Socially Responsible Financial Markets

  • Dejan Jednak
  • Sandra JednakEmail author
Part of the Palgrave Studies in Impact Finance book series (SIF)


Financial markets have started to take into account aspects of sustainable development. They mobilise capital in order to provide economic, social and environmental benefits. The aim of this chapter is to present socially responsible financial markets. A socially responsible financial market should influence business, the market and the economy to take into account sustainability issues in order to deliver economic, social and environmental benefits. The consequence of this decision is that financial markets have changed their structure, established new laws and regulations, introduced innovative instruments, and obtained supervision and transparency. Even though financial markets introduce financial innovations and regulations and engage in sustainability issues, there is still room for development of those markets in the direction of fully socially responsible practice.


  1. Acciona. (2018). Sustainable Development. Acciona. Retrieved from
  2. Addis Ababa Action Agenda. (2015). Addis Ababa Action Agenda of the Third International Conference on Financing for Development. UN. Retrieved from
  3. Agenda 2030. (2015). Transforming Our World: The 2030 Agenda for Sustainable Development. UN. Retrieved from
  4. Aggarwal, P. (2013). Impact of the Sustainability Performance of the Company on Its Financial Performance: A Study of Listed Indian Companies. Global Journal of Management and Business Research (C: Finance), 13(11), 61–70.Google Scholar
  5. Ajide, F. (2016). Financial Innovation and Sustainable Development in Selected Countries in West Africa. Journal of Entrepreneurship, Management and Innovation, 12(3), 85–112.CrossRefGoogle Scholar
  6. Al Mamun, M., Sohag, K., Shahbaz, M., & Hammoudeh, S. (2018). Financial Markets, Innovations and Cleaner Energy Production in OECD Countries. Energy Economics, 72, 236–254.CrossRefGoogle Scholar
  7. Ameer, R., & Othman, R. (2012). Sustainability Practices and Corporate Financial Performance: A Study Based on the Top Global Corporations. Journal of Business Ethics, 108(1), 61–79.CrossRefGoogle Scholar
  8. Asteriou, D., & Spanos, K. (2019). The Relationship Between Financial Development and Economic Growth During the Recent Crisis: Evidence from the EU. Finance Research Letters, 28, 238–245.Google Scholar
  9. Barro, R. J. (1991). Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics, 106(2), 407–443.CrossRefGoogle Scholar
  10. Benijts, T. (2010). A Framework for Comparing Socially Responsible Investment Markets: An Analysis of the Dutch and Belgian Retail Markets. Business Ethics: A European Review, 19(1), 50–63.CrossRefGoogle Scholar
  11. BSDC – Business and Sustainable Development Commission. (2017). Business Commission on Sustainable Development Ideas for Action for a Long-Term and Sustainable Financial System. Business and Sustainable Development Commission. Retrieved from
  12. Busch, T., & Hoffmann, V. H. (2011). How Hot Is Your Bottom Line? Linking Carbon and Financial Performance. Business & Society, 50(2), 233–265.CrossRefGoogle Scholar
  13. CDP. (2018). Report on Sustainability Corporations Performs Better Financially. Retrieved from and
  14. Chava, S. (2010). Socially Responsible Investing and Expected Stock Returns. Chava, Sudheer, Socially Responsible Investing and Expected Stock Returns (September 16, 2010). Retrieved from at SSRN: or
  15. Chen, L. (2015). Sustainability and Company Performance: Evidence from the Manufacturing Industry (Vol. 67). Linköping: Linköping University Electronic Press.CrossRefGoogle Scholar
  16. Cochu, A., Glenting, C., Hogg, D., Georgiev, I., Skolina, J., Eisinger, F., … & Chowdhury, T. (2016). Study on the Potential of Green Bond Finance for Resource-Efficient Investments. The Report, European Commission.Google Scholar
  17. Derwall, J., & Koedijk, K. (2009). Socially Responsible Fixed-Income Funds. Journal of Business Finance & Accounting, 36(1–2), 210–229.CrossRefGoogle Scholar
  18. Detrea, J. D., & Gunderson, M. A. (2011). The Triple Bottom Line: What Is the Impact on the Returns to Agribusiness? International Food and Agribusiness Management Review, 14(4), 165–178.Google Scholar
  19. Durusu-Ciftci, D., Ispir, M. S., & Yetkiner, H. (2017). Financial Development and Economic Growth: Some Theory and More Evidence. Journal of Policy Modeling, 39(2), 290–306.CrossRefGoogle Scholar
  20. EESC. (2010). See EESC Opinion on the Impact of Investment Funds on Industrial Change, OJ C 128, 18.5.2010, p. 56.Google Scholar
  21. Estrada, G. B., Park, D., & Ramayandi, A. (2010). Financial Development and Economic Growth in Developing Asia. Asian Development Bank Economics Working Paper, No. 233.Google Scholar
  22. Eurosif. (2016). European SRI Study 2016. Retrieved from
  23. Friede, G., Busch, T., & Bassen, A. (2015). ESG and Financial Performance: Aggregated Evidence from More Than 2000 Empirical Studies. Journal of Sustainable Finance & Investment, 5(4), 210–233.CrossRefGoogle Scholar
  24. Friedman, A. (2016). The Important Role of Capital Markets in Driving Sustainability. Retrieved from
  25. González-Páramo, J. M. (2018). The Future of Capital Markets: Digital and Sustainable. lICMA Annual General Meeting & Conference 2018. Retrieved from
  26. Gorghiu, M., & Petrescu, A. M. (2014). The Social Knowledge – A Goal of the Social Sustainable Development. Procedia-Social and Behavioral Sciences, 149, 43–49.CrossRefGoogle Scholar
  27. Hofer, C., Cantor, D. E., & Dai, J. (2012). The Competitive Determinants of a Firm’s Environmental Management Activities: Evidence from US Manufacturing Industries. Journal of Operations Management, 30(1–2), 69–84.CrossRefGoogle Scholar
  28. Janicka, M. (2016). Financial Markets and the Challenges of Sustainable Growth. Comparative Economic Research, 19(2), 27–41.CrossRefGoogle Scholar
  29. Jednak, J., & Jednak, D. (2011). Finansijska tržišta. BPŠ.Beograd.Google Scholar
  30. Jednak, S., & Jednak, D. (2018). Financial Integration: Crisis and Economic Development. In Regaining Global Stability After the Financial Crisis (pp. 67–87). Hershey: IGI Global.CrossRefGoogle Scholar
  31. Keeble, B. R. (1988). The Brundtland Report: ‘Our Common Future’. Medicine and War, 4(1), 17–25.CrossRefGoogle Scholar
  32. Lassala, C., Apetrei, A., & Sapena, J. (2017). Sustainability Matter and Financial Performance of Companies. Sustainability, 9(9), 1498.CrossRefGoogle Scholar
  33. Liu, X., Burridge, P., & Sinclair, P. J. (2002). Relationships Between Economic Growth, Foreign Direct Investment and Trade: Evidence from China. Applied Economics, 34(11), 1433–1440.CrossRefGoogle Scholar
  34. López, M. V., Garcia, A., & Rodriguez, L. (2007). Sustainable Development and Corporate Performance: A Study Based on the Dow Jones Sustainability Index. Journal of Business Ethics, 75(3), 285–300.CrossRefGoogle Scholar
  35. Lucas, R. E. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 22(1), 3–42.CrossRefGoogle Scholar
  36. Mainelli, M., & Mills, S. (2018). Financial Innovations and Sustainable Development. Business & Sustainable Development Commission. Z/Yen Group. Retrieved from
  37. Mishkin, F. S. (2007). The Economics of Money, Banking, and Financial Markets. New York: Pearson Education.Google Scholar
  38. Mohd Taib, E., & Ameer, R. (2012). The Relationship Between Corporate Sustainability Practices and Financial Performance: Evidence from the GRI Reporting Companies (September 25, 2012). Retrieved from or
  39. Muñoz-Torres, M. J., Fernández-Izquierdo, M. Á., & Balaguer-Franch, M. R. (2004). The Social Responsibility Performance of Ethical and Solidarity Funds: An Approach to the Case of Spain. Business Ethics: A European Review, 13(2-3), 200–218.CrossRefGoogle Scholar
  40. Nath, B., & Hens, L. (2005). The World Summit on Sustainable Development: The Johannesburg Conference. World.Google Scholar
  41. OECD. (2018a). Global Outlook on Financing for Sustainable Development 2019: Time to Face the Challenge. OECD. Retrieved from
  42. OECD. (2018b). Private Finance for Sustainable Development: New Approaches in Development Finance: The Need for Mobilisation Towards Greater Transformation and Impact. Retrieved from
  43. Pinto, C. T. (2011). Opinion of the European Economic and Social Committee on ‘Socially Responsible Financial Products’ (Own-Initiative Opinion). EUR_Lex. Eurosif (2008).Google Scholar
  44. RobecoSAM. (2018). Index Family. Retrieved from
  45. Romer, P. M. (1994). The Origins of Endogenous Growth. The Journal of Economic Perspectives, 8(1), 3–22.CrossRefGoogle Scholar
  46. Rostow, W. W. (1960). The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge: Cambridge University Press.Google Scholar
  47. Rutkauskas, A. V., Miečinskiene, A., & Stasytyte, V. (2008). Investment Decisions Are Modelling Along Sustainable Development Concept on Financial Markets. Technological and Economic Development of Economy, 14(3), 417–427.CrossRefGoogle Scholar
  48. Savić, D., Bogetić, Z., Dobrota, M., & Petrović, N. (2016). A Multivariate Approach in the Measurement of the Sustainable Development of European Countries. Management: Journal of Sustainable Business and Management Solutions in Emerging Economies, 21(78), 73–86.Google Scholar
  49. Schmidheiny, S., & Zorraquin, F. J. (1998). Financing Change: The Financial Community, Eco-efficiency, and sustainable development. Cambridge: MIT Press.Google Scholar
  50. Schrieder, G., & Heidhues, F. (1995). Reaching the Poor Through Financial Innovations. Quarterly Journal of International Agriculture, 34, 132–132.Google Scholar
  51. Schumpeter, J. A. (1961). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle (1912/1934). Google Scholar.Google Scholar
  52. Schumpeter, J. A. (1982). The Theory of Economic Development: An Inquiry Into Profits, Capital, Credit, Interest, and the Business Cycle. New Brunswick: Transaction Publisher.Google Scholar
  53. Shah, A., & French S. (2018). Drivers and Detours on the Road to a Sustainable Future Sustainable Investing. Oppenheimer Funds. Retrieved from
  54. Social Investment Forum (SIF). (2003). 2003 Report on Socially Responsible Investment Trends. Washington, DC: Social Investment Forum.Google Scholar
  55. Solow, R. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70(1), 65–94.CrossRefGoogle Scholar
  56. Syed, A. M. (2017). Socially Responsible: Are They Profitable? Research in International Business and Finance, 42, 1504–1515.CrossRefGoogle Scholar
  57. US SIF Foundation’s 2018 Biennial Report on US Sustainable, Responsible and Impact Investing Trends.Google Scholar
  58. Vivo, L. A., & Franch, M. R. B. (2009). The Challenges of Socially Responsible Investment Among Institutional Investors: Exploring the Links Between Corporate Pension Funds and Corporate Governance. Business and Society Review, 114(1), 31–57.CrossRefGoogle Scholar
  59. Vlastelica, T., Kostic, S. C., Okanovic, M., & Milosavljevic, M. (2018). How Corporate Social Responsibility Affects Corporate Reputation: Evidence from an Emerging Market. Journal of East European Management Studies, 23(1), 10–29.CrossRefGoogle Scholar
  60. Waygood, S. (2011). How Do the Capital Markets Undermine Sustainable Development? What Can Be Done to Correct This? Journal of Sustainable Finance and Investment, 1(1), 81–87.CrossRefGoogle Scholar
  61. Waygood, S. (2014). A Roadmap for Sustainable Capital Markets: How Can the UN Sustainable Development Goals Harness the Global Capital Markets?. Aviva White Paper, London, Aviva.Google Scholar
  62. Weber, O., Koellner, T., Habegger, D., Steffensen, H., & Ohnemus, P. (2008). The Relation Between the GRI Indicators and the Financial Performance of Firms. Progress in Industrial Ecology, an International Journal, 5(3), 236–254.CrossRefGoogle Scholar
  63. Weber, O., Diaz, M., & Schwegler, R. (2014). Corporate Social Responsibility of the Financial Sector – Strengths, Weaknesses and Impact on Sustainable Development. Sustainable Development, 22(5), 321–335.CrossRefGoogle Scholar
  64. Williams, G. (2005). Are Socially Responsible Investors Different from Conventional Investors. A Comparison Across Six Countries.Google Scholar
  65. Wu, H. (2011). Social Impact of Volunteerism. Points of Light Institute. Retrieved February 2, 2016.Google Scholar
  66. Wurgler, J. (2000). Financial Markets and the Allocation of Capital. Journal of Financial Economics, 58(1–2), 187–214.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Belgrade City MarketsBelgradeSerbia
  2. 2.University of Belgrade, Faculty of Organizational SciencesBelgradeSerbia

Personalised recommendations