Stručni rad
DOES CONSIDERATION OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE ISSUES BY INSTITUTIONAL INVESTORS INFLUENCE SOCIAL RESPONSIBLE INVESTMENT DECISIONS IN SOUTH AFRICA?
Blessing Anwuri Ogbuka
; Department of Financial Management, School of Accountancy, University of Limpopo;
Michael Fakoya
orcid.org/0000-0002-8763-0616
; Department of Financial Management, School of Accountancy, University of Limpopo;
Sažetak
Institutional investors have a fiduciary duty to manage the funds entrusted
to them by contributors without pursuing their own self-interest. Adhering to
the practice of sustainable and responsible investment is inconsistent with their
fiduciary duties of generating profitable returns to contributors because it limits
their choices of investment. In South Africa, the Code for Responsible Investing
recommends the integration of environmental, social and governance issues into
investment decisions by institutional investors. The study examines whether institutional
investors in South Africa consider environmental, social and governance
issues when making their investment decisions has recommended by the Code for
Responsible Investing in South Africa. An explanatory qualitative content analysis
approach was used to identify from the annual integrated and sustainability reports
of investee companies whether they conduct their business activities in a
sustainable manner. Findings reveal bias in the choice of investable companies by
institutional investors because of the profit expectations of investors and the lack
of the standardised use of environmental, social and governance issues in investee
companies’ reports on sustainable business practices. An implication of this study
is that, because of the large pool of funds available to institutional investors
in South Africa, consideration of environmental, social and governance criteria in
investing decisions by institutional investors can be used to influence improved
sustainable business practice in investee companies.
Ključne riječi
sustainable and responsible investment; institutional investors; investee companies; environmental issues; social issues and governance issues
Hrčak ID:
177195
URI
Datum izdavanja:
31.12.2016.
Posjeta: 1.319 *