Active First Movers vs. Late Free-Riders? An Empirical Analysis of UN PRI Signatories' Commitment

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Standard

Active First Movers vs. Late Free-Riders? An Empirical Analysis of UN PRI Signatories' Commitment. / Bauckloh, Tobias; Schaltegger, Stefan; Utz, Sebastian et al.
in: Journal of Business Ethics, Jahrgang 182, Nr. 3, 01.2023, S. 747-781.

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Harvard

APA

Vancouver

Bauckloh T, Schaltegger S, Utz S, Zeile S, Zwergel B. Active First Movers vs. Late Free-Riders? An Empirical Analysis of UN PRI Signatories' Commitment. Journal of Business Ethics. 2023 Jan;182(3):747-781. doi: 10.1007/s10551-021-04992-0

Bibtex

@article{fe7e44820dc5435c8d405d80d6bb9fcd,
title = "Active First Movers vs. Late Free-Riders? An Empirical Analysis of UN PRI Signatories' Commitment",
abstract = "Joining voluntary thematic initiatives can be a means for firms to legitimate their business activities. However, a lack of review mechanisms could create incentives for free-riding. This might lead to a lower commitment to the initiative{\textquoteright}s principles, and endanger its credibility and its members{\textquoteright} legitimacy benefits. Whether members of voluntary initiatives take advantage of the opportunity to free-ride has not been analyzed empirically so far. To fill this research gap, we investigate from an institutional theory perspective the actual implementation behavior of publicly listed signatories of the United Nations Principles for Responsible Investment (UN PRI) in a difference-in-differences and an event study setting. Our empirical results show that, after signing, UN PRI signatories integrate environmental, social, and governance (ESG) criteria in their business activities significantly more than matched non-signatories from the financial sector, indicating the commitment of the signatories to the UN PRI in general. However, while the initial members show a high commitment to the initiative{\textquoteright}s principles by increasing their ESG integration performance substantially, new members signing at a later stage of the initiative perform considerably less, and thus undermine the UN PRI{\textquoteright}s credibility. We derive implications for voluntary thematic initiatives to avoid such a development.",
keywords = "Voluntary initiatives, Free-riding, Institutional theory, UN principles for responsible investment, Voluntary initiatives, Free-riding, Institutional theory, UN principles for responsible investment, Sustainability sciences, Management & Economics",
author = "Tobias Bauckloh and Stefan Schaltegger and Sebastian Utz and Sebastian Zeile and Bernhard Zwergel",
note = "Funding Information: We thank Kai Hockerts (the editor) and three anonymous reviewers for their comments that helped us improve the article. We are grateful to the participants of the IW{\"O} sustainability winter seminar brownbag series, University of St.Gallen, the Workshop on Empirical Sustainable Finance 2020 at University of Kassel, and the Online Seminar Series of the Alliance for Research on Corporate Sustainability (ARCS) for helpful comments and discussions. We thank Vigeo Eiris for providing their ESG ratings. Publisher Copyright: {\textcopyright} 2021, The Author(s).",
year = "2023",
month = jan,
doi = "10.1007/s10551-021-04992-0",
language = "English",
volume = "182",
pages = "747--781",
journal = "Journal of Business Ethics",
issn = "0167-4544",
publisher = "Springer Nature B.V.",
number = "3",

}

RIS

TY - JOUR

T1 - Active First Movers vs. Late Free-Riders? An Empirical Analysis of UN PRI Signatories' Commitment

AU - Bauckloh, Tobias

AU - Schaltegger, Stefan

AU - Utz, Sebastian

AU - Zeile, Sebastian

AU - Zwergel, Bernhard

N1 - Funding Information: We thank Kai Hockerts (the editor) and three anonymous reviewers for their comments that helped us improve the article. We are grateful to the participants of the IWÖ sustainability winter seminar brownbag series, University of St.Gallen, the Workshop on Empirical Sustainable Finance 2020 at University of Kassel, and the Online Seminar Series of the Alliance for Research on Corporate Sustainability (ARCS) for helpful comments and discussions. We thank Vigeo Eiris for providing their ESG ratings. Publisher Copyright: © 2021, The Author(s).

PY - 2023/1

Y1 - 2023/1

N2 - Joining voluntary thematic initiatives can be a means for firms to legitimate their business activities. However, a lack of review mechanisms could create incentives for free-riding. This might lead to a lower commitment to the initiative’s principles, and endanger its credibility and its members’ legitimacy benefits. Whether members of voluntary initiatives take advantage of the opportunity to free-ride has not been analyzed empirically so far. To fill this research gap, we investigate from an institutional theory perspective the actual implementation behavior of publicly listed signatories of the United Nations Principles for Responsible Investment (UN PRI) in a difference-in-differences and an event study setting. Our empirical results show that, after signing, UN PRI signatories integrate environmental, social, and governance (ESG) criteria in their business activities significantly more than matched non-signatories from the financial sector, indicating the commitment of the signatories to the UN PRI in general. However, while the initial members show a high commitment to the initiative’s principles by increasing their ESG integration performance substantially, new members signing at a later stage of the initiative perform considerably less, and thus undermine the UN PRI’s credibility. We derive implications for voluntary thematic initiatives to avoid such a development.

AB - Joining voluntary thematic initiatives can be a means for firms to legitimate their business activities. However, a lack of review mechanisms could create incentives for free-riding. This might lead to a lower commitment to the initiative’s principles, and endanger its credibility and its members’ legitimacy benefits. Whether members of voluntary initiatives take advantage of the opportunity to free-ride has not been analyzed empirically so far. To fill this research gap, we investigate from an institutional theory perspective the actual implementation behavior of publicly listed signatories of the United Nations Principles for Responsible Investment (UN PRI) in a difference-in-differences and an event study setting. Our empirical results show that, after signing, UN PRI signatories integrate environmental, social, and governance (ESG) criteria in their business activities significantly more than matched non-signatories from the financial sector, indicating the commitment of the signatories to the UN PRI in general. However, while the initial members show a high commitment to the initiative’s principles by increasing their ESG integration performance substantially, new members signing at a later stage of the initiative perform considerably less, and thus undermine the UN PRI’s credibility. We derive implications for voluntary thematic initiatives to avoid such a development.

KW - Voluntary initiatives

KW - Free-riding

KW - Institutional theory

KW - UN principles for responsible investment

KW - Voluntary initiatives

KW - Free-riding

KW - Institutional theory

KW - UN principles for responsible investment

KW - Sustainability sciences, Management & Economics

UR - http://www.scopus.com/inward/record.url?scp=85119823384&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/8fb7d3a1-99a1-3f1a-b117-9c74453c80d5/

U2 - 10.1007/s10551-021-04992-0

DO - 10.1007/s10551-021-04992-0

M3 - Journal articles

VL - 182

SP - 747

EP - 781

JO - Journal of Business Ethics

JF - Journal of Business Ethics

SN - 0167-4544

IS - 3

ER -

DOI

Zuletzt angesehen

Publikationen

  1. Abflussverhältnisse steuern die Retention von Pestiziden und hydrologischen Tracern in Feuchtflächen
  2. Testing of a Multiple Criteria Assessment Tool for Healthcare Facilities Quality and Sustainability
  3. Revegetation in agricultural areas: the development of structural complexity and floristic diversity
  4. On anisotropic tensile mechanical behavior of Al-Cu-Li AA2198 alloy under different ageing conditions
  5. Narrative Ethik und Addressierung am Beispiel des Gleichnisses vom barmherzigen Samariter (Lk 10,30-35)
  6. Konzeption und Praxis des Nachhaltigkeitscontrollings: Ansatzpunkte in großen deutschen Unternehmen
  7. Foundations and applications of computer based material flow networks for einvironmental management
  8. Bildungsmaßnahmen für Ärzte und Pflegepersonal bezüglich Arzneimittelrückstände im Wasserkreislauf
  9. The recombinant bifunctional protein αCD133–GPVI promotes repair of the infarcted myocardium in mice
  10. The feeling thinking talking intervention with teachers advances young children's emotion knowledge
  11. Tagungsdokumentation 2018 - Perspektiven inklusiven Englischunterrichts: Gemeinsam lehren und lernen
  12. Performance analysis of a thermochemical based heat storage as an addition to cogeneration systems
  13. On the granularity of the German economy - first evidence from the top 100 companies panel database
  14. “I think they are irresponsible”: Teaching Sustainability with (Counter)Narratives in the EFL Classroom
  15. CONFLICTOS EN LA VISIÓN MATEMÁTICA DEL MUNDO Aún más retos para los futuros profesores de matemáticas
  16. Computational Study of Three-Dimensional Lagrangian Transport and Mixing in a Stirred Tank Reactor  
  17. Bridging senses of place and mobilities scholarships to inform social-ecological systems governance
  18. A framework for disentangling ecological mechanisms underlying the island species–area relationship
  19. Was Naturwissenschaftsdidaktiken und Religionspädagogik voneinander über Inklusion lernen können
  20. Sugars and amino acid composition in nectar of two plant species along a plant diversity gradient
  21. Spatial characterization of social-ecological systems units for management in Tropical Dry Forests
  22. Punitive Menschenrechte – Der Anspruch des Opfers auf Bestrafung im europäischen Grundrechtsgefüge
  23. Kunstkammer, Ostasiatische Weltkunst, Expressionistische Avantgarde neben Rokoko und Bauhaus-Moderne.