The level of compliance with the International Code of marketing of breast-milk substitutes: does it matter to stock markets?

Hoepner, A. G. F., de Aguiar, T. R. S. and Majithia, R. (2014) The level of compliance with the International Code of marketing of breast-milk substitutes: does it matter to stock markets? Journal of Business Ethics, 119 (3). pp. 329-348. ISSN 1573-0697 doi: 10.1007/s10551-013-1625-2

Abstract/Summary

The present paper explores, theoretically, and empirically, whether compliance with the International Code of marketing of breast-milk substitutes impacts on financial performance measured by stock markets. The empirical analysis, which considers a 20-year period, shows that stock markets are indifferent to the level of compliance by manufacturers with the International Code. Two important issues emerge from this result. Based on our finding that financial performance as measured by stock markets cannot explain the level of compliance, the first issue refers to what alternative types of mechanisms drive manufacturers who comply the least with voluntary codes such as the International Code. Conversely, from our finding that stock markets do not reward the most compliant, the second issue raised is an inherent weakness of stock markets to fully incorporate social and environmental values.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/34877
Item Type	Article
Refereed	Yes
Divisions	No Reading authors. Back catalogue items Henley Business School > Finance and Accounting
Publisher	Springer
Download/View statistics	View download statistics for this item