This book provides an overview of current advances regarding the integration of sustainability in the financial sector. Its originality lies in the fact that it does not focus exclusively on a particular aspect of this emerging trend, but instead, presents various illustrations -- for instance in the fields of SRI, sustainable banking or innovative investments -- of what can be considered as the beginning of a paradigm shift in global finance. Indeed, the different contributions show that the still-dominant logic of financial markets and institutions -- the search for short-term profits and the maximization of shareholder value -- is increasingly questioned by alternative views and practices, which can be observed in a number of activities and countries. Written by academics and practitioners, this forward-looking book suggests that a change in mindsets and behaviors could open new paths for financial actors in the future -- and even in the present, starting here and now.
Notes on the Contributors Introduction PART I: MICROFINANCE AND SOCIALLY RESPONSIBLE INVESTMENT: EVOLUTION AND IMPACT ON HUMAN RIGHTS Microfinance, Financial Inclusion and Social Responsibility; I.Guerin, M.Roesch & J-M.Servet Explaining the Take-Off of Socially Responsible Investment; P.Arena Socially Responsible Investment: Global Convergence or Local Divergence?; C.Louche The Use of Shareholder Proposals to Address Corporate Human Rights Performance; A.Kanzer PART II: ADOPTING A SUSTAINABLE PERSPECTIVE IN FINANCIAL INSTITUTIONS AND MARKETS Sustainable Banking: The Banco Real Model; L.Johnson & C.Scholten Insurers' Corporate Responsibility Policies: A Response to the Industry's Bad Image?; H-C.de Bettignies, F.Lepineux & C.K.Tan The Relative Valuation of Socially Responsible Firms: An Exploratory Study; A.Fatemi, I.Fooladi & D.Wheeler Building the Case for Long-Term Investing in Stock Markets: Breaking Free from the Short-Term Measurement Dilemma; S.Lydenberg PART III: IS A PARADIGM SHIFT UNDERWAY? THREE PIONEERING REFLECTIONS Financing Agriculture in Developing Countries: Governance Models Promoting Sustainability; S.Morvant-Roux Innovative Investments for Sustainability: Solutions for the 21st Century; A.White Financialization: Limits and Ways Out; P.Dembinski & F.Vigano Conclusion: Manifesto of the Observatoir de la Finance References Index
HENRI-CLAUDE DE BETTIGNIES is the EU Chair Distinguished Professor of Global Governance and China-Europe Business Relations at CEIBS, Shanghai, China, where he has created the Euro-China Centre for Leadership and Responsibility (ECCLAR). He is also the AVIVA Chair Emeritus Professor of Leadership and Responsibility and Emeritus Professor of Asian Business at INSEAD, France. Between 1988 and 2005, with a joint appointment at Stanford University (Graduate School of Business), USA, he shared his time equally between Europe, California and the Asia Pacific region. Professor de Bettignies started the development of the Ethics initiative at INSEAD, and pioneered a new approach (AVIRA) to enlighten business leaders. Over a 16 year period the AVIRA programme brought together 900 Chairmen and CEOs from 60 countries, keen to enrich their vision and enhance their "responsible" leadership competence. He teaches MBAs, E-MBAs and executives at CEIBS, in the areas of ethics and CSR, HR management and corporate transformation, culture and management. He directs a number of executive (public or corporate) programmes in Europe and in Asia. FRANA OIS LAePINEUX is Research Fellow at INSEAD,Professor and Head of the Center for Responsible Business at ESC Rennes School of Business, Brittany, France. After graduating from HEC Paris School of Management in 1990, he has carried on various research and consulting activities, and received a PhD in Management Science at the Conservatoire National des Arts et Metiers (CNAM, Paris). He is co-author of the book Sustainable Development and Corporate Governance (2003, in French) and has produced a number of other publications. His areas of interest include the relationship between business activities and the search for the common good, ethical issues in the financial services industry and stakeholder theory, the emergence of a global civil society and the shift in the social contract. Francois Lepineux is co-founder and past-President (2002-2005) of ADERSE (Association pour le Developpement de l'Enseignement et de la Recherche sur la Responsabilite Sociale de l'Entreprise), the French academic association for the development of education and interdisciplinary research on CSR.