Many instances of scientific research impose risks, not just on participants and scientists but also on third parties. This class of social risks unifies a range of problems previously treated as distinct phenomena, including so-called bystander risks, biosafety concerns arising from gain-of-function research, the misuse of the results of dual-use research, and the harm caused by inductive risks. The standard approach to these problems has been to extend two familiar principles from human subjects research regulations—a favorable risk-benefit ratio (...) and informed consent. We argue, however, that these moral principles will be difficult to satisfy in the context of widely distributed social risks about which affected parties may reasonably disagree. We propose that framing these risks as political rather than moral problems may offer another way. By borrowing lessons from political philosophy, we propose a framework that unifies our discussion of social risks and the possible solutions to them. (shrink)

This survey was conducted in 2017 to investigate factors influencing social risk perception of biotechnologists and plant breeders in training toward GM food based on a conceptual model. A random sample of 210 biotechnologists and plant breeders in training was studied. Confirmatory factor analysis and the reliability tests have been used to verify the uni-dimensionality of the measurement scale, SEM also was carried out to determine the most parsimonious models with the best fit for social risk (...) perception of GM foods and path analysis was conducted to understand the exogenous variables introduced in the research model. The findings revealed that the engineers in training had moderate social risk perception regarding GM foods. Moreover, the results of structural equation modeling showed the capability of the model in predicting the social risk perceptions of engineers in training. The psychological attributes of risks, social benefit perception, attitude toward using technology, level of religiosity, and moral and ethical beliefs emerged as the most powerful predictors of the social risk perception. The social benefit perception and attitude toward using technology also mediated the effects of psychological attributes of risks, level of religiosity, and moral and ethical beliefs. The social benefit perception also had an indirect influence on the engineers in training’s social risk perception of GM foods. Finally, we recommend the application of the model developed by this study for better understanding of social risk perception of stakeholders to have a more informed view of the development and promotion of GM foods. (shrink)

Assessing social risks has proven difficult for IRBs. We undertook a novel effort to empirically investigate social risks before an HIV prevention trial among drug users in Thailand and China. The assessment investigated whether law, policies and enforcement strategies would place research subjects at significantly elevated risk of arrest, incarceration, physical harm, breach of confidentiality, or loss of access to health care relative to drug users not participating in the research. The study validated the investigator's concern that (...) drug users were subject to serious social risks in the site localities, but also suggested that participation in research posed little or no marginal increase in risk and might even have a protective effect. Our experience shows that it is feasible to inform IRB deliberations with actual data on social risks, but also raises the question of whether and when such research is an appropriate use of scare research resources. (shrink)

The current study sought to assess the mediating role of green market orientation dimensions in the relationship between social risk and new product performance among European Multinational Enterprises (EMNEs). We also assessed the moderating role of entrepreneurial orientation in the relationship between green market orientation and new product performance. The study was based on primary data gathered from 317 EMNEs in Ghana. After various validity and reliability checks, ordinary least squares (OLS) analysis was performed to estimate the various (...) relationships hypothesized in the study. The study finds that social risk has a negative effect on the success of EMNEs' new products. This negative effect is however nullified by the positive mediating effects of strategic green market orientation, tactical green market orientation and internal green market orientation. Entrepreneurial orientation also played a significant moderating effect in the relationship between green market orientation dimensions and EMNEs' new product performance. Based on this, theoretical and managerial contributions were made. (shrink)

Existing accounts of social insurance tend to treat social risks as given and ask whether it is justified for the state to deal with these risks for its citizens. They ignore that many common risks are in fact imposed on citizens as a byproduct of the institutional choices of the society, which call for justification in the first place. In this paper, I use the Scanlonian contractualist framework to develop an account of just social risk imposition (...) which implies a demand for fair risk sharing by all members of a society. In particular, I defend a compensation principle which requires that compensation be paid to victims of risk materialisation. This duty of paying should be shared by all those who benefit from the imposition of the relevant risk. I suggest that this provides a case for social insurance as a way of fairly sharing the burden of social risks. (shrink)

In the latest decades, many studies have focused on the concepts of fear, risk, security as relevant elements for describing our contemporary world. The Author rethink the processes trough which particular features of social reality become security issues. Security is no longer viewed as referring naturally or unproblematically to the military security of the state. Rather, the goal becomes to understand how different and seemingly disconnected objects can become subject to the processes of “securization” which involves our democracies (...) and the managements of different risks which treath our societies. (shrink)

Amongst the environmental and social externalities generated by Australian agriculture are a number of risks both to the health and safety of communities living near sites of agricultural production, and to the end consumers of agricultural products. Responses to these potential risks – and to problems of environmental sustainability more generally – have included a number of programs to variously: define “best-practice” for particular industries; implement “Quality Assurance” procedures; and encourage the formation of self-help community “Landcare” groups. Taken together, (...) these programs appear to deal comprehensively with both the social and environmental risks associated with agricultural production and products. However, these programs may also be interpreted as strategies that actually encourage the further intensification of agriculture, while attempting to reassure consumers that their food is safe and that farmers are doing “all they can” to protect the environment. Investigation of the Australian cotton and beef industries illustrates a number of strategies that have become evident between farmers, agri-science agencies, and the retail sector to manage these risks and define good farming practices in ways that satisfy their own perceived interests. Contrary to the image, therefore, of “green consumption” that is emerging as an integrated concern for “clean” (and thereby “healthy”) and sustainably produced foods, it appears that mainstream agricultural industries have bifurcated these concerns in ways that distract attention from production and processing methods, leaving conflict over on-farm production methods a characteristic only of those industries believed to have direct health impacts on nearby communities. (shrink)

There is an increasing number of female migrants among the international migrants in Russia. The purpose of this study is to identify the social risks female migrants face. Statistics and data from surveys were analyzed, interviews were held with experts providing practical assistance to women and focus groups were conducted with female migrants. The employment sector in which young female migrants face the most risks and are likely to work illegally is commercial sex services. The social risks are (...) mainly related to a lack of knowledge about the culture, their illegal status; risky behavior is also a big issue. The conclusion is that the social risks are linked to the gender asymmetry existing in the labor market and to the more vulnerable position of women with regard to sexual exploitation and trafficking. (shrink)

In this paper, we use the risk apportionment technique of Eeckhoudt, Rey and Schlesinger (2007) to study higher order risk preferences for others’ health as well as ex-ante and ex-post inequality preferences for social risky distributions, and their interaction. In an experiment on a sample of university students acting as impartial spectators, we observe risk aversion towards social health losses and a dislike of ex-ante inequality. In addition, evidence for ex-post inequality seeking is much weaker (...) than evidence for ex-ante inequality aversion. Because ex-ante inequality aversion is unrelated to risk aversion, we conclude that simple forms of utilitarianism are not relevant for individual judgment of social risk over health. Last, our investigation of precautionary distribution, which would occur when one particular group in the society suffers from background health risk, shows substantial polarization of preferences. (shrink)

The federal government is funding a sea change in health care by investing in interventions targeting social determinants of health, which are significant contributors to illness and health inequity. This funding power has encouraged states, professional and accreditation organizations, health care entities, and providers to focus heavily on social determinants. We examine how this shift in focus affects clinical practice in the fields of oncology and emergency medicine, and highlight potential areas of reform.

This letter responds to the article “The Social Risks of Science,” by Jonathan Herington and Scott Tanona, published in the November‐December 2020 issue of the Hastings Center Report.

With the improvement of citizens’ risk perception ability and environmental protection awareness, social conflicts caused by environmental problems in large-scale construction projects are becoming more and more frequent. Traditional social risk prevention management has some defects in obtaining risk data, such as limited coverage, poor availability, and insufficient timeliness, which makes it impossible to realize effective early warning of social risks in the era of big data. This paper focuses on the three environments of (...) diversification of stakeholders, risk media, and big data era. The evolution characteristics of the social risk of environmental damage of large-scale construction projects are analyzed from the four stages of incubation, outbreak, mitigation, and regression in essence. On this basis, a social risk early warning model is constructed， and the multicenter network governance mode of social risk of environmental damage in large-scale construction projects and practical social risk prevention strategies in different stages are put forward. Experiments show that the long short-term memory neural network model is effective and feasible for predicting the social risk trend of environmental damage of large-scale construction projects. Compared with other classical models, the long short-term memory model has the advantages of strong processing capability and high early warning accuracy for time-sensitive data and will have broad application prospects in the field of risk control research. By using the network governance framework and long short-term memory model, this paper studies the environmental mass events of large-scale construction projects on the risk early warning method, providing reference for the government to effectively prevent and control social risk of environmental damage of large-scale construction project in China. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:When We Collide: Sex, Social Risk, and Jewish Ethics by Rebecca J. Epstein-LeviJoshua Stein (bio)When We Collide: Sex, Social Risk, and Jewish Ethics by Rebecca J. Epstein-Levi. Bloomington: Indiana University Press, 2023Sex is messy:Ethicists have an unfortunate habit of speaking of sex—or "good" sex, anyway—in lofty, aspirational terms: the physical and spiritual union of committed partners, the human sharing in divine creativity, the two (...) becoming one, and so on. This image of choreographed perfection is reproduced in popular culture. … But the actual practice of sex, by ordinary people, is not so lofty, so beautifully synchronous. Real sex, even "good" sex, is carnivalesque, even grotesque. Real sex involves fluids, farts, jiggling, grunting, adjustments of position, arms falling asleep, and accidental pinching or pulling of hair … and the making of a vast number of frankly ridiculous faces (83).Rebecca J. Epstein-Levi's When We Collide (2023) challenges us to think about sex as it is, rather than as we are conditioned to talk about it (or as we might sometimes like to imagine it). This is foundational to the book. There is a familiar tradition of sanitizing sex, reducing it to teleology, idealized bodies, heteronormativity, and venerated social institutions. In dispensing with this sanitized illusion, the book adopts a healthier and more honest relationship with sex; in order to have a productive discussion about the ethics of any human activity, that discussion should represent the human activity faithfully. Part of the reason that Epstein-Levi takes this approach is to distinguish Jewish ethics' discussion of sex, which regards sex, and therefore sexual ethics, "as an empirical, lived, and granular phenomenon" (3).Discussions in Jewish sexual ethics should treat sex as a lived social experience and be responsive to the messiness of that experience. Epstein-Levi argues that sanitizing sex through appeal to a nebulous notion of how historical [End Page 99] religious traditions must have been puritanical is ahistorical, chauvinistic, and inconsistent with scholarship on rabbinic texts.This is a striking and perhaps subversive view in our present context. Centrally, many associate "religious views" (especially in sexual ethics) with politically Conservative and purity-driven views characteristic of some Christian traditions. The term "Judeo-Christian" in American political discourse is often used evocatively of the heteronormative, sanitized, idealized posture toward sex that Levi explicitly rejects. Epstein-Levi's book recognizes that rabbinic scholarship underrepresents marginalized communities, including women, LGBTQ+ people, and disabled people. This is the major moral and practical focus of Epstein-Levi's analysis; historical traditions in which dominant moral views are shaped by a particular group often have glaring blind spots. When we recognize those blind spots, as members of that tradition, need to be updated simply to address sex as it exists, not as we idealize it.The book centers Jewish texts and methods of thought, but (in my view) readers who will benefit most from reading Epstein-Levi's book are non-Jewish readers thinking about sex. Epstein-Levi's book illustrates methodological differences in Jewish ethics from other approaches. The ethics of sex should change as our knowledge of sex changes; as we learn about sexual activity and about the social lives of people, we should apply that knowledge to our understanding. For Jewish thought, ethics is discursive, not fixed; our understanding of ethics requires constant consideration and discussion as our understanding of the world changes and improves.One central focus of the book is risk; our knowledge of sex changes as we understand and mediate against the risks involved in sexual activity and as we learn more about how risk works itself. Risk is tied up in all social activity, including sex. The ethics of sex requires discussion of risk but often does so in a way not congruous with the discussion of risk in other areas of social life. "Sex is dangerous. … Sexual intercourse opens us up to risks of infections, violence, and, if we are in possession of functional ovaries and a uterus, pregnancy" (98). All social activity is risky; we are all acutely aware given the prospects of exposure to strains of a novel coronavirus and the way we have changed our... (shrink)

Many goods are distributed by processes that involve randomness. In lotteries, randomness is used to promote fairness. When taking social risks, randomness is a feature of the process. The losers of such decisions ought to be given a reason why they should accept the outcome. Surprisingly, good reasons demand more than merely equalex antechances. What is also required is a true statement of the form: ‘the result could easily have gone the other way and you could have been the (...) winner’. This rules in standard lotteries but rules out many lotteries based on merely epistemic probability. (shrink)

A social planner who evaluates risky public policies in light of the other risks with which their society will be faced should judge favourably some such policies even though they would deem them too risky when considered in isolation. I suggest that a longtermist would—or at least should—evaluate risky polices in light of their prediction about future risks; hence, longtermism supports social risk-taking. I consider two formal versions of this argument, discuss the conditions needed for the argument (...) to be valid, and briefly compare these conditions to some risky policy options with which actual public decision-makers are faced. (shrink)

Volume 20, Issue 5, June 2020, Page 75-77.

When We Collide is a landmark reassessment of the significance of sex in contemporary Jewish ethics. Rebecca Epstein-Levi offers a fresh and vital exploration of sexual ethics and virtue ethics in conversation with rabbinic texts and feminist and queer theory. Epstein-Levi explores how sex is not a special or particular form of social interaction but one that is entangled with all other forms of social interaction. The activities of sex-doing it, talking about it, thinking about it, regulating it-are (...) sites of ongoing moral formation on individual, interpersonal, and communal levels. When We Collide explores the development of Jewish sexual ethics, and represents an opportunity to move beyond the usual heteronormative accounts that are presented as though they were neutral representations of what "Judaism teaches about sex.". (shrink)

The relationship of corporate social responsibility to risk management has been treated sporadically in the business society literature. Using real options theory, I develop the notion of corporate social responsibility as a real option its implications for risk management. Real options theory allows for a strategic view of corporate social responsibility. Specifically, real options theory suggests that corporate social responsibility should be negatively related to the firm’s ex ante downside business risk.

Medical legal partnerships address individual legal needs that can create impediments to health. Little is known about outcomes from medical legal partnerships and their relationship to access to justice. This paper reports outcomes from one medical legal partnership from the perspective of the client, with specific emphasis on impact on health and concepts related to access to justice. We suggest a conceptual model for incorporating medical legal partnerships into a broader framework about access to justice.

This paper investigates the effect of corporate social responsibility (CSR) on firm value and seeks to identify the source of that value, by disaggregating the effects on forecasted profitability, long-term growth and the cost of capital. The study explores the possible risk (reducing) effects of CSR and their implications for financial measures of performance. For individual dimensions of CSR, in general strengths are positively valued and concerns are negatively valued, although the effect is not universal across all dimensions (...) of CSR. We show that these valuation effects are principally driven by CSR performance associated with better long run growth prospects, with an additional minor contribution made by a lower cost of equity capital. (shrink)

Theoretical arguments regarding the effect of corporate social responsibility (CSR) on firm liability risk are abundant; however, empirical evidence about this relationship is scarce. We investigate the relationship between CSR and the personal liability risk of a firm’s directors and officers. We argue that companies with better CSR performance represent a better underwriting risk for directors’ and officers’ (D&O) insurance providers and, therefore, have a lower cost of insurance. Our results show that firms with better CSR (...) performance are more likely to purchase D&O insurance and have a lower premium-to-coverage ratio, known as the insurance rate-on-line. We also show that this risk-reduction effect is stronger for firms that operate in a high-risk environment and have higher sales growth. These results provide evidence that CSR can be used as a risk management tool to mitigate liability risk and suggest which firms benefit most from this effect. (shrink)

Selection pressure from health risk is hypothesized to have shaped adaptations motivating individuals to attempt to become valued by other individuals by generously and recurrently providing beneficial goods and/or services to them because this strategy encouraged beneficiaries to provide costly health care to their benefactors when the latter were sick or injured. Additionally, adaptations are hypothesized to have co-evolved that motivate individuals to attend to and value those who recurrently provide them with important benefits so they are willing in (...) turn to provide costly care when a valued person is disabled or in dire need. Individuals in egalitarian foraging bands can provide a number of valuable benefits, such as defense, diplomacy, food, healing, information, technical skill, or trading savvy. We therefore expect that humans have evolved psychological mechanisms motivating the pursuit and cultivation of a difficult-to-replace social role based on the provisioning of a benefit that confers a fitness advantage on its recipients. We call this phenomenon social niche specialization. One such niche that has been well-documented is meat-sharing. Here we present cross-cultural evidence that individuals cultivate two other niches, information and tool production, that serve (among other things) to buffer health risk. (shrink)

This paper reviews the actual and potential use of social media in emergency, disaster and crisis situations. This is a field that has generated intense interest. It is characterised by a burgeoning but small and very recent literature. In the emergencies field, social media (blogs, messaging, sites such as Facebook, wikis and so on) are used in seven different ways: listening to public debate, monitoring situations, extending emergency response and management, crowd-sourcing and collaborative development, creating social cohesion, (...) furthering causes (including charitable donation) and enhancing research. Appreciation of the positive side of social media is balanced by their potential for negative developments, such as disseminating rumours, undermining authority and promoting terrorist acts. This leads to an examination of the ethics of social media usage in crisis situations. Despite some clearly identifiable risks, for example regarding the violation of privacy, it appears that public consensus on ethics will tend to override unscrupulous attempts to subvert the media. Moreover, social media are a robust means of exposing corruption and malpractice. In synthesis, the widespread adoption and use of social media by members of the public throughout the world heralds a new age in which it is imperative that emergency managers adapt their working practices to the challenge and potential of this development. At the same time, they must heed the ethical warnings and ensure that social media are not abused or misused when crises and emergencies occur. (shrink)

This paper examines the impact of the recent financial crisis on the relation between a firm’s risk and social performance using a sample of non-financial U.S. firms covering the period 1991–2012. We find that the relation between SP and risk is significantly different in the crisis period compared to the pre-crisis period. SP reduces volatility during the financial crisis. The risk reduction potential of SP is mainly due to the strengths component of SP. Since the relation (...) of risk is stronger with SP strengths than SP concerns, this implies an asymmetric relation between these SP components and a firm’s risk. Specifically, strengths act as a risk reduction tool during an adverse economic environment. (shrink)

The rash of high-profile accounting frauds involving internal corporate accountants calls into question the individual accountant’s perceptions of the ethical climate within their organization and the limits to which these professionals will tolerate unethical behavior and/or accept it as the norm. This study uses social cognitive theory to examine the antecedents of individual corporate accountant’s perceived personal fit with their organization’s ethical climate and empirically tests how these factors impact organizational attitudes. A survey was completed by 203 corporate accountants (...) to assess their perception of relevant variables. The results of the structural equation model indicate three significant antecedents relating to ethical climate fit: higher internal levels of locus of control; greater numbers of prior job changes; and higher perceptions of an increasingly better fit with the firm’s ethical climate. Our results also indicate that higher levels of perceived fit to the ethical climate of a firm are associated with higher levels of perceived job satisfaction and organizational commitment. We also theorize that perceptions of an organization’s ethical climate may be reflections of client narcissism and serve a potential indicator of fraud risk. This is an important topic of study, since current auditing standards call for auditors to examine organizational attitudes toward fraud, but offer minimal guidance in doing so. (shrink)

Behaviour change via monetary investments is a way to fighting climate change. Prior research has investigated the role of climate-change investments using a Collective-Risk-Social-Dilemma game, where players have to collectively reach a target by contributing to a climate fund; failing which they lose their investments with a probability. However, little is known on how variability in the availability of information about players’ investments influences investment decisions in CRSD. In an experiment involving CRSD, 480 participants were randomly assigned to (...) different conditions that differed in the availability of investment information among players. Half of the players possessed a higher starting endowment compared to other players. Results revealed that investments against climate change were higher when investment information was available to all players compared to when this information was available only to a few players or to no one. Similarly, investments were higher among rich players compared to poor players when information was available among all players compared to when it was available only to a few players or to no one. Again, the average investment was significantly greater compared to the Nash investment when investment information was available to all players compared to when this information was available only to a few players or to no one. We highlight some implications of our laboratory experiment for human decision-making against climate change. (shrink)

AbstractDuring the Covid-19 pandemic, ethicists and researchers proposed human challenge studies as a way to speed development of a vaccine that could prevent disease and end the global public health crisis. The risks to healthy volunteers of being deliberately infected with a deadly and novel pathogen were not low, but the benefits could have been immense. This essay is a history of the three major efforts to set up a challenge model and run challenge studies in 2020 and 2021. The (...) pharmaceutical company Johnson and Johnson, the National Institutes of Health in the United States, and a private-public partnership of industry, university, and government partners in Britain all undertook preparations. The United Kingdom’s consortium began their Human Challenge Programme in March of 2021.Beyond documenting each effort, the essay puts these scientific and ethical debates in dialogue with the social, epidemiological, and institutional conditions of the pandemic as well as the commercial, intellectual, and political systems in which medical research and Covid-19 challenge studies operated. It shows how different institutions understood risk, benefit, and social value depending on their specific contexts. Ultimately the example of Covid-19 challenge studies highlights the constructedness of such assessments and reveals the utility of deconstructing them retrospectively so as to better understand the interplay of medical research and research ethics with larger social systems and historical contexts. (shrink)

The ‘death of evidence’ issue in Canada raises the spectre of politicized science, and thus the question of what role social values may have in science and how this meshes with objectivity and evidence. I first criticize philosophical accounts that have to separate different steps of research to restrict the influence of social and other non-epistemic values. A prominent account that social values may play a role even in the context of theory acceptance is the argument from (...) inductive risk. It maintains that the more severe the social consequences of erroneously accepting a theory would be, the more evidence is needed before the theory may be accepted. However, an implication of this position is that increasing evidence makes the impact of social values converge to zero; and I argue for a stronger role for social values. On this position, social values may determine a theory’s conditions of adequacy, which among other things can include co.. (shrink)

Review of: Fiona MacDonald: Individualising risk (Singapore: Palgrave Macmillan, 2021, 223 pp, 130€ HB). MacDonald advances several claims. First, the ‘gig economy’ and ‘cash-for-care’ marketisation of social care and health support work come with major pitfalls: These are explored with reference to specific cases in Australia and England. Second, processes that underlie the individualisation of care need to be identified and critically evaluated. For when risk and responsibility are shifted onto individual workers, what we can expect to (...) see, given the evidence, is a marked decrease in the quality of care that the elderly and people with disability receive. [...]. (shrink)

An extended analysis compared to observations shows that modern “globalised” world civilisation has passed through the invisible “complexity threshold”, after which usual “spontaneous”, empirically driven kind of development (“invisible hand” etc.) cannot continue any more without major destructive tendencies. A much deeper, non-simplified understanding of real interaction complexity is necessary in order to cope with such globalised world development problems. Here we introduce the universal definition, fundamental origin, and dynamic equations for a major related quantity of (systemic) risk characterising (...) real complex system development tendencies at any level of dynamics. Practically important conclusions are derived, opening further detailed applications in economy, finance and development practice. (shrink)

Ulrich Beck's best selling Risk Society established risk on the sociological agenda. It brought together a wide range of issues centering on environmental, health and personal risk, provided a rallying ground for researchers and activists in a variety of social movements and acted as a reference point for state and local policies in risk management. The Risk Society and Beyond charts the progress of Beck's ideas and traces their evolution. It demonstrates why the issues (...) raised by Beck reverberate widely throughout social theory and covers the new risks that Beck did not foresee, associated with the emergence of new technologies, genetic and cybernetic. The book is unique because it offers both an introduction to the main arguments in Risk Society and develops a range of critical discussions of aspects of this and other works of Beck. (shrink)

A growing body of research can be found in which roboticists are designing for reciprocity as a key construct for successful human–robot interaction (HRI). Given the centrality of reciprocity as a component for our moral lives (for moral development and maintaining the just society), this paper confronts the possibility of what things would look like if the benchmark to achieve perceived reciprocity were accomplished. Through an analysis of the value of reciprocity from the care ethics tradition the richness of reciprocity (...) as an inherent value is revealed: on the micro-level, as mutual care for immediate care givers, and on the macro-level, as foundational for a just society. Taking this understanding of reciprocity into consideration, it becomes clear that HRI cannot achieve this bidirectional value of reciprocity; a robot must deceive users into believing it is capable of reciprocating to humans or is deserving of reciprocation from humans. Moreover, on the macro-level, designing social robots for reciprocity threatens the ability and willingness to reciprocate to human care workers across society. Because of these concerns, I suggest re-thinking the goals of reciprocity in social robotics. Designing for reciprocity in social robotics should be dedicated to the design of robots to enhance the ability to mutually care for those that provide us with care, as opposed to designing for reciprocity between human and robot. (shrink)

Socially responsible investment (SRI) has become a major intervention in global investment practices that responds to the power of institutional investors to affect corporate practice. While SRI grew out of the decisions made by churches to curtail investment in so-called “sin stocks” (companies which profited from alcohol, tobacco and gambling), little work has been done to explain why such a dramatic difference in investment strategy would occur or how it ought to impact the investment decisions of individual Christians and their (...) faith communities. This paper explores how social institutions with a religious character determine how to balance the risk of inflicting harm on those institutions with responsibility for transforming the economic order through making investment decisions. Using data collected from shareholder proposals in corporate proxy filings and interviews with investment managers, we develop a typology of theologically grounded approaches to risk and responsibility. (shrink)

Building on earlier work on the relationship between corporate social performance (CSP) and a firm’s financial performance, this integrative empirical study supports the theoretical argument that the higher a firm’s CSP the lower its financial risk. Specifically, the relationship between CSP and risk appears to be one of reciprocal causality, because prior CSP is negatively related to subsequent financial risk, and prior financial risk is negatively related to subsequent CSP. Additionally, CSP is more strongly correlated (...) with measures of market risk than measures of accounting risk. Of all CSP measures, reputation for social responsibility appears to be the most important one in terms of its risk implications. (shrink)

Stakeholder management is an important method for reducing business risk. Recent decades have seen the growth of a new type of stakeholder: social protest stakeholders, individuals engaging in protest action which is directed at other unrelated parties, often the government. However, the actions of social protest stakeholders may negatively affect companies located nearby. This stakeholder category has not received any formal attention in the literature, and this article addresses the knowledge gap by exploring the effects of community-driven (...) protest action in South Africa and the strategies that firms adopt to mitigate the negative consequences of such protests. A multiple case study analysis was used to describe this type of stakeholder group and the management of the consequences of social protest action. Eight manufacturing companies in the Gauteng province participated in the study, the companies varied in size and industry. Among the key findings are that companies need to be highly adaptable if they are to mitigate the impact of protest action. We make practical suggestions about how companies may manage these risks, including the recommendation that companies engage more directly with social protestors to manage risks. The study makes an important contribution to the literature by identifying an additional key category of stakeholder and proposing a risk management approach to avert or minimize loss and damage. (shrink)

We analyze the role of ethical values in the determination of the social cost of carbon, arguing that the familiar debate about discounting is too narrow. Other ethical issues are equally important to computing the social cost of carbon, and we highlight inequality, risk, and population ethics. Although the usual approach, in the economics of cost-benefit analysis for climate policy, is confined to a utilitarian axiology, the methodology of the social cost of carbon is rather flexible (...) and can be expanded to a broader set of social-welfare approaches. [Open access]. (shrink)

We have a responsibility to obey COVID-19 rules, in order to minimize risk. Yet it is still seen as rude to challenge people who do not respect those rules, when in fact the opposite is true; it is rude to increase risk to others. In this paper I analyse the relationship between risk, responsibility, and rudeness by analysing the evolution of the main governmental slogans and rules and explore the complex relationship between simplicity, safety, and perceived fairness (...) of these rules, and how these features in turn influence the extent to which we act responsibly. I begin by exploring the relationship between rudeness and risk in our interactions about coronavirus, before going on to analyse the importance of clear rules in minimizing tension between us, illustrating the argument with various slogans including “stay at home,” “stay alert,” and the now infamous “rule of six,” which is actually at least three different rules. Ultimately, we are faced with a paradox: people annoyed about complex/unfair rules are less likely to obey them, even if that means rules will apply for longer and even though it was noncompliance with earlier simpler rules that means new rules are necessary. And if rules make less or no sense it is harder to try to get people to follow them in your own capacity as a citizen; it is hard to police rules that are seen as arbitrary or unfair. (shrink)

We investigate the association between a wide range of community-level environmental, social, and governance (ESG) outcomes and the credit risk of U.S. municipal finance fixed-income securities. We develop a novel dataset of multiple ESG outcomes for U.S. counties and connect it to a 2001-2020 panel of municipal bonds issued within those counties. Overall, we find supportive evidence that collective increases in community-level ESG factors (i.e., ESG outcomes) are associated with reductions in credit risk for U.S. municipal finance (...) instruments over time. We theorize that these associations arise from variations in investor perceptions and manifested changes in fiscal health over time as a function of changing ESG outcomes. Post hoc analyses leveraging quasi-exogenous shocks to uncertainty, as well as connecting ESG outcomes to various measures of fiscal health at the county-year level, and credit ratings at the bond-year level, help validate this theory. Our research suggests that even socially agnostic investors should investigate the environmental and social performance of a municipality as part of their credit due diligence. (shrink)

Corporate social responsibility positively impacts relationships between firms and customers. Previous research construes this as an outcome of customers’ warm glow that results from supporting firms’ benevolence. The current research demonstrates that beyond warm glow, CSR positively impacts firms’ sales through mitigating their customers’ perceptions of purchase risk. We demonstrate this effect across three conditions in which customers’ perceived risk of purchase is heightened, using both secondary data and two lab experiments. Under conditions of greater purchase (...) class='Hi'>risk, CSR positively impacts both sales and customer purchase intentions to a greater extent than in conditions of lower purchase risk. In addition to measuring purchase risk as the mediating process behind these effects, we demonstrate that the effect of CSR on sales is stronger for those CSR activities that signal a stakeholder orientation. (shrink)

This article investigates the role of commonly specified control variables in moderating the relationship between corporate social performance (CSP) and corporate financial performance (CFP). In addition, there are separate measures for positive (strengths) social actions, and for negative (concerns) social actions. The results support the positive relationship between CSP and CFP. The best model, as determined using factorial analysis of variance, is one which has the following control variables: size, industry, risk, and research and development expenditures. (...) In examining the CSP/CFP relationship, researchers must control for these variables, in order to properly specify the model. (shrink)

Interactions of entrepreneurs through social networks provide an available path for corporate risk contagions. However, the issue how entrepreneurs’ social networks influence on corporate risk contagion is still received limited attention from scholars. In this study, a framework is proposed to describe entrepreneurs’ interaction and corporate value creation. The main results of multiagent simulations indicate the following. First, either weak ties or strong connections of social networks can enhance density of corporate risk contagion. However, (...) only strong connections can be moderated by entrepreneurs’ risk preference. Second, weak ties improve risk exposure of individual corporations, while strong connections may probably decrease systematical risk of the market. Third, weak ties are important for mature corporations to achieve business success. However, for startups, strong connections are more valuable to maintain. The findings of this study not only provide theoretical support from some widely accepted economic phenomenon but also provide explanations for conflicting results from some previous literatures. (shrink)

We report the results of an experiment on how individual risk taking clusters together when subjects are informed of peers’ previous risk taking decisions. Subjects are asked how much of their endowment they wish to allocate in a lottery in which there is a 50% chance the amount they invest will be tripled and a 50% chance their investment will be lost. We use a 2 × 2 factorial design varying: (i) whether the subjects initially observed high or (...) low investment social anchors, (ii) whether information about the investment decisions of other subjects in their social group is provided. We find strong evidence that individuals' risk taking decisions are malleable to that of their peers, which in turn leads to social clustering of risk taking. Social anchors shape initial risk taking, with mean investment then converging to a high level across treatments. (shrink)