Pension Fund Engagement as a Sustainability Driver

Transcription

1 HWZ Schriftenreihe für Betriebs- und Bildungsökonomie 4 Pension Fund Engagement as a Sustainability Driver A Stakeholder-Theory-Based Legitimation of Sustainable Pension Fund Engagement in a Swiss Context von René Nicolodi 1. Auflage Pension Fund Engagement as a Sustainability Driver Nicolodi schnell und portofrei erhältlich bei beck-shop.de DIE FACHBUCHHANDLUNG Haupt Verlag 2007 Verlag C.H. Beck im Internet: ISBN

2 HWZ Schriftenreihe für Betriebs- und Bildungsökonomie Herausgegeben von HWZ Hochschule für Wirtschaft Zürich Band 4

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4 René Nicolodi Pension Fund Engagement as a Sustainability Driver A Stakeholder-Theory-Based Legitimation of Sustainable Pension Fund Engagement in a Swiss Context Haupt Verlag Bern Stuttgart Wien

5 In 2002 René Nicolodi joined the Investment Research department of Zurich Can tonal Bank after completing a Master s degree at the University of Zurich in Anglistics, Business Administration and European Economic Law. Since 2003 he is employed by Zurich Cantonal Bank as a Sustainability Analyst. In 2006 he was appointed Deputy Head of Sustainability Research. Redaktion und Satzherstellung durch den Autor 1. Auflage 2007 Bibliografische Information der Deutschen Nationalbibliothek Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über abrufbar. ISBN: Alle Rechte vorbehalten Copyright 2007 by Haupt Berne Jede Art der Vervielfältigung ohne Genehmigung des Verlages ist unzulässig Umschlaggestaltung: Typisch GmbH, Atelier für Mediengestaltung, Bern Printed in Switzerland

6 Per mio padre Ferruccio e mia madre Tullia

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8 ACKNOWLEDGEMENTS At the end of my university career, a fortunate coincidence has instigated my academic interest for the Business & Society field of research. The fascination for this rich scientific area has not left me since then. On the contrary, it has significantly influenced my professional path and has inspired me during this research project. Beyond the professional and academic involvement with a particular issue of interest, a long journey like this project can only be completed with the support of many people. Hence, my recognition goes to all the people in my professional, academic, and particularly private domain that have accompanied me during this time and have contributed to the conclusion of this project. My special thanks goes Prof. Dr. Sybille Sachs for her excellent guidance, the un-bureaucratic collaboration and particularly for the valuable reviews as well as for her constant support. I express my gratitude to Dr. Fritz Gutbrodt for his willingness to co-supervise this project, for his firm commitment to it as well as for his decisive role as a facilitator. I am also indebted to the Business & Society research group at the University of Zurich and the University of Applied Sciences in Business and Administration Zurich for their support as well as for their critical inputs: Prof. Dr. Edwin Rühli, Isabelle Kern, Marc Maurer, Veronika Mittnacht and Mark Veser. This project was carried out during my professional activity as a sustainability analyst in Zurich Cantonal Bank (ZKB). The parallel pursuit of my professional and academic goals has only been feasible due to the willingness and confidence of many people within ZKB. I particularly express my gratitude to the Sustainability Research team of ZKB. Sabine Döbeli, Robert Hauser, Daniel Meyer and Annett Baumast manifested their interest for my plans and provided support as well as valuable inputs to the project. Moreover, I would like to thank Rosalia Marra for her help with the graphical and textual arrangements. I am especially grateful to ZKB and its Investment Research department for their material support of this project. This study was advanced with the contribution of the Pension Fund of the City of Zurich and the Swiss Re pension fund as well as the expert input from

9 VIII Acknowledgements diverse academic and professional perspectives. In this sense, I am indebted to all the interviewees who have donated their precious time and interest to this study. My primary gratitude goes to my parents who have always guided me in my personal development and have motivated me in my intentions. With their optimism and firm belief in me, they have stimulated the perseverance and endurance necessary to complete my objectives. This work is dedicated to them. Scientific research requests time and resources. In this sense, I express my deepest gratitude and love to Alex for her understanding at every moment of this long journey. She encouraged me and gave me confidence and strength. Without her, my friends and my family, this project would have not been possible. Zurich, December 2006 René Nicolodi

10 TABLE OF CONTENTS LIST OF FIGURES... XVII LIST OF TABLES...XIX 1. Introduction Research problem definition Roles of pension funds Interaction of pension funds Responsibilities of pension funds Trends influencing pension fund engagement Formulation of the research problem Research question Theoretical, empirical and practical contribution Theoretical contribution Empirical contribution Practical contribution Relevant components of the research question Pension funds Corporate governance understanding Sustainability concerns as societal interests Research objective Course of the thesis Stakeholder theory in context Stakeholder theory Foundations and origins of stakeholder theory Stakeholder theory in the corporate governance context Stakeholder theory taxonomy Normative stakeholder theory Introduction Main tenets Categorization attempts Hendry s theoretical screen... 53

11 X Table of contents Kaler s qualification attempt Bishop s categorization criteria Criteria appraisal Criteria specification Narrow screen and approach selection Legitimation aspect Perspectives on legitimation and legitimacy Phillips fairness approach Fairness conditions for cooperative schemes Contribution to framework Calton s voice approach Collaborative governance Legitimising discourse Stakeholder enabling Contribution to framework Summary and core conclusions Identification aspect Perspectives on identification Theoretical positioning Phillips fairness approach Contribution to framework Calton s voice approach Contribution to framework Summary and core conclusions Critical management theory aspect Introduction to critical management theory and critical theory Thematic integration Critical theory foundations Critical theory as social theory Critical theory as a scientific research perspective Critical theory and Habermas Critical management theory and normative stakeholder theory Phillips fairness approach

12 Table of contents XI Critical management theory link Habermasian link Contribution to the framework Calton s voice approach Critical management theory link Habermasian link Contribution to the framework Main conclusions Framework Normativity of sustainable pension fund engagement Legitimation aspect Identification aspect Critical management theory aspect Dimensions of sustainable pension fund engagement Corporate level Institutional level Societal level Framework constitution Proposition development Corporate governance understanding Normative stakeholder theory Sustainable business development Pension fund engagement Methodology Meta-theoretical foundations Paradigm incommensurability and overlap Single paradigm approach Multi-paradigm approach Conclusions Methodological foundations Research Design Case study research Type

13 XII Table of contents Design Critique and misunderstandings Conclusion Grounded theory Objective hermeneutics Data collection Sampling Theoretical sampling Selection and composition Interviewing Main categorization Development of interview guidelines Quality principles Perspectives of quality in qualitative research Validity and reliability Triangulation Data analysis and theory building Atlas.ti Procedural steps Framework integration Case study and expert analysis Case studies description Swiss Re pension fund PKZH Expert level Narrative fields Corporate governance understanding Swiss Re Pension Fund PKZH Cross-case evaluation Expert view Roles of pension funds Swiss Re Pension Fund

14 Table of contents XIII PKZH Cross-case evaluation Expert view Responsibility and behaviour of pension funds Swiss Re Pension Fund PKZH Cross-case evaluation Expert view Foundations of sustainable engagement Swiss Re Pension Fund PKZH Cross-case evaluation Expert view Stakeholder identification Swiss Re Pension Fund PKZH Cross-case evaluation Expert view Stakeholder interests Swiss Re Pension Fund PKZH Cross-case evaluation Expert view Attitudes to sustainable development concerns Swiss Re Pension Fund PKZH Cross-case evaluation Expert view SRI perception Swiss Re Pension Fund PKZH Cross-case evaluation Expert view

15 XIV Table of contents Triggers for sustainable engagement Swiss Re Pension Fund PKZH Cross-case evaluation Expert view Barriers to sustainable engagement Swiss Re Pension Fund PKZH Cross-case evaluation Expert view Engagement practices and processes Swiss Re Pension Fund PKZH Cross-case evaluation Expert view Core narrative Swiss Re Pension Fund PKZH Expert view Cross-case evaluation and expert reflection Data analysis and interpretation Swiss Re Pension Fund Corporate level of analysis Legitimation aspect Identification aspect Institutional level of analysis Legitimation aspect Identification aspect Remarks on the societal level of analysis PKZH Corporate level of analysis Legitimation aspect Identification aspect

16 Table of contents XV Institutional level of analysis Legitimation aspect Identification aspect Remarks on the societal level of analysis Expert view Corporate level of analysis Legitimation aspect Identification aspect Institutional level of analysis Legitimation aspect Identification aspect Remarks on the societal level of analysis Proposition reshaping Conclusions, limitations and outlook Main conclusions Theoretical implications Practical implications Research limitations Research outlook and final words References ANNEX A: EXCURSUS ON INVESTOR ENGAGEMENT ANNEX B: INTERVIEW GUIDELINES ANNEX C: INTERVIEW PARTNERS ANNEX D: NORMATIVE CATEGORIZATION ANNEX E: FREQUENCIES