A detailed look at the role of social responsibility in finance and investing The concept of socially responsible finance and investing continues to grow, especially in the wake of one of the most devastating financial crises in history.

Acknowledgments ix 1 Socially Responsible Finance and Investing: An Overview 1H. Kent Baker and John R. Nofsinger Part I Foundations and Key Concepts 15 2 Stakeholder Analysis 17Lloyd S. Kurtz 3 Corporate Social Responsibility 39Heather Elms and Michelle Westermann-Behaylo 4 Business Models and Social Entrepreneurship 55Michael A. Pirson 5 Fiduciary and Other Legal Duties 69Benjamin J. Richardson 6 International and Cultural Views 87Astrid Juliane Salzmann Part II Finance and Society 109 7 Social, Environmental, and Trust Issues in Business and Finance 111Christoph F. Biehl, Andreas G. F. Hoepner, and Jianghong Liu 8 Religion and Finance 143Luc Renneboog and Christophe Spaenjers 9 Social Finance and Banking 161Olaf Weber and Yayun Duan 10 Managerial Compensation 181Kose John and Samir Saadi 11 Externalities in Financial Decision Making 197Janis Sarra 12 Real Estate and Society 213Piet Eichholtz and Nils Kok 13 Federal Housing Policies and the Recent Financial Crisis 239Ronnie J. Phillips and Kenneth Spong 14 Predatory Lending and Socially Responsible Investors 257Christopher L. Peterson 15 Use and Misuse of Financial Secrecy in Global Banking 275Ingo Walter Part III Corporate Engagement 297 16 Corporate Social Responsibility and Corporate Governance 299Lorenzo Sacconi 17 Measuring Responsibility to the Different Stakeholders 323Amir Rubin and Eran Rubin 18 Corporate Philanthropy 341Janet Kiholm Smith 19 Institutional Investor Activism 359Diane Del Guercio and Hai Tran 20 Social Activism and Nongovernmental Organizations 381Jonathan P. Doh and Deborah Zachar Part IV Socially Responsible Investing 403 21 Corporate Socially Responsible Investments 405John R. Becker-Blease 22 SRI Mutual Fund and Index Performance 425Halil Kiymaz 23 Performance Implications of SR Investing: Past versus Future 443Nadja Guenster 24 Money-Flows of Socially Responsible Investment Funds around the World 455Luc Renneboog, Jenke Ter Horst, and Chendi Zhang Answers to Chapter Discussion Questions 479 Index 503

KOLB SERIES IN FINANCE Essential Perspectives SOCIALLY RESPONSIBLE FINANCE and INVESTING The socially responsible framework for viewing finance and investing activities continues to gain momentum—especially in the wake of the recent financial and economic crises, which have touched almost every part of the world. As interest in this approach has grown, so has the need for reliable insights on how it can be effectively understood and implemented. That's why Socially Responsible Finance and Investing, part of the Robert W. Kolb Series in Finance, has been created. Engaging and informative, this reliable resource contains detailed coverage of the theory, empirical work, and practice associated with the most essential areas of socially responsible finance and investing. It not only blends the conceptual world of academia with the pragmatic view of practitioners, but it also synthesizes relevant research studies, including recent developments in the field. Divided into four comprehensive parts—with each chapter containing discussion questions to help reinforce key concepts— this book: Provides a solid foundation for understanding socially responsible finance and investing by exploring issues such as stakeholder analysis, social entrepreneurship, and the legal aspects of SRIAddresses how the impact of social concerns on financial activities has evolved over time, with insights on everything from managerial compensation and financial secrecy in global banking to predatory lending and real estate sustainability in societyTouches on the topic of corporate engagement by examining the various ways of measuring CSR from the perspective of different shareholders, exploring corporate philanthropy from the perspectives of value enhancement and agency cost, and highlighting institutional investor and social activismFocuses on the investment aspects of social responsibility with discussions of the risk-adjusted performance of SRI institutional investors and financial companies, the global money flows into and out of SRI funds, and much more Now more than ever, we need to be mindful of the social responsibilities of all investment practices. The recent financial crisis has changed the financial landscape for years to come and Socially Responsible Finance and Investing is a timely guide to help you navigate this difficult terrain.