The Emerald Handbook of Ethical Finance and Corporate Social Responsibility: A Framework for Sustainable Development

The term ethical finance refers to finance that considers environmental, social, and governance (ESG) aspects influencing a borrower and/or its possessions. This indicates a growing recognition and value placed by investors, both institutional and retail, on producing measurable good environmental and social effects on a long-term basis. Ethical finance and investment are gaining traction at an unprecedented rate, both internationally and nationally. Previously, it was primarily the responsibility of specialist finance providers and investors to support enterprises with an environmental or social purpose. However, it has now migrated into the mainstream, with increasing recognition of the importance and value of considering ESG factors and values.

According to the Global Ethical Finance Forum, there are more than $27 trillion in assets managed ethically around the world. This represents a massive and expanding market, with more retail and professional investors realizing that ESG variables play a significant role in deciding risk and reward. As the investment and finance markets have evolved, ethical standards have come to be regarded as the new normal, offering critical safeguards to underpin investment and finance decisions. When funds and lenders are perceived to be failing to use appropriate ESG elements in their decision-making processes, they are increasingly being questioned.

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility: A Framework for Sustainable Development provides a fresh look at ESG aspects along with CSR implementation for sustainable development, which has global and long-term repercussions.