SOCIALLY RESPONSIBLE FINANCE AND INVESTING : Financial Institutions, Corporations, Investors, and Activists -- Contents -- Acknowledgments -- CHAPTER 1 Socially Responsible Finance and Investing: An Overview -- INTRODUCTION -- CORPORATE SOCIAL RESPONSIBILITY -- SOCIALLY RESPONSIBLE INVESTING -- PURPOSE OF THE BOOK -- FEATURES OF THE BOOK -- INTENDED AUDIENCE -- STRUCTURE OF THE BOOK -- Section I. Foundations and Key Concepts -- Section II. Society and Finance -- Section III. Corporate Engagement -- Section IV. Socially Responsible Investing -- SUMMARY AND CONCLUSIONS -- REFERENCES -- ABOUT THE EDITORS -- PART I Foundations andKey Concepts -- CHAPTER 2 Stakeholder Analysis -- INTRODUCTION -- STAKEHOLDERS VERSUS SHAREHOLDERS -- THE INPUT/OUTPUT MODEL -- STAKEHOLDERS AND CORPORATE STRATEGY -- EMPIRICAL SUPPORT FOR A STAKEHOLDER WORLDVIEW -- TYPES OF STAKEHOLDER THEORY -- Normative Stakeholder Theory -- Instrumental Stakeholder Theory -- Descriptive Stakeholder Theory -- STAKEHOLDER ANALYSIS FOR INVESTORS -- TYPES OF STAKEHOLDERS: CUSTOMERS -- TYPES OF STAKEHOLDERS: SUPPLIERS -- TYPES OF STAKEHOLDERS: CONTEXTUAL -- OWNERS AS STAKEHOLDERS -- Expropriation -- Overreach -- Overinvestment -- Stakeholder Information in Financial Markets -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHOR -- CHAPTER 3 Corporate Social Responsibility -- INTRODUCTION -- THE BUSINESS ETHICS LITERATURE -- Friedman versus Freeman: Stockholders versus Stakeholders -- Instrumental versus Intrinsic Approaches -- The Separation Thesis -- Stakeholders versus Society -- Corporate Social Performance (CSP) versus Corporate Financial Performance (CFP) -- To Whom versus What, and the Relationship between Corporate and Stakeholder Responsibility -- THE FINANCE LITERATURE -- THE ACCOUNTING AND MARKETING LITERATURES -- The Accounting Literature.

The Marketing Literature -- EMERGING DIRECTIONS IN FINANCE SCHOLARSHIP -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHORS -- CHAPTER 4 Business Models and Social Entrepreneurship -- INTRODUCTION -- SOCIAL ENTREPRENEURSHIP AS A BLUEPRINTFOR SHARED VALUE CREATION STRATEGIES -- MODELS OF SOCIAL ENTREPRENEURSHIP -- External Social Enterprise -- Integrated Social Enterprise -- Embedded Social Enterprise -- BUSINESS MODELS OF MICROFINANCE -- Grameen Bank -- Accion International -- Lessons Learned for Socially Responsible Finance and Investing -- THE CASE OF SOCIAL IMPACT INVESTING -- Acumen Fund -- Calvert Social Investment Foundation -- Lessons Learned -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHOR -- CHAPTER 5 Fiduciary and Other Legal Duties -- INTRODUCTION -- BASIC FIDUCIARY PRINCIPLES AND THEIR IMPACT ON SRI -- OBEY THE TRUST DEED -- DUTY OF LOYALTY TO BENEFICIARIES -- BENEFICIARIES' VIEWS AND THE DUTY OF IMPARTIALITY -- DUTY OF CARE -- STATUTORY REFORM -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHOR -- CHAPTER 6 International and Cultural Views -- INTRODUCTION -- LEGAL ORIGIN -- The Economic Consequences of Legal Origin -- Legal Origin and Ethical Behavior -- ENDOWMENTS -- The Economic Consequences of Endowments -- Endowments and Ethical Behavior -- RELIGION -- The Economic Consequences of Religion -- Religion and Ethical Behavior -- CULTURAL VALUES -- The Economic Consequences of Cultural Values -- Cultural Values and Ethical Behavior -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHOR -- PART II Finance and Society -- CHAPTER 7 Social, Environmental, and Trust Issues in Business and Finance -- INTRODUCTION -- HISTORICAL CONTEXT OF SET ISSUES -- Pre-1940s: The Early Centuries.

1940s: The Post-WorldWar II Era -- 1950s: The Discovery of Pension Funds as a Tool -- 1960s: The Movement Decade -- 1970s: The Organization and Implementation Decade -- 1980s: The Decade of Societal and Political Attention -- 1990s: SET Issues Reach Finance -- 2000s: The Era of Responsible Investment Starts -- 2010s: Trust Issues Enter the Stage, and Social andEnvironmental Issues Enter theMainstream -- SET CHALLENGES AND OPPORTUNITIES IN BUSINESS AND FINANCE -- Social Issues -- Environmental Issues -- Trust Issues -- SUMMARY AND OUTLOOK -- DISCUSSION QUESTIONS -- REFERENCES -- ACKNOWLEDGMENTS -- ABOUT THE AUTHORS -- CHAPTER 8 Religion and Finance -- INTRODUCTION -- LITERATURE REVIEW -- Religion and Economic Attitudes -- Religion and Economic Development -- Religion, Firms, and Mutual Funds -- Religion and Household Finance -- EMPIRICAL ANALYSIS OF RELIGION AND FINANCIAL DECISION MAKING -- Data -- Results: Religion and Economic Attitudes -- Results: Religion and Household Finance -- Results: Religion, Economic Attitudes, and Household Finance -- Limitations -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHORS -- CHAPTER 9 Social Finance and Banking -- INTRODUCTION -- TYPES OF SOCIAL FINANCE -- Social Banking -- Impact Investment -- Microfinance -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHORS -- CHAPTER 10 Managerial Compensation -- INTRODUCTION -- STRUCTURE AND LEVEL OF EXECUTIVE COMPENSATION -- DETERMINANTS OF STOCK OPTION COMPENSATION -- Growth Opportunities -- Firm Size -- Risk -- Capital Structure -- Managerial Horizon -- CEO Tenure -- Ownership Structure -- Liquidity Constraints -- IS CEO COMPENSATION JUSTIFIABLE? -- STOCK OPTION GRANT MANIPULATION -- MANAGERIAL COMPENSATION AND CSR -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHORS.

CHAPTER 11 Externalities in Financial Decision Making -- INTRODUCTION -- EXTERNALITIES CAN BE POSITIVE OR NEGATIVE -- POSITIVE EXTERNALITIES IN FINANCIAL MARKETS -- History -- Derivatives and Securitization Developed as Risk Management Tools -- INCREASED NEGATIVE EXTERNALITIES -- On the Debt Side -- On the Equity Side -- Syndication as the New Lending Norm -- The Role of Risk in These Changes -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHOR -- CHAPTER 12 Real Estate and Society -- INTRODUCTION -- THE ECONOMIC PERFORMANCE OF GREEN BUILDINGS -- Green Office Buildings in the United States -- International Comparisons: Commercial Properties in the United Kingdom -- International Comparisons: Office Buildings in the Netherlands -- International Comparisons: Dutch Housing -- International Comparisons: Housing in Asia -- WHY DO CORPORATIONS PAY A PREMIUM FOR GREEN? -- IMPLICATIONS FOR INSTITUTIONAL INVESTORS: THE GRESB BENCHMARK -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHORS -- CHAPTER 13 Federal Housing Policies and the Recent Financial Crisis -- INTRODUCTION -- PUBLIC POLICYMAKERS AND SOCIAL OBJECTIVES IN HOUSING -- THE HOUSING COLLAPSE AND THE FINANCIAL CRISIS -- FEDERAL HOUSING POLICY -- Overall Public Policy Focus -- Federal Housing GSEs and Agencies -- Community Reinvestment Act -- Home Mortgage Disclosure Act -- Federal Tax Policy Regarding Housing -- Other Federal Laws and Policies Influencing Home Ownership -- ALTERNATIVE APPROACHES FOR EXPANDING HOME OWNERSHIP -- Homeowner Tax Credits -- First-Time Homeowner Grants or Down Payment Assistance -- Alternative Mortgage Instruments -- SUMMARY AND CONCLUSIONS -- DISCLAIMER -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHORS -- CHAPTER 14 Predatory Lending and Socially Responsible Investors -- INTRODUCTION.

IN THE EYE OF THE BEHOLDER: CONTROVERSIAL CREDIT PRODUCTS -- A PALSY IN THE INVISIBLE HAND: DISTORTED CONSUMER FINANCE MARKETS -- THE EVOLVING LAW OF PREDATORY LENDING: A BRIEF OVERVIEW -- PREDATORY WARNING SIGNS FOR THE SOCIALLY RESPONSIBLE INVESTOR -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHOR -- CHAPTER 15 Use and Misuse of Financial Secrecy in Global Banking -- MICROECONOMICS OF FINANCIAL SECRECY -- The Demand for Financial Confidentiality -- The Supply of Financial Confidentiality -- Market Distortions and the Supply of Confidentiality -- Product Differentiation -- Market Interactions in Financial Confidentiality -- The Agency Problem in Financial Confidentiality -- Market Equilibrium -- Money Laundering -- The Laundering Process -- Laundering Vehicles -- Combating Negative Externalities Associated With Financial Secrecy -- Tax Pressures on Financial Secrecy -- More Pressure on Switzerland -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHOR -- PART III Corporate Engagement -- CHAPTER 16 Corporate Social Responsibility and Corporate Governance -- INTRODUCTION -- THE PLACE OF CSR IN THE CORPORATE GOVERNANCE DEBATE -- The Agency Model of Corporate Governance -- The Mediating Hierarchy Model of CG -- Diversity of CG Legal Frameworks Regarding the Place Reserved for Stakeholders -- CSR AS A MULTIFIDUCIARY MODEL OF CG -- CSR SOCIAL NORMS AND SELF-SUSTAINING INSTITUTIONS OF CG -- SOCIAL CONTRACT AS AN EQUILIBRIUM SELECTION DEVICE -- CORRESPONDENCE TO THE MULTISTAKEHOLDER MODEL OF CG -- The Mediating Hierarch's Mode of Reasoning -- Two-Step Social Contract Derivation of the Multiple Fiduciary Structure -- SUMMARY AND CONCLUSIONS -- DISCUSSION QUESTIONS -- REFERENCES -- ABOUT THE AUTHOR -- CHAPTER 17 Measuring Responsibility to the Different Stakeholders -- INTRODUCTION.

MEASURING SOCIAL PERFORMANCE.