The Dynamics Influencing Progress Towards Responsible Investment: A Process Study of the Agency of the Code for Responsible Investment in South Africa (CRISA)

[摘要] ENGLISH SUMMARY: Changes in investment strategies and capital flows are needed in order to support a transition to asustainable economy. However, despite the rise in popularity of the concept of responsible investment,which recognises the need to take into account environmental, social and governance issues intoinvestment decisions, the pace of change within the investment industry appears slow and disconnectedfrom sustainability challenges. In South Africa, notwithstanding a leading voluntary and regulatoryframework in line with international recommendations, progress towards responsible investment appearsslow and uneven.Given the importance of time in sustainability issues, the research investigates responsible investment andthe agency of supporting institutional strategies in the context of a process study. The objective of theresearch is to gain an understanding of the dynamics at play within the investment industry and to assessthe agency of the Code for Responsible Investment in South Africa (CRISA) to promote progress towardsresponsible investment in South Africa.Using grounded theory methodology and drawing on the discipline of Systems Dynamics, the studydevelops a conceptual process framework to explore the underlying processes influencing progresstowards responsible investment and evaluate the extent to which these are affected by institutionalstrategies. The conceptual process framework shows how responsible investment, in its currentimplementation, is unable to shift investment practices in time to support a sustainable economy. Thedynamics of change are too slow relative to the time horizon to generate a meaningful transformation.Drawing attention to the role of learning processes and mental models, the conceptual process frameworkchallenges the theories, assumptions and practices underlying the intentions of the investment industryand calls for new institutional strategies to encourage an ideological framework consistent with theoperating principles of a sustainable economy.In light of the conceptual framework, the study evaluates the agency of the Code for ResponsibleInvestment in South Africa (CRISA) and its supporting regulatory framework to drive transformationalchange within the South African investment industry. The empirical study is constructed as a multi-method research using quantitative and qualitative methods as well as expert reviews to analyse progress overthree years. The findings indicate that the Code for Responsible Investment in South Africa (CRISA)'s agencyto modify the investment practices of institutional investors and their service providers in South Africa islimited, slow and difficult to substantiate. While some disclosure trends appeared encouraging, these maskmajor issues with regards the quality, consistency, comparability and reliability of data available. Except fora few leaders, the industry is characterised by an instrumental and discretionary approach to responsibleinvestment, which yields little effective change in terms behaviour and practices.Finally, confronting theoretical propositions with empirical findings, the research challenges the strategiesused so far to promote responsible investment. The research advances that unless the regulatoryenvironment offers conceptual clarity and takes a firm and consistent stance in support of the sustainabilityimperative, the Code for Responsible Investment in South Africa (CRISA)'s agency within the dynamics ofchange in South Africa is likely to remain limited, inconsistent and temporarily disconnected from theproblems it tries to address.

[发布机构] Stellenbosch University