an open-ended placeholder for every data source potentially relevant for investment management purposes and harnessing these disparate data sources requires certain standardization efforts by different market participants. Besides showing how market participants understand and use alternative data, we demonstrate that alternative data often undergo processes of prospecting and assetization. We further contend that the widespread embracement of alternative data in investment management and trading encourages a financialization process at the data level which raises new governance issues. (shrink)

Industrial animal agriculture is a significant driver of climate change, habitat loss, and the ongoing extinction crisis, all of which will continue to accelerate as global demand for animal products grows. Plant-based alternatives to animal products, which have existed for over a thousand years, offer a potential solution to this problem, as the intersection of recent technological innovation and shifting capital investment trends have ushered in a new era of alternative proteins that are redefining food categories like meat, (...) eggs, and milk. To better understand these evolving food forms, their attendant technologies, and the opportunities they afford for ameliorating the impacts of industrial animal farming, this article provides a genealogy of plant-based alternative proteins, with a particular focus on the current era and the role that design principles like biomimicry and skeuomorphism play in reproducing the organoleptic properties (the sensorial, experiential aspects) of animal products. Comparing the alternative protein market to other markets in which more sustainable foods and energy have failed to displace their environmentally destructive counterparts, it concludes by considering if whether creating novel new protein forms, rather than imitating conventional animal products, may afford a more promising path toward transformation of the food system. (shrink)

This paper applies insights from behavioral economics and nudge theory to foster sustainable and responsible investment. SRI provides an opportunity to express and promote ethical values via choice of financial instruments. While policy-makers have tried to encourage greater participation in SRI, the majority of retail investors retain a conventional approach to investment. I develop a conceptual framework to improve the effectiveness of SRI policy-making. The first part of the framework comprises a transmission mechanism which emphasizes the role of (...) SRI as a driver for sustainable development. The second part is a model of the individual decision for or against SRI. The framework suggests that low SRI demand is a case of behavioral market failure, and that nudging is a suitable tool for dismantling behavioral barriers to SRI. A specific example of smart choice architecture is used to illustrate the framework’s potential in the design of an SRI nudge. Assuming the nudge stands up to the rigors of empirical testing, it may well provide a feasible alternative for policy-makers. (shrink)

This study investigates the relative importance of trait anger and trait anxiety in financial decision-making. Given the disparate economic, cultural and social environments within an emerging market, this study focuses on South Africa to provide unique insights. The use of a student experimental cohort and hypothetical scenarios allows for the assessment of prima facie evidence of the merits of future research using more experienced participants and more realistic scenarios. Gender and race are incorporated as explanatory variables given the history (...) of South Africa and the disparate opportunities amongst individuals of different races. Both variables are also notable indicators of financial behaviour and decision-making. A questionnaire was completed by 288 university students which measured Trait anxiety and Trait anger using the Anxiety Inventory and Anger Expression Inventory-2. Using multinomial logistic regressions, the results showed that White participants and those individuals with higher levels of anger are more inclined to invest in equity. Alternatively, Women and individuals with higher levels of anxiety were found to be more risk averse. These findings are relevant to financial advisers as most of the predictive outcomes relate to risk which is vital in making investment decisions. While prior research has shown the relevance of personality traits on investment performance, the added dimension of gender and race adds practicality to the findings. It also highlights the necessity of including demographic variables when assessing personality traits. (shrink)

The present paper explores, theoretically, and empirically, whether compliance with the International Code of marketing of breast-milk substitutes impacts on financial performance measured by stock markets. The empirical analysis, which considers a 20-year period, shows that stock markets are indifferent to the level of compliance by manufacturers with the International Code. Two important issues emerge from this result. Based on our finding that financial performance as measured by stock markets cannot explain the level of compliance, the first issue refers to (...) what alternative types of mechanisms drive manufacturers who comply the least with voluntary codes such as the International Code. Conversely, from our finding that stock markets do not reward the most compliant, the second issue raised is an inherent weakness of stock markets to fully incorporate social and environmental values. (shrink)

ArgumentIt seems theoretically convenient to construe knowledge practices in financial markets and organizations as “applied economics.” Alternatively or additionally, one might argue that practitioners draw on economic knowledge in order to systematically orient their actions towards profit-maximization; models, then, are understood as devices that make calculative rationality possible. However, empirical studies do not entirely confirm these theoretical positions: Practitioners’ actual calculations are often not “framed” by models; organizations and institutions influence the choice and adoption of models; and different professional groups (...) in financial markets have diverging attitudes towards model calculations. In order to account for this diversity, this article proposes the concept ofcultures of economic and financial expertise; the concept focuses on the patterns of knowledge practices and knowledge-related self-definitions of groups within financial organizations and markets; it also facilitates an analysis of the relations between and, more specifically, the hierarchies among different practices and identities. The article then goes on to explore the process of foreign exchange forecasting in a particular bank. The description immediately reveals that two groups are involved in this process: economists and analysts. These groups maintain quite different practices and self-descriptions in relation to models: While the economists in the bank use the models as organizational resources for consistent forecasting procedures and observe data with the help of simple model structures, analysts approach model forecasts from the perspective of critics: They see limits in the variable-centered, as opposed to a “thematic” approach and they disregard a model's imposed temporality. Nevertheless, analysts use model forecasts as anchors for developing their own “paths” and stories about possible future expectation changes in the markets. The specific division of labor between economists and analysts, and specifically the dominant role of analysts in the forecasting process, fit into a larger picture: The rise of institutional investors in the foreign exchange markets and their demand for genuine market knowledge for speculative investment projects has contributed to the rise and dominance of analysts’ culture. (shrink)

While tourism is often seen as a welcome source of economic development, conventional mass tourism is associated with numerous negative effects, such as the destruction of ecological systems and loss of cultural heritage. In response to these concerns, a term that has surfaced recently is, sustainable tourism. This article attempts to define sustainable tourism and asks the question of whether this new term is an acceptable criteria or is merely a marketing ploy to attract the morally conscious tourist.

Impact investing is the fastest growing responsible investment strategy and has the potential to address many of the environmental and socio-economic challenges faced by humanity. Some scholars, however, claim that definitional ambiguity confounds impact measurement and hence reduces the attractiveness of this investment strategy. To investigate this claim, semi-structured personal interviews were conducted with 13 experienced impact investors in a large African market. Participants did not regard definitional ambiguity as a serious barrier, but found it difficult to (...) identify and articulate specific impact objectives that could match their financial return expectations. Investors called for more training and information sharing platforms. (shrink)

Alternative food networks are emerging in opposition to industrial food systems, but are criticized as being exclusive, since customers’ ability to patronize these market spaces is premised upon their ability to pay higher prices for what are considered the healthiest, freshest foods. In response, there is growing interest in widening the demographic profile given access to these alternative foods. This research asks: what barriers do alternative food businesses face in providing access and inclusion for low income (...) consumers? Surveys and interviews with 45 alternative food businesses in British Columbia, Canada uncovered five key barriers. The findings indicate that the barriers are symptomatic of structural issues in the Canadian food and social welfare systems. Although opportunities exist for business operators to widen access for low income shoppers, these alone cannot meaningfully ameliorate food-access inequality. Rather, these barriers underscore issues of income-disparity, poverty, and food-access inequality more broadly, and require structural and societal change to rectify. (shrink)

The emerging critique of alternative food networks (AFNs) points to several factors that could impede the participation of low-income, minority communities in the movement, namely, spatial and temporal constraints, and the lack of economic, cultural, and human capital. Based on a semi-experimental study that offers 6 weeks of free produce to 31 low-income African American households located in a New Orleans food desert, this article empirically examines the significance of the impeding factors identified by previous scholarship, through participant surveys (...) before, during, and after the program. Our results suggest economic constraints are more influential in determining where the participants shop for food than spatial and temporal constraints, and the study participants exhibit high levels of human and cultural capital regarding the purchase and consumption of locally grown produce. We also find them undeterred by the market’s predominantly White, middle-class cultural social space, which leads us to question the extent to which cultural exclusivity discourages their participation in AFNs. For all five factors we find that the constraints posed to accessing the local food market were not universal but varied among the participants. Finally, the study reveals some localized social constraints, fragmented social ties in particular, as a possible structural hurdle to engaging these residents in the alternative market in their neighborhood. Conclusions point to the need for a multi-dimensional and dynamic conceptualization of “food access.”. (shrink)

Sustainable investment, which integrates social, environmental and ethical issues, has grown from a niche market of individual ethical investors to embrace institutional investors resulting in £764 billion in assets under management in the UK alone [Eurosif, 2008: ‘European SRI Study 2008’ ]. Explaining this growth is complex, involving shifts in personal and collective values, reactions to corporate scandals, scientific and media pronouncements about climate change, Government initiatives, responses from financial markets and the influence of SI innovators in The (...) City of London. The article examines the influence of human agency through interviews with 14 SI champions who have variously been responsible for launching SI funds and changing investment processes and organisational structures in order to enhance SI. Interviewees were asked about their motivations and persuasive strategies, the obstacles they faced and how they overcame them as well as broader implications of SI for financial markets. The following key categories inform the results and the discussion: Values; Conservatism, Antipathy and Incredulity; Optimism and Sympathy from Insiders; The Social and Political Context; The Business Case; Organisational Constraints; Inappropriate forms of Remuneration; Short-termism; The Nature of Capitalism. Three discourses were also identified. The first is the necessity to make a business case for SI; the second is the benefits that SI can bring to the quest of overcoming short-termism; the third is a belief that for SI to have a significant influence, greater government intervention is required. (shrink)

The link between Corporate Social Responsibility (CSR) and financial performance has continued to generate mixed and inconclusive results. Most studies in this area seem to assume that corporate social and financial performance share the same underpinning logic. Drawing from a qualitative analysis of practitioners' accounts of the challenges of mainstreaming the market for responsible investments, as part of the broader CSR agenda, this article re-examines this taken-for-granted assumption in the extant literature, and reaches the conclusion that CSR, as a (...) complex private governance of externalities, does not easily lend itself to measurability and profitability. In other words, not everything about CSR is measurable and profitable as much as the financial markets would expect. Comparing what is rendered measurable and profitable, on one hand, and what is yet to fully lend itself to measurability and profitability, on the other, is identified as one of the fundamental flaws of this literature. As such, CSR and financial performance will continue to run on competing logics until their different markets are distinctively articulated and/or aligned. (shrink)

Ethical investors are widely thought of as having two main goals. The negative goal of avoiding their investments to be morally tainted. The positive goal to further a certain ethical value they embrace or some normatively laden idea they hold by investing their money in a certain company. In light of these goals, the purpose of this paper is to provide an account of how we can explicitly include investors’ intentions when conceiving of ethical investment. The central idea is (...) that an investor’s intentions may act as both a negative and a positive qualifier for making investing ethical. If we subscribe to this account, there are interesting upshots with respect to how ethical investing compares to ethical giving as effective altruists construe it. (shrink)

Sustainable investment (SI), which integrates social, environmental and ethical issues, has grown from a niche market of individual ethical investors to embrace institutional investors (e.g. pension funds) resulting in £764 billion in assets under management in the UK alone [Eurosif, 2008 : ‘European SRI Study 2008’ (Eurosif, Paris)]. Explaining this growth is complex, involving shifts in personal and collective values, reactions to corporate scandals, scientific and media pronouncements about climate change, Government initiatives, responses from financial markets and the (...) influence of SI innovators in The City of London. The article examines the influence of human agency through interviews with 14 SI champions who have variously been responsible for launching SI funds and changing investment processes and organisational structures in order to enhance SI. Interviewees were asked about their motivations and persuasive strategies, the obstacles they faced and how they overcame them as well as broader implications of SI for financial markets. The following key categories inform the results and the discussion: Values; Conservatism, Antipathy and Incredulity; Optimism and Sympathy from Insiders; The Social and Political Context; The Business Case; Organisational Constraints; Inappropriate forms of Remuneration; Short-termism; The Nature of Capitalism. Three discourses were also identified. The first is the necessity to make a business case for SI; the second is the benefits that SI can bring to the quest of overcoming short-termism; the third is a belief that for SI to have a significant influence, greater government intervention is required. (shrink)

In a recent contribution to this journal, Arjaliès (J Bus Ethics 92:57—78, 2010) suggests that the emergence of socially responsible investment (SRI) in France can be best described as a social movement with a collective identity that aimed to challenge the dominant logic of the financial market. Such an account is at odds with a body of empirical studies that approaches SRI in the French context as a process of market creation led by loosely coordinated actors with (...) contradictory and conflicting interests and values, who have mainly complied with—rather than opposed—the existing dominant financial logic of the asset-management field. In this comment, we build on this prior research to contest Arjaliès' perspective on both theoretical and empirical grounds, with the aim of highlighting the shortcomings of conflating social movements and other forms of collective actions in understanding the building of new markets in organization theory and SRI studies. We contend that in mistaking for social movement forms of collective actions that underpin the emergence of markets, scholars of organization theory may confuse distinct mechanisms in their explanation of SRI emergence across countries, overlook the complex dynamics and interactions of markets and social movements, and, most importantly, fail to evaluate the real political significance of SRI as an empirical phenomenon. We propose that future research on SRI distinguishes carefully "social-movement research as a theoretical framework" from "social movement as an empirical phenomenon" in order to avoid such drawbacks while benefiting from recent advances in social-movement research. (shrink)

This paper reviews the development of socially responsible investment (SRI) in the Spanish financial market. The year, 1997 saw the appearance in Spain of the first SRI mutual fund, but it was not until late 1999, that major Spanish fund managers offered SRI mutual funds on the retail market. The development of SRI in the Spanish financial market has not experienced the high levels of development seen in other European countries, such as France or Italy, where (...) interest in SRI began during the same period. This paper presents an analysis of the impact of SRI mutual funds managed by Spanish fund managers comparing the evolution of managed assets and number of investors. We also analyse the investment strategies adopted by these funds, which mainly use negative screening criteria and the participation of non-governmental organisations as institutional investors. An analysis of the take up of socially responsible investment in the Spanish financial market shows majors deficits in this process. This is due to Spanish investors having limited sensitivity to social issues and knowledge of SRI, and a lack of development of SRI investment strategies, such as engagement or shareholder activism by fund managers. Furthermore, the take-up of SRI mutual funds in the Spanish financial market coincided with a fall in the stock market at the beginning of the 21st Century. We conclude with an analysis of the relationship between SRI and Corporate Social Responsibility (CSR). (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

This article answers the question raised by the special issue of this journal in a positive way: managerial practices do need philosophy. In particular, it argues for a more concrete claim: managerial practices have needed philosophy in the past to develop some important intellectual tools, and today they still need to be open to the continuous conceptual and methodological innovations introduced by competing philosophical research programmes, because loyalty to just one favourite philosophical paradigm can hinder the ability of managerial practices (...) to express their full potential, whereas openness to philosophical innovation can help managers keep their conceptual tools up to their tasks. The authors argue for this thesis in concreto: they discuss a specific branch of managerial practice—marketing—and illustrate that a preeminent form thereof, i.e. Experiential Marketing, has needed philosophy, and still needs it nowadays, in order to achieve its goals and overcome certain problems. They also point out that Experiential Marketing needs to renew and integrate some of its philosophical assumptions and conceptual tools in the light of innovations brought about by a recent philosophical turn. In particular, the authors argue that philosophy has provided essential conceptual tools for the articulation of the notions of experience and authenticity used in Experiential Marketing; they claim that the excessive reliance of Experiential Marketing upon a problematic and somewhat outdated ontology produces paradoxes with important repercussions upon managerial practice; and they show that those problems can be overcome by integrating and partially renewing its assumptions and conceptual tools, in the light of a fresher philosophical framework. Shortcomings and solutions are discussed with reference to a specific case study: Venice as an experientially rewarding and authentic tourist destination during the Covid19 crisis, but also as a World Heritage property whose management entails difficult choices. The fruitfulness of the paradigm revision is shown also by integrating the conceptual toolkit of Experiential Marketing with three relatively new notions, deriving from a new realist framework: independence, attrition and perception. (shrink)

Alternative food networks (AFN) are argued to provide platforms to re-socialize and re-spacealize food, establish and contribute to democratic participation in local food chains, and foster producer–consumer relations and trust. As one of the most recent examples of AFN, Participatory Guarantee Systems (PGS) have gained notable traction in attempting to redefine consumer-producer relations in the organic value chain. The participation of stakeholders, such as consumers, has been a key element theoretically differentiating PGS from other organic verification systems. While research (...) on farmer participation in PGS is attracting interest, consumer participation is still widely overlooked. Using a mixed methods approach, this paper describes five PGS markets in Mexico, Chile and Bolivia. A survey was conducted with consumers in the PGS markets to explore their awareness of the PGS, how consumers participate in the PGS, and their level of trust in the respective PGS and its certified products. Results showed a low level of awareness of PGS among market consumers, few participation possibilities, and minimal consumer participation overall. Nevertheless, trust in organic quality was generally high. Consumers primarily relied on the direct relationship with producers and the PGS market itself as sources of trust. These results provide novel insight into PGS consumer-market interactions, and contribute to discussions concerning social embeddedness, awareness and participation within AFN. (shrink)

ABSTRACTAlthough a growing stream of research investigates the role of government in corporate social responsibility, little is known about how governmental CSR interventions interact in financial markets. This article addresses this gap through a longitudinal study of the socially responsible investment market in France. Building on the “CSR and government” and “regulative capitalism” literatures, we identify three modes of governmental CSR intervention—regulatory steering, delegated rowing, and microsteering—and show how they interact through the two mechanisms of layering and catalyzing. (...) Our findings: 1) challenge the notion that, in the neoliberal order, governments are confined to steering market actors—leading and guiding their behavior—while private actors are in charge of rowing—providing products and services; 2) show how governmental CSR interventions interact and are orchestrated; and 3) provide evidence that governments can mobilize financial markets to promote CSR. (shrink)

The United Kingdom is at the forefront of a global movement to establish a social-investment market. At the heart of social investment we find finance – and financialisation. Specifically, we find: a financial market ; a series of financial institutions ; a financial instrument ; and a financial practice. Focusing on the UK, given its pioneering role, this paper first provides a brief history of social investment, tracing its development from the politics of the ‘Third (...) Way’ to the social-impact bond. It then maps the terrain of the social-investment market, explaining the main institutions and actors, and the social-impact bond. Finally, it proposes a framework for analysing the disciplinary logics of finance, which it uses to understand the promise or threat of social investment and the social-investment market. (shrink)

Real-world policy decisions involve trade-offs. Sometimes the trade-offs involve both the efficacy and morality of potential policies. In this chapter, the morality and likely efficacy of hiring one more spy to help anti-terrorist intelligence gathering efforts is compared to the morality and likely efficacy of implementing a prediction market on terrorism. Prediction markets on terrorism allow registered traders to buy and sell shares in predictions about terrorism-related real-world events. The comparison at the heart of this chapter is based on (...) the assumption that it would cost about $5 million to bankroll the prediction market project, or to establish another spy, including equipment and head office support, for 15 years. The comparison reveals that implementing a prediction market on terrorism is likely to be more efficacious and less morally problematic than hiring one more spy. (shrink)

‘Fair trade’, ‘ethical’ and ‘sustainable’ consumption emerged in response to rising concerns about the destructive effects of hedonic models of consumption that are typical of late capitalist societies. Advocates of these ‘markets for virtue’ sought to supplant the insatiable hedonic impulse with a morally restrained, self-disciplining disposition to consumption. With moral markets currently losing their appeal, we respond to the tendency to view hedonism as an inhibitor of moral market behaviour, and view it instead as a potential enabler. Drawing (...) upon the concept of ‘alternative hedonism’ (Soper, J Consum Cult 7:205–229, 2007; Cult Stud 22(5):567–587, 2008; Ethics and morality in consumption: interdisciplinary perspectives, Routledge, London, 2016; A new hedonism: a post-consumerism vision, the next system project, 2017), we illustrate how consumers experience both morality and pleasure concurrently; show how they attempt to reconcile these aspects of the experience and elucidate the implications of doing so. Using the moral market for ethical tourism as an exemplar of ‘alternative hedonism’, we identify three ‘self-managing strategies’—moderating, abiding and levelling—that re-structure the moral order of consumption in meaningful ways and with profound outcomes. In the context of anxieties about personal, social and ecological consequences of consumption, we show empirically how self-managing strategies reify a less contradictory framing of consumption by tapping into alternative cultural discourses on morality. We discuss the consequences of these strategies, highlighting how they may legitimise and sustain consumption via moral markets despite the reproduction of social inequality and ecological threats. (shrink)

Regional integration over the past decade has facilitated a huge flow of foreign direct investment (FDI) into Latin America. Less is known, however, about why these newforeign enterprises decided to enter specific markets. This study investigates three recent investments in Costa Rica: two by U.S.-based multinational corporations (MNCs) and another by an MNC based in Spain. The behavior of these MNCs is examined in their initial bargaining and subsequent operations. Through the lens of political economy, this study concludes that (...) Costa Rica’s stable democratic institutions and formalized economic links through multilateral and regional trade and investment accords constitute an advanced factor of comparative advantage that attracted foreign investment to Costa Rica and induced the MNCs to become responsive to host country interests. (shrink)

For some time we have seen a shift away from direct marketing, a core feature and dominant exchange form in the alternative food world, towards a greater role for intermediation. Yet, we still need to better understand to what extent and in what ways new mediated Alternative Food Networks represent an evolution of or departure from core tenets of alternative food systems. This paper focuses on AFNs with new intermediaries that connect small-scale producers with urban end-consumers. Based (...) on original research in Frankfurt, Berlin, and Calgary, we analyze three different types of mediated AFNs: one driven by consumers, one by an external intermediary, and one by producers. Our cases include non-capitalist, capitalist, and alternative capitalist economic practices as identified by Gibson-Graham. Conceptually, we base our analysis on the three-pillar-model of alternative agri-food systems, which we further refine. Besides comparing our cases with each other, for heuristic purposes we also compare them with an ideal-type model that adheres to core tenets of alterity in all three pillars. Our empirical analysis shows that intermediary organizations can bring important benefits and that mediated AFNs are in principle able to hold true to the core tenets of alternative agri-food systems. However, it is very important to develop models of democratic control and ownership as well as economic arrangements in which created value is fairly shared. Only then can the potentials of new mediated models be realized while the pitfalls of the conventional systems they seek to replace be avoided. (shrink)

In spite of strengthened financial regulation, ethical concern continues about the promotion and distribution of financial services in Britain, including savings and investment products. Greater ethical attention needs to be paid to products, price, promotion and distribution. The authors are all faculty members of the School of Management and Finance, University of Nottingham, University Park, Nottingham NG7 2RD, UK. Correspondence should be addressed to Dr Ennew. Alison McGregor gratefully acknowledges funding provided by the Association of British Insurers.

In spite of strengthened financial regulation, ethical concern continues about the promotion and distribution of financial services in Britain, including savings and investment products. Greater ethical attention needs to be paid to products, price, promotion and distribution. The authors are all faculty members of the School of Management and Finance, University of Nottingham, University Park, Nottingham NG7 2RD, UK. Correspondence should be addressed to Dr Ennew. Alison McGregor gratefully acknowledges funding provided by the Association of British Insurers.

Farmers’ markets, often structured as non-profit or cooperative organizations, play a prominent role in emerging alternative food networks of western Canada. The contribution of these social economy organizations to network development may relate, in part, to the process of regional clustering. In this study we explore the nature and significance of farmers’ market clustering in the western Canadian provinces of British Columbia and Alberta, focusing on the possible connection between clustering and a “scaling up” of alternative food (...) networks. Survey and interview results from four regional clusters indicate that in addition to spatial agglomeration, dynamic processes of interaction and knowledge exchange are occurring and are shaped by vendor mobility as well as collaborative and competitive forces. Horizontal and vertical collaborations are resulting in innovative strategies to address challenges of scale, scope, infrastructure, and organizational capacity that are prevalent in alternative food networks. Government support for market clustering has been modest to date but, we argue, could play a more prominent role in facilitating cluster development as part of a broader collaborative strategy involving public, private, and social economy sectors in the scaling up of alternative food networks. (shrink)

Alternative agricultural systems, like organic and local agriculture, are becoming increasingly important in Europe to the detriment of conventional methods. As a matter of fact, sustainable agriculture, which started as a niche sector, has been able to conquer a significant share of the European agro-food market. Institutional promotion along with increasing consumer demand has allowed for the development of different agricultural models, from the farm to the fork, with an increasing focus on the ethical issues associated with the (...) agro-food production system. For instance, the organic agriculture agro-food chain is based on four principles, namely health, ecology, fairness and care with the goal of competing in the global agro-food market while respecting the environment, livestock, producers, and consumers. Within these themes, the seed market represents an extremely complex part of the whole picture. The present paper analyses the historical evolution of the seed sector by identifying the main issues related to sustainable agricultural systems and protection of biodiversity. It follows the identification of different seed markets based on different farm types. The two aspects are then discussed and matched in order to identify the main issues characterizing the sector. A review of possible solutions to those problems, taking into account their ethics, is also provided. (shrink)

Based on an abductive analytic study, we examine financial and social value incorporation in the multi-valued market of impact investing. This paper draws on interviews with investment professionals in 54 charitable foundations, intermediary and field building organizations in the impact investing market, to compare market objectives with practice, and to determine whether social and financial values are incorporated, thus producing ‘returns’ of both types through market exchange. We find unincorporated valuation is apparent at both the (...) market level and for several types of investors in contrast with the incorporated or even integrated valuations of other investors. This demonstrates that rather than incorporating logics in a binary or hybrid way, valuation in the moral market of impact investing occurs in a multiplicity of ways and on different levels of the market, depending on a variety of factors including adherence to traditional financial market standards and market design and maintenance. (shrink)

In this book, Sharpe changes that by setting out his state-of-the-art approach to asset pricing in a nonmathematical form that will be comprehensible to a broad range of investment professionals, including investment advisors, money ...

The Civil Economy approach, as developed by Italian economists Luigino Bruni and Stefano Zamagni, aims at introducing reciprocity into the economy as a humanizing factor. Despite being presented as an innovative perspective, the CE approach shares many characteristics with the German model of Social Market Economy. The present paper compares both approaches, showing that they in fact share a normative basis and similar aims but address them from diverse points of view; namely, CE addresses them from a virtue ethics (...) perspective and SME from an institutional ethics one. This leads them to stress different aspects and to focus on diverse problems. Therefore, CE would not constitute an alternative to SME but a complement. Thus, a combination of both approaches should allow each to take advantage of their respective strengths and lead to a better result in terms of the common good. (shrink)

In this article, we studied the Corporate Sustainability Index (ISE) of the Brazilian Mercantile, Futures and Stock Exchange (BM&FBOVESPA), with the main objective of analyzing the performance of sustainable investments in the Brazilian stock market, during the period from December 2005 to December 2010. To achieve this aim, we characterized ISE portfolios and we compared its performance with the IBOVESPA (representing the market portfolio) and other BM&FBOVESPA sectoral indices. In the performance comparison, we used level of liquidity, return (...) and risk indicators, as well as the following measures: Sharpe, Treynor, Sortino, and Omega. Our results show that although sustainable investments have presented some interesting characteristics, such as increasing liquidity and low diversifiable risk, they did not achieve satisfactory financial performance in the analysis period. This indicates that the constraints imposed by this type of investment in capital allocation in Brazil may be harming their return and risk attractiveness. (shrink)

Farmers’ markets, often structured as non-profit or cooperative organizations, play a prominent role in emerging alternative food networks of western Canada. The contribution of these social economy organizations to network development may relate, in part, to the process of regional clustering. In this study we explore the nature and significance of farmers’ market clustering in the western Canadian provinces of British Columbia and Alberta, focusing on the possible connection between clustering and a “scaling up” of alternative food (...) networks. Survey and interview results from four regional clusters indicate that in addition to spatial agglomeration, dynamic processes of interaction and knowledge exchange are occurring and are shaped by vendor mobility as well as collaborative and competitive forces. Horizontal and vertical collaborations are resulting in innovative strategies to address challenges of scale, scope, infrastructure, and organizational capacity that are prevalent in alternative food networks. Government support for market clustering has been modest to date but, we argue, could play a more prominent role in facilitating cluster development as part of a broader collaborative strategy involving public, private, and social economy sectors in the scaling up of alternative food networks. (shrink)

Institutional investors and corporations increasingly recognize that extra-financial determinants of business performance can both create value and uncover significant risks within a business or investment portfolio. For companies that invest in, develop, own, or operate commercial real estate assets, this awareness of extrafinancial impacts has led to a significant interest in what has been called "responsible property investment (RPI)". Within the field of RPI, green real estate — real estate investment and management that seeks to reduce the (...) environmental impacts of building construction and operations — has begun to receive attention. This attention has been extended over the past decade to community property development projects, where both social and environmental considerations related not only to the building, but also the project site and surrounding community are integrated into management and investment decisions. Some examples of these projects include affordable and workforce housing, urban revitalization and brownfield redevelopment. More social-focussed issues such as labour and workplace considerations are also key components of responsible property investing, yet to date labour issues have received little attention in the RPI literature and workplace considerations are reflected indirectly through environmental considerations in the green building literature. This paper explores responsible real estate investment in Canada by taking an integrated approach in examining both environmental and social factors and their potential impact on such investments. A series of semi-structured interviews are conducted with key stakeholders in Canada to gain insight into how using environmental and social factors may influence long-term risk and financial returns in real estate investment in Canada with particular emphasis on institutional investors engaged in these practices. Data is used to analyse the impact that ESG considerations have on financial performance of these assets. Jantzi-Sustainalytics ESG ratings are used along with the stock price changes of fourteen real estate companies and REITs to interrogate this question. (shrink)

Discussions about the impacts of marketing systems on society have been strongly encouraged in the field of macromarketing. However, these studies have focused on analyzing human and organizational actors, neglecting, to a large extent, the impacts of practices of marketing systems on other non-human stakeholders, such as those associated with or materialized in the form of a product. This article debates the material basis of the product of animal origin based on the concepts of justice, stakeholder theory, and externalities. An (...) argument was developed attributing the status of a moral agent to the animals used to make products and focusing on this debate, arguing for the establishment of a consumption pattern that morally considers animals. This was made feasible by new alternatives for food performances exemplified by the conduct of vegetarian and vegan consumers. (shrink)

This paper analyses the ethical performance of foreign-investment enterprises operating in China in comparison to that of the indigenous state-owned enterprises, collectives and private enterprises. It uses both the deontological approach and the utilitarian approach in conceptualization, and applies quantitative and econometric techniques to ethical evaluations of empirical evidences. It shows that according to various ethical performance indicators, foreign-investment enterprises have fared well in comparison with local firms. This paper also tries to unravel the effect of a difference (...) in business culture and competitive market forces on ethical performance by comparing the behavior of foreign-investment enterprises with that of the indigenous state-owned enterprises and collectives on the one hand, and with that of the indigenous private enterprises on the other. (shrink)