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date: 13 November 2019

Abstract and Keywords

This chapter reviews and offers a taxonomy of the theoretical literature on environmental responsibility. A substantial part of the review is devoted to the theory behind environmentally responsible investing and its connection to corporate environmental responsibility (CER), which have not, to our knowledge, been provided elsewhere. It is concluded that a theory about CER needs to balance between personal taste and values, social norms, and market imperfections. An essential ingredient of advancing academic research about CER is improving environmental accounting frameworks and insights in the impact of the interaction between the economy and the environment. Otherwise, any theory about CER runs the risk of remaining sterile as it would be impossible to put it to the test.

Keywords: corporate environmental responsibility, environmental economics, firm behavior, taxonomy, theory

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