The social disembedding of business theory and practice. A (neo-)institutional analysis of the homo economicus and corporate social responsibility, and the inherent responsibility of business scholars

Aim Structure of the Thesis In the first article, I focus on the context in which the Homo Economicus was constructed - i.e., the conception of economic actors as fully rational, informed, egocentric, and profit-maximizing. I argue that the Homo Economicus theory was developed in a specific societal context with specific (partly tacit) values and norms. These norms have implicitly influenced the behavior of economic actors and have framed the interpretation of the Homo Economicus. Different factors however have weakened this implicit influence of the broader societal values and norms on economic actors. The result is an unbridled interpretation and application of the values and norms of the Homo Economicus in the business environment, and perhaps also in the broader society. In the second article, I show that the morality of many economic actors relies on isomorphism, i.e., the attempt to fit into the group by adopting the moral norms surrounding them. In consequence, if the norms prevailing in a specific group or context (such as a specific region or a specific industry) change, it can be expected that actors with an 'isomorphism morality' will also adapt their ethical thinking and their behavior -for the 'better' or for the 'worse'. The article further describes the process through which corporations could emancipate from the ethical norms prevailing in the broader society, and therefore develop an institution with specific norms and values. These norms mainly rely on mainstream business theories praising the economic actor's self-interest and neglecting moral reasoning. Moreover, because of isomorphism morality, many economic actors have changed their perception of ethics, and have abandoned the values prevailing in the broader society in order to adopt those of the economic theory. Finally, isomorphism morality also implies that these economic actors will change their morality again if the institutional context changes. The third article highlights the role and responsibility of business scholars in promoting a systematic reflection and self-critique of the business system and develops alternative models to fill the moral void of the business institution and its inherent legitimacy crisis. Indeed, the current business institution relies on assumptions such as scientific neutrality and specialization, which seem at least partly challenged by two factors. First, self-fulfilling prophecy provides scholars with an important (even if sometimes undesired) normative influence over practical life. Second, the increasing complexity of today's (socio-political) world and interactions between the different elements constituting our society question the strong specialization of science. For instance, economic theories are not unrelated to psychology or sociology, and economic actors influence socio-political structures and processes, e.g., through lobbying (Dobbs, 2006; Rondinelli, 2002), or through marketing which changes not only the way we consume, but more generally tries to instill a specific lifestyle (Cova, 2004; M. K. Hogg & Michell, 1996; McCracken, 1988; Muniz & O'Guinn, 2001). In consequence, business scholars are key actors in shaping both tomorrow's economic world and its broader context. A greater awareness of this influence might be a first step toward an increased feeling of civic responsibility and accountability for the models and theories developed or taught in business schools.

Three essays on the psychology of investment and financial markets

Préface My thesis consists of three essays where I consider equilibrium asset prices and investment strategies when the market is likely to experience crashes and possibly sharp windfalls. Although each part is written as an independent and self contained article, the papers share a common behavioral approach in representing investors preferences regarding to extremal returns. Investors utility is defined over their relative performance rather than over their final wealth position, a method first proposed by Markowitz (1952b) and by Kahneman and Tversky (1979), that I extend to incorporate preferences over extremal outcomes. With the failure of the traditional expected utility models in reproducing the observed stylized features of financial markets, the Prospect theory of Kahneman and Tversky (1979) offered the first significant alternative to the expected utility paradigm by considering that people focus on gains and losses rather than on final positions. Under this setting, Barberis, Huang, and Santos (2000) and McQueen and Vorkink (2004) were able to build a representative agent optimization model which solution reproduced some of the observed risk premium and excess volatility. The research in behavioral finance is relatively new and its potential still to explore. The three essays composing my thesis propose to use and extend this setting to study investors behavior and investment strategies in a market where crashes and sharp windfalls are likely to occur. In the first paper, the preferences of a representative agent, relative to time varying positive and negative extremal thresholds are modelled and estimated. A new utility function that conciliates between expected utility maximization and tail-related performance measures is proposed. The model estimation shows that the representative agent preferences reveals a significant level of crash aversion and lottery-pursuit. Assuming a single risky asset economy the proposed specification is able to reproduce some of the distributional features exhibited by financial return series. The second part proposes and illustrates a preference-based asset allocation model taking into account investors crash aversion. Using the skewed t distribution, optimal allocations are characterized as a resulting tradeoff between the distribution four moments. The specification highlights the preference for odd moments and the aversion for even moments. Qualitatively, optimal portfolios are analyzed in terms of firm characteristics and in a setting that reflects real-time asset allocation, a systematic over-performance is obtained compared to the aggregate stock market. Finally, in my third article, dynamic option-based investment strategies are derived and illustrated for investors presenting downside loss aversion. The problem is solved in closed form when the stock market exhibits stochastic volatility and jumps. The specification of downside loss averse utility functions allows corresponding terminal wealth profiles to be expressed as options on the stochastic discount factor contingent on the loss aversion level. Therefore dynamic strategies reduce to the replicating portfolio using exchange traded and well selected options, and the risky stock.

La reconnaissance des troubles musculo-squelettiques (TMS) comme maladies professionnelles: controverses sociales et trajectoires personnelles

La reconnaissance des troubles musculo-squelettiques (TMS) comme maladies professionnelles : controverses sociales et trajectoires personnelles¦Les TMS sont actuellement considérés comme des problèmes majeurs de santé au travail, mais leur reconnaissance comme maladies professionnelles reste controversée. L'objectif central de cette thèse est de comprendre, dans une perspective de psychologie socio-culturelle intégrant certains apports de la sociologie interactionniste, les conséquences que cette situation peut avoir pour des travailleuses et travailleurs souffrant de ces affections. Au préalable, il s'agira de saisir comment se constituent les controverses sur les TMS et pourquoi ces derniers sont si rarement reconnus comme maladies professionnelles en Suisse. Les principales données sont constituées de documents institutionnels et d'entretiens avec des ouvrières et ouvriers atteints de TMS.¦Les résultats montrent que les enjeux de la reconnaissance des maladies professionnelles ne se limitent pas aux prestations d'assurance et à la prise en charge des coûts engendrés par les maladies. En effet, leur non-reconnaissance contribue à définir les TMS comme des problèmes personnels plutôt que professionnels, ce qui peut entraver les capacités des ouvrières et ouvriers à agir sur leurs conditions de travail. En outre, les explications qui circulent sur les TMS par le biais de discours institutionnels ou informels ont des conséquences sur la manière dont une personne appréhende sa propre maladie. Ces explications de la maladie peuvent être des outils de compréhension, mais aussi contribuer à définir l'identité de la personne malade. Dans ce cas, la reconnaissance du caractère professionnel de la maladie touche aussi à des questions de reconnaissance sociale.¦MSDs are currently considered major occupational health problems, but their recognition as occupational illnesses remains controversial. The central objective of the thesis is to grasp, from a socio-cultural psychology perspective that integrates certain contributions of interactionist sociology, the consequences that these circumstances can have for workers suffering from such ailments. Further, the thesis first aims to understand how controversies about MSDs emerge and why these disorders are so rarely recognized as occupational illnesses in Switzerland. Most of the data used stems from institutional documents and from interviews with workers suffering from MSDs.¦The results show that the stakes of recognizing occupational illnesses are not limited to issues of insurance benefits and the coverage of costs generated by the disorders. In fact, the non-recognition of MSDs contributes to their characterization as personal rather than professional problems, which can in turn impede workers' ability to act to change their working conditions. Furthermore, accounts of and explanations about MSDs circulating by means of institutional or informal discourse have consequences on the way a person may perceive his or her own illness. Such explanations of the illness can be tools for understanding it, but they may also contribute to defining the identity of the affected person. In this case, the recognition of the occupational nature of the illness is also closely related to questions of social recognition.

Institutional fragmentation and coordination initiatives in western European welfare states

As a result of recent welfare state transformations, and most notably the reorientation of welfare states towards activation, the internal fragmentation of social security systems has emerged as a key policy problem in many western European countries. The types of response that have been adopted, however, vary substantially across countries, ranging from the encouragement of inter-agency collaboration to the outright merger of agencies. The purpose of this exploratory article is twofold. First, by proposing the concept of coordination initiatives, it tries to develop a better conceptualization of the cross-national diversity in responses to the fragmentation problem. Second, starting from existing theories of welfare state development and policy change, it presents first hypotheses accounting for the variation observed in coordination initiatives.

Market-Based Instruments for ecosystem services: institutional innovation or renovation?

Recent years have seen widespread experimentation with market-based instruments (MBIs) for the provision of environmental goods and ecosystem services. However, little attention has been paid to their design or to the effects of the underlying pro-market narrative on environmental policy instruments. The purpose of this article is to analyze the emergence and dissemination of the term "market-based instruments" applied to the provision of environmental services and to assess to what extent the instruments associated are genuinely innovative. The recommendation to develop markets can lead in practice to a variety of institutional forms, as we show it based on the example of payments for environmental services (PES) and biodiversity offsets, two very different mechanisms that are both presented in the literature as MBIs. Our purpose is to highlight the gap between discourse and practice in connection with MBIs.