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A CERAG article based on Vigeo opinions has been published in the Journal of Business Ethics

Isabelle Girerd-Potin, Sonia Jimenez-Garcès and Pascal Louvet from CERAG have published an article entitled « Which dimensions of social responsibility concern financial investors?” in the scientific Journal of Business Ethics. This research is based on Vigeo ratings and analysis, with an ongoing partnership with CERAG since 2004.

Logo CERAG, Partenariat Vigeo Eiris

This research deals with links between CSR performance, profitability of financial investments and financial cost of companies. It relies on a sample of 816 companies, rated by Vigeo between December 2003 and December 2010. It highlights three dimensions of companies’ commitments towards their stakeholders:

  • the “direct non-financial” stakeholders (human resources, customers and suppliers, human rights),
  • the “indirect” stakeholders (environment and civil society)
  • and the “financial” stakeholders (governance quality).

The authors highlight the fact that investors demand a significantly higher profitability regarding companies for which insurance levels expressed by Vigeo are low, compared to the companies with a more convincing CSR responsibility.

If this phenomenon can be observed from scores granted by Vigeo on the three CSR dimensions identified by CERAG researchers, they add that the premium risk is clearly more important when it comes to sanction the under-performance towards direct stakeholders (human capital, human rights, customers, suppliers, customers and market ethics).

This dimension is evaluated by Vigeo on 15 criteria dealing with the respect of human rights in the workplace and in society, the respect for freedom of association and the right to collective bargaining, non-discrimination and the promotion of equality, the responsible management of the restructurings, the continuous improvement of working conditions, the respect for customer rights and interests, the prevention of social and environmental dumping in the supply chain and in purchasing, and the prevention of corruption.


(1) CERAG : French Applied Research Centre on Management of Pierre Mendès France University in Grenoble
(2) Isabelle Girerd-Potin and Pascal Louvet are both finance teachers at IAE Grenoble and investigators at CERAG laboratory.
(3) Sonia Jimenez-Garcès is a finance teacher at Lumière Lyon 2 University and investigator at CoActis laboratory.

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