The success of non-financial ratings: an analysis through the concept of ideology

Abstract

The reliability of non-financial ratings is strongly criticized (Tatomir, 2023; Utz, 2019; Widyawati, 2021). Most financial players are aware of these limitations and have alternatives to avoid being forced to use them. Paradoxically, they overwhelmingly support it. How can we explain these a priori counter-intuitive, even irrational behaviors ? Various concepts can shed light on this : “managerial fashion” (Abrahamson, 1996), “collective beliefs” (Orlean, 2008), “cognitive biases” (Thaler, 1980), “mimetic behaviors” (Esposito, 2013), etc. Our research aims to enrich this theoretical framework with a comprehensive perspective that does not resort to altering the discernment of financial actors. To this end, we are reworking the concept of “ideology” on the basis of the work of Boudon (1986), complemented by that of Piketty (2019). Our aim is to show that, rigorously defined, this concept will clearly allow a dissociation between scientific and non-scientific aspects of ESG ratings’ success. Ideology then gives rise to “good reasons” to explain the apparent irrationality of financial players’ choices.