Responsible Funds Research Articles

The power of religion: Islamic investing in the lab

Faith-based mutual funds have recently become a growing corner of the mutual fund industry. Morality and ethics are thought to exert an influence on investors' decisions in this segment, though their role in driving such investments is not clear as these funds are also attractive due to their distinct risk-return profile. If non-pecuniary motives are predominant, investors in such funds may be less sensitive to financial performance, resulting in different fund flows patterns relative to conventional funds. This paper fills the gap in the literature, by providing an express linkage between religious preferences and investment in an Islamic fund. Using an incentivized lab experiment, we compare the extent to which investors with religious preferences are likely to accept inferior financial performances to pursue investments aligned with their religious preferences. We show that those with stronger religious preferences are more likely to stick with their investment in Islamic funds when these funds underperform. We do not find that social preferences play a similar role in socially responsible funds, and we find that investors prefer religious investments over socially responsible investments, providing strong evidence that religious investors do not view socially responsible funds as substitutes for Islamic funds.

Implementasi Dana Corporate Social Responsibility (CSR) terhadap Kesejahteraan Masyarakat dan Kelestarian Lingkungan

PT. Bumi Daya Agrotamas aims to put pressure on the world of work to be better in carrying out all its production activities so that companies not only think about achieving maximum financial profits but also participate in preserving the environment around which the company is established... these impacts can be in the form of beneficial impacts and detrimental impacts. For companies, the various impacts are that companies oriented towards the economic aspect (profit) are also required to have a responsibility, both to the social aspect and to the environmental aspect. Based on the research background above, the author is interested in conducting research with the title "implementation of PT corporate social responsibility (CSR) funds. Bumi Daya Agrotamas towards community welfare and environmental sustainability. This research was conducted to analyze the implementation of PT's corporate social responsibility (CSR) funds. Bumi Daya Agrotamas towards community welfare and environmental sustainability. This research uses qualitative with descriptive research type, data collection techniques are observation, interviews and documentation. The data obtained was analyzed using a qualitative analysis model. The results of the research show that the implementation of corporate social responsibility (CSR) funds impacts community welfare and environmental sustainability in PT case study. Bumi Daya Agrotamaskota Subulussalam. There are still many things lacking in being able to provide maximum results for the community and good cooperation between the company and the assisted community so there is still something that needs to be improved by the PT. Bumi Daya Agrotamas so that in the future there will be no social jealousy towards the PT and also here, openness is needed by the PT. Bumi Daya Agrotamas to the community so that the closeness becomes more positive and nothing undesirable happens in the future. Furthermore, corporate social responsibility (CSR) is a form of company activity in managing business to produce positive actions in the community to create a quality community.

Socially Responsible Finance: How to Optimize Impact

Abstract Can a socially responsible fund (SRF) improve social welfare while maximizing assets under management? We consider a two-sector model integrating financial intermediation, emissions’ negative externalities, and investors’ social preferences with regard to value alignment and impact. In scenarios with a high proportion of value-aligned investors, the SRF invests in clean sectors and compels recipients companies to use low-emission suppliers from the polluting sector, which appeals to both investor types. Alternatively, the SRF adopts a dual-fund approach, with one fund targeting clean sectors for value-aligned investors and another focusing on reducing direct emissions in polluting sectors to attract impact investors. (JEL:G11, G23, M14, O44, Q51)

ANALISIS IMPLEMENTASI KEUANGAN BERKELANJUTAN TERHADAP PROFITABILITAS BANK

In practice, banks must maintain business continuity by paying attention to their profitability. However, in response to global issues related to sustainable development goals, banks are also obliged to direct their business towards sustainability by implementing sustainable finance. This study aims to further analyze how the implementation of sustainable finance, particularly sustainable lending and the realization of Environmental Social Responsibility (CSR) funds, can affect bank profitability. Economic sustainability theory emphasizes the importance of balance between economic, social, and environmental aspects. This study uses the panel data regression analysis method. The implementation of sustainable finance proxied by sustainable credit has a significant positive effect on bank profitability, while the realization of CSR funds has a significant negative effect on bank profitability. This research is expected to provide a more comprehensive insight into how banks can balance social responsibility and environmental sustainability with the need to maintain healthy profitability.

The Effectiveness of PT. Wijaya Inti Nusantara's Corporate Social Responsibility (CSR) Program in South Palangga District, South Konawe Regency on the Quality of Life of the Community

This study aims to determine the success and effectiveness of the implementation of the Corporate Social Responsibility (CSR) program carried out by PT. Wijaya Inti Nusantara in order to improve the quality of life of the surrounding community. This research uses a qualitative approach that focuses on qualitative descriptive methods. The informants in this study were selected by purposive sampling technique. The data in this study was obtained through interviews, observation and documentation, the data obtained was then analyzed qualitatively with an interactive model consisting of data reduction, data presentation and conclusion drawn. The results of this study show that the results of the study show that the implementation of the Corporate Social Responsibility (CSR) program carried out by PT. Wijaya Inti Nusantara, South Palangga District (Mondoe Village, Pasi Village, and Wawowonua Village) both from social and environmental aspects have been successfully implemented. Meanwhile, regarding the effectiveness of the implementation of the program on the quality of life of the community in the assisted villages of PT. Wijaya Inti Nusantara has been effective, because it has succeeded in improving the socio-economic life of the community through empowerment programs sourced from Corporate Social Responsibility (CSR) funds of PT. Wijaya Inti Nusantara. However, the implementation of the Corporate Social Responsibility (CSR) program is also faced with several obstacles, including the availability of funds that will be used to carry out all forms of programs and the use of Corporate Social Responsibility (CSR) funds that are not in accordance with the substance of the use of the funds.

Pelatihan Pemasaran Digital Tokopedia Dalam Upaya Peningkatan Penjualan Kelompok Binaan Dinas Perikanan Cilacap

The level of success of collaboration can be achieved when the collaboration involves people with diverse experiences, multi-disciplinary knowledge, different cultures, education and backgrounds. Various parties will present different thoughts and contributions, so that the problem will be handled from various angles in a comprehensive manner. The problem in Cilacap Regency, with the majority of coastal communities working as fishermen and fish processors, is that sales are stagnant because they only rely on traditional marketing, by selling fresh fish at TPI Padanarang or processing fish into crackers, salted fish, handicrafts that are sold directly at around TPI Pandanarang. The aim of this PkM is providing digital marketing training through Tokopedia as an effort to increase sales of groups supported by the Cilacap Fisheries Service. The method chosen was qualitative with the number of respondents being 10 residents representing groups supported by the Cilacap Fisheries Service. The results of the PkM which was at TPI Pandanarang - Teluk Penyu Area, South Cilacap District, Cilacap Regency were the creation of 10 Business Identification Numbers (NIB) and 10 online shop accounts on Tokopedia for 10 people representatives of groups supported by the Cilacap Regency Fisheries Service. Conclusions from field observations, apart from marketing training, it turns out that the community needs a lot of assistance when processing permits such as PIRT, halal certificates, promotional training, packaging design, hygiene and sanitation training, health safety food. The Cilacap District Fisheries Service can collaborate with several companies/agencies to get assistance with equipment grants, training from Corporate Social Responsibility (CSR) funds.

Legal Responsibility of Coal Mining Company PT. International Prima Coal for Worker Welfare and Safety

Pancasila provides the direction and foundation for the formation of laws, policies and actions of the Indonesian government. This principle emphasizes the need to overcome social, economic, and political inequalities and provide equal opportunities for all Indonesians to prosper. This reflects a commitment to creating a just society. The method used in this study is qualitative using a qualitative descriptive approach, the data collection techniques used are interviews, observation, and documentation. From the results of the first study, mining business actors regarding the protection of women's labor rights still have women's labor rights that have not been fully fulfilled so that in this case it is not in accordance with Law No. 6 of 2023. Unfulfilled rights are menstrual leave and miscarriage leave. Furthermore, regarding the equality of women workers, it is proven by the existence of female workers who serve as Managers and there is no difference in the nominal salary. While the implementation of Corporate Social Responsibility funds of PT. International Prima Coal is good enough according to government regulations because it meets all aspects of the East Kalimantan Blue Print. Implementation of Corporate Social Responsibility funds of PT. International Prima Coal is also in accordance with the perspective of Islamic Economics.

Corporate social responsibility, the United Nations’ Sustainable Development Goals and financial performance, with implications for human resource development

Purpose India is one of the fastest developing economies, but it faces numerous socioeconomic problems, such as hunger, poverty, under- and unemployment, gender inequity and illiteracy. Corporate social responsibility (CSR) funding at the corporate level could tackle these socioeconomic problems, providing support to the nation’s overall development. Mandated CSR expenditures, in alignment with the achievement of the sustainable development goals (SDGs) of the United Nations, would support the nation’s contributions to building a sustainable future. Several questions, however, remain. Thus, this study aims to explore relationships between a company’s gross and net profits and its expenditures for CSR; and mapped the specific CSR activities used to address each of the 17 UN SDGs and then draw implications for human resource development (HRD). Design/methodology/approach The data were gathered from published annual reports (2019–23) of 60 Fortune 500 Indian companies. A zero-order correlation was used to find the relationship between CSR expenditure and gross, as well as net, profits. Furthermore, the CSR activities of the sample were mapped with the UN SDGs. Findings There was a positive, moderate to strong correlation between CSR expenditures and gross profit (r = 0.82, p < 0.01), but for net profit, the correlation was strong (r = 0.85, p < 0.01). All CSR activities mapped to at least one of the SDGs. Originality/value The alignment of CSR activities and SDGs based on Fortune 500 Indian companies has not yet been explored. Also, no study to date discusses the gaps in the CSR expenditures for specific UN SDGs.

Performance Evaluation of Socially Responsible Funds Compared to Their Benchmark Index in India: Evidence from the Covid-19 Crisis

Performance Evaluation of Socially Responsible Funds Compared to Their Benchmark Index in India: Evidence from the Covid-19 Crisis

A Theory of Socially Responsible Investment

Abstract We characterize the conditions under which a socially responsible (SR) fund induces firms to reduce externalities, even when profit-seeking capital is in perfectly elastic supply. Such impact requires that the SR fund’s mandate permits the fund to trade off financial performance against reductions in social costs—relative to the counterfactual in which the fund does not invest in a given firm. Based on such an impact mandate, we derive the social profitability index, an investment criterion that characterizes the optimal ranking of impact investments when SR capital is scarce. If firms face binding financial constraints, the optimal way to achieve impact is by enabling a scale increase for clean production. In this case, SR and profit-seeking capital are complementary: Surplus is higher when both investor types are present.

Zakat-based urban farming: A tool for poverty alleviation, community empowerment, financial inclusion, and food security

Purpose – This study introduces a zakat-based model aimed at poverty reduction and enhancing food security in urban settings. Drawing upon the principles of Islamic social finance, the model integrates urban farming with the utilization of zakat, charity, and corporate social responsibility funds, offering sustainable financial avenues for disadvantaged individuals and social enterprises. The primary objective of this research is to design and pilot test a practical model that not only generates consistent financial income, but also bolsters food security and advances financial inclusion. Methodology – This study reviews various models that have used Zakat funds for economic empowerment, conduct interviews, and hold focus group discussions. It proposes a zakat-based urban farming model for poverty alleviation and community empowerment using the theory of change. In collaboration with a leading Islamic bank in Malaysia, the model was pilot tested across selected residential communities in Malaysia. Finding – The research findings demonstrated positive impacts both at the individual participant level and within the broader community. Serving as a replicable blueprint, this project envisions the transformation of urban spaces into productive landscapes, thereby ensuring sustainable livelihood, amplifying food security, and promoting financial inclusion. Implication – Through this Zakat-based approach, the research underscores the profound impact of urban farming in catalyzing socio-economic change and advancing efforts towards poverty alleviation.Originality – No previous research has introduced and pilot-tested Zakat-based urban farming solutions for Islamic financial institutions as a tool for Poverty Alleviation and financial inclusion

Weighing in on the average weights: Measuring corporate social performance (CSP) score using DEA

This study develops a new DEA approach to incorporate such market-level information (i.e., average weights over firms) to create a composite corporate social performance (CSP) measure. The new model addresses the challenge that stakeholder expectations—expressed as the CSP weights of different CSP dimensions—are usually unknown at the firm level, but some reliable estimates of the average weights (across firms) are available at the industry or market level. Distinct from the traditional DEA, the new approach can incorporate constraints on the average values of weight distributions and is built on a computational framework new to the literature. The new model is compared with the traditional CSP approach, using longitudinal investment data by socially responsible funds (SRF). The regression results show evidence that the traditional CSP score, which is widely used in the management literature, may not be a reliable CSP score: firms with higher CSP scores tend to have lower SRF investment (in both the number of SRF and total shares). In contrast, the DEA-based CSP scores show the correct and positive correlation with SRF investment. Overall, this paper contributes to the literature by presenting a more reliable CSP approach and a new, generalizable DEA model. This is also the first empirical work documenting the potential validity issue of the traditional CSP scores.

Immunogenicity of SARS-CoV-2 vaccines BBV152 (COVAXIN®) and ChAdOx1 nCoV-19 (COVISHIELD™) in seronegative and seropositive individuals in India: a multicentre, nonrandomised observational study

There are limited global data on head-to-head comparisons of vaccine platforms assessing both humoral and cellular immune responses, stratified by pre-vaccination serostatus. The COVID-19 vaccination drive for the Indian population in the age group 18-45 years began in April 2021 when seropositivity rates in the general population were rising due to the delta wave of COVID-19 pandemic during April-May2021. Between June 30, 2021, and Jan 28, 2022, we enrolled 691 participants in the age group 18-45 years across four clinical sites in India. In this non-randomised and laboratory blinded study, participants received either two doses of Covaxin® (4 weeks apart) or two doses of Covishield™ (12 weeks apart) as per the national vaccination policy. The primary outcome was the seroconversion rate and the geometric mean titre (GMT) of antibodies against the SARS-CoV-2 spike and nucleocapsid proteins post two doses. The secondary outcome was the frequency of cellular immune responses pre- and post-vaccination. When compared to pre-vaccination baseline, both vaccines elicited statistically significant seroconversion and binding antibody levels in both seronegative and seropositive individuals. In the per-protocol cohort, Covishield™ elicited higher antibody responses than Covaxin® as measured by seroconversion rate (98.3% vs 74.4%, p<0.0001 in seronegative individuals; 91.7% vs 66.9%, p<0.0001 in seropositive individuals) as well as by anti-spike antibody levels against the ancestral strain (GMT 1272.1 vs 75.4 binding antibody units/ml [BAU/ml], p<0.0001 in seronegative individuals; 2089.07 vs 585.7 BAU/ml, p<0.0001 in seropositive individuals). As participants at all clinical sites were not recruited at the same time, site-specific immunogenicity was impacted by the timing of vaccination relative to the delta and omicron waves. Surrogate neutralising antibody responses against variants-of-concern including delta and omicron was higher in Covishield™ recipients than in Covaxin® recipients; and in seropositive than in seronegative individuals after both vaccination and asymptomatic infection (omicron variant). T cell responses are reported from only one of the four site cohorts where the vaccination schedule preceded the omicron wave. In seronegative individuals, Covishield™ elicited both CD4+ and CD8+ spike-specific cytokine-producing T cells whereas Covaxin® elicited mainly CD4+ spike-specific T cells. Neither vaccine showed significant post-vaccination expansion of spike-specific T cells in seropositive individuals. Covishield™ elicited immune responses of higher magnitude and breadth than Covaxin® in both seronegative individuals and seropositive individuals, across cohorts representing the pre-vaccination immune history of most of the vaccinated Indian population. Corporate social responsibility (CSR) funding from Hindustan Unilever Limited (HUL) and Unilever India Pvt. Ltd. (UIPL).

Unravelling the mixed performance of socially responsible funds: a comprehensive literature review

Unravelling the mixed performance of socially responsible funds: a comprehensive literature review

Farm Access Roads: The Low Cost Convergence Model for Doubling Farmers’ Income in India

"In agricultural sector, many policy reforms in India are introduced to achieve the target of doubling farmers’ income. Most of the recent studies and policy focuses on rural roads, while the critical part, which is still unaddressed, is the farm access roads (Pandan or Dhuri roads). We did a study in Amravati district of the Maharashtra state on the farm access roads. Farms are becoming inaccessible because of absence of proper road. Farmer are not able to take high value crops, scheduled farm operations are getting distorted and sometimes bringing the harvest from farms to home or market becomes difficult. In addition, owing to accessibility issues, farmers are not able to cultivate land, which result in low productivity and low income, especially small and marginal farmers, who are the majority, have no capacity to pay for or build farm roads. We recommend a convergence “farm road access model” implemented in Amravati district, dovetailing schemes of the Mahatma Gandhi National Rural Employment Guarantee (MGNREGA), state funds and farmer’s contribution or Corporate Social Responsibility (CSR) funds. The two types of roads under this model are as, low cost farm access road of ` 1,50,000 per kilometre and high cost road of ` 17,00,000 per kilometre. The impact of farm access roads is that farmers are able to get access to their land throughout the year and are able to do farm operations timely. Overall, it resulted in increase in farmers’ income by one third. Therefore, we strongly suggest replicating the Amravati farm access road (Har Khet ko Rasta) model across the nation."

Sustainable finance disclosure regulation insights: Unveiling socially responsible funds performance during COVID‐19 pandemic and Russia–Ukraine war

AbstractThe transition towards a more sustainable financial market demands transparency and trust from investors, objectives also pursued by the Sustainable Finance Disclosure Regulation (SFDR). Specifically, carefully assessing the risk‐adjusted performance of sustainable funds empowers investors to make informed decisions in alignment with their ethical and financial objectives. This article contributes to the debate on the performance of socially responsible investment (SRI) funds in times of crisis by evaluating the risk‐adjusted performance of a sample of SRI and conventional funds, ranked in light of the SFDR, during the COVID‐19 pandemic and the Russia–Ukraine war. Using a two‐step analysis, the results of the study show that funds with clear sustainability objectives, as defined by Article 9 of the SFDR, were able to outperform conventional funds, but only a few months after the onset of the crisis periods, thus demonstrating poor performance persistence. At the same time, sustainable funds with a focus on financial materiality, as defined by Article 8, were never able to generate significantly different risk‐adjusted performance from conventional funds. Our results show that the lack of performance persistence of Article 9 funds prevents an effective hedging role for investment strategies that consider extra‐financial criteria. They also confirm that the classification criteria introduced by the SFDR still need to be more specific and create more transparency in financial markets.

P181: Outreach initiative to promote healthy ageing: Experiences from a Geriatric Psychiatry Unit in India

Aim:To describe the experience, challenges and solutions in implementing an outreach initiative to promote healthy ageingBackground:Prevalence of mental health conditions in older adults is increasing rapidly in developing countries like India due to population ageing. UN Decade of Healthy Ageing (2021-2030) has been launched with focus on combatting ageism, promoting age friendly environment, integrated care and providing access to good quality long term care. Implementing interventions to promote healthy ageing in the Indian context has significant challenges in the background of limited availability dedicated elderly friendly health and social care systems.Methods:Description of the outreach initiatives launched by the Geriatric Psychiatry Unit, Department of Psychiatry, National Institute of Mental Health and Neurosciences a tertiary care academic unit for old age psychiatry in India.Results:A systematic and comprehensive outreach initiative for healthy ageing has been implemented over 2 years. The main objectives for the initiative includes promoting awareness about ageing and mental health, promoting age friendly environment, training of caregivers, volunteers and other stakeholders, psychosocial intervention in old age homes, promoting integrative medicine for healthy ageing and providing geriatric tele-psychiatry services. The important strengths of this initiative has been collaboration with non-governmental organizations, promoting active participation from older adults and volunteers, mobilizing resources through corporate social responsibility funding and effective use of technology.Conclusion:The experience of implementing this outreach initiative has contributed to important learnings for the team. The proposed solutions to address the challenges in sustaining this initiative and scaling up to reach a larger population will be discussed.

ANALISIS PEMANFAATAN DANA CORPORATE SOCIAL RESPONSIBILITY (CSR) BAGI PENINGKATAN KESEJAHTERAAN MASYARAKAT DI SEKITAR TAMBANG DI KABUPATEN KONAWE SELATAN

South Konawe Regency, which has many companies spread across several sub-districts, in implementing CSR in general, which is related to welfare, has not been felt by the community, especially those around the companies in South Konawe Regency. The aim of this research is to determine the process of allocating funds and the contribution of using Corporate Social Responsibility (CSR) funds to improve the welfare of communities around mines in South Konawe Regency. This type of research is qualitative research which is descriptive exploratory in nature which attempts to describe or describe the various realities found in this research. The sample selection method for this research was purposive. The mines sampled are divided into two categories, namely mines that have production operation status and mines that still have exploration status located in 7 (seven) sub-districts, namely Punggaluku, Laeya, Palangga, South Palangga, Lainea, Lalembu and Laonti. Data collection techniques are the observation method, questionnaire method, and documentary method. The data analysis techniques in this research are divided into three, namely data reduction, data display, and drawing conclusions or verification. The research results show that the company's CSR allocation process is carried out by the CSR sector making an annual budget plan. The budget is made based on the year's work plan and on requests from the surrounding community. However, whether the action plan from the CSR budget plan is carried out according to plan or not depends on the profit obtained by the company. So that the company in terms of distribution of Corporate Social Responsibility (CSR) funds is not carried out evenly in the community. Contributions in the use of Corporate Social Responsibility (CSR) funds are not only intended for the community but also for the company itself. The use of CSR funds for community welfare has not been felt by society in general, especially people who live in areas around the mine. Several companies in South Konawe Regency in the process of allocating CSR funds generally focus more on physical aspects such as building mosque ceilings, making curtains, making football field stands and repairing school buildings and so on.

The Role of Actors in Retribution Policy at the Kea-Kea Nature Tourism Park

This research aims to analyze the role of actors involved in the implementation of the Regent Regulation Number 7 of 2019. This research uses an inductive qualitative analysis. Inductive analysis is an approach that begins with field facts, analyzes them based on relevant theories and arguments, and ultimately yields a conclusion. The results show that in managing retribution at the Kea-Kea Nature Tourism Park, the Department of Tourism of Kolaka Regency has played a critical role as the Policy Creator, Coordinator, and Facilitator. However, there are obstacles to policy implementation, especially in setting and collecting retribution rates and providing adequate facilities. On the other hand, Tourism Awareness Group, as the Implementer, needs help complying with the provisions for depositing the collected retribution, mainly due to using some retribution funds for facility maintenance. Furthermore, traders, acting as Accelerators, must fully comply with retribution payment regulations. Therefore, it is recommended that the Department of Tourism of Kolaka Regency enhance its effectiveness by strengthening policy socialization and implementation oversight, particularly in setting and collecting retribution rates and providing adequate facilities. For the Natural Resources Conservation Center, improving cooperation with the Department of Tourism in supervising and enforcing retribution rules is crucial. Tourism Awareness Group is expected to understand and comply with the provisions for depositing collected retribution, including the appropriate use of retribution funds. State-owned enterprises are advised to strategically allocate Corporate Social Responsibility funds to support maintaining and enhancing Kea-Kea Nature Tourism Park facilities. Finally, traders are expected to enhance compliance with retribution payment regulations. These recommendations aim to collaborate better with related actors in retribution management, ultimately improving management quality and visitor experience at the Kea-Kea Nature Tourism Park.

Investing for a better tomorrow: Values-driven antecedents of investment in socially responsible equity funds by Indian retail investors

Socially responsible investment (SRI) has recently gained major prominence for attaining sustainable development goals. While institutional investors have made remarkable efforts to mobilize resources toward socially responsible funds, retail investors remain apprehensive. Using the behavioral reasoning theory (BRT) framework, this study has examined the determinants of investment behavior in socially responsible equity funds (SREF) among Indian retail investors. A structured questionnaire was administered to 370 participants using a multi-stage stratified random sampling technique over 5 months starting June 2022. For data analysis, artificial neural network (ANN) and fuzzy set qualitative comparative analysis (fsQCA) complement the disjoint two-stage partial least square-structural equation modelling (PLS-SEM) approach to ensure the robustness of results and provide crucial practical insights. The result suggests that religious values shape investors' justifications for and against investment in SREF. “Reasons for” positively influence the global motives (attitude, subjective norms, and perceived behavioral control), whereas “reasons against” share a negative relationship with the attitude and perceived behavioral control. All global motives positively affect the intention towards investment in SREF, which in turn translates into actual investment behavior. The study provides theoretical insights to researchers and policy implications for corporations, fund managers, policymakers and regulators in light of the findings.