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From the 1960s onwards, students and members of the academic community on growing numbers of college and university campuses in the United States chose to confront the issue of apartheid by advocating divestment from corporations or financial institutions with any sort of presence in or relationship with South Africa. Student divestment advocates faced serious opposition from university administrators as well as opponents of institutional divestiture both at home and abroad. Despite these challenges, the academic community in the United States was one of the first arenas where anti-apartheid activism coalesced. This chapter examines the campaigns of students and educators who participated in the debate over divestment – to engage with the South African government and apartheid through dialogue and communication or to disengage completely from the country through withdrawal of financial investments. The anti-apartheid efforts of the academic community at Michigan State University, one of the first large research universities in the United States to confront the issue of apartheid and divestment at the university level and beyond, serves as a window to view academic activism against apartheid. The Southern Africa Liberation Committee (SALC), a consortium of students, faculty, and community members dedicated to aiding the liberation struggle of Southern Africa, led the efforts at Michigan State and collaborated with allies across Michigan and the United States. SALC focused most of its efforts on South Africa, though the organization also confronted the issue of South Africa's controversial occupation of South West Africa and the ongoing civil war in Angola.

Presented at the “Disarm! For a Climate of Peace” meeting held on September 30–October 3, 2016 in Berlin and organized by the International Peace Bureau.

This chapter sketches a new development in responsible investing, namely impact investing. Impact investing, which we define as the entire spectrum of investments deliberately aiming to create shared value, can be seen as an integrative approach to wealth creation through investments. The case of microfinance is used to illustrate this new development.

The chapter combines a viewpoint and a case study that serves to illustrate the practical relevance of the viewpoint.

The chapter starts with a brief overview of the origin and rise of responsible investments, followed by a description of mission-related investments and impact investing as its latest development. Microfinance is presented as a special case, thereby focusing on the investors, the asset allocation and the meaning – and application – of the notion of impact.

The chapter shows that a focus on social and financial returns can be combined without having to make serious financial sacrifices. It also demonstrates that investments can come from investors as diverse as pension funds, foundations or high net-worth individuals.

If impact investing really takes off – particularly supported by institutional money – there will be much more opportunity to tackle social and environmental innovation than without those investments.

The chapter challenges (institutional) investors to evaluate their responsible investment strategy and to rethink their asset allocation. Impact investing can become an important addition to the responsible investment landscape.

This chapter examines the complex influences of globalization on higher education in the United States, and specifically considers how globalization has increased the international influence of American college and university student movements. We briefly describe various conceptions of globalization and look at the ways in which a capitalist-oriented form of globalization is infringing upon the social good purpose of higher education. This chapter primarily focuses on “globalization from below,” the ways that oppositional social movements, in this case led by students, use the mechanisms of globalization to promote social equity within, through and beyond higher education. Using the cases of the anti-sweatshop movement and the Sudan divestment movement, this chapter examines how student activists use mechanisms of globalization, particularly global economic connections and technology, to counter aspects of neoliberal globalization, and promote justice and democratization for marginalized people throughout the world.

This study examines the effect of domestic alliances on firms’ foreign divestment decisions. We argue that foreign subsidiaries face a higher risk of being divested when firms form new alliances with other firms in their home country. Alliances at home involve resources and may divert attention away from international operations. Also, opportunities emerging from entering into new relationships with other firms domestically may lead firms to reconfigure their value chain activities and resources across locations, thereby increasing the probability of foreign divestment. Using data from the electronic and electrical equipment industries in the USA over the period 2001–2008, we empirically investigate the link between domestic alliances and foreign divestment. We find that increases in domestic interfirm collaboration indeed significantly affect firms’ propensity to divest foreign operations.

Purpose – Investigate the causes and consequences of foreign financial institutions' divestments in China's banking sector which is an example of cross-border transactions by institutional investors.

Methodology – Use a sample of 26 foreign financial institutions' strategic investments in Chinese banks. Ten of those investments are divested after the global financial crisis. We investigate determinants of the divestment, business cooperation after the divestment, and Chinese banks' stock price reactions to the divestment announcement.

Findings – The poor performance of foreign financial institutions, which is attributable to the global financial crisis, and the institutions' regulated low equity ownership are important causes of divestment (or whole divestment). In contrast, Chinese banks' poor performance does not cause foreign divestments. Foreign financial institutions that fully divest their equity stakes usually terminate their cooperative business, which was required by the strategic investment agreement. The Bank of China and the China Construction Bank, which experienced large H-share divestments, experienced large economic declines in A-share values.

Social implications – Foreign financial institutions' strategic investments created substantial shareholder value before the divestment. Banking sector developments that rely on foreign investments are vulnerable to economic downturns in developed countries.

Originality/value of paper – To the best of our knowledge, this is the first trial to analyze the impact of divestments on divested bank performance.

First, AIB conference themes have reflected the issues thought to be important during its 50 years of operations, and the Fellows have regularly staffed Plenary Sessions devoted to these yearly themes (e.g., Eden & Lenway, 2001 on globalization).

This chapter assesses the impact of socially responsible investing (SRI) in terms of its role in governance. Governance refers to the rules, incentives, institutions and philosophies for coordinating, controlling and supervising behaviour. The SRI sector purports to be a mechanism of market governance, such as through its codes of conduct and targeting of individual companies by engagement or divestment.

This subject-matter of the chapter is evaluated primarily through a conceptual and theoretical argument rather than empirical research.

Social investors’ capacity to ‘govern’ the market is constrained by gaps and deficiencies in the legal frameworks for the financial economy. Fiduciary law controlling institutional investors is the most important element of this governance framework. The SRI movement is starting to broaden its agenda and strategies to include advocacy for regulatory reform. But the SRI industry has devoted attention to its own voluntary codes of conduct, such as the UNPRI, which do not yet provide a sufficiently comprehensive or robust substitute for official regulation.

Paradoxically, whereas SRI once stood for taking action through the financial economy when governments had failed to act, the sector is also somewhat dependent on the state to provide an empowering governance framework. But state regulation itself may be strengthened by partnership with the SRI industry, such as by utilising its codes of conduct to supplement official legal standards.

The chapter deepens insights into the relationship between the SRI sector as a largely voluntary movement and its legal governance through the state or the market.

Purpose – Study the potential implications of sovereign wealth funds (SWFs) on financial stability.

Methodology/approach – By assessing whether and how stock markets react to the announcements of investments and divestments to firms by SWFs, this chapter takes advantage of a hand-collected database on investments and divestments by major SWFs to evaluate the short-term financial impact of SWFs on selected public equity markets in which they invest.

Findings – Results show that there was no significant destabilizing effect of SWFs on equity markets, which is consistent with anecdotal evidence.

Social implications – SWFs could promote financial stability and should be given more development space.

Originality/value of the chapter – This study contributes to the emerging academic literature that seeks to analyze the behavior of SWFs in financial markets.