Investigating the Relationship between Foreign Direct Investment and Corporate Social Responsibility
Should regulatory incentives which incorporate the lowering of environmental and labor standards, generate life threatening and environmental repercussions, as well as those resulting in moral hazard and excessive risk taking levels, be encouraged? This chapter not only investigates whether central bank independence is positively correlated with inflation, but also highlights other variables which could impact the relationship between Corporate Social Responsibility and Foreign Direct Investment. It will highlight why a continuous need for updating of data is necessary given the inability to capture data specific variables and why the introduction of complementary standards would serve to bolster measures aimed at promoting financial stability and encouraging investors – rather than incentives aimed at diluting such standards. In so doing contributes to previous and current literature on the topic – by way of reference to investigations and studies which have revealed concerns in the ability to adequately capture data – particularly in light of the recent 2008/2009 Financial Crisis.