Displaying an impressive command of complex materials, Seyla Benhabib reconstructs the history of theories from a systematic point of view and examines the origins and transformations of the concept of critique from the works of Hegel to Habermas. Through investigating the model of the philosophy of the subject, she pursues the question of how Hegel´s critiques might be useful for reforumulating the foundations of critical social theory.

The copy provided on ths site is a late draft. It provides a philosophical argument for the view that by and large it is morally wrong to buy shares in a company that is behaving badly unless you (if necessary acting together with others) are able and willing to prevent the misbehaviour. A key lemma in my argument concerns a chain of authorisation from the shareholders to the company's board to the CEO -- one in virtue of which shareholders are (...) ultimately responsible for major patterns of wrongdoing by the company. (shrink)

Abstract:Shareholders’ relationship to the firm is a central theme in corporate governance, yet the investors’ perspective has been virtually ignored in governance research. This paper attempts to explain the previously unexplored role of trust in the investor decision-making process. The proposed model suggests that trust acts as the antecedent of the risk variable in existing investor decision-making models. Stock ownership involves both financial and ethical risk, which by definition requires some level of implicit trust in management and the market.

This paper makes three important points regarding socially responsible investing. First, the current methodology involving SRI fund divestiture of the securities of firms that engage in socially irresponsible activity often results in unacceptable unintended consequences. Second, in many cases the proper methodology for SRI funds may be purposely to include the securities of such firms in the portfolio in an effort to internalize socially irresponsible interfirm spillovers. Finally, that SRI fund managers may be able to bound their performance by organizing (...) as closed-end funds subject to takeover and liquidation if the stated socially responsible objectives are not met. (shrink)

This study examines whether differences in financial performance exist for investment trusts which base their portfolio selection primarily on an ethical screen, compared to indexes which incorporate a broader spectrum of investments. Results indicate that on a risk-adjusted basis there is an insignificant difference in the financial performance of these trusts against three common market benchmarks. However as to the extent of the directional effect, there does exist slightly superior financial performance by ethical trusts against their respective industry average indexes, (...) but an underperformance against a smaller company's index and the market as a whole. The lack of a distinct advantage in the short to medium term for applying an ethical screen, may in part be due to the recent development of ethical investments in Australia. Stronger performances by older ethical investment trusts may indicate superior returns are more likely to occur over a longer term. (shrink)