Responsible Finance and the definition of an ethical investment

Julien Mercier

Master's thesis

Abstract:

The thesis investigates issues related to responsible finance in the activity of investing. It presents the responsibilities of investors in a context of business ethics shaped by sustainable development and CSR. In this view, all the stakeholders have to be considered, even the environment and the next generations. Along with new responsibilities come new ethical principles which can be theoretically applied in a deontological or utilitarian way. But in the reality, there are several approaches to what is called Socially Responsible Investing, among them shareholder advocacy or screening strategy. In particular, screening is an appropriate way to punish or support the best businesses according to the investors’ line of ethics. The goal being that the personal values and aspirations of investors can be reflected as much as possible in their investment decision. The thesis will eventually focus on the case of green bonds as a way to invest ethically, especially to respect the environment. The study of different standards will show how financial markets tackle environmental issues through the creation of an original investment vehicle. We will demonstrate that SRI can be applied to the reality to entail a change in the society, acknowledging the strengths and weaknesses. The whole thesis can be considered as a guidebook for an investor who would like to know what it means to invest ethically.

Keywords

Responsible Finance, Green Investment, Business ethics

Language used: English

Date on which the thesis was submitted / produced: 28. 3. 2019

Thesis defence

• Supervisor: Daniel Rosenhaft Swain, Ph.D. MA

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management