Essays on the Emergence and Mainstreaming of Social Investment in the U.S. 1980-2018

Abstract

Following the traditions of problem-driven and impact-focused approach to organizational studies (Davis & Marquis, 2005; Margolis & Walsh, 2003; Stern & Barley, 1996), this dissertation explores the emergence and evolution of social investment, defined as “the allocation of capital to advance the social and economic well- being of people” (Bruyn, 1987: 13). Social investment has become one of the fastest-growing trends in the U.S. financial sector and is a representative case of market-based initiatives that aim to address societal problems. Given the disproportionate power of the financial sector in our economy, understanding how social investment emerged and evolved provides an important insight into whether and how the market—which generated many societal and environmental problems—can be sufficiently transformed to now be the solution for these same problems. I present three empirical essays that together show how, despite exponential growth, social investment has become significantly diluted and came to resemble conventional investment strategies that are almost exclusively focused on maximizing financial returns. I hope that this dissertation could not only contribute to scholarly conversations around categories, hybrid organizing, and institutional theory, but help practitioners realize where social investment is in the U.S. and where it should go in order to, in effect, become a powerful tool that could bring about positive social/environmental changes, just like its pioneers had originally envisioned.