Socially responsible investors (SRIs) often see themselves as agents of social or environmental progress. They buy into polluting or “dirty” companies believing that their capital can nudge a business toward a cleaner path. But a new study by finance professors at the University of Rochester, Johns Hopkins University, and the Stockholm School of Economics argues that this logic can backfire. Instead of accelerating environmental reforms, SRIs may unintentionally create incentives for firms to postpone them.

A 2024 Gartner survey found 48% of R&D organizations have a formal technology scouting process.

Scouts bridge gaps between external startups and in-house teams to spark innovation. They source new ideas and knowledge from the outside world, helping companies create new and better products and make processes more efficient.

But new research from Francisco Polidoro Jr., professor of management at Texas McCombs, finds a hidden tension among knowledge scouts. A key part of their role — working with multiple divisions to foster collaboration — can actually make them less effective, not more.