Banking on values: A discursive analysis of values and global banking business practice

Abstract

This thesis presents a new institutional perspective to International Business (IB) studies (and to business and management studies in general) by drawing extensively upon the theory of discursive institutionalism, which originated from the field of political science. It stakes the claim that discourse is necessary to processes of institutional change and formation. If we accept that humans are the authors of institutions, it follows that such authorship is the function of discourse. Discourse is how humans agree to establish, change, and dissolve institutions. Further, if the relationship between discourse and institutions is one of mutual dependence, then the nature of the discourse is critical to understand the structure and evolution of the focal institution. The implication is that the underlying assumptions (values) of the discourse bear significantly upon the institution itself. It then follows that values underpin institutions. This institutional perspective is underpinned by an empirical case study focusing on how the Australian banking institution of remuneration disclosures (Basel III Pillar 3) came into being. Through the theoretical lens of discursive institutionalism, by tracing the discourse, the fining is that this institution originated from the expression of the moral imperative to hold banks and bankers to account. I propose the Discursive Process for Institutional Formation (DPIF) model as an important extension to the theory of Discursive Institutionalism. The DPIF traces the values-laden germination of a policy shift through four stages to firm-level adoption. Though values were the undergirding premise for the institution, the discourse evolved as institutionalization progressed, with the expression of values giving way to increasingly bureaucratic technical language. Three levels of governance were traversed (global, national, and corporate), across two cycles of the DPIF, to institutionalize the initial policy fix.