Financial Social Responsibility

Financial Social Responsibility and Socially Responsible Investment (SRI) as emergent risk prevention in the aftermath of the 2008/2009 World Financial Crisis

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Globalization and socio-economic changes heralded attention to Financial Social Responsibility. Ever since socio-economic crises have steered social conscientiousness yet in the aftermath of the 2008/09 World Financial downturn, the interest in understanding social responsibility in the interplay of financial markets and the real economy has reached unprecedented momentum.

Financial Social Responsibility bridges the finance world and society through Socially Responsible Investing (SRI), in which securities are foremost selected for social, environmental, ethical and institutional aspects. Financial investment calculus is aligned with ethical, moral and social causes through socially responsible screenings, shareholder advocacy, community investing, and social venture capital. SRI perpetuated in the eye of the 2008/09 World Financial Crisis, given the world-wide attention to social conscientiousness and regulatory financial market reforms.

The proposed project targets at innovatively scrutinizing SRI as an en vogue topic of interest and panacea to avoid emergent risks – risks that emerge in complex interactive systems by collective outcomes of individual decision making fallibility over time. When people decide, limitations in their capacity to foresee long-term impacts and the collective outcomes of their choices can contribute to institutional downfalls. Emergent risks can have crucial impacts in the finance domain as the 2008/09 World Financial Crisis outlined.

A qualitative analysis of Financial Social Responsibility should retrieve SRI as a means to lower emergent risks within institutionalized market systems in order to avert future socio-economic downfalls. Expert interviews with Financial Social Responsibility stakeholders are aimed at determining SRI success factors for central banks as well as governance executives.

Mapping globalization market tools and financial market databases will be used concurrently to capture qualitative and quantitative SRI changes in the aftermath of the 2008/09 World Financial Crisis in order to delineate the potential of SRI to avert emergent risks in the aftermath of the 2008/09 financial market downturn.

The proposed research may test SRI as a real-world relevant means to minimize emergent risks within a globalized economy. The pursued nested approach featuring qualitative and quantitative global measurements will gain information about the interaction of financial markets with the real-world economy for policy makers.

Overall the project plays an important role in the evaluation of the stability of economic markets. Depicting SRI during this unprecedented time of economic change and regulatory reform holds invaluable historic opportunities for central bankers and policy makers to snapshot a crisis response potential to ingrain social responsibility and bestow market actors with trust in the global market economy. The results will guide a successful SRI implementation to lower systemic economic market downfalls with attention to the changes implied in the wake of the 2008/09 World Financial Crisis. Market and policy recommendations for central bank executives, SRI managers and financial market regulators on how to strengthen SRI and overcome unknown emergent risks within globalized finance markets and bestow market actors with trust in the global economy are endeavored alongside scientific publications and stakeholder engagement.

Work in progress running time 2014-2018

Contact: Julia M. Puaschunder

Cooperation partner: Academic Council on the Financial Market System

US:  T 001 212 229 5700 4905, M 001 917 929 7038, F 001 212 229 5724, Julia.Puaschunder@newschool.edu

EU:  M 0043-69917250979

Financial support of the Association for Social Economics, Austrian Academy of Sciences, Austrian Federal Ministry of Science, Research and Economy, Federal Ministry of Education and Research of the Federal Republic of Germany (Bundesministerium für Bildung und Forschung der Bundesrepublik Deutschland), Fritz Thyssen Foundation, Janeway Center Fellowship, International Institute for Applied Systems Analysis, New School for Social Research New York (Endowment Stipend, President’s Scholarship), Prize Fellowship of the Inter-University Consortium of New York, University of Vienna and Vienna University of Economics and Business is gratefully acknowledged.

Output:

Publications:

Puaschunder, J. M. (under contract). On the emergence, current state and future perspectives of Socially Responsible Investment (SRI). Business Ethics: A European Review.

Puaschunder, J. M. (under review). Intergenerational leadership: Coordinating common goods and economic stability.

Puaschunder, J. M. (forthcoming). Bowling all alone: Governmental debt is associated with low social capital. Management of Environmental Quality.

Puaschunder, J. M. (2017). Socio-psychological motives of socially responsible investors. Global Corporate Governance: Advances in Financial Economics, 19, 209-247.

Puaschunder, J. M. (2016). On eternal equity in the fin-de-millénaire. Journal of Leadership, Accountability and Ethics, 13, 2, 1-24.

Puaschunder, J. M. (2016). On the emergence, current state and future perspectives of Socially Responsible Investment (SRI). Consilience: The Journal of Sustainable Development, 16, New York: Columbia University Press

  • Authorized reprint: In: Ethics, ESG and Sustainable Prosperity. World Science Press.

Puaschunder, J. M. (2016). Intergenerational equity in the eye of overindebtedness. Canon: An Interdisciplinary Journal of The New School for Social Research.

Puaschunder, J. M. (2016). Intergenerational equity in the eye of overindebtedness. Canon: An Interdisciplinary Journal of The New School for Social Research: The Debt Issue, Fall 2016, 2-5.

Puaschunder, J. M. (2016). Socially Responsible Investment as emergent risk prevention and means to imbue trust in the post-2008/2009 world financial crisis economy. In: O. Lehner (Ed.), Routledge Handbook of Social and Sustainable Finance, pp. 222-238, London: Taylor & Francis.

  • (2015). Proceedings of the 2015 6th International Conference of the Association of Global Management Studies at Alfred Lerner Hall of Columbia University, New York: The Association of Global Management Studies.

Puaschunder, J. M. (2016). Putty captial and clay labor: Differing European Union capital and labor freedom speeds in times of European migration. The New School Economic Review: A Journal of Critical Economics at The New School, 8, 3, 147-168.

Puaschunder, J. M. (2016). The beauty of ivy: When inequality meets equality. Global Journal of Management and Business Research: Economics and Commerce, 16, 3, 1-11.

  • Reprint: Meeting the Needs of Diverse Learners in the 21st Century Higher Education.
  • Media coverage: European Horizons Newsletter

Puaschunder, J. M. (2016). The role of political divestiture for sustainable development. Journal of Management and Sustainability, 6, 1, 76-91.

Puaschunder, J. M. (2015). On the social representations of intergenerational equity. Oxford Journal of Finance and Risk Perspectives, 4, 4, 78-99.

Puaschunder, J. M. (2015).  When investors care about politics: A meta-synthesis of political divestiture studies on the capital flight from South Africa during Apartheid. Business, Peace and Sustainable Development, 5, 24,  29-52.

Invited guest lectures

Puaschunder, J.M. (2015). On Financial Social Responsibility. Research colloquium, Sociology of Markets, Organizations, and Governance, Friedrich Schiller University Jena, Jena, Germany, European Union, November 18, 2015.

Conference presentations:

Puaschunder, J. M. (2017).Nudgitize me! A behavioral finance approach to minimize losses and maximize profits from heuristics and biases. The Academy of Behavioral Finance & Economics, 10th Annual Meeting, October 18-20, Los Angeles, California, USA.

Puaschunder, J. M. (2017). Nudgitize me! A behavioral finance approach to minimize losses and maximize profits from heuristics and biases. Academy of Behavioral Finance & Economics, 2017 Annual Meeting, Los Angeles, California, USA, October 18-20, 2017.

Puaschunder, J. M. (2017). Financing climate justice through climate change bonds. 16th Finance, Risk and Accountability Perspectives Conference:  Sustainability and Risk: Environmental, Social and Governance Perspectives, University of Cambridge, Cambridge UK, Great Britain, September 25-27, 2017.

Puaschunder, J. M. (2017). The Austrian Way: Sozialpartnerschaft as means to curb the falling rate of profit. 16th Finance, Risk and Accountability Perspectives Conference: Sustainability and Risk: Environmental, Social and Governance Perspectives, University of Cambridge, Cambridge UK, Great Britain, September 25-27, 2017.

Puaschunder, J. M. (2017). On the collective soul of booms and busts. 21st Conference of the International Federation of Operational Research Societies: Operational Research and Analytics for a Better World, Quebec City, Quebec, Canada, July 17-21.

Puaschunder, J. M. (2016). ‘On the emergence, current state and future perspectives of Socially Responsible Investment (SRI).World Finance & Banking Symposium, Dubai Chamber of Commerce Building, University of Dubay, Dubai, Dubayy, United Arab Emirates, December 14-15.

Puaschunder, J. M. (2016). ‘Bowling all alone: Governmental debt is associated with low social capital.’ World Finance & Banking Symposium, Dubai Chamber of Commerce Building, University of Dubay, Dubai, Dubayy, United Arab Emirates, December 14-15.

Puaschunder, J. M. (2016). ‘Bowling all alone: Governmental debt is associated with low social capital,’ 2016 WINIR World Interdisciplinary Network of Institutional Research conference ‘Institutions and Human Behavior,’ Seaport Boston Hotel, Boston, MA, USA, September 2-5.

Puaschunder, J. M. (2016). ‘Bowling all alone: Governmental debt is associated with low social capital,’ Association for Heterodox Economics 18th Annual Conference: Alternatives to Austerity, University of Glasgow, Glasgow, Scotland, United Kingdom, European Union, July 7-9.

Puaschunder, J. M. (2016).’Bowling all alone: Governmental debt is associated with low social capital,’ 25th European Financial Management Association (EFMA) Conference, University of Basel, Center for Economic Science, Department of Finance, Basel, Switzerland, June 29-July 2.

Puaschunder, J. M. (2016). ‘On the emergence, current state and future perspectives of Socially Responsible Investment (SRI).’ 23rd Annual Conference of the Multinational Finance Society, Stockholm University Business School, Stockholm, Sweden, European Union, June 26-29.

Puaschunder, J. M. (2016).’Bowling all alone: Governmental debt is associated with low social capital,’ International Finance and Banking Society: Risk in Financial Markets and Institutions: New challenges, New solutions, Universitat Autònoma de Barcelona (UAB), Casa Convalescència, Barcelona, European Union, June 1-3.

Puaschunder, J. M. (2016). ‘Intergenerational responsibility,’ From Public Interest to Private Profit: The Changing Political and Social Legitimacy of International Business, Rotman School of Management, University of Toronto, May 6.

Puaschunder, J. M. (2016). ‘On the emergence, current state and future perspectives of Socially Responsible Investment (SRI).’ 23rd Annual Global Finance Conference, California State University, Fresno, CA, USA, April 22.

Puaschunder, J. M. (2016). ‘Bowling all alone: Governmental debt is associated with low social capital.’ 23rd Annual Global Finance Conference, California State University, Fresno, CA, USA, April 22.

Puaschunder, J. M. (2016). ‘Socio-psychological motives of socially responsible investors.’ 23rd Annual Global Finance Conference, California State University, Fresno, CA, USA, April 21.

Puaschunder, J. M. (2016). ‘Trust and reciprocity drive common goods allocation norms,’ Academy of Entrepreneurial Finance, International Meeting of the Academy of Behavioral Finance & Economics, Venice, Italy, European Union, March 14-16.

Puaschunder, J. M. (2015). ‘Bowling all alone: Governmental debt is associated with low social capital,’ Cultures of Finance, The New School for Social Research, The New School, December 15.

Puaschunder, J. M. (2015). ‘On Eternal Equity in the fin-de-millénaire: Bowling all alone: Governmental debt is associated with low social capital,’ The Eurozone and the Americas: Debt and Democracy, Institute for New Economic Thinking Conference and Young Scholars Initiative Workshop, The Lyndon B. Johnson School of Public Affairs, Sid Richardson Hall, Austin, Texas, USA, November 4.

Puaschunder, J. M. (2015). ‘Socially Responsible Investment (SRI) as emergent risk prevention and  means to imbue trust in the Post-2007/8 World Financial Crisis economy.’ 15th World Congress of Social Economics.  The Association for Social Economics.  Brock University, St. Catharines, Canada, June 21-22.

Puaschunder, J. M. (2015). ‘Socially Responsible Investment (SRI) as emergent risk prevention and  means to imbue trust in the Post-2007/8 World Financial Crisis economy.’ 6th International Conference of the Association of Global Management Studies. Alfred Lerner Hall, Columbia University, New York, NY, June 10-11.

Puaschunder, J. M. (2015). ‘Interpreting the role of ethical investing for sustainable development: The historical case of political divestiture from South Africa during Apartheid,’ Centre for Corporate Responsibility & Sustainable Development, Symposium 2015, Toronto, Canada, June 7-11.

Puaschunder, J. M. (2015). ‘On the social representations of intergenerational equity: Socially Responsible Investment (SRI) as emergent risk prevention and means to imbue trust in the post 2008/09 world financial crisis economy.’ Oxford Social and Sustainability Finance and Impact Investing Conference, Thatcher Business Education Centre, SAID Business School, University of Oxford, Oxford, UK, EU, April 23.

Puaschunder, J. M. (2014).  ‘When investors care about politics:  A meta-synthesis of  political divestiture studies on the capital flight from South Africa during Apartheid,’ 6th International Conference on Corporate Sustainability and Responsibility, Humboldt University, Berlin, Germany, EU, October 8-9.

Community Service:

Appointed Contributing Reviewer, International Journal of Sustainable Entrepreneurship and Corporate Social Responsibility (IJSECSR) 

Scientific Committee, Finance, Risk and Accounting Perspectives Conference: Sustainability and Risk: Environmental, Social and Governance Perspectives, University of Cambridge, Cambridge, United Kingdom, September 25-27.

Chair, ‘International Finance,’ 80th International Atlantic Economic Conference, Boston, USA, October 11, 2015.

Invited Events:

4th Annual Center for the Economic Analysis of Risk-Huebner Summer Risk Institute 2017,’ Georgia State University, July 25-26, 2017.

Fictitious Capital: Is Finance Appropriating Our Future?,’ French General Consulate New York, New York, USA, June 27, 2017.

The economic outlook and implications of Brexit / US-Elections,’ Peter Brezinschek Chief Economist of Raiffeisen Research, Offices of Savills Studley, Park Avenue, New York, New York, USA, December 1, 2016.

Mapping the future of finance: Financialisation, economy, society and sustainable development,’ Bank of England, London, United Kingdom, European Union, May 25.

Debt, Inequality, and Capital in a Non-linear Macrodynamics,’ The Austrian National / Central Bank, Vienna, Austria, EU, March 18, 2016.

Risking Together: Explorations of Creativity and Volatility.’ The New School for Social Research, New York, NY, USA, December 4, 2015.

10th Annual Columbia International Investment Conference: Investment Treaty Reform: Reshaping Economic Governance in the Era of Sustainable Development.’ Columbia Law School and Columbia Center on Sustainable Investment, Columbia Faculty House, Columbia University, New York, NY, USA, November 10-11, 2015.

‘The Decarbonization of Finance.‘ Ecologic Institute in cooperation with The Consulate General of Germany, United Nations Plaza, Auditorium, New York, NY, USA, October 21, 2015.

The 12th Annual Social Entrepreneurship Conference,’  New York University Stern School of Business, New York, New York, USA, November 4-6, 2015.

Contours of Critical Finance Studies.’ Institute for Public Knowledge, New York University, October 2, 2015.

Joseph Stiglitz on ‘The State of the European Union,’ The European Society at Columbia University, International Affairs Building, Columbia University, October 2, 2015.

‘Mapping out a Research Agenda for Sustainable Finance.’ Workshop of the Academic Research Network Oxford Centre, Dorfman Center at St. Peter’s College, University of Oxford, Oxford, UK, April, 25, 2015.

Media coverage:

Puaschunder on ‘Capital in the 21st Century’ by Piketty.’ Legal Theory Blog. Subsequently covered on: Archivio Internazionale Associazione Italiana di Diritto Comparato (AIDC): New Approaches to Comparative Law: Comparative Law Review.  Better than today.  Blog do jals.  Blog Jurídico de Francisco Bermúdez Guerra.  Bien de verdad: Reflexiones ético-políticas desde una filosofía dialéctico-analogista.  Catálogo de blawgs.  Comparative Law Blog: Comparative Law and Judicial Decision Making.  De Cive.  Elektratig.  E-mancipação.  EU Law: Blog Jean Monnet katedre za Europsko javno pravo i prijatelja.  Evan Tucker blog.   Filósofo Grego: Filosofia Contemporânea, especialmente Filosofia do Direito, Filosofia Moral e Filosofia Política.  Hukuk felsefesi: IVR-TURKEY Hukuk Felsefesi ve Sosyal Felsefe topluluğu tarafından oluşturulan blogtur.  Ius Global.  Juridiques Universitaires Francophones.  Juris Diversitas.  Juristhoughts.  Just legal news.  Justia Blawg.  Ladja Norcev blog.  Law and other things.  Law, Politics, and Humanities.  Legal Futurology.  Legal History Blog.  Llibreries especialitzades en dret: Bloc de dret.  Me cago en los argumentos: Razones y personas.  MTEF is the Bayesian Heresy: Public Financial Management, Healthcare reform, Medium-Term Expenditure Frameworks, Economic Policy and All Things Fiscal.  Nordic Law Blog.  Nostrum Remedium on law, narrative, art and memory.  Notes from Law School by Kristopher Nelson.  Philosophy, lit.  Sam’s Place.  Observatório Cosmopolita: Blog dedicado ao estudo do Cosmopolitismo e sua presença na Filosofia Política, Direito e Relações Internacionais..  Scripta manent: Sobre história, direito e literatura, dentre outros assuntos demasiado humanos.  Speculum Criticum Traditionis: Open Letters on Philosophical Praxis.  Tread the middle path: A blog to stimulate academic discussion on international trade law and policy issues.  Tributum.  Political Theory: Habermas and Rawls.  Practical Academic.  Rich Sexton for Congress.  The Brooks Blog.  The Consternation of Philosophy.  The Federalist Society for Law and Public Policy Studies.  Time pass scribble-bin.  What’s neat: P.G.Monateri’s Point of View in Law & Beyond.  We call upon the author to explain: A blog by Christian Perring focusing on Philosophy, Psychiatry and Psychology.

The beauty of ivy: When inequality meets equality.’ Accurate, focused research on law, technology and knowledge discovery.

New work on Piketty and inequality from Puaschunder and Pressman.’ The Association for Social Economics Blog.

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