Reputational Penalties in Financial Markets: An Ethical Mechanism?
Publication date
2011-04-01
Authors
Engelen, Peter Jan
van Essen, Marc
Editors
Advisors
Supervisors
Document Type
Part of book
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Abstract
Responsible investment (RI) and responsible corporate behaviour received a lot of attention during the last decade in the corporate social responsibility (CSR) literature (McWilliams and Siegel 2001, 2006). After the U.S. and European financial markets were being troubled in the early 2000s by several major scandals like Enron, Worldcom, Tyco and Parmalat, financial ethics received a lot of attention by the public as well. Irresponsible corporate behaviour can occur in different ways such as corruption, market abuse, fraud, insider trading, ecological harm, racial or sexual discrimination. Examples include foreign briberies to get supply contracts (Volkswagen), insider trading ahead of a profit warning (EADS), lower salaries for female employees (Wal-Mart), and worker’s conditions in Indonesia (Nike).
Keywords
Abnormal Return, Corporate Social Responsibility, Inside Trading, Stock Market, Stock Price, Taverne, Business and International Management, Philosophy, SDG 12 - Responsible Consumption and Production
Citation
Engelen, P J & van Essen, M 2011, Reputational Penalties in Financial Markets : An Ethical Mechanism? in Responsible Investment in Times of Turmoil. 1 edn, Issues in Business Ethics, vol. 31, Springer, Dordrecht, pp. 55-74. https://doi.org/10.1007/978-90-481-9319-6_4