Exit versus voice – options for socially responsible investment in collective pension plans. (20th July 2020)

• Record Type: Journal Article
• Authors: Dietsch, Peter
• Is Part Of: Economics and philosophy. Volume 36:Number 2(2020)
• Page Start: 246
• Page End: 264
• Publication Date: 2020-07-20
• Subjects: socially responsible investment, -- collective pension plan, -- divestment, -- shareholder engagement, -- investor ethics profile; Economics -- Philosophy -- Periodicals; 330.01
• DOI: 10.1017/S0266267119000129
• Languages: English
• ISSNs: 0266-2671

Abstract

Abstract: What do we owe participants in collective pension plans in terms of socially responsible investment (SRI)? This paper draws into question current conventional wisdom on SRI, which considers investor engagement a more effective strategy than divestment to change morally problematic corporate behaviour. More fundamentally, in light of reasonable disagreement about the objective of SRI, the paper argues that participants in collective pension plans are owed some kind of control over their investments. The final section considers four different institutional arrangements to respect this requirement in practice, ranging from democratic decision procedures to the availability of SRI alternatives.