Carrot and stick?: the role of financial market intermediaries in corporate social performance
his article examines the role of intermediaries in financial markets in fostering corporate sustainability. Responsible investment (RI) indices have been primarily identified as intermediaries that provide information regarding corporate social performance (CSP) for investors and other stakeholders....
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| Format: | Article |
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Sage
2016
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| Online Access: | https://eprints.nottingham.ac.uk/37593/ |
| _version_ | 1848795493052710912 |
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| author | Slager, Rieneke Chapple, Wendy |
| author_facet | Slager, Rieneke Chapple, Wendy |
| author_sort | Slager, Rieneke |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | his article examines the role of intermediaries in financial markets in fostering corporate sustainability. Responsible investment (RI) indices have been primarily identified as intermediaries that provide information regarding corporate social performance (CSP) for investors and other stakeholders. The authors argue that the role of these intermediaries is not confined solely to information provision, but they may also incentivize high levels of CSP through mechanisms such as exclusion threats, signaling, and engagement. The authors rely on unique access to the archives of the FTSE4Good Index to examine the effects of these mechanisms on CSP. The study shows that companies facing exclusion threats and signaling are more likely to comply with the intermediary’s criteria, and medium levels of engagement leads to higher levels of CSP. The authors contribute to the study of sustainability in financial markets by explicating the mechanisms that intermediaries and other financial actors could employ to foster greater corporate sustainability. |
| first_indexed | 2025-11-14T19:32:57Z |
| format | Article |
| id | nottingham-37593 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:32:57Z |
| publishDate | 2016 |
| publisher | Sage |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-375932020-05-04T20:03:52Z https://eprints.nottingham.ac.uk/37593/ Carrot and stick?: the role of financial market intermediaries in corporate social performance Slager, Rieneke Chapple, Wendy his article examines the role of intermediaries in financial markets in fostering corporate sustainability. Responsible investment (RI) indices have been primarily identified as intermediaries that provide information regarding corporate social performance (CSP) for investors and other stakeholders. The authors argue that the role of these intermediaries is not confined solely to information provision, but they may also incentivize high levels of CSP through mechanisms such as exclusion threats, signaling, and engagement. The authors rely on unique access to the archives of the FTSE4Good Index to examine the effects of these mechanisms on CSP. The study shows that companies facing exclusion threats and signaling are more likely to comply with the intermediary’s criteria, and medium levels of engagement leads to higher levels of CSP. The authors contribute to the study of sustainability in financial markets by explicating the mechanisms that intermediaries and other financial actors could employ to foster greater corporate sustainability. Sage 2016-03 Article PeerReviewed Slager, Rieneke and Chapple, Wendy (2016) Carrot and stick?: the role of financial market intermediaries in corporate social performance. Business & Society, 55 (3). pp. 398-426. ISSN 1552-4205 Engagement RI indices Corporate social performance (CSP) intermediaries http://bas.sagepub.com/content/55/3/398 doi:10.1177/0007650315575291 doi:10.1177/0007650315575291 |
| spellingShingle | Engagement RI indices Corporate social performance (CSP) intermediaries Slager, Rieneke Chapple, Wendy Carrot and stick?: the role of financial market intermediaries in corporate social performance |
| title | Carrot and stick?: the role of financial market intermediaries in corporate social performance |
| title_full | Carrot and stick?: the role of financial market intermediaries in corporate social performance |
| title_fullStr | Carrot and stick?: the role of financial market intermediaries in corporate social performance |
| title_full_unstemmed | Carrot and stick?: the role of financial market intermediaries in corporate social performance |
| title_short | Carrot and stick?: the role of financial market intermediaries in corporate social performance |
| title_sort | carrot and stick?: the role of financial market intermediaries in corporate social performance |
| topic | Engagement RI indices Corporate social performance (CSP) intermediaries |
| url | https://eprints.nottingham.ac.uk/37593/ https://eprints.nottingham.ac.uk/37593/ https://eprints.nottingham.ac.uk/37593/ |