Finance and economy for society integrating sustainability

FINANCE AND ECONOMY FOR SOCIETY: INTEGRATING SUSTAINABILITY CRITICAL STUDIES ON CORPORATE RESPONSIBILITY, GOVERNANCE AND SUSTAINABILITY Series Editor: William Sun Recent Volumes: Volume 3: Business and Sustainability: Concepts, Strategies and Changes À Edited by Gabriel Eweje and Martin Perry Volume 4: Corporate Social Irresponsibility: A Challenging Concept À Edited by Ralph Tench, William Sun and Brian Jones Volume 5: Institutional Investors’ Power to Change Corporate Behavior: International Perspectives À Edited by Suzanne Young and Stephen Gates Volume 6: Communicating Corporate Social Responsibility: Perspectives and Practice À Edited by Ralph Tench, William Sun and Brian Jones Volume 7: Socially Responsible Investment in the 21st Century: Does It Make a Difference for Society? À Edited by Ce´line Louche and Tessa Hebb Volume 8: Corporate Social Responsibility and Sustainability: Emerging Trends in Developing Economies À Edited by Gabriel Eweje Volume 9: The Human Factor in Social Capital Management: The Owner-Manager Perspective À by Paul Manning Volume 10: Finance Reconsidered: New Perspectives for a Responsible and Sustainable Finance À Edited by Bernard Paranque and Roland Pe´rez CRITICAL STUDIES ON CORPORATE RESPONSIBILITY, GOVERNANCE AND SUSTAINABILITY VOLUME 11 FINANCE AND ECONOMY FOR SOCIETY: INTEGRATING SUSTAINABILITY EDITED BY SHARAM ALIJANI NEOMA Business School, Reims, France CATHERINE KARYOTIS NEOMA Business School, Reims, France United Kingdom À North America À Japan India À Malaysia À China Emerald Group Publishing Limited Howard House, Wagon Lane, Bingley BD16 1WA, UK First edition 2017 Copyright r 2017 Emerald Group Publishing Limited Reprints and permissions service Contact: permissions@emeraldinsight.com No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center Any opinions expressed in the chapters are those of the authors Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: 978-1-78635-510-2 ISSN: 2043-9059 (Series) ISOQAR certified Management System, awarded to Emerald for adherence to Environmental standard ISO 14001:2004 Certificate Number 1985 ISO 14001 CONTENTS LIST OF TABLES ix LIST OF FIGURES xi LIST OF BOXES xv LIST OF CONTRIBUTORS xvii EDITORIAL ADVISORY AND REVIEW BOARD xix ACKNOWLEDGMENTS xxiii PART I INTRODUCTION SOCIETY AT THE CROSSROADS: THE PATH TO A SUSTAINABLE ECONOMY Sharam Alijani and Catherine Karyotis PART II UNPACKING THE FINANCIAL CRISIS: CHALLENGES AND PERSPECTIVES CORPORATE GOVERNANCE AND INEQUALITY: THE IMPACT OF FINANCIALIZATION AND SHAREHOLDER VALUE Thomas Clarke and Soheyla Gholamshahi 27 THE GLOBAL FINANCIAL CRISIS AND NEO-LIBERAL FINANCIALIZATION Peter V Rajsingh 57 v vi CONTENTS THE CONTRADICTION BETWEEN THE TIME VALUE OF MONEY AND SUSTAINABILITY Dirk Baur and Thomas Lagoarde-Segot 75 FINANCE AND MATHEMATICS: MERGER OR ACQUISITION Se´bastien Lleo and Jessica Li 93 PART III SUSTAINABLE FINANCE: ETHICAL AND INNOVATION DILEMMAS ETHICAL ISSUES IN FINANCE Ge´rard Be´duneau and Bruno Gizard 125 SOCIALLY RESPONSIBLE INVESTMENT AS A PROCESS FOR ASSESSING CSR STRATEGIES: THEORETICAL IMPLICATIONS FOR CSR Gre´gory Schneider-Maunoury and Alexis Gouin 139 THE INNOVATION DILEMMA IN THE FINANCIAL INDUSTRY: FRENCH DOMESTIC CREDIT INSTITUTIONS Pascale de Rozario 161 TEN CHALLENGES TO HAVE A SUSTAINABLE FINANCIAL SYSTEM Catherine Karyotis and Joseph Onochie 179 FINANCE AS A COMMON: FROM ENVIRONMENTAL MANAGEMENT TO MICROFINANCE AND BACK Davide Forcella and Jean-Michel Servet 199 Contents vii PART IV MOVING TOWARD SUSTAINABLE SOCIAL AND ECONOMIC MODELS THE “TRIPLE DEPRECIATION LINE” ACCOUNTING MODEL AND ITS APPLICATION TO THE HUMAN CAPITAL Alexandre Rambaud and Jacques Richard 225 EXPLORING NEW WAYS TO ASSESS THE IMPACT OF MICROFINANCE: WHAT ROLE FOR THE CAPABILITY APPROACH? Asmae Diani and Julienne Brabet 253 TOWARD A SOCIALLY RATIONAL MANAGEMENT: INSIGHTS FROM JAPANESE AND ISLAMIC BUSINESS ETHICS Hideko Sakurai and Ayako Sendo 271 BUILDING CAPABILITIES THROUGH SOCIAL INNOVATION: IMPLICATIONS FOR THE ECONOMY AND SOCIETY Sharam Alijani, Alvaro Luna, Javier Castro-Spila and Alfonso Unceta SOCIAL INNOVATION BUSINESS MODELS: COPING WITH ANTAGONISTIC OBJECTIVES AND ASSETS Tamami Komatsu, Alessandro Deserti, Francesca Rizzo, Manuela Celi and Sharam Alijani 293 315 COPING WITH SOCIAL INNOVATION DILEMMAS: AN EXPLORATORY STUDY OF MIDDLE RANGE THEORY Dieter Rehfeld and Judith Terstriep 349 ABOUT THE AUTHORS 361 INDEX 369 This page intentionally left blank LIST OF TABLES Chapter Table Table Discounted Cash Flow Analysis with Positive Cash Flows Early and Negative Cash Flows Late Discounted Cash Flow Analysis with Negative Cash Flows Early and Positive Cash Flows Late 82 83 Chapter Table Table Table Table CSR and SRI Motivations and Targets Breakdown of WBCSD Best Case Studies by Issue Breakdown of WBCSD Best Case Studies by Motivation Breakdown of WBCSD Best Case Studies by Stakeholder 142 149 149 150 Chapter Table Trends in Retail Banking Branches 2009À2013 170 Chapter Table Components and Financial Functions (Melicher & Norton, 2011) 183 Chapter 12 Table Table A Snapshot of the Main Impact Assessment Studies in Microfinance Literature 257 Characteristics of a Capabilities-Based Conceptual Framework 265 Chapter 14 Table Table An Aggregative Model of Capability and Social Innovation 302 Methodological Approaches to Impact Measurement 307 ix 362 ABOUT THE AUTHORS Bank for International Settlements (BIS), IMF, OECD, managing BoF’s network abroad, director of the International Banking and Finance Institute (IBFI) He was involved in several international working groups and was the designer of the FOREX and derivatives triennial survey of the Bank of International Settlements He is well acquainted with high level finance and works closely with central banks circles while continuing to teach financial economics Julienne Brabet is Professor Emeritus of Management Studies at Universite´ Paris Est Cre´teil (UPEC) She is a member of the scholarly association RIODD’s (International Network of Research on Organisations and Sustainable Development) board and scientific committee, Vice-President of the SFM (Socie´te´ Franc¸aise de Management) She was the chair of EURAM (European Academy of Management) 2016 Conference and one of EURAM Vice-Presidents She was Associate Editor for EMR (European Management Review) until September 2015 and in charge of the “Management and Consulting” and “Managing CSR” Master programs at UPEC Her current research agenda focuses on the links between globalization, governance, strategic and organizational logics, HR management and CSR Javier Castro-Spila is Senior Research Fellow and Research Coordinator at SINNERGIAK Social Innovation and the University of the Basque Country He earned a Master degree in Higher Education from the University of Palermo/UNESCO and a Ph.D in Philosophy, Science, Technology and Society from the University of the Basque Country and He currently serves as the editor of the ‘European Social Innovation Review’ He has conducted studies in social innovation and creative industries with a focus on science for/in society, talent and entrepreneurship His current research areas focus on social innovation measurement methods, talent management and governance He is a member of the SIMPACT research team in SINNERGIAK Manuela Celi earned her PhD in Industrial Design and is currently Assistant Professor for the Design Department at the Politecnico di Milano Her current research focuses on design driven innovations as well as different forms of knowledge connected to design She is a member of the SIMPACT research team in Politecnico di Milano Thomas Clarke is Professor of Management Studies at UTS Sydney, Australia He has researched and published extensively in corporate governance including International Corporate Governance (Routledge second edition, 2017); Theories of Corporate Governance, (Routledge, 2004); Handbook About the Authors 363 of Corporate Governance (Sage, 2012) His current work is a critique of the corporation and includes The Handbook of the Corporation, (OUP, 2017) Pascale de Rozario has received her PhD and HDR in Political Science She teaches organizational behavior and critical theories of organization at ‘Conservatoire national des arts et me´tiers (Cnam) Her research focuses on ‘hyper modernity’ and its managerial avatars Along with her colleagues at Cnam, Pascale has adapted and translated Denise Rousseau’s major work, Psychological Contract (Pearson, 2014) Pascale has a long experience in auditing organizations and consulting public administrations in Europe She has served as Chair of Responsible Global Value Chains” at EURAM and is the co-editor of International Journal of Sustainable Development Alessandro Deserti is Professor of Product Design at the Politecnico di Milano His research focuses on approaches, practices and tools for design driven innovation He has numerous publications in the field of design and innovation and serves as a consultant to companies and institutions with a focus on product design He is the coordinator of the SIMPACT research team at the Politecnico di Milano Asmae Diani is Associate Professor in Management and Entrepreneurship at Sidi Mohamed Ben Abdellah University, Fez-Morocco She holds a doctoral degree in Economic Sciences from the University of Fez, and a Master of Arts in multimedia and communication from Saginaw Valley State University in Michigan Her current research focuses on Microfinance, Social Entrepreneurship and social impact assessment Davide Forcella is Associate Researcher at the Centre for European Research in Microfinance (CERMi) and head of the Action Group Microfinance and Environment for the European Microfinance Platform (e-MFP) PhD in Physics and Master in Microfinance, his research focuses on the links between financial inclusion and the environment, clean energy, climate change, ecosystems, rural development and environmental risk management Davide has also extensive experience in areas of microfinance credit risk and Overindebtedness He is the recipient of the 2013 UN FIRPRI Finance and Sustainability European Research Award Soheyla Gholamshahi earned a doctorate in Finance at UTS Sydney, Australia Her current research focuses on the impact of migration and its multiple dimensions, including migrant entrepreneurship and employment She is a senior executive in the New South Wales State Government of Australia dealing with inequality, families and disability 364 ABOUT THE AUTHORS Bruno Gizard was Secretary of the Paris Stock market supervisory authority from 1969 to 2010 (Chambre syndicale des agents de change, which became Conseil des bourses de valeurs and then AMF À Autorite´ des marche´s financiers) Throughout his long professional career, Bruno has been in charge of regulating and controlling financial intermediaries and the market He is currently a member of the AMF Sanctions Committee Alexis Gouin is Socially Responsible Investing (SRI) Analyst at Candriam Investors Group Prior to this position, he has been SRI junior analyst at Mirova, Ecofi and Federal Finance He has a Master in Financial engineering (University of Caen) and a Master in Sustainability and Corporate Social Responsibility (University of Versailles Saint Quentin en Yvelines) He is a visiting lecturer in University of Caen Catherine Karyotis, HDR, is Professor of Finance at Neoma Business School and Head of the Master in International Financial Analysis at the Reims campus She has been previously involved with Euroclear, a financial services company that specializes in the settlement of securities and is currently a member of the Scientific Committee of the French Society of Financial Analysts Catherine is the co-organizer of the ‘Finance, Economy and Society’ track at the European Academy of Management Her teaching and research focus on bank and finance and capital markets Catherine has published in international academic as well as professional journals in France and is the author of ‘L’essentiel de la banque’ (Gualino, 2016) and co-author of ‘Introduction a` la finance du marche´’ (Pearson, 2015) Tamami Komatsu is a Researcher at the Politecnico di Milano She received her M.Sc in Social Economics from the University of Bologna, Italy Her current research focuses on social innovation, social innovation business models and the social economy She is a member of the SIMPACT research team at the Politecnico di Milano Thomas Lagoarde-Segot is Associate Professor of Finance at Kedge Business School and a Research Associate at LEST laboratory, AixMarseille Universite´, France He holds a PhD in Finance from Trinity College Dublin and a HDR in Economics from Aix-Marseille Universite´ He currently serves as Editor in Chief of Research in International Business and Finance and Associate Editor of International Review of Financial Analysis and coordinator of the Post-crisis Finance Research Network (PoCFiN) His research focuses on emerging market finance, social finance, financial history and economic philosophy About the Authors 365 Jessica Li is Senior Lecturer at Neoma Business School She previously worked for the Treasury Department of Morgan Stanley in London UK and Canada Mortgage and Housing Corporation She has worked in international capital markets and managed both short and long term funding, investment portfolios and the creditor relations and international marketing projects Her teaching interests include behavioral finance, fixed income securities, corporate finance, portfolio management and risk management Jessica holds an International MBA and a Bachelor of Social Sciences (Honors) from the University of Ottawa, Canada She is a Chartered Financial Analyst and an active member of the CFA Institute Se´bastien Lleo is Associate Professor of Finance at Neoma Business School and a Tutor on the Certificate in Quantitative Finance at Fitch Learning in the UK He currently serves as Director of doctoral programs at Neoma BS, co-Director of the GARP University Chapter and is on the Steering Group of the CQF Institute He was previously Research Associate at Imperial College London in the UK and worked and consulted in the investment industry in Canada and the UK He also held a visiting position at the Frankfurt School of Finance and Management in Germany, and served as lead researcher on the RISK PERFORM project His main research interests include investment management, risk management, asset pricing, stochastic control and analysis, behavioral finance He holds a PhD in Mathematics from Imperial College London and a MBA from University of Ottawa Se´bastien is a CFA and a Certified Financial Risk Manager Alvaro Luna holds a PhD in Sociology and MSc in Management of Innovation and Knowledge from the University of the Basque Country He is interested in the urban and sociocultural challenges and dynamics that operate and influence social changing processes, and social innovations inside city regions His current research focus on the study of creative and cultural industries and their impact on the development of urban centers, research methodologies in innovation management and the analysis of social innovations Joseph Onochie is Associate Professor of Finance in the Department of Economics and Finance at Zicklin School of Business, Baruch College, City University of New York since 1993 He previously was the Academic Director of the Executive MBA program at Baruch College He currently teaches undergraduate and graduate courses in Corporate Finance and Investments His current research interests include asset pricing and their underlying financial structures 366 ABOUT THE AUTHORS Peter V Rajsingh lectures at New York University in the Gallatin School of Individualized Study and the College of Arts and Sciences where he has taught since 1991 In addition, he has taught at NYU’s Stern School of Business and at the Neoma Business School in Reims, France His subject areas include Creativity, Innovation and Entrepreneurship, Finance and Social Theory, US Constitutional Law, Ethics and Political Philosophy He works at a boutique asset management firm and sits on the boards of a number of private companies and charities His is a graduate of University of Auckland, New Zealand and a PhD from the Graduate Center of the City University of New York Alexandre Rambaud is Associate Professor at AgroParisTech and Associate Researcher at Paris-Dauphine University He received a Ph.D in Mathematics from the Paris Diderot University and a Ph.D in Management Sciences from the Paris-Dauphine University He is director of studies in accounting at AgroParisTech and teaches financial accounting and green accounting at HEC Paris and Dauphine University His current research focuses on ecological accounting, financial accounting and ecological economics Dieter Rehfeld is Professor of Social Sciences, Head of the research department “Innovation, Space & Culture” at the Institute for Work and Technology, Westphalian University in Gelsenkirchen and a member of the Faculty of the Social Science at the Ruhr University Bochum His research activities focus on regional studies and policy, innovation studies, the role of the state in industrial policies, cluster and cluster management, regional restructuring and on the relationship between social innovation and the welfare state Dieter is member of the advisory board of the “Innopunkt” programme in Brandenburg and member of the EMF Innovation Policy Expert network He is a member of SIMPACT research team at Westphalian University Jacques Richard is Emeritus Professor of Accounting at the ParisDauphine University, Chartered Accountant and a member of the French National Accounting Standard Board He has published more than 100 articles in referenced journals of accounting including “Accounting in Europe,” “Accounting, Organizations and Society,” “Accounting, Auditing and Accountability Journal,” “Critical Perspectives on Accounting,” “European Accounting Review,” “The Accounting Review,” “The Accounting Historians Journal,” as well as a number of German and Russian journals He has also published more than 30 books in English, French, German and About the Authors 367 Russian He has recently won the Best Manuscript Award of the American Academy of Accounting Historians and published two books on environmental accounting Francesca Rizzo teaches Design Studio and Service Design at University of Bologna From 2009 to 2013 Francesca worked as Assistant Professor of Design at Politecnico di Milano She provides expertise and consulting in service and participatory design and is a member of SIMPACT research team at Bologna University Hideko Sakurai is Professor at Faculty of Policy Studies of Chuo University, Japan She holds a MSc in International Relations and a PhD in Business Management Her research interest is focused on business ethics, social innovation and civilization studies She has been directing the research projects on “Post-corporatism and Islamic Business” in 2012À2015 and on the “Reverse Innovations from Asia” in 2016À2019 funded by Japan Society for the Promotion of Science Her publications include: Islamic Financial System and articles on related subjects Gre´gory Schneider-Maunoury, the Head of Socially Responsible Investment of Humanis, a French asset owner and asset manager of h13bn, since 2008 Gregory holds a PhD in Management from the University of Aix en Provence with a focus on environmental regulation and corporate strategies He served as SRI analyst for CSR rating agencies (Arese, Vigeo) and asset manager and stockbroker (Candriam, CM-CIC Securities) He is a visiting Lecturer in the Institute Leonard de Vinci, in Paris, and has published numerous articles in academic and professional reviews since 2000 Ayako Sendo is Professor and Dean at the Faculty of Commerce of Takushoku University, Japan She received a MSc and a Ph.D in Commerce from Waseda University Her work on Business and Society focuses on CSR, business ethics, and social entrepreneurship, with a research grant, such as Japan Society for the Promotion of Science In 2014 she published Japanese and CSR: play, flow and diversity (in Japanese) Her current work includes innovation and ethics of social enterprises Ayako is a member of National Public Service Ethics Board, Japan, and Vice President of Japan Society for Business Ethics She was formerly director at the Business Research Institute, Takushoku University Jean-Michel Servet is Emeritus Professor of Development Studies at the Institute of International and Development Studies in Geneva and former Professor of Economics of the Universite´ Lyon He is Associate 368 ABOUT THE AUTHORS Researcher at the Center for European Research in Microfinance (CERMi) and a Researcher at Centre d’e´tudes en sciences sociales sur les mondes africains, ame´ricains et asiatiques (Universite´ Paris Diderot) Jean-Michel is a member of the Scientific Council of the ‘Institut de recherche pour le de´veloppement’ His research activities focus on financial inclusion and solidarity and alternative financial models Judith Terstriep is Senior Researcher and Economist in ‘Innovation, Space & Culture’ research department at the Institute for Work and Technology, Westphalian University Judith’s primary research interests focus on the interplay of innovation, social relations and knowledge, spatial theory Focal areas of her work cover social innovation and its economic underpinnings, innovation strategies, regional development, smart and inclusive growth, networks and cluster, regional analyses and benchmarking Her research encompasses a broad mix of qualitative and quantitative methodologies, innovation biographies, surveys, expert interviews, moderated group discussions and network analyses She is well acquainted with the European research projects and coordinates the FP7-SSH project ‘SIMPACT À Boosting the Impact of Social Innovation in Europe through Economic Underpinnings’ Alfonso Unceta is Director of Sinnergial Social Innovation and Professor at the University of the Basque Country He has a PhD in Sociology and Political Science from the University of the Basque Country He has published more than 40 articles and books on a variety of topics including academic change and education, social responsibility, participation and social innovation He has extensive experience in project management and team leadership and is a specialist in social knowledge management and corporate social responsibility He is the coordinator of the SIMAPCT research team at Sinnergiak, University of the Basque Country INDEX Behavioral behavioral economics, 69n38 behavioral finance, 66 behavioral phenomena, 59, 60, 64 Bricolage, 296, 325, 326 Business business cluster, 13 business ethics, 19, 153, 154, 271À289 business model, 17, 18, 19, 166, 172, 176, 186, 195, 299, 300, 301, 303, 306, 307 business model typologies, 321, 331À344 Sanpo-yoshi business, 280À281 Business model business model canvas, 317, 331, 333 Academic academic legitimacy, 11 Accounting accounting principle, 194, 238 financial accounting, 226, 229À231, 234, 235 Accumulation pattern of, 6, 34, 186 Actor actor-network theory (ANT), 356 Agency agency theory, 15, 33, 34, 36, 37, 38, 39, 40, 155 Alternative alternative model, 14, 19 Asset asset-liability management, 191 Bank Bank for International Settlements, 95, 191 commercial banks, 61, 254 French banks, 168, 169, 189 Banking banking services, 16, 164, 165, 171, 173, 174À176 banking system, 16, 61, 164, 167, 168, 169, 175, 190, 193 retail banking, 162, 163, 164À166, 167, 169, 171, 173, 174, 196 shadow banking, 188, 190, 191, 193, 196 CABEI, 213 Capability capability approach, 18, 258À266, 295, 301, 305, 307 potential capability, 300 social capabilities, 7, 296, 297, 299, 303, 308 Capacity absorptive capacity, 299, 301 ecosystem’s capacity, 78 potential absorptive capacity, 299 realized absorptive capacity, 299 369 370 Capital capital asset pricing model, 81, 84, 104 capital budgeting, 77, 79À81, 90 capital movements, 6, human capital, 17, 19, 78, 144, 167, 211, 225À247, 304, 305, 355 human capital reporting, 229 manufactured capital, 78 natural capital, 78, 229, 230, 237 social capital, 231, 304, 305, 306, 327, 336 Capitalism, 3, 4, 21, 61, 62, 64, 232, 345 Capital Asset Pricing Model (CAPM), 81, 84, 85, 105, 106, 112, 114 CIGREF, 171 Classical classical economy, Common goods, 155, 156, 158, 210 Commons, 5À8, 17, 204, 207, 208À210, 211, 212, 213, 215, 217 Community, 145, 149, 152, 208, 260, 262, 266, 274, 278, 297, 305 Compensation compensation package, 45 equity-based compensation, 44, 51 Compliance, 129, 136, 142, 149, 150, 152, 282 Corporate corporate governance, 15, 27À52, 76, 84 corporate growth, 37 corporate intermediaries, 41 INDEX corporate social responsibility, 5, 12À14, 16, 140, 141, 148, 154À159 Cost production cost, 88 cost of capital, 77, 81, 90 Creativity entrepreneurial creativity, Credit credit creation, 61 credit cycle, 61 credit institutions, 16, 161À176 credit link, Credit Suisse, 29, 30 tax credit, 134 Crisis debt crisis, 187, 200 financial crisis, 5À8, 12, 14, 15, 28, 41, 42, 45, 47, 57À70, 94, 107, 113, 115, 116, 126, 127, 129, 165, 167, 175, 181, 186, 195, 200 economic crisis, 68n13, 110, 116, 316 CSR measurement of CSR, 145, 156 Currency currency derivative, 323 Customer customer relationship, 16, 167, 171, 174 Cycle financial cycle, 33 boomÀbust cycle, 34, 59, 64, 66 Dematerialization, 163, 168, 169, 174À176 Depreciation Triple Depreciation Line, 17, 225À247 Index Depression Great Depression, 31, 70n40, 104 Digitization, 174 Dilemma dilemma approach, 355, 356, 357 Discount discount rate, 77, 80, 81, 82, 83, 85, 90 discounting, 80, 81, 228 Disruptive, 166, 168 Economic economic crisis, 68n13, 110, 116, 316 economic efficiency, 20, 42, 278, 295 economic exchange, 18, 273, 274, 276, 280 economic gains, 18, 272, 273, 274 economic needs, 13 economic rationality, 64, 69n34, 274, 275, 276, 277, 278, 283, 285, 289 Economy global economy, 6, 14, 15, 59, 197 sustainable economy, 3À21 Efficiency efficiency market hypothesis, 62, 104 Efficient efficient market theorem, efficient market hypothesis, 63, 104, 113 Embeddedness embedding, 15, 95, 96, 107À108, 110, 114, 115, 116 (dis)embedding, 96, 108, 114À116, 117 371 Entrepreneur microentrepreneur, 207 social entrepreneur, 298, 307, 308, 319, 326, 327, 331, 332 Entrepreneurial entrepreneurial capitalism, 3, 4, 21 Environment, 145, 149, 152, 154, 213, 214, 272 Equity business equity, 43 intergenerational equity, 77À79, 84, 90, 91n4 Ethics business ethics, 19, 153, 154, 271À289 ethical, 13, 16, 66, 125À137, 235, 236 European Financial Management Association (EFMA), 171, 172 Exchange medium of exchange, 87 Executive executive remuneration, 41, 44 Federal Reserve, 31, 43 Finance behavioral finance, 66 international finance, 33, 34, 188 mathematical finance, 95, 96, 105, 107À114, 115, 116 quantitative finance, 102, 104 finance theory, 39, 94, 95, 109, 112, 113, 116 Financial financial accounting, 229À231, 234, 235 financial architecture, 59 372 financial bubble, 115 financial capitalism, 21, 62 financial channel, 6, 34, 186 financial crisis, 5À8, 12, 14, 15, 28, 41, 42, 45, 47, 57À70, 94, 107, 113, 115, 116, 126, 127, 129, 165, 167, 175, 181, 186, 195, 200 financial cycle, 33 financial derivatives, 94, 95, 105, 107 financial economics, 15, 95, 96, 102, 104, 105, 107À114 financial ethics, 127À130 financial exclusion, 17, 254 financial failure, 16, 126 financial gains, 35 financial innovations, 17, 33, 184, 185, 186 financial instability, 61 financial instability thesis, 61 financial institutions, 15, 30, 34, 59, 60, 67n9, 107, 126, 130, 133, 134, 135, 136, 183, 187, 194, 206, 211, 213 financial markets, 8, 21, 34, 35, 36, 77, 81À85, 86, 107, 114, 131, 152, 182, 183, 185, 188 financial mismanagement, 16 financial products, 132, 134, 182, 184, 254 financial return, 164, 231, 254, 256 financial services, 35, 36, 94, 128, 173, 207, 211, 212, 255 financial system, 15, 16, 17, 33, 39, 47, 59, 61, 62, 66, 94, 179À197, 204, 206, 211 financial theory, 77, 85À90 INDEX financial transaction, 6, 33, 182, 196 Financialization hyper financialization, Global global environmental facility, 213 global reporting initiative, 76 Global Environmental Facility (GEF), 213 Globalization, 8, 32, 34, 62, 134, 163, 165, 169, 201 Governance governance structure, 45, 333 Government agency relation government, 157 Habitus, 11 Human human capital, 17, 19, 78, 144, 167, 211, 225À247, 304, 305, 355 human depreciation, 241, 242 Hybrid hybridity, 322 Information and communication technologies (ICT), 164, 167, 168, 169, 171, 172, 174, 176 Impact impact assessment, 18, 255À266 impact measurement, 307 Inequality economic inequality, 205, 211, 215 social inequality, 205, 211, 215 Information asymmetric information, 182 373 Index Innovation disruptive innovation, 166, 168 open innovation, 300, 301, 303 social innovation, 293À309, 315À345, 349À358 technological innovation, 16 Institutions institutional arrangements, 7, 20 institutional rules, Integrated integrated reporting, 226, 230, 231 Interest interest rate, 33, 49, 61, 62, 67n10, 81, 86, 89, 90, 91, 94, 117n2, 132, 180, 182, 205, 207, 227 Investment investment institutions, 39, 40 investment projects, 76, 85 social investment, 144 socially responsible investment, 16, 91n1, 139À159 Islamic Islamic finance, 286 shari’a, 282, 283, 284, 285 waqf, 284À287 Knowledge knowledge exploration, 294, 300, 301, 306 knowledge exploitation, 302 Liberal neo-liberal, 31, 42, 57À70 Liberalism neoliberalism, 63, 65 Liquidity financial liquidity, 91n3, 209 Logic selection logic, 353 situation logic, 353 Macro macro conditions, 316 macro outcomes, 307 Management Islamic management, 18, 272, 274, 287 Japanese management, 280, 281, 287 social management, 271À289 strategic management, 324 Manufacturing, 100, 108, 230 Market market failure, 64, 76, 79, 194, 294 market manipulation, 6, 128, 151, 153 OTC markets, 133, 186, 194 Mathematical mathematical methods, 95, 97, 113, 260 mathematical models, 15, 39, 65, 95, 113, 116 mathematical sciences, 94, 109, 110, 111, 114, 116 Mathematics, 15, 39, 93À117 Merchant merchant-Ie, 278À279, 282 Micro micro conditions, 316 micro outcomes, 307 Microcredit, 202À204, 209, 210, 212À217, 218n25 Microfinance green microfinance, 17, 203, 210, 211À215 374 INDEX Microfinance Institutions (MFI), 203, 205, 213À215, 217n8, 254À256 Middle Range Theory, 19, 319, 349À358 Monetary monetary system, 89 Money money markets, 61, 128, 182 time value of money, 75À91 Moral moral doctrine, 128À129 Mortgage mortgage broker, 59 Positive positive economics, 96, 108À109, 111, 114, 116 Positivism, 65 Poverty, 14, 17À18, 29, 203À204, 206, 254À255, 259À260, 263 poverty reduction, 204, 206, 217 Privatization, 63, 208 Profit, 6, 7, 12, 13, 34, 37, 42, 45, 49, 105, 127, 130, 131, 135, 155, 167, 201, 203, 216, 232, 236, 237, 243, 273, 276, 280À286, 288, 324, 329 Network actor-network theory, 5, 318, 356 NPV negative NPV, 80 positive NPV, 80, 90 Quantitative quantitative research, 260 Oligopoly oligopolistic, Organization entrepreneurial organizations, 332 OTC OTC markets, 133, 186, 194 Paradigm economic paradigm, 211 Performance, 9, 10, 11, 35, 37, 40, 41, 44À45, 47, 49, 50À51, 144À146, 150, 152, 256 Performative performativity, 10, 112, 115 Ponzi Ponzi finance, 62, 66 Regulation regulators, 16 self-regulating, 4, 20, 21, 63 Rent rent seeker, Resource resource-based perspective, 299 natural resources, 78, 142, 202, 203, 210, 212À214 Return, 4, 14, 31, 38, 40, 44, 45, 48, 51, 60, 77, 79, 90, 104À105, 228, 231, 232, 243, 256, 276, 281, 282, 283, 288 Risk financial risk, 10, 187 systemic risk, 8, 34, 182, 216 Rule cautionary rule, 133 institutional rule, 20 Index Sarbanes Oxley, 48 Scarcity, 203, 304, 325, 327, 328 Science science of objects, 11 science of subjects, 11 Securitization, 63, 132, 133, 186, 188À189 Security, 39, 42, 104, 164, 184, 194, 287 Shareholder shareholder primacy, 14, 15, 32, 33, 36, 38, 42 shareholder value, 9, 12À15, 32À36, 38, 39, 40À43, 44, 51, 231 SIMPACT, 19, 294, 297, 309n1, 317, 318, 320, 327, 345, 351, 352, 355, 356, 358n1 Social social achievements, 7, 296, 298, 304À305, 306, 318, 321 social capabilities, 7, 296, 297, 299, 301, 302, 303, 308, 318 social capital, 304, 305, 306 social change, 295, 297, 299, 308, 319, 344, 354, 356 social entrepreneur, 298, 308, 319, 326, 327, 331 social exchange, 18, 273, 274, 276, 280, 281, 285 social innovation, 18À19, 294À309, 315À345, 349À358 social management, 18, 271À289 social need, 47, 300, 303, 336 social rationality, 18, 273, 274, 276À277, 278, 281, 283, 284, 285, 287 375 social responsibility, 12À14, 42, 140, 141, 148, 154, 155, 212, 276 social responsible investment, 16, 139À159 social ties, 6, 19, 216, 298, 300, 304, 305, 317, 318 social value, 42, 217n2, 322, 323, 326, 329, 331, 333, 334, 336, 344, 345 social value equation, 333 social wealth, 32 Social innovation, 18À19, 294À309 open social innovation, 18, 296, 300À307 social innovation business model, 19, 308, 315À345 social innovation components, 297 social innovation dilemmas, 349À358 social innovation ecosystems, 18, 295, 309, 319 social innovation impact, 18, 296, 302, 306, 308 social innovation indicators, 306, 307 social innovation measurement, 362 social innovation objectives, 297, 319 social innovation outcome, 18, 296, 305À307, 308, 319 social innovation principles, 297, 318 social innovation process, 302, 356, 358 Speculation, 7, 21, 59, 62, 127, 128 376 Stakeholder stakeholder value, 12, 45 stakeholder theory, 12, 145, 235, 236 separation thesis, 12, 13 Stochastic stochastic processes, 102À103, 105, 106 Sustainable sustainable economy, 3À21 sustainable financial system, 16, 17, 179À197 Sustainability strong sustainability, 78, 79 weak sustainability, 78, 79 Systemic systemic risk, 8, 182, 216 Theory assumption-driven theory, 110 INDEX middle-range theory, 351, 358 Uncertainty, 8, 113, 115, 167, 172, 283, 305 UNDP, 213 Value shared value, 13, 14, 164 sustainable value, 13 time value, 75À91 value creation, 13, 19, 49, 147, 306, 320, 321, 329, 331 Value chain global value chain, 16, 169 Wage wage rate, 4, WBCSD, 148À150 World Economic Forum, 28 .. .FINANCE AND ECONOMY FOR SOCIETY: INTEGRATING SUSTAINABILITY CRITICAL STUDIES ON CORPORATE RESPONSIBILITY, GOVERNANCE AND SUSTAINABILITY Series Editor: William... individuals to well without failing to good Finance and Economy for Society: Integrating Sustainability Critical Studies on Corporate Responsibility, Governance and Sustainability, Volume 11, 3À23 Copyright... OF MONEY AND SUSTAINABILITY Dirk Baur and Thomas Lagoarde-Segot 75 FINANCE AND MATHEMATICS: MERGER OR ACQUISITION Se´bastien Lleo and Jessica Li 93 PART III SUSTAINABLE FINANCE: ETHICAL AND INNOVATION