Putting our money where their mouth is: alignment of charitable aims with charity investments - tensions in policy and practice

Kreander, N., Beattie, V. and McPhail, K. (2009) Putting our money where their mouth is: alignment of charitable aims with charity investments - tensions in policy and practice. British Accounting Review, 41(3), pp. 154-168. (doi: 10.1016/j.bar.2009.06.001)

Abstract

Given the values-driven nature of the mission of most charities, it might be expected that investment behaviour would be similarly values-driven. This paper documents the ethical investment policies and practices of the largest UK charities and explores how these are aligned with the charitable aims, drawing upon accountability, behavioural and managerial perspectives as theoretical lenses. The study employs two distinct research methods: responses to a postal questionnaire and follow-up semi-structured interviews with selected charities. The evidence indicates that a significant minority of large charities do not have a written ethical investment policy. Charities with larger investments, fundraising charities and religious charities were more likely to have a written ethical policy. We suggest that there is a pressing need for improved alignment between charities' aims and their investment practices and better monitoring of investment policies.

• Item Type: Articles
• Keywords: Charity, ethical investment, evidence-based policy-making, dissonance, values alignment
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Beattie, Prof Vivien
• Authors: Kreander, N., Beattie, V., and McPhail, K.
• Subjects: H Social Sciences > HF Commerce
• College/School: College of Social Sciences > Adam Smith Business School > Accounting and Finance
• Journal Name: British Accounting Review
• Publisher: Elsevier
• ISSN: 0890-8389
• ISSN (Online): 1095-8347
• Published Online: 30 June 2009
• Copyright Holders: Copyright © 2009 Elsevier
• First Published: First published in British Accounting Review 41(3):154-168
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher.