Harvard Kennedy School Fellow Honored for Research on Investment Decisions

February 27, 2012
By Jenny Li Fowler

The founding director of the Initiative for Responsible Investment at Harvard Kennedy School's Hauser Center for Nonprofit Organizations has been named one of the first recipients of a new annual research competition that examines the interaction of the real economy with investment theory.

Steve Lydenberg received the practitioner award from the Investor Responsibility  Research Center (IRRC) Institute for his research paper, “Reason, Rationality and Fiduciary Duty.” A 30-year veteran of the asset management industry, Lydenberg is a partner with Strategic Vision for Domini Social Investments.

Lydenberg's research paper examines the benefits of fiduciaries' use of thought termed "reasonable" as opposed to "rational" in making investment decisions. He argues that a combination of reason and rationality – consideration of others and the norms of society as well as of self-interested advantage – is necessary for a comprehensive undertaking of fiduciary practice.

The IRRC Institute is a not-for-profit organization established in 2006 and headquartered in New York City. It serves as a funder of environmental, social and corporate governance research, as well as the capital market context that impacts how investors and companies make decisions.

headshot of Steve Lydenberg

Steve Lydenberg,  founding director of the Initiative for Responsible Investment and senior research fellow at the Hauser Center for Nonprofit Organizations

Lydenberg argues that a combination of reason and rationality – consideration of others and the norms of society as well as of self-interested advantage – is necessary for a comprehensive undertaking of fiduciary practice.

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