Though still relatively infrequent, the issuing of dissenting and concurring opinions is becoming more common in international investment arbitration. This paper reviews the reasons for delivering separate opinions envisaged in the bibliography on investment arbitration, comparing these with practices in the related area of commercial arbitration. Fourteen recent separate opinions appended to ICSID arbitration awards and decisions are then analysed to determine how the arbitrators themselves explain why they have taken the drastic step of (...) issuing a separate opinion. Potential areas of convergence between investment arbitration and commercial arbitration practice will be addressed. (shrink)

This article connects the insights of post-realist scholarship about radical indeterminacy and its consequences for the legitimacy of adjudication to the current legitimacy crisis of the international investment regime. In the past few years, numerous studies have exposed serious shortcomings in investment law and arbitration including procedural problems and the substantive asymmetry of the rights protected. These criticisms have prompted a broad consensus in favor of amending the international investment regime and multiple reform proposals have appeared (...) that appeal to the rule of law ideal as an instrument for increasing the acceptability of the international investment system. This article argues that the reliance of such proposals on jurisprudential approaches that fail to adequately accommodate the post-realist indeterminacy critique and take seriously the role of ideology in adjudication renders reform efforts unable to solve the legitimacy problems of the investment regime. The conclusions suggest the need to abandon implausible claims to depoliticization and face the methodological challenges posed by the promise of ideologically balanced assessments advanced by some rule of law theorists. The article finally points at the urgency to reform traditional approaches to doctrinal work in order to increase awareness of critical challenges and open up doctrinal methods to alternative methodological avenues. (shrink)

Investor-state-dispute-settlement is an arbitration mechanism to settle disputes between foreign investors and host-states. Seemingly a technical issue in private international law, ISDS procedures have recently become a matter of public concern and the target of political resistance, due to the power they grant to foreign investors in matters of public policies in the countries they invest in. This article examines the practice of ISDS through the lenses of liberal-statist theories of international justice, which value self-determination. It argues that the (...) investor-state arbitration system illustrates how liberal-statist theories of international distributive justice ought to care about relative socioeconomic disadvantage, contra the sufficiency principle that they typically defend. The sufficiency principle draws on a questionable conception of the freedom that self-determination consists in. (shrink)

The arbitral world is at a crucial point in its historical development, poised between two conflicting conceptions of its nature, purpose, and political legitimacy. Formally, the arbitrator is an agent of the contracting parties in dispute, a creature of a discrete contract gone wrong. Yet, increasingly, arbitrators are treated as agents of a larger global community, and arbitration houses concern themselves with the general and prospective impact of important awards. In this paper, I address these questions, first, from the (...) standpoint of delegation theory. In Part I, I introduce the basic “Principal-Agent" framework [P-A] used by social scientists to explain why actors create new institutions, and then briefly discuss how P-A has been applied to the study of courts. Part II uses delegation theory to frame discussion of arbitration as a mode of governance for transnational business and investment. In Part III, I argue that the International Center for the Settlement of Investment Disputes is presently in the throes of judicialization, indicators of which include the enhanced use of precedent-based argumentation and justification, the acceptance of third-party briefs, and a flirtation with proportionality balancing. Part IV focuses on the first wave of awards rendered by ICSID tribunals pursuant to Argentina's response to the crushing economic crisis of 2000-02, wherein proportionality emerged, adapted from the jurisprudence of the Appellate Body of the World Trade Organization. (shrink)

This article identifies the principal signs forming the language of investment law and arbitration, isolating for each of them its signifier and its signified in light of how such signs are used by arbitrators, practitioners and scholars. In light of this analysis, investment arbitration is assessed from a semiotic standpoint in order to verify whether it is possible, under this perspective, to consider international investment law as a multilateralised branch of international law, with a common (...) language, customs and rules rightly referred to by international arbitral tribunals, or if the term “international investment law” is merely a conventional expression that simply groups together a plurality of micro-systems with no significant link among each other to justify the arbitrators' establishment of a de facto system of precedent and the constant reference to a non-existent body of international law rules on foreign investment. (shrink)

This article describes the emergence of a new category of actors in the social arbitration field, namely third-party financiers, with a focus on the possible ethical implications for investment arbitration proceedings. Third-party financiers are actors-service providers specialized in the financing of procedures in which they are associated with the result and the redemption of arbitral awards which they ensure the execution. The emerging phenomenon of third-party financing in the social field of international arbitration raises various ethical (...) concerns, which have not been regulated by the legal framework of most arbitral institutions. By exploring the various interactions between third-party funders and other actors in the social field of international arbitration, the article intends to highlight the ethical implications that the phenomenon of third-party funding may have on both the lawyer-client relationship and the independence and impartiality of arbitrators. It is argued that the introduction of the new phenomenon of third-party funding into the dispute may disrupt the arbitral process. Third-party funding is particularly likely to lead to situations of conflict of interest for arbitrators, which may affect the final award and exacerbate the crisis of legitimacy of the arbitral process. This article explores the various ethical concerns that it raises, and proposes some thoughts on the need for precise regulation of this emerging phenomenon in the contemporary arbitration panorama. It argues that, for ethics to prevail, disclosure of the identity of the third-party funder and the funding agreement should be encouraged in certain circumstances. This is the way to preserve the integrity of the proceedings and the impartiality and independence of the arbitrators. (shrink)

Expropriation is a hotly debated issue in international investment law. This is the first study to provide a detailed analysis of its norm-theoretical dimension, setting out the theoretical foundations underlying its understanding in contemporary legal scholarship and practice. Jörg Kammerhofer combines a doctrinal discussion with a theoretical analysis of the structure of the law in this area, undertaking a novel approach that critically re-evaluates existing case-law and writings. His approach critiques the arguments for a single expropriation norm based on (...) custom, interpretation and arbitral precedents within international investment law, drawing also on generalist international legal thought, to show that both cosmopolitan and sovereigntist arguments are largely political, not legal. This innovative work will help scholars to understand the application of theory to investment law and help specialists in the field to improve their arguments. (shrink)

This research paper examines the foreign investment laws and procedure of Pakistan and their role in protection of foreign investment in Pakistan. These laws are untapped area of research and one cannot find any specific research tracing the legal development in this highly specialized field. So far Pakistan has 48 BITs enforced with different countries and has also signed ICSID Convention, which is promulgated locally through Arbitration Act, 2011 incorporating the Convention in the schedule to ease the (...) difficulty of foreign investors to enforce the awards rendered under auspices of ICSID in the territory of Pakistan. Under this research, an attempt has been made to study prevalent foreign investment laws and its trends in Pakistan. Though Pakistan has significantly improved its foreign investment regime by introducing new investor’s friendly laws like, Special Economic Zones Act, 2011 and Investment Policy, 2013 etc., apart from its previous legislation on the subject, yet this regime needs more improvement and updating. Extensive overview of all existing foreign investment laws were carried out in this research. Fair and Equitable Treatment, Expropriation and other factors affecting foreign investment laws are the areas, which need to be taken care of by policy maker in the existing foreign investment laws of Pakistan. With these aims, it is hoped that this research paper would be a humble contribution in the literature on the subject. (shrink)

National governments have signed and ratified over three thousand International Investment Agreements (IIAs), which for the first time give multinational firms standing to sue host governments in international arbitration tribunals. IIAs have led to a host of high-profile and controversial legal disputes that have led to claims that investor state arbitration may be impeding governments in their ability to regulate and to protect their citizens’ well-being, a phenomenon known as “regulatory chill.” To understand the normative implications of (...) regulatory chill, I analyze investor state arbitration over tobacco in Australia and Latin America. I examine legislative discussions over possible regulatory changes in Australia and Uruguay, the two cases that have faced disputes over tobacco laws, as well as in Latin American countries that provide access to the legislative debates and had legislative initiatives that sought to strengthen tobacco legislation. These cases demonstrate that tobacco packaging laws in a number of countries have been delayed or reduced as a result of fears of potential arbitration among the government and legislators. This regulatory chill is normatively problematic as it suggests that states may be giving up more of their regulatory authority than they initially believed they would have to under IIAs. (shrink)

How is legitimacy to be secured for constitution-like legal orders operating beyond the state? Some scholars recommend connecting aspects of global law to human rights adjudication and enforcement by adopting their preferred method for resolving conflicts, namely, proportionality analysis. Adopting a frame of analysis widely embraced by apex courts might generate the requisite regime legitimacy, it is argued. This turns out to be a strategy that is difficult to pursue in the realm of international investment law, a global legal (...) order made up of over 3,300 investment and regional treaties, enforced by private systems of dispute resolution, that incorporates standards of treatment familiar to national constitutional law. By undertaking an analysis of statements made by relevant actors in the field, principally investment lawyers and arbitrators, we learn that there is not that much interest in taking up proportionality analysis, despite the legitimacy problems that continue to dog the system. Whatever the purported advantages of turning to proportionality, it turns out that investment lawyers and arbitrators are not so interested in embracing logics other than one preoccupied with owing solicitude to foreign investors. This reluctance renders investment law a less legitimate, and therefore less sustainable, form of constitution-like global law. (shrink)

Investment protection clauses, and the investor-state dispute settlement mechanisms they enable, have become a common feature of international agreements on trade and investment. Intended to promote foreign investment, these protections may also discourage governments from regulating in the public interest. This raises challenging normative questions about the rights of investors and distributive justice. In this paper, I argue that a global investment regime that disadvantages developing countries and socially disadvantaged groups is prima facie unfair. This conclusion (...) must be defended against the claim that investors have certain independent moral rights to have their property protected, regardless of the distributive consequences. Granting the premise that such investor rights exist, I argue that these cannot plausibly ground a general rule against public interest regulation that undermines the value of property. I conclude that even if foreign investors have rights that must be safeguarded, the current investment regime must be reformed. (shrink)

This article addresses the growing industry of retail socially responsible investment (SRI) profiled mutual funds. Very few previous studies have examined the final consumer of SRI profiled mutual funds. Therefore, the purpose of this study was to, in an exploratory manner, examine the impact of a number of pro-social, financial performance, and socio-demographic variables on SRI behavior in order to explain why investors choose to invest different proportions of their investment portfolio in SRI profiled funds. An ordinal logistic (...) regression analysis on 528 private investors revealed that two of the three pro-social variables had a positive impact on how much the consumer invested in SRI profiled funds. Moreover, there was proof of a non-altruistic motive for investing in SRI as consumers who perceive that financial return of SRI is equal or better than "regular" mutual funds, invested a greater proportion of their portfolio in SRI profiled mutual funds. Furthermore, the results showed that women and better-educated investors were more likely to invest a greater proportion of their investment portfolio in SRI. Overall, the findings indicate that both financial perceptions and pro-social attitudes are connected to consumer investment in SRI. (shrink)

Ethical investing is all the rage. Unfortunately, excitement about it has outpaced plausible philosophical discussions. This article asks and answers two questions: “What counts as investment?”, and “What moral choices do investors have?”. I answer the first question broadly. Investment is pervasive in our economy, and by participating we share responsibility for corporate practices. These facts lead to an “austere conclusion”: short of outright withdrawal from the standard forms of investment, we have little hope of avoiding participation (...) in immoral activities. Thus we must withdraw. Fortunately, the answer to the second question mitigates this disturbing result. Under certain circumstances, shareholder activism aimed at moral goals is a valuable way to participate in a deeply flawed system. By demonstrating the pervasiveness of investment and analogies with consumption and democratic political participation, the conclusions of this paper illuminate not only the ethics of investment but a more-general problem of individual responsibility in complex institutions. The paper is informative both for its applicability to these latter questions, and for its demonstration that investment is not merely a side-topic for business ethics texts, but rather a central problem of modern market societies. (shrink)

Binding arbitration is generally less available in tort suits than in contract suits because most tort plaintiffs do not have a pre-dispute contract with the defendant, and are unlikely to consent to arbitration after the occurrence of an unforeseen injury. But the Federal Arbitration Act applies to all “contract[s] evincing a transaction involving commerce,” including contracts for healthcare and medical services. Given the broad trend towards arbitration in nearly every other business-to-consumer industry, coupled with some rollbacks (...) in tort reform measures that have traditionally favored medical professionals in the judicial system, it is very possible that we may witness in the near future more medical contracts containing arbitration provisions. As a consequence, all manner of tort claims might be hashed out in the sequestered universe of arbitration. (shrink)

Interest in the notion of the possible financial sacrifice suffered by socially responsible investment (SRI) fund investors for considering ethical, social and environmental issues in their investment decisions has spawned considerable academic interest in the performance of SRI funds. Both the Australian and international research literature have yielded largely mixed results. However, several of these studies are hampered by methodological problems which can obscure the significance of reported results, such as the use of small sample sizes, inconsistencies in (...) the time frames selected to analyse performance and different modelling frameworks used to estimate investment returns. This study attempts to redress some of these issues by investigating the returns performance of 89 ethical funds in Australia over the period 1986-2005. Using a multi-factor CAPM model [Fama, E. F., and K. R. French (1996) J. Finance 51(1), 55] (which controls for factors such as size, book-to-market value and momentum) we find that ethical funds significantly under-perform the market in Australia, particularly in the most recent 5 years of our sample period (2000-2005). Risk adjusted returns (using Jensen's alpha) indicate that average annual underperformance is around 1.52% in the 2000-2005 period for our sample and .88% over the whole sample period. Our results contrast with many previous studies (both Australian and international), which have not found statistically significant differences in the performance of ethical funds relative to market benchmarks and/or a matched sample of conventional funds. (shrink)

Les textes -- Tiédeur et laxisme d'Érasme -- Rigueur et sobriété de Luther -- Les prédécesseurs de Luther -- Lignes do force du débat -- Que reste t-il de nos prières et de nos efforts? -- La doctrine des deux règnes -- La liberté le traite de la liberté du chrétien de M. luther -- Serf arbitre et nouvelle théologie -- L'oeil et le regard -- L'exigence de vérité -- La justification -- Essai de résumé du Traite du serf arbitre (...) de Martin Luther. (shrink)

Artificial Intelligence (AI) has become a driving force in modern research, industry and public administration and the European Union (EU) is embracing this technology with a view to creating societal, as well as economic, value. This effort has been shared by EU Member States which were all encouraged to develop their own national AI strategies outlining policies and investment levels. This study focuses on how EU Member States are approaching the promise to develop and use AI for the good (...) of society through the lens of their national AI strategies. In particular, we aim to investigate how European countries are investing in AI and to what extent the stated plans contribute to the good of people and society as a whole. Our contribution consists of three parts: (i) a conceptualization of AI for social good highlighting the role of AI policy, in particular, the one put forward by the European Commission (EC); (ii) a qualitative analysis of 15 European national strategies mapping investment plans and suggesting their relation to the social good (iii) a reflection on the current status of investments in socially good AI and possible steps to move forward. Our study suggests that while European national strategies incorporate money allocations in the sphere of AI for social good (e.g. education), there is a broader variety of underestimated actions (e.g. multidisciplinary approach in STEM curricula and dialogue among stakeholders) that can boost the European commitment to sustainable and responsible AI innovation. (shrink)

The psychology of reasoning uses norms to categorize responses to reasoning tasks as correct or incorrect in order to interpret the responses and compare them across reasoning tasks. This raises the arbitration problem: any number of norms can be used to evaluate the responses to any reasoning task and there doesn’t seem to be a principled way to arbitrate among them. Elqayam and Evans have argued that this problem is insoluble, so they call for the psychology of reasoning to (...) dispense with norms entirely. Alternatively, Stupple and Ball have argued that norms must be used, but the arbitration problem should be solved by favouring norms that are sensitive to the context, constraints, and goals of human reasoning. In this paper, I argue that the design of reasoning tasks requires the selection of norms that are indifferent to the factors that influence human responses to the tasks—which aren’t knowable during the task design phase, before the task has been given to human subjects. Moreover, I argue that the arbitration problem is easily dissolved: any well-designed task will contain instructions that implicitly or explicitly specify a single determinate norm, which specifies what would count as a solution to the task—independently of the context, constraints, and goals of human reasoning. Finally, I argue that discouraging the use of these a priori task norms may impair the design of novel reasoning tasks. (shrink)

Ethical or socially responsible investment is one of the most rapidly growing areas of finance. New government regulations mean that all pension funds are obliged to take such considerations into account. However, this phenomenon has received little critical attention from business ethicists, and a clear conceptual framework is lacking. This paper, by a practitioner in the field, attempts to fill this analytical gap. It considers what difference, if any, lies between the terms ‘ethical’, ‘green’, or ‘socially responsible’. It also (...) tackles the difficult question of how any public form of investment can be called ‘ethical’ in an overtly pluralistic society. The paper provides an account of the historical development of ethical investment, and traces the evolution of the varying terms used to describe it. This is followed by a conceptual analysis of these terms, and a description of ethical decision‐making in this context. The paper ends by considering the role of shareholder action within ethical investment, and assesses the utility of the stakeholder model as a theoretical justification. (shrink)

The purpose of this paper is to provide an overview of the most recent public policy and ethical issues as they relate to the growing usage of nonunion employment arbitration particularly in relation to financial services firms and professional firms. In this era of increasing employment-related litigation, it is wise from an employer’s point of view to find alternative procedures that offer assurances of fairness yet provide expeditious means for resolving disputes. From an employee’s vantage point, however, it is (...) essential that the fundamental issue of procedural and substantive due process be maintained and guaranteed. Therefore, a number of strategic ethical issues arise: How should employment arbitration procedures be designed following the Due Process Protocol of the Task Force on Alternative Dispute Resolution in Employment? How should arbitration procedures follow the national rules for the resolution of employment disputes of the American Arbitration Association? Do recent court decisions shed light on these issues? What ethical principles can be gleaned from these public policy pronouncements? A final objective of this paper is to study some of the current initiatives on this topic. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Interstate Arbitration in the Greek World, 337–90 B.C.Everett L. WheelerSheila L. Ager. Interstate Arbitration in the Greek World, 337–90 B.C.Berkeley, Los Angeles, and London: University of California Press, 1996. xvii + 579 pp. Cloth, $70, £55 (foreign). (Hellenistic Culture and Society, 18)Sheila L. Ager's massive—and impressive—volume on Hellenistic interstate arbitration rides the new wave of scholarly interest in the politically fragmented but cosmopolitan Hellenistic period. (...) Cosmopolitanism in many periods (including the present post–Cold War era) has fostered political internationalism—schemes of world government, federal unions, and mechanisms for peaceful resolution of interstate conflicts. Although the Hellenistic age enjoyed little respite from war, some scholars have hailed Greek arbitration as a model for modern imitation.A brief survey of previous scholarship on arbitration will place Ager's work in perspective. Concepts of law and internationalism dominated earlier work. Some believed that arbitration as judicial practice could be studied without distinguishing public from private or internal from interstate cases: e.g., E. Sonne, De arbitris externis, quos Graeci adhibuerunt ad lites et intestinas et [End Page 642] peregrinas componendas, quaestiones epigraphicae (1888); E. de Ruggiero, L'arbitrato pubblico in relazione col privato presso i Romani (1893); A. Steinwenter, Die Streitbeendigung durch Urteil, Schiedsspruch und Vergleich nach griechischem Recht (1925). For internationalists establishment of a permanent Court of Arbitration at The Hague in 1899 elicited a flood of scholarly interest: Greek arbitration now had contemporary relevance: e.g., W.Westermann, CJ 2 (1906–7) 197–211; L. Matthaei, CQ 2 (1908) 241–64; A. Raeder, L'arbitraire internationale chez les Hellenes (1912), published by the Nobel Institute; M. Tod, International Arbitration amongst the Greeks (1913); cf. his Sidelights on Greek History (1932) 39–68. Victor Bérard (always "Berard" in Ager) remained a voice of cynicism crying in the wilderness (De Arbitro inter Liberas Graecorum Civitates, 1894): Greeks resorted to arbitration after exhaustion in war or accepted a settlement only until a later opportunity for reopening the case arose. Study of interstate arbitration, dormant after Tod, revived with Luigi Piccirilli's corpus of Greek cases ca. 740–338 B.C.: Gli arbitrati interstatali greci (Pisa [not Florence, as Ager 578], 1973). Seven years later, A. J. Marshall reassessed Roman arbitrations in the East and accommodation of Greek practice (ANRW II.13 [1980] 626–61), on which E. S. Gruen expanded: The Hellenistic World and the Coming of Rome (1984) 96–131.Certainly more cases of arbitration/mediation are now known. Ager's study includes 171 instances for 337–90 B.C., with an appendix of 40 cases from texts too fragmentary to judge their contents accurately or instances failing to meet her criteria for inclusion as arbitration/mediation. In comparison, Ruggiero assembled a Roman corpus of 65 cases (both public and private, 191 B.C.– A.D. 282/4); Raeder, 81 Greek cases (ca. 740–ca. 100 B.C.; Tod, 82 Greek cases (ca. 740–early first cent. B.C.); and Piccirilli, 61 Greek cases (ca. 740–338 B.C.), besides 19 cases from mythological sources. But numbers easily deceive (cf. Ager 19–20): new epigraphical discoveries alone would assure greater numbers. Moreover, whereas Ruggiero, Raeder, and Tod confined their catalogues to epigraphical texts, Piccirilli and Ager include literary testimonia and a broader definition of "arbitration":, a formal judicial procedure involving selection of third–party judges to evaluate publicly presented oral and written testimony; mediation (σύλλυσις), a third party's reconciliation of disputants; and, for Ager (xiv), even "voluntary compromise."Ager's volume, a revised dissertation (University of British Columbia), continues Piccirilli's corpus: thus its initial terminus is 337 B.C.; the concluding terminus, 90 B.C., is conceded to be arbitrary. The texts follow chronological order (as opposed to Tod's regional arrangement). Only interstate cases involving Greeks as either disputant or arbiter are included, and inconsistency for inclusion is confessed: not all cases are in her view historical (i.e., no. 93, Heraclea's attempted mediation between Rome and Antiochus III), and her generous definition of "arbitration" can involve subjectivity (e.g., no. 23 [Delphi]: dikastai in a very fragmentary text qualifies it as an arbitration document; cf... (shrink)

This paper examines the different mechanisms used by multinational corporations (MNCs) in Nigeria seeking to make long-term social investments by meeting the critical challenge of improving water provision. Community enterprise – an increasingly common form of social enterprise, which pursues charitable objectives through business activities – may be the most effective mechanism for building local capacity in a sustainable and accountable way. Traditionally, social investments by MNCs have involved either donations to a charity, which then assumes responsibility for delivering social (...) outcomes, or direct management of social investment in-house. These approaches have been criticized, however, for their limited contribution to local capacity building, their focus on short-term outcomes, and the restricted role that they afford to communities. Partnering with community enterprise, provided there is sufficient local capacity to support it, is the most effective mode of governance through which MNCs can manage social investments in developing countries. (shrink)

Post-conflict economies often prove daunting for foreign investors. Many of these nations are reaching out to diasporans, emigrants, and their descendants living abroad, for much-needed foreign investment capital. Little is known about why diasporans invest in their countries of origin. Recent scholarly inquiry regarding investment decision making has suggested that non-pecuniary, psychological concerns often motivate investment decisions. We develop a conceptual model identifying three types of investment return expectations — financial, emotional, and those related to social (...) status — that may drive diaspora investment interest. We contend that the psychological realities and social-status structure of the diaspora experience generate greater salience for non-pecuniary investment motivations, particularly when the origin country emerges from a period of conflict. We outline an agenda for future research and discuss the implications of our model for policies seeking to promote peace utilizing diaspora investment. (shrink)

Market crises amplify fear, disrupting rational decision-making of stock investment. This study examines the relationship between investors’ information priorities—such as intuition, company performance, technical analysis, and other factors—and their fear responses (freeze, flight, and hiding) during market crashes. Using the Bayesian Mindsponge Framework (BMF) to analyze data from 1,526 investors in China and Vietnam, the findings reveal complex dynamics. We found positive associations between investors’ prioritization of social influence and intuition for investment decision-making with being freeze (i.e., not (...) knowing what to do with the owned stock), between prioritization of professionals’ evaluation and intuition with fleeing (i.e. giving up stock investment permanently), and between prioritization of professionals’ evaluation and social influence with hiding (i.e., stopping investing in stock for a while). In contrast, prioritization of companies’ performance metrics (e.g., net profit, debt, etc.) was negatively associated with being freeze, fleeing, and hiding. Meanwhile, prioritization of professionals’ evaluation, technical analysis, and liquidity was negatively associated with being freeze, fleeing, and hiding, respectively. The study highlights the importance of disseminating transparent, accurate information through government and media channels, along with implementing financial education programs, to promote rational investment decisions and reduce fear-driven behaviors. (shrink)

Several studies have suggested a matrilateral bias in allomaternal (non-maternal) infant and child caregiving. The bias has been associated with the allomother’s certainty of genetic relatedness, where allomothers with high certainty of genetic relatedness will invest more in children because of potential fitness benefits. Using quantitative behavioral observations collected on Ngandu 8- to 12-month-old infants from the Central African Republic, I examine who is caring for infants and test whether certainty of genetic relatedness may influence investment by allomothers. Results (...) indicate a matrilateral bias in caregiving by extended kin members, but this does not affect the total level of care infants receive when fathers and siblings are included in the analysis. These results replicate a previous study done among an adjacent foraging population and emphasize the importance of examining children’s complete social environments when addressing caregiving and child development. (shrink)

In Canada, much media attention has recently been focused on the formation of arbitration tribunals that would use Islamic law or Sharia to settle civil matters in Ontario. In fact, the idea of private parties voluntarily agreeing to arbitration using religious principles or a foreign legal system is not new. Ontario's Arbitration Act has allowed parties to resolve disputes outside the traditional court system for some time. This issue has been complicated by the fact that Canada has (...) a commitment to upholding both a policy of multiculturalism and an international obligation towards women's rights. Although these values need not necessarily conflict, in this context, they have carried a tension that must be reconciled. This paper will examine the legal implications of faith-based arbitration tribunals in family law, with a particular emphasis on the impact that Sharia could have on Muslim women in Ontario. (shrink)

Papers presented by three scholars from Asia, Africa and Europe, at a seminar held at the Hague Academy of International Law, Netherlands.

This study provides novel evidence of the impact of corporate social responsibility (CSR) on investment sensitivity to cash flows. We posit that CSR affects investment–cash flow sensitivity (ICFS) through information asymmetry and agency costs, commonly viewed as the two channels through which investment responds to the availability of internal cash flows. We find that CSR performance leads to a decrease in ICFS. We further find that ICFS decreases (increases) when CSR strengths (concerns) increase. Finally, we find that (...) the effect of CSR on ICFS is driven by the areas Community, Diversity, and Human Rights. In sum, the findings of this study stress the relevance of CSR—in particular, of CSR activities that extend beyond compliance behavior and reflect what is desired by society—in reducing market frictions and improving firms’ access to financial capital. (shrink)

Female-biased parental investment is unusual but not unknown in human societies. Relevant explanatory models include Fisher’s principle, the Trivers-Willard model, local mate and resource competition and enhancement, and economic rational actor models. Possible evidence of female-biased parental investment includes sex ratios, mortality rates, parents’ stated preferences for offspring of one sex, and direct and indirect measurements of actual parental behavior. Possible examples of female-biased parental investment include the Mukogodo of Kenya, the Ifalukese of Micronesia, the Cheyenne of (...) North America, the Herero of southern Africa, the Kanjar of south Asia, the Mundugumor of New Guinea, contemporary North America, and historical Germany, Portugal, and the United States. (shrink)

The COVID-19 pandemic has led to the widespread use of online hearings in arbitral proceedings, raising questions about the impact of such proceedings on the determination of facts underlying a dispute. This article explores the extent to which online hearings may hinder arbitrators’ ability to assess witness credibility by drawing upon the cognitive psychology literature on truthfulness determination and lie detection. A survey of the literature suggests that the ability to differentiate truthful from dishonest statements through verbal and nonverbal cues (...) is limited, leading to the notion that observing behaviors like fidgeting, gaze aversion, vocal pitch, or body posture is not particularly relevant in assessing the credibility of a witness. Instead, focusing on the content of what is reported appears to be the most relevant strategy to determine credibility. Therefore, research does not support the idea that face-to-face contact with witnesses is essential to determine the facts of a dispute. Still, the use of in-person hearings may, in practice, continue to be preferred due to underlying cultural assumptions regarding the nature of hearings, the facilitation of communication between parties, counsel, and the tribunal, and a general sense of _Zoom fatigue_. (shrink)

In much of the developing world daughters receive lower education and other investments than do their brothers, and may even be so devalued as to suffer differential mortality. Daughter disadvantage may be due in part to social norms that prescribe that daughters move away from their natal family upon marriage, a practice known as virilocality. We evaluate the effects of virilocality on female disadvantage using data from the Indonesia Family Life Survey. We find little support for the hypothesis. There is (...) no evidence that the overall pattern of rough equality in the treatment of boys and girls in Indonesia masks differences according to post-marital residential practice. Virilocal groups do not have "missing daughters." Nor is there other evidence of son preference, such as in relatively low height-for-age or education for girls and women in virilocal areas. Explanations of daughter disadvantage as due to virilocality should be subject to further scrutiny and contextualization. (shrink)

Environmental, social, and governance (ESG) investing is synonymous with sustainable investment for socially responsible investors. Unfortunately, the diversity of ESG investing remains unattended amidst the growth in ESG literature, as the academic literature focuses dominantly on measuring performance. An understanding of a wide range of subjects entailing ESG is required before future research on ESG investing is performed. To overcome the challenge, this systematic literature review uses bibliometric mapping to reveal four significant research themes within the ESG investing literature: (...) investor behavior and motivations for ESG investing; cost and risk mitigation in ESG investing; portfolio screening and ESG investing; and ESG performance. The review critically examines each theme and broadens the research agenda for future studies. In addition to the significant themes, this paper also discusses theoretical and recent research trends in the ESG investing literature. The review identifies clashes and crossovers between these themes to appropriately interpret one theme using another and emphasizes the heterogeneity in ESG investing. Lastly, discussion over concerns and criticisms of ESG investing highlights greenwashing as a major cause of concern for investors. (shrink)

Contemporary virtue ethics was revolutionized by Alasdair MacIntyre’s reconfiguration using practices as the starting point for understanding virtues. However, MacIntyre has very pointedly excluded the professions of the financial world from the reformulation. He does not count these professions as practices, and further charges that virtue would actually hinder or even rule out one’s pursuit of these professions. This paper addresses three tasks, in regard to the financial profession of investment advising. First, the paper lays out MacIntyre’s soon-to-be-published charges (...) against the investment world, as specified to this profession. Second, it sets forth the role function of investment advising and shows that it does possess internal goods—the crucial aspect of practices disputed by MacIntyre in this case—including goods of production and goods of performance. Third, it demonstrates that this function, and the goods tied to it, cannot be achieved apart from the virtuous pursuit of the profession, thereby showing that MacIntyre’s charges are mistaken. Investment advising is shown to be a virtue-based practice, and the groundwork is laid for showing that other financial professions are so, as well. (shrink)

Socially responsible investing (SRI) has emerged in recent years as a dynamic and quickly growing segment of the U.S. financial services industry involving over $2 trillion in professionally managed assets. Its conceptual origins can be found in the early history of civilization, with it's modern roots in the 1960s. This paper provides an overview of the breadth and depth of the concept and practice of socially and environmentally responsible investing, describes the investment strategies that together define SRI as currently (...) practiced in the U.S., offers several observations about some of the factors fueling its dramatic growth, and presents data showing that investors who choose to invest in a socially and environmentally responsible manner can do so without giving up investment returns. SRI has matured to a point where virtually any investment need can be met through portfolio design that integrates an investor's personal values, institutional mission, and/or social priorities. The socially responsible investment industry in the United States is a young phenomenon. Even referring to it as an "industry" ten years ago may have been a bit of a stretch. While it has grown dramatically in recent years, it is an area of work, of study and of practical application that continues to evolve in many significant ways. One intriguing example of the ongoing development of the field can be found in the analysis of the language used to describe it. The terms social investing, socially responsible investing, ethical investing, socially aware investing, socially conscious investing, green investing, values-based investing, and mission-based or mission-related investing all refer to the same general process and are often used interchangeably. (shrink)

Ethical investors are widely thought of as having two main goals. The negative goal of avoiding their investments to be morally tainted. The positive goal to further a certain ethical value they embrace or some normatively laden idea they hold by investing their money in a certain company. In light of these goals, the purpose of this paper is to provide an account of how we can explicitly include investors’ intentions when conceiving of ethical investment. The central idea is (...) that an investor’s intentions may act as both a negative and a positive qualifier for making investing ethical. If we subscribe to this account, there are interesting upshots with respect to how ethical investing compares to ethical giving as effective altruists construe it. (shrink)

Although trust and reciprocity are ubiquitous in social exchange, their neurobiological substrate remains largely unknown. Here, we investigated the effect of damage to the ventromedial prefrontal cortex (vmPFC)—a brain region critical for valuing social information—on individuals’ decisions in a trust game and in a risk game. In the trust game, one player, the investor, is endowed with a sum of money, which she can keep or invest. The amount she decides to invest is tripled and sent to the other player, (...) the trustee, who then decides what fraction to return to the investor. In separate runs, ten patients with focal bilateral damage to the vmPFC and control participants made decision while playing in the role of either investor or trustee with different anonymous counterparts in each run. A risk game was also included in which the investor faced exactly the same decisions as in the trust game, but a random device (i.e., a computer), not another player, determined the final payoffs. Results showed that vmPFC patients’ investments were not modulated by the type of opponent player (e.g., human vs. computer) present in the environment. Thus, vmPFC patients showed comparable risk-taking preferences both in social (trust game) and nonsocial (risk game) contexts. In stark contrast, control participants were less willing to take risk and invest when they believed that they were interacting with people than a computer. Furthermore, when acted as trustee, vmPFC patients made lower back transfers toward investors, thereby showing less reciprocity behavior. Taken together, these results indicate that social valuation and emotion subserved by vmPFC have a critical role in trusting and reciprocity decisions. The present findings support the hypothesis that vmPFC damage may impair affective systems specifically designed for mediating social transaction with other individuals. (shrink)

This paper explores two types of investment in the current People’s Republic of China, both of which promote fantasies about the past and future, presumably as a way to forestall uncomfortable conversations about the present. But the author is less interested in state decisions than in what makes an unofficial person “buy into” such fantasies. Her answer is, “misperceptions about tradition”, longstanding cultural preoccupations, and genuine desires to secure honor and glory in an insecure world. Her largely diagnostic paper (...) briefly considers possible responses to the question, “What, in such a dire situation, can be done to introduce more complex notions of sedimented identities?”. (shrink)

Notre expérience quotidienne nous le prouve : nous prenons des décisions pour nous déplacer, pour penser, pour agir et réagir. Nous prenons ces décisions selon notre nature et notre environnement, mais aussi en fonction de notre volonté propre. C'est cette caractéristique essentielle qui confère à l'humain son libre arbitre. Toutefois, rien dans la science ne vient conforter cette formidable intuition. Au contraire, les modèles contemporains des neurosciences et des sciences cognitives tendent à faire de nous des machines imparfaites, et à (...) reléguer la volonté au rang d'illusion. Dans ce court essai, Alain Van Kerckhoven démontre que le libre arbitre a toujours été instrumentalisé pour justifier des postures religieuses, philosophiques ou politiques. L'apparition de nouveaux outils de connaissance permet pour la première fois d'en faire un sujet d'étude rationnelle. Les conclusions nous entraînent aux frontières de la science et de la philosophie, au coeur de l'expérience humaine. (shrink)

More South African investors are integrating their personal values into their investment decisions. Research on the performance of socially responsible investment funds, also called ethical funds, yields conflicting results. In this study, the risk adjusted performance of 14 local SRI funds have been evaluated vis-à-vis their respective benchmarks. The results of the Treynor and Sharpe ratios indicate that the majority of funds outperformed their respective benchmarks over the period 1 July 2001 to 31 June 2004 and all but (...) one fund posted positive Alphas. These results thus appear consistent with previous research which shows that ethics indeed pays. (shrink)

With assets of over US$1.0 trillion and growing, public pension funds in the United States have become a major force in the private sector through their holding of equity positions in large publicly traded corporations. More recently, these funds have been expanding their investment strategy by considering a corporation's long-term risks on issues such as environmental protection, sustainability, and good corporate citizenship, and how these factors impact a company's long-term performance. Conventional wisdom argues that the fiduciary responsibility of the (...) pension funds' trustees must be solely focused on their beneficiaries and, therefore, their investment criteria must be based strictly on narrowly defined financial measures. It is also asserted that well-established financial measurements of corporate performance already include long-term risk assessment through discounted present value of future flow of earnings. Consequently, all other criteria are contrary to the best interest of the pension funds' beneficiaries. In this paper, we assert that, contrary to conventional wisdom, pension funds, and for that matter other mutual funds, must be concerned with the long-term survival and growth of corporations. These measures are generally referred to "socially responsible investing" and when applied to corporations, it is termed "socially responsible corporate conduct." We demonstrate that current measurement of future risk assessment invariably understates, and quite often completely overlooks, these long-term risks because of the inherent bias towards short-run on the part of financial intermediaries whose compensation depends greatly on short-term results. Furthermore, there is ample evidence to suggest that these intermediaries have been engaging in self-serving practices and thus failing in their duties to serve their clients', i.e. pension funds', best interests. Because of their large holdings in the total market as well as individual companies, these funds cannot easily divest from poorly performing companies without destabilizing the companies' stock and overall markets. Hence, they must opt for a strategy of emphasizing investment criteria that encourage companies to take into account long-term aspects of their operations in terms of their impact on environment, sustainability, and community welfare, to name a few. We argue that an exclusionary, and even a primary, focus on short-term financial criteria is no longer a viable option. It also calls for the pension funds to encourage greater transparency and accountability of the entire corporate sector through improved corporate governance. Thus socially responsible investing practices are not merely discretionary and desirable activities; they are a necessary imperative, which both the corporations and public pension funds, and other large institutional holders, will ignore at serious peril to themselves. Finally, the paper considers some of the recent developments where corporations have been responding to these challenges and how their actions might be strengthened through greater disclosure and transparency of corporate activities. It also makes recommendations for the pension funds to support further research in creating new measurement standards that further refine the concept of socially responsible investing as a necessary ingredient of long-term corporate survival and growth in the context of a changing economic, environmental and socio-political dynamic. (shrink)

This article discusses socially responsible investing (SRI) and tobacco. SRI allows investors, both institutional and individual, to express their concerns and make their social and ethical stands known to the companies they invest in and patronize. The tobacco industry is active in every country on the globe and generates huge profits, while tobacco use is responsible for 4 million deaths every year.The authors explore past and current views on investment in tobacco, partly based on a survey conducted by the (...) Tobacco Free Initiative of the World Health Organization (WHO). There is clearly a trend toward divestment from tobacco for both ethical and financial reasons. Tobacco-free investments can be both ethically sound and financially profitable. (shrink)

The international investment regime has come under increasing scrutiny, with several developing countries withdrawing from bilateral investment treaties in recent years. A central worry raised by c...

Although sustainable and responsible investment (SRI) has quite recently become a hot research topic, scarcely any systematic research has been paid to the performance of this non-conventional approach to investment during the financial crisis that emerged in mid-2008 when the resilience of the financial markets was sorely tested. Such real-world resilience in practice is the subject of the current research which tests whether environmental, social and governance screens provides ethical investors with adaptive resilience in bull and bear market (...) conditions by focussing on the SRI equity index of one of the most active markets in Europe in terms of ethical investment, the FTSE4Good-Ibex in Spain. Multivariate Generalized Autoregressive Conditional Heteroskedasticity (M-GARCH) analysis indicates that ethical investors in the equity market examined with evidence that greater resilience in severe business cycle shocks could be attributable to SRI by companies. Although limited to a single country study, the results have implications for investors seeking resilience in crisis: when individual values and beliefs towards sustainability tie with personal investment strategy, the end result is adaptive financial resilience, social well-being and environmental defence. (shrink)