Steve Loren
UMass
Exploring Corporate Social Responsibility as a Form of Global Corporate Governance: An Institutional Analysis of the Principles for Responsible Investment (PRI)
Abstract
We interrogate institutional theory as a lens to understand the rise of corporate social responsibility (CSR) as a form of global corporate governance. Using a multi-level framework that incorporates the institutional mechanisms of diffusion, isomorphism, and decoupling, we investigate the Principles for Responsible Investment (PRI) as an institutional entrepreneur promoting CSR activities in the financial organizational field. We find differences in the speed of adoption of the PRI for asset owner signatories as a function of its domicile in distinct legal origin contexts as well as its domicile in Coordinated Market Economies Vs Liberal Market Economies. We suggest that greater symbolic adoption of the PRI occurs in legal origin contexts with stronger property rights protections. We conclude that the two-stage theory of institutionalization does not hold in our empirical domain. Our findings open the way to utilize the central constructs of institutional theory in a more nuanced fashion.
Biography
Steve has been associated with the financial community in New York since the 1990's and has achieved both an MBA in Finance and Investments as well as the CFA Charter and Financial Risk Manager Designations. Prior to embarking on the path to Wall Street, Steve studied Philosophy and Psychology and developed a strong interest in social theory, which led him to take some Doctoral classes in Philosophy while still an undergraduate. Long active in environmental and consumer organizations, Steve has always thought and acted at the intersection of Business and Society. He has chaired the Sustainable Investing Committee of the New York Society of Securities Analysts and has worked to advance the use of Environmental, Social and Governance metrics and criteria into the investment management process, including asset selection and portfolio construction. In his role at NYSSA, Steve has organized conferences featuring world renowned financial practitioners and academics who are leading the way to creating a more just and sustainable society.