A conceptual framework for changes in Fund Management and Accountability relative to ESG issues

Holland, J. (2011) A conceptual framework for changes in Fund Management and Accountability relative to ESG issues. Journal of Sustainable Finance and Investment, 1(2), pp. 159-177.

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Abstract

Major developments in socially responsible investment (SRI) and in environmental, social and governance (ESG) issues for fund managers (FMs) have occurred in the past decade. Much positive change has occurred but problems of disclosure, transparency and accountability remain. This article argues that trustees, FM investors and investee companies all require shared knowledge to overcome, in part, these problems. This involves clear concepts of accountability, and knowledge of fund management and of the associated ‘chain of accountability’ to enhance visibility and transparency. Dealing with the problems also requires development of an analytic framework based on relevant literature and theory. These empirical and analytic constructs combine to form a novel conceptual framework that is used to identify a clear set of areas to change FM investment decision making in a coherent way relative to ESG issues. The constructs and the change strategy are also used together to analyse how one can create favourable conditions for enhanced accountability. Ethical problems and climate change issues will be used as the main examples of ESG issues. The article has policy implications for the UK ‘Stewardship Code’ (2010), the legal responsibilities of key players and for the ‘Carbon Disclosure Project’.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Holland, Professor John
Authors: Holland, J.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:Journal of Sustainable Finance and Investment
ISSN:2043-0795
ISSN (Online):2043-0809
Published Online:09 August 2011
Copyright Holders:Copyright © 2011 Taylor and Francis
First Published:First published in Journal of Sustainable Finance and Investment 2011 1(2):159-177
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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