THEORY

Although this site is primarily concerned with empirical findings, it is important to recognize that good theoretical work has been done that bears strongly on the field.  If you have time to look at only one paper I suggest Angel and Rivoli (linked below). This study connects back to both classical investment theory - particularly Merton’s work on stock boycotts - and the socio-economic work of Albert Hirschman. Although Hirschman's Exit, Voice, and Loyalty accurately anticipates the form responsible investment would ultimately take, it actually predates the field: the book was published in 1970, a year before the launch of the first responsible investment fund in the U.S.


Foundational

  • Ronald Coase, "The Problem of Social Cost" - link

  • Albert O. Hirschman, Exit, Voice and Loyalty - link

  • Jerry Muller, Adam Smith in His Time and Ours - link

  • John Wesley, On The Use of Money - link

Classical Finance

  • James Angel and Pietra Rivoli, "Does Ethical Investing Impose a Cost Upon the Firm? A Theoretical Perspective." - link

  • Fama, Eugene, and Ken French, "Disagreement, tastes, and asset prices" - link

  • Harry Markowitz et al, “Can You Do Well by Doing Good?” - link

  • Robert Merton, “A Simple Model of Capital Market Equilibrium with Incomplete Information” - link

Data

  • Jose Maria Liberti and Mitchell Petersen, “Information: Hard and Soft.” - link

Stakeholder Theory

  • Thomas Donaldson and Lee Preston, "The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications" - link

  • Andrew L. Friedman and Samantha Miles, Stakeholders: Theory and Practice - link

  • Thomas M. Jones, "Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics" - link

     

Agency Theory

  • Michael C. Jensen and William H. Meckling. "Theory of the firm: Managerial behavior, agency costs and ownership structure." - link

Systemic Risk

  • Robert Litterman, "Pricing Climate Risk" (speech) - link

  • James Hawley and Andrew Williams, The Rise of Fiduciary Capitalism - link

Business Rationale for CSR

  • Michael Porter, "Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility" - link

  • Alex Edmans, Grow the Pie: How Great Companies Deliver Both Purpose and Profit - link

Anthropology of Business

  • Terrence Deal and Allan Kennedy, Corporate Cultures, see also The New Corporate Cultures (2008) - link

  • Franz de Waal, Chimpanzee Politics, Our Inner Ape, Primates and Philosophers: How Morality Evolved - link

  • Douglas McGregor, The Human Side of Enterprise - link