6533b828fe1ef96bd128798e
RESEARCH PRODUCT
The Inclusion of Socially Irresponsible Companies in Sustainable Stock Indices
Fernando GarcíaPaula Beatriz Morales BañuelosMaría Dolores Espinós-vañóIván Arribassubject
Index (economics)Geography Planning and DevelopmentSocially responsible investmentTJ807-830Accounting010501 environmental sciencesManagement Monitoring Policy and Lawsocially responsible investmentTD194-19501 natural sciencesOutcome (game theory)Renewable energy sourcesEnvironmental Sustainability Indexsustainability index0502 economics and businessCorporate ethicsGE1-350social rating agencies0105 earth and related environmental sciencesEnvironmental effects of industries and plantsRenewable Energy Sustainability and the Environmentbusiness.industry05 social sciencesStock market index08.- Fomentar el crecimiento económico sostenido inclusivo y sostenible el empleo pleno y productivo y el trabajo decente para todosEnvironmental sciencesSustainability indexscreening methodologySocial rating agenciesCorporate social responsibilityScreening methodologyECONOMIA FINANCIERA Y CONTABILIDADBusiness ethicsbusinesscorporate ethicsInclusion (education)Social responsibility050203 business & managementdescription
Social rating agencies implement complex filters to identify the companies with the best sustainable and social performance and help investors select the companies for their sustainable portfolios. This study analysed whether companies that are defined as ethical, sustainable and socially responsible by those agencies actually deserve this label. More specifically, the inclusion in the prestigious Dow Jones Sustainability Index (DJSI) World of companies that have been involved in controversies according to the Thomson Reuters Eikon database was studied. The results show that the inclusion of irresponsible companies in the DJSI Index is a fact. This outcome is in line with previous studies that criticise the methodologies applied by social rating agencies and those which outline the similarity of sustainable and conventional portfolios. The results may explain the contradictory conclusions regarding the performance of sustainable and conventional mutual funds in numerous studies.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2019-04-01 | Sustainability |