Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-25T22:09:30.930Z Has data issue: false hasContentIssue false

19 - Sustainable Finance, the Law and Stakeholders: Towards Responsible Social Movements

from Part III - Normative and Utility Perspectives

Published online by Cambridge University Press:  18 December 2019

By
Radek Stech
Edited by
Onyeka Osuji ,
Franklin N. Ngwu  and
Dima Jamali
Onyeka Osuji
Affiliation:
University of Essex
Franklin N. Ngwu
Affiliation:
Pan-Atlantic University, Nigeria
Dima Jamali
Affiliation:
American University of Beirut
Get access

Summary

The chapter will provide an original and innovative insight into sustainable finance by analysing social movements’ interaction with complex finance dynamics (CFDs) through elements of trustworthiness. In doing so, the paper will draw on data from an empirical qualitative study that traced the involvement of social movements in shaping three major legal CFDs, namely project finance, bond finance and pension finance on the sustainable finance market between 2015 and 2018. It will argue that social movements, who are, by tradition, in conflict with dominant paradigms, pose a perceptible competitive challenge to major stakeholders who shape the finance dynamics. Whilst the utilisation of the trustworthiness analytical framework proves useful in uncovering the conflict, it serves the main purpose of demonstrating the analytic competition between social movements and the major stakeholders. The author argues that social movements should take a more responsible stance towards sustainable finance and, logically, adopt a form of responsible principles that will govern their relationship with the major stakeholders shaping the CFDs. Further, the author drafts principles in this chapter and argues that, if adopted by social movements, these will improve their competitive advantage on the fast-paced sustainable finance market.

Keywords

Analytic CompetitionComplex Finance DynamicsResponsible PrinciplesSocial MovementsStakeholderSustainable FinanceTrust
Type
Chapter
Information
Corporate Social Responsibility in Developing and Emerging Markets
Institutions, Actors and Sustainable Development
 , pp. 365 - 394
Publisher: Cambridge University Press
Print publication year: 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Asian Infrastructure Investment Bank (2016). Environmental and Social Framework, available at www.aiib.org/en/policies-strategies/framework-agreements/environmental-social-framework.html accessed 1 April 2016.Google Scholar
Bank Negara Malaysia (2018). Value-Based Intermediation. Financing and Investment Impact Assessment Framework, available at: www.bnm.gov.my/index.php?ch=57&pg=137&ac=734&bb=file accessed 1 November 2018.Google Scholar
Bank of England (2018). Transition in thinking: The impact of climate change on the UK banking sector, available at www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/report/transition-in-thinking-the-impact-of-climate-change-on-the-uk-banking-sector.pdf accessed 18 March 2019.Google Scholar
Baumard, P. (1999). Tacit Knowledge in Organisations. London: Sage Publications.Google Scholar
Blumer, H. (1951). Collective Behavior. In Lee, A. M., ed., New Outline of the Principles of Sociology. New York: Barnes & Noble, pp. 167–222.Google Scholar
Brundtland, G. H., Khalid, M. and Agnelli, S. (1987). Our Common Future: Brundtland Report. Oxford: Oxford University Press.Google Scholar
Carroll, A. B. and Shabana, K. M. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice. International Journal of Management Reviews, 12(1), 85–105.Google Scholar
Clark, D., Fox, J. and Treakle, K. (2003). Demanding Accountability. Civil Society Claims and the World Bank Inspection Panel. London: Rowman & Littlefield Publishers.Google Scholar
Collins, H. M. (2001). Tacit Knowledge, Trust and the Q of Sapphire. Social Studies of Science, 31(1), 71–85.Google Scholar
Crossley, N. (2003). Even Newer Social Movements? Anti-Corporate Protests, Capitalist Crises and the Remoralization of Society. Organization, 10(2), 28788.Google Scholar
Crossley, N. (2002). Global Anti-Corporate Struggle: A Preliminary Analysis. British Journal of Sociology, 53(4), 667.Google Scholar
Davenport, T. H. and Harris, J. G. (2007). The New Science of Winning. Boston: Harvard Business School Press.Google Scholar
Dawson, C. T. and Bhatt, G. D. (2001). The IMF and Civil Society Organisations: Striking a Balance. Washington, DC: International Monetary Fund.Google Scholar
Dekker, (2011). Socially Responsible NGOs? A European Perspective. In Li, Y., ed., NGOs in China and Europe: Comparisons and Contrast, 1st ed. London: Routledge.Google Scholar
Della Porta, D. (2007). The Global Justice Movement: Cross-National and Transnational Perceives. London: Paradigm Publishers.Google Scholar
Denzin, N. K. and Lincoln, Y. S. (2005). Sage Handbook on Qualitative Research. London: Sage, p. 22.Google Scholar
Diani, M. (1992). The Concept of Social Movement. The Sociological Review, 40(1), 1.Google Scholar
Dugue, C. (2000). Dispute Resolution in International Project Finance. Transactions. Fordham International Law Journal, 24, 1064.Google Scholar
Edwards, B. and McCarthy, D. J. (2004). Resources and Social Movement Mobilisation. In Snow, A. D., Soule, A. S., Kriesi, H., eds., The Blackwell Companion to Social Movements. Oxford: Blackwell Publishing.Google Scholar
Equator Principles (2013). The Equator Principles, available at https://equator-principles.com./wp-content/uploads/2017/03/equator_principles_III.pdf, accessed 17 August 2017.Google Scholar
Esty, D. C. (1998). Non-Governmental Organizations at the World Trade Organization: Cooperation, Competition, or Exclusion. Journal of International Economic Law, 1, 123.Google Scholar
Flesher Fominaya, C. and Cox, L., eds. (2013). Understanding European Movements: New Social Movements, Global Justice Struggles, Anti-Austerity Protest. Abingdon: Routledge.Google Scholar
Food and Agriculture Organisation of the United Nations [FAO] (2015). Sustainable Financing for Forest and Landscape Restoration. Opportunities, Challenges and the Way Forward. Rome: FAO.Google Scholar
Fox, A. J. and Brown, D. L., eds., (1998). The Struggle for Accountability. The World Bank, NGOs and Grassroots Movements. Massachusetts: The MIT Press.Google Scholar
Fukuyama, F. (1995). Trust. The Social Virtues and the Creation of Prosperity. London: Penguin Books.Google Scholar
G20 Insights (2017). Fostering Sustainable Global Growth through Green Finance – What Role for the G20? available at www.g20-insights.org/wp-content/uploads/2017/04/Climate_Green-Finance_V2.pdf accessed 1 September 2018.Google Scholar
GABV Principles of Values Based Banking (2011). Available at: www.gabv.org/about-us/our-principles accessed 1 September 2018.Google Scholar
Goldsmith, H. (2015). Actors and Innovations in the Evolution of Infrastructure Services. In Picot, A. et. al., eds., The Economics of Infrastructure Provisioning: The Changing Role of the State. Massachusetts: MIT Press.Google Scholar
Golubovic, D. (2018). International Standards Relating to Reporting and Disclosure Requirements for Non-Governmental Organizations. Council of Europe, available at https://rm.coe.int/expert-council-conf-exp-2018–3-review-ngo-reporting-requirements/16808f2237.Google Scholar
Haberman, S. and Sibbett, T. A. (1995). History of Actuarial Science. Vol. 1. London: William Pickering.Google Scholar
Hannigan, J. A. (1995). Environmental Sociology: A Social Constructionist Perspective. London: Routledge.Google Scholar
Hardin, R. (2006). Trust. Cambridge: Polity Press.Google Scholar
Hilson, C. (2002). New Social Movements: The Role of Legal Opportunity. Journal of European Public Policy. 9(2), 238.Google Scholar
Hudson, A. (2013). The Law of Finance. London: Sweet & Maxwell.Google Scholar
ICMA (2018). Green, Social and Sustainability Bond Principles, available at: www.icmagroup.org/green-social-and-sustainability-bonds/ accessed 1 September 2018.Google Scholar
ICMA (2019). ‘Membership’ available at www.icmagroup.org/green-social-and-sustainability-bonds/membership/.Google Scholar
IFC (2012). Performance Standards, available at: www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/performance-standards/performance-standards accessed 17 August 2017.Google Scholar
Irwin, A. (1995). Citizen Science: A Study of People, Expertise and Sustainable Development. London: Routledge.Google Scholar
Ishikawa, T. (2010). Third Party Participation in Investment Treaty Arbitration. International and Comparative Law Quarterly. 59(2), 373–412.Google Scholar
ISO 26000 and OECD Guidelines (2019). Available at: www.iso.org/files/live/sites/isoorg/files/store/en/PUB100418.pdf accessed 1 March 2019.Google Scholar
Jopson, B. (2015). COP21 Paris Climate Talks: Billionaires Join Forces in Energy Push. The Financial Times, available at: www.ft.com/content/1fcae3aa-96f5-11e5-9228-87e603d47bdc accessed 30 November 2015.Google Scholar
Kaeufer, K. (2010). Banking as a Vehicle for Socio-economic Development and Change: Case Studies of Socially Responsible and Green Banks. Cambridge: Presenting Institute.Google Scholar
Kay, J. (2012). The Kay Review of UK Equity Markets and Long-Term Decision Making, p. 9, available at www.gov.uk/government/consultations/the-kay-review-of-uk-equity-markets-and-long-term-decision-making accessed 1 April 2015.Google Scholar
King, G. B. and Soule, A. S. (2007). Social Movements as Extra-Institutional Entrepreneurs: The Effect of Protests on Stock Price Returns, Administrative Science Quarterly, 52(3).Google Scholar
Kitschelt, H. (1986). Political Opportunity Structures and Political Protest: Antinuclear Movements in Four Democracies. British Journal of Political Science. 16, 57.Google Scholar
Klein, N. (2002). Farewell to ‘The End of History’: Organization and Vision in Anti-Corporate Movements. Socialist Register. 1–13.Google Scholar
Kovach, H., Neligan, C. and Burall, S. (2003). Power without Accountability? The Global Accountability Report 1, London: One World Trust.Google Scholar
Kraut, R. (2016). Building Successful Online Communities: Evidence-Based Social Design. Massachusetts: MIT Press.Google Scholar
Lawrence, R. (2008). NGO Campaigns and Banks: Constituting Risk and Uncertainty. In De Neve, G., Luetchford, P., Pratt, J., and Wood, D. C., eds., Hidden Hands in the Market: Ethnographies of Fair Trade, Ethical Consumption, and Corporate Social Responsibility. Vol. 28 of Research in Economic Anthropology. Emerald Group Publishing Limited, pp. 241–69.Google Scholar
McCarthy, J. D. and Zald, M. N. (1977). Resource Mobilization and Social Movements: A Partial Theory. American Journal of Sociology. 82(6), 1212.Google Scholar
McDaniels, J., Robins, N., Strauss, D., Thoma, J. and Dupre, S. (2015 ). Building a Sustainable Financial System in the European Union. UNEP Inquiry and 2° Investing Initiative, available at http://unepinquiry.org/wp-content/uploads/2016/04/Building_a_Sustainable_Financial_System_in_the_European_Union.pdf accessed 1 January 2017.Google Scholar
Melucci, A. (1996) Challenging Codes: Collective Action in the Information Age. Cambridge: Cambridge University Press, p. 5.CrossRefGoogle Scholar
Meijboom, F. L. B., Visak, T. and Brom, F. (2006). From Trust to Trustworthiness: Why Information Is not Enough in the Food Sector. Journal of Agricultural and Environmental Ethics, 19(5), 427–42. http://doi 10.1007/s10806-006–9000–2.Google Scholar
Mudaliar, A., Schiff, H., Bass, R. and Dithrich, H. (2017 ). 2017 Annual Impact Investor Survey: The Global Impact Investing Network available at https://web.archive.org/web/20170708185027/https://thegiin.org/assets/GIIN_AnnualImpactInvestorSurvey_2017_Web_Final.pdf Archived from the original (PDF) on 2 June 2016, accessed 14 March 2017.Google Scholar
O’Brien, R., Goetz, A. M. and Scholte, J. A. (2009). Contesting Global Governance. Multilateral Economic Institutions and Global Social Movements. Cambridge: Cambridge University Press.Google Scholar
O’Malley, C. (2015). Bonds without Borders. A History of the Eurobond Market. Chichester: John Wiley & Sons.Google Scholar
Polanyi, M. (1969). Tacit Knowing: Its Bearing on Some Problems of Philosophy. In Grene, M, ed., Knowing and being. Essays. London: Routledge and Kegan Paul, Chapter 11, pp. 159–80. Originally published in Reviews of Modern Physics (1962) 34, 601–61.Google Scholar
Rheingold, H. (2001). The virtual community: Homesteading on the electronic frontier. New York: Harper Perennial.Google Scholar
Ridley, M. and Barnshaw, P. (2019). Green Bond Insights. 2019 Market Outlook: Rise of the ESG Investor. HSBC Global Research available at www.research.hsbc.com/C/1/1/254/wGBzQcL accessed 21 July 2019.Google Scholar
Ross, A. (2010). Modern Interpretations of Sustainable Development. Journal of Law and Society. 36(1), 32.Google Scholar
Secretary General of the Council of Europe (2017). Report on the State of Democracy, Human Rights and the Rule of Law, available at www.theioi.org/ioi-news/current-news/council-of-europe-2018-report-on-the-state-of-democracy-human-rights-and-the-rule-of-law accessed 1 July 2019.Google Scholar
Smelser, N. J. (1962). Theory of Collective Behaviour. New York: Free Press, p. 18.Google Scholar
Stech, R. (2013). Think before you Act: Sustainable Development Bill in Wales. Journal of Environmental Law. 25(1), 137–44.Google Scholar
Sullivan, R., Martindale, W., Feller, E. and Bordon, A. (2015). Fiduciary Duty in the 21st Century. PRI, UNEP FI, UNEP Inquiry, UN Global Compact, 11. Available at: www.fiduciaryduty21.org/about.html accessed 1 August 2017.Google Scholar
Taylor, D. (2000). The Rise of the Environmental Justice Paradigm. Injustice Framing and the Social Construction of Environmental Discourses. The American Behavioral Scientist, 43(4), 508.Google Scholar
UK Government Guidance (2016). Social Investment Tax Relief. Updated 23 November 2016. Cabinet Office, HM Revenue and Customs, HM Treasury. Available at: www.gov.uk/government/publications/social-investment-tax-relief-factsheet/social-investment-tax-relief accessed 1 December 2016.Google Scholar
UNEP Finance Initiative (2017). Regional Roundtables on Sustainable Finance. Available at www.unepfi.org/events/regions-events/regional-roundtable/regional-roundtables-2017/ accessed 17 August 2017.Google Scholar
UNEP Finance Initiative Banking (2017). Available at www.unepfi.org/banking/banking accessed 17 August 2017.Google Scholar
United Nations (1992). Agenda 21. United Nations Conference on Environment & Development Rio de Janerio, Brazil. Available at https://sustainabledevelopment.un.org/content/documents/Agenda21.pdf accessed 1 July 2015.Google Scholar
United Nations (2002). Johannesburg Declaration on Sustainable Development. World Summit on Sustainable Development, available at www.un-documents.net/jburgdec.htm accessed 12 April 2016.Google Scholar
United Nations Environment Programme (2016). Available at http://web.unep.org/northamerica/news/2016/g20-financial-leaders-commit-exploring-green-finance-options accessed 17 August 2017.Google Scholar
United Nations (2012). The Future We Want. Resolution adopted by the General Assembly on 27 July 2012. Available at www.un.org/ga/search/view_doc.asp?symbol=A/RES/66/288&Lang=E accessed 1 July 2015.Google Scholar
United Nations Global Compact (2017). Available at www.unglobalcompact.org/ accessed 17 August 2017.Google Scholar
United Nations (2015). Millennium Development Goals. Available at www.un.org/millenniumgoals/ accessed 1 July 2015.Google Scholar
United Nations (2016). Goal 17: Revitalize the Global Partnership for Sustainable Development. Sustainable Development Goals. Available at: www.un.org/sustainabledevelopment/globalpartnerships/ accessed 1 July 2016.Google Scholar
Volz, U., Böhnke, J., Knierim, L., Richert, K., Röber, G.-M. and Eidt, V. (2015). Financing the Green Transformation: How to Make Green Finance Work in Indonesia. Basingstoke: Palgrave Macmillan.Google Scholar
Weber, O. (2014). Social Banking: Concept, Definitions and Practice. Global Social Policy, 14(2), 265.Google Scholar
World Bank (1994). World Development Report 1994: Infrastructure for Development. New York: Oxford University Press.Google Scholar
World Bank (2017). World Development Report. Governance and the Law. Available at: https://openknowledge.worldbank.org/bitstream/handle/10986/25880/210950ov.pdf accessed 3 April 2017.Google Scholar
World Bank and UNEP (2017). Roadmap for a Sustainable Financial System, available at http://documents.worldbank.org/curated/en/903601510548466486/pdf/121283–12-11–2017-15–33-33-RoadmapforaSustainableFinancialSystem.pdf accessed 1 September 2018).Google Scholar
WWF (2016). Green Bonds Must Keep the Green Promise. A Call for Collective Action toward Effective and Credible Standards for the Green Bond Market, available at http://d2ouvy59p0dg6k.cloudfront.net/downloads/20160609_green_bonds_hd_report.pdf accessed 13 June 2016.Google Scholar
World Bank (2017). Environmental and Social Framework, available at http://documents.worldbank.org/curated/en/383011492423734099/pdf/114278-WP-REVISED-PUBLIC-Environmental-and-Social-Framework.pdf accessed 17 August 2017.Google Scholar
Zimmermann, R. (1996). Non-Recourse – The Most Condemnable of Loan Transactions. Project Finance International, 100, 62–3.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×