The influence of responsible investment on issuers' policy

Riazanova Natalia
Doctor of Economics, Chief of the Department Finance, Accounting and Banking, State Establishment «Luhansk Taras Shevchenko National University» (Starobelsk), E-mail:natalirozez1975@gmail.com

Cite this article:

Riazanova N. (2021) The influence of responsible investment on issuers' policy. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Vpliv vidpovidalnogo investuvannya na politiku emitentiv; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (288-289), pp. 68-74.

Abstract

The purpose of the study is to determine and substantiate the existence of the impact of responsible investment on the policy of issuing companies. Method. Methodological and informational basis of the work are scientific works, materials of periodicals, Internet resources. This goal was achieved using both general and special research methods, in particular, the principle of logical generalization and system-analytical method. Results. The article presents the classification of strategies of responsible investment funds, examines the theoretical foundations of responsible investing, provides a brief review of the scientific literature on assessing the impact of responsible investors on the behavior of issuers of securities, considers the attitude of corporate management to increase corporate responsibility for social and environmental issues. Examples of positive and negative selection used by socially and environmentally responsible funds are presented. Integration as a strategy aims to include social and environmental criteria in traditional financial analysis. It is noted that the company must adapt to the various requirements of interested contractors, including increasing social and environmental responsibility. The focus is on ethical, environmental and social aspects that affect the activities of economic agents. Scientific novelty. Rating criteria are divided into groups that can be used as indicators for screening companies and countries based on certain quality conditions. The influence of active agents, whose interests contribute to improving the quality of responsible investments and corporate responsibility, has been identified. Companies maximize shareholder value due to the positive effects of responsible activities on their counterparties. Thus, stakeholders can be quite effective in influencing issuers' policies. Social mechanisms provide additional opportunities for managing economic relationships. They contribute to the formation of zones of stability (temporal or spatial) in the economy through long-term cooperation between different responsible agents and build additional informal market barriers.

Keywords

responsible investment funds, socially responsible investment funds, environmentally responsible investment funds, issuer policy, ethical economics.

JEL classification: D530, F650, G110, G230, P450

UD classification: 330.316

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