The relationship between Ethics and Finance: beyond the separation thesis - from theory to practice

Abstract

The dissertation aim is to look at the relationship between Ethics and Finance. The followed route has the purpose to fill the gap between theory and practice, dealing with the theoretical and conceptual framework of this such cumbersome relationship, but also proposing some concrete instruments to make it feasible. Finance, concerning the allocation of capital for investors, institutions and business, should be considered as the vehicle to achieve goals through investments, which must be consistent and most importantly must be aware. Awareness means considering all the aspects and consequences of a choice, overcoming the mere economic trade-off between risk and return, towards the increasing of value in all its connotations. Sustainability is studied in its manifold meanings concerning the economic, social and environmental side, dealing with the necessity of socially responsible investments, long-term competitive advantages, long-run forecasts as well as the need of mitigating information asymmetry. The main point is the necessity to go beyond the separation thesis which affirms that doing business while addressing social issues is not possible, since the unavoidable result would be to follow a goal at the expense of the other one. Indeed, there is the need of a new awareness that doing business and social progress must run together: financial systems and businesses must not be conceived as detached entities but as integrated ones in the community. All in all, the goal is the creation of value in the perspective of co-creation, where society is the pivot.