bluuebunny/crossref_metadata_2025 huggingface dataset:
The changing role of governments and the emergence of the relational state
Authors: Mendoza Xavier , Vernis Alfred
Published: January 2010

Purpose

The paper aims to answer the question of what the new role of government in advanced democracies for the twenty‐first century should be and what institutional and organizational capabilities are required for that role to face the challenges of globalization and the crisis of the welfare state.

Design/methodology/approach

The literature on public management reform and modernization initiatives in developed countries over the last two decades, along with the growing body of literature on public governance, provide the reference framework from which the contents of the relational state are formulated.

Findings

The relational state seeks to achieve the greatest possible synergy between the resources, knowledge and capacities of the public sector and those of civil society and business organizations. It does so by its ability to articulate social interrelationships and the intangible aspects involved (by using competitive or cooperative arrangements to incorporate civil society and business organizations in particular policy fields, raising society's awareness of its own responsibility, promoting social self‐regulation, acting as intermediary between different social actors, providing strategic direction, etc.). Hence, the relational nature of its activities becomes the core attribute of the process of public value creation.

Originality/value

The relational state locates the relations between the state, the market and civil society in the field of co‐responsibility, which is a crucial but missing feature in the neo‐liberal state and the welfare state models. The paper analyses emerging forms of the relational state and highlights the challenges that confront its adoption.
Business and climate change: emergent institutions in global governance
Authors: Kolk Ans , Pinkse Jonatan
Published: January 2010

Purpose

This paper aims to explore how multinational corporations (MNCs) may operate in the context of a so‐called emergent institution which is not yet settled and taken for granted, thus helping to shape a new form of governance with considerable private involvement. The case used to illustrate emergent institutions involves market mechanisms for climate change, particularly emissions trading. This instrument is a crucial component of the Kyoto Protocol, which has started to be implemented, but is still surrounded by uncertainty and diversity across countries/regions.

Design/methodology/approach

Information from MNCs' responses to the Carbon Disclosure Project is used to shed light on their bargaining and nonbargaining activities and how these seem to relate to their overall strategy and location.

Findings

Both with regard to nonbargaining and bargaining strategies MNCs' prevailing view seems that they have to deal with distinctive national patterns, adopting a multidomestic, frequently home‐country‐focused approach. Their responses vary according to the national situation, with the level of activity in emissions trading frequently shaped by local management. Yet, the type of corporate structures created by some MNCs indicates that they take into account that EU‐ETS may form the onset for a more global emissions trading scheme.

Research limitations/applications

Since market mechanisms for climate change are just unfolding, follow‐up studies into larger numbers of firms would be worthwhile to unravel the dynamics. The aspects identified in this paper can be used as starting point for such analyses.

Practical implications

The information and corporate considerations regarding market mechanisms for climate change can be helpful for both managers and policymakers in designing future approaches and reflecting upon the limitations and opportunities for MNC involvement in global governance.

Originality/value

The paper explores how MNCs may help shape an emergent institution, considering the fact that they face the dualility of managing a global context and multiple local contexts.
Natural law, human rights and corporate reputational capital in global governance
Authors: Jackson Kevin
Published: January 2010

Purpose

The purpose of this paper is to present a theoretical model for systematizing human rights norms to facilitate their integration into global business decision making.

Design/methodology/approach

The paper relates a natural law conception of human rights to global corporate governance.

Findings

The paper shows that natural law theory gives a basis for integrating human rights into global governance while also making a business case for taking human rights seriously.

Originality/value

The paper offers a theoretical framework related to jurisprudence and introduces the concept of reputational capital as an intangible asset that is built up by a firm's proactive advancement of human rights.
Unintended consequences of CSR: protectionism and collateral damage in global supply chains: the case of Vietnam
Authors: Tencati Antonio , Russo Angeloantonio , Quaglia Victoria
Published: January 2010

Purpose

This paper seeks to investigate the influence of the increasingly sustainable sourcing policies of many multinational companies on suppliers located in developing countries such as Vietnam. The focus is the process through which corporate social responsibility (CSR) is reaching this Southeast Asian country.

Design/methodology/approach

The research was conducted in Vietnam through the support of the United Nations Industrial Development Organization's (UNIDO) regional office. The survey was based on a questionnaire used during direct interviews or sent out electronically when onsite visits were not possible. The research involved 25 Vietnamese enterprises.

Findings

The results reveal, on the one hand, how CSR makes business sense even in a developing country such as Vietnam and, on the other hand, the difficulties of maintaining sustainability as products move from northern consumers to Vietnamese suppliers. This process calls for more collaborative models of governance among the companies along the supply chain, local authorities, international players, and civil society at large.

Originality/value

This paper highlights the unsustainable process through which corporate responsibility is being imposed on Vietnamese suppliers and how CSR, now required for access to international markets, might eventually turn into a new form of protectionism. To avoid this, CSR must be supported, rather than imposed, through building innovative partnerships and through a demand‐driven educational agenda.
Innovation in business‐community partnerships: evaluating the impact of local enterprise and global investment models on poverty, bio‐diversity and development
Authors: Raufflet Emmanuel , Berranger Alain , Gouin Jean‐François
Published: January 2010

Purpose

Over the last decade, several innovative business‐community partnerships have emerged to address simultaneously two pressing development issues: poverty reduction and biodiversity conservation. The purpose of this paper is to identify relevant models and to propose a first evaluation of these models in relation to development.

Design/methodology/approach

The models were identified following a literature review and were evaluated using Amartya Sen's definition of poverty.

Findings

The paper identifies two models: the local enterprise model and the global investment model. While the local model relies mainly on local resources, the global investment model includes local and global organizations and institutions. The paper has analyzed the respective impacts of these new business‐community partnerships, including their governance schemes, on communities and ecosystems through the lens of Amartya Sen's definition of poverty and development. The key finding is double. First, both these models are still in their very early stages. Second, the paper has identified the strengths and weaknesses of each of these models: while the global investment model provides access to solid and important financial resources and markets, the local enterprise model emphasizes local empowerment.

Originality/value

This paper reports innovative initiatives and models of governance that could inspire future private sector based approaches to biodiversity conservation and poverty reduction and help build the theoretical bases for such approaches.
Strategic local responses to global governance: the case of xertatu
Authors: Berezo Díez Jorge , de la Cruz Ayuso Cristina , Sasia Santos Pedro M.
Published: January 2010

Purpose

Bizkaia, an area of just over one million inhabitants, is the setting, through the xertatu project, of an experience for fostering corporate social responsibility (CSR). This document seeks to analyze the xertatu project as a local response to a new form of governance, identifying the lessons learned in its development.

Design/methodology/approach

This paper focuses its analysis on a clear understanding of the need to combine not only the activities of the various organizations operating in this field in Bizkaia, but also the intentions of the agents involved, in order to shed light on the shared responsibility business has with society at large in this region.

Findings

The aggregation of agents, interests and capabilities, together with a methodology of research – collective action, is suitable for fostering social responsibility in companies.

Originality/value

The analysis of CSR as a new understanding of the role of business in collaborative governance, that is, as an active agent of an enabling governing style that furthermore assumes its joint responsibility with all the other agents for social cohesion and development, usually tends to lack a local and regional perspective and, therefore, the schemes that favor its implementation, whereby it could become a testing ground and benchmark for other regions.
The challenge of effective governance: the case of Swiss Air
Authors: Nwabueze Uche , Mileski Joan
Published: January 2010

Purpose

The purpose of this paper is to address corporate governance structures. Effective corporate governance can lead to managerial excellence but managerial ethical excellence does not always exist without effective corporate governance. Embedded in both effective corporate governance and managerial excellence is the “rightness of decisions” or the ethical decision making process. This paper analyzes this key process in the case of the failure of Swissair.

Design/methodology/approach

The authors examine the key corporate governance structure through an explanatory case analysis of Swissair. They look at the structure by applying institutional theory rather than agency theory. It is hypothesized that corporate governance structures must comply with the norms generated by various stakeholders as well as economic incentives. No one set of norms may dominate the compliance; otherwise a corporation loses legitimacy and resources. It is contended that this lack of compliance of all stakeholder norms led to the failure of Swissair.

Findings

The authors examined the strategies for governance in Swissair leading up to its failure. Critical examination of the various elements of effective corporate governance results in a model presented here for assimilating appropriate norms of behavior into the corporate decision‐making process. They purport that adoption of the model by corporations will improve decision making leading to improved survival and performance.

Originality/value

The case analysis provides for the development of a model of corporate governance which includes consideration of all facets of society, its stakeholders and the norms the stakeholders generate. It is contended that companies must consider ethical, social and political norms of behavior in corporate governance structures as well as economic concerns.
Corporate governance and national culture: a multi‐country study
Authors: Li Jiatao , Harrison J. Richard
Published: January 2010

Purpose

The purpose of this paper is to show that corporate governance structures differ significantly across countries. Using agency theory and institutional theory, it examines how ownership structure and national culture influence the size and leadership structure of the corporate boards of multinational firms based in industrial countries.

Design/methodology/approach

The hypotheses are tested with data on 399 multinational manufacturing firms based in 15 industrial countries. The authors use ownership concentration, bank control, and state ownership to represent ownership structure. They view institutional structural norms as components of national culture and infer the nature of these norms for governance structure from Hofstede's national culture dimensions.

Findings

The findings show that national culture has a dominant influence on corporate governance structure, and its emphasis is recommended in future cross‐national organizational research.

Research limitations/implications

Although the models were successful in explaining MNC board structure, the authors addressed only the effects of ownership structure and national culture. It is expected that these models could be improved by including national political and legal differences and additional national economic variables.

Practical implications

The findings demonstrate that national cultures of the home countries of MNCs have powerful influences on their governance structures.

Originality/value

This paper links national culture with governance structure.
Cooperation patterns between capital owners and managers in the strategic management process: Case Estonia
Authors: Elenurm Tiit , Terk Erik , Andresoo Jan
Published: January 2010

Purpose

The purpose of this research is to empirically describe the division of strategic roles between owners and managers and its change when moving from the post‐privatisation transition stage of 1995‐1999 to the European integration stage of 2000‐2004.

Design/methodology/approach

The design takes the form of interviews with owners and top managers, questionnaire on managers' risk aversion, discussions in focus groups. A peculiarity of the study was a broad approach to owners‐managers interplay in strategy building and strategic decision making.

Findings

At least three patterns of role distribution could be observed in the owners' and managers' strategy development cooperation. Corporate governance (CG) culture in enterprises has improved, but the managers' freedom of action in strategy forming, especially in foreign‐owned companies, has not increased with the improvement and stabilisation of business environment, contrary to what could be presumed.

Research limitations/implications

Any limitations are due to predominantly qualitative nature of the research.

Practical implications

The paper enables one to better understand limitations to firms' behaviour caused by CG and to better target respective consulting and training programmes.

Originality/value

The paper presents joint treatment of CG and strategy issues. It is one of the first attempts in post‐socialist countries to determine dynamics of CG beyond publicly traded companies.
Leading corporate citizenship: governance, structure, systems
Authors: Morgan Guy , Ryu Kwang , Mirvis Philip
Published: January 2010

Purpose

The purpose of this paper is to benchmark how 25 companies in five industries are addressing corporate citizenship through their governance, structures and systems. The paper aims to look at patterns of leadership practice developing in firms in this regard and what might be shaping them. It also seeks to consider current practices in light of movement toward next‐generation corporate citizenship.

Design/methodology/approach

The study surveyed a representative sample of Fortune 500 companies. To benchmark how companies are embedding citizenship into their governance, structure, and systems, two scorecards were devised measuring practices pertaining to: Corporate Board Governance; and Operational Management of Corporate Citizenship. Criteria chosen represent Board and management policies, behaviors, and/or public commitments.

Findings

It was found that, while corporate Boards are assuming more responsibility for oversight of conduct and taking account of specific social and environmental issues, citizenship is not yet fully embedded into Boards or the operating structures and systems of most firms.

Research limitations/implications

Companies appear to be moving through developmental stages as they integrate citizenship into their governance and operations, with several developmental patterns emerging. While there seem to be specific patterns of development that link to the industry, issues faced, and culture of firms, it is difficult to generalize specific influences within industry from the relatively small sample. Further benchmarking is needed to better understand these issues and which ideas represent best practices going forward.

Practical implications

A next generation approach to corporate citizenship requires more than top down advocacy – this needs to be backed up by Board oversight and engagement and by layered management structures, systems, processes, and policies that make citizenship part of every employee's remit, across the company's value chain.

Originality/value

The paper provides a unique set of frameworks to assess company performance in relation to governing and managing corporate citizenship. It provides much needed data from companies across a number of industries to prompt further discussion on next generation corporate citizenship, where responsible business practices are woven into the corporate DNA.
Do better governed firms enjoy a lower cost of equity capital?: Evidence from Spanish firms
Authors: Reverte Carmelo
Published: January 2010

Purpose

The purpose of this paper is to investigate the relationship between corporate governance and cost of equity capital for a set of Spanish firms.

Design/methodology/approach

The paper focuses on five board characteristics that have received widespread attention in corporate governance literature (board independence, board size, existence of both audit and nomination/remuneration committees, CEO duality, and independence of board committees) in order to construct a summary corporate governance measure for each firm. Then, by using regression analysis, it examines whether higher governance quality is associated with a lower cost of equity capital.

Findings

The results show that stronger governance firms have a lower cost of equity capital with respect to firms with weaker governance, even after controlling for differences in Fama and French's risk factors (i.e. beta, size and market‐to‐book).

Research limitations/implications

The dependent variable, i.e. the cost of equity capital, is an unobservable measure and, as such, it has to be estimated. Therefore, the results can be sensitive to the estimation method chosen.

Practical implications

There is a growing literature showing that corporate governance enhances firm valuation. However, these studies typically assume that corporate governance affects firm valuation by reducing expropriation by insiders and improving the expected cash flows that can be distributed to shareholders. Whether those mechanisms also affect the other determinant of firm value – i.e. the cost of equity capital – remains largely unknown. Moreover, there is no evidence of this issue for the case of Spain.

Originality/value

It is hoped that the results from the paper will provide additional information concerning corporate governance to interested parties.
Corporate governance and intellectual capital: evidence from an academic institution
Authors: Safieddine Assem , Jamali Dima , Noureddine Sarah
Published: January 2010

Purpose

The purpose of this paper is to examine the relationship between intellectual capital (IC) and corporate governance (CG) in a university setting. In particular, the aim is to argue that the lack of good CG can lead to an inability to attract and retain IC.

Design/methodology/approach

The article tests the CG/IC relationship at the American University of Beirut (AUB) by surveying the perceptions of full‐time faculty members. The survey addresses, in particular, the factors that attract IC to AUB and their perception of several aspects of CG at the institution.

Findings

The results suggest that CG and IC are indeed related and that faculty members view CG as a major factor for IC attraction. Respondents also consider that existing IC enhances the institution's ability to attract more IC. However, the mixed perceptions of the governance structure in place at AUB, as revealed by faculty responses, weaken the support for a strong relation between CG and IC at the university. The results also unveil some areas to be improved in the way resources are run.

Research limitations/implications

The response rate for the survey was limited. The findings may be more substantive and conclusive if the sample was larger. As the study was done for one organization only, more research is needed to further explore the relationship between CG and IC.

Originality/value

The paper is the first to provide empirical evidence on the influence of CG practices on attracting and retaining IC from a general as well as from an academic institution perspective.
Inculcating the ethos of public‐sector codes of ethics in Sweden: a longitudinal approach
Authors: Svensson Göran , Wood Greg
Published: January 2010

Purpose

The purpose of this paper is to examine the measures put in place by the largest public sector organizations in Sweden in order to communicate the ethos of their codes of ethics to their employees.

Design/methodology/approach

This paper is based upon a longitudinal survey approach.

Findings

In the public sector organizations of Sweden the use of regulations and staff support is rather modest in respect to the inculcation of codes of ethics artefacts into the organisations. This longitudinal approach indicates an overall increase across the examined areas in the usage of measures to support the ethos of public sector codes of ethics.

Research limitations/implications

The artefacts to support the ethos inherent in public sector codes of ethics are rarely explored in the literature. This paper helps to fill this gap with the present longitudinal approach.

Practical implications

One could speculate that society at large and its public sector organizations may have been influenced not only by the scandalous happenings of recent years in Swedish business, but also by the impact of an Anglo‐Saxon style of “corporatisation”, whereby public authorities take on the form of a corporation or business brought on by globalisation.

Originality/value

The present paper may be used as a point of reference for further research efforts.
Corporate social responsibility in the UK gambling industry
Authors: Jones Peter , Hillier David , Comfort Daphne
Published: January 2010

Purpose

The purpose of this paper is to offer a preliminary case study exploration of the corporate social responsibility issues being addressed and reported by a number of the UK's major gambling operators.

Design/methodology/approach

The paper begins with a short discussion of the characteristics and origins of CSR and this is followed by a brief outline of the structure of the gambling industry within the UK. The paper draws its empirical material from the CSR reports and information posted on the world wide web by a number of the major gambling operators and by a small number of organisations concerned with the regulation and social impact of gambling.

Findings

The findings reveal that there are substantial variations in the nature and the extent of reporting. Four companies produced CSR reports while others produced more limited information confined largely to responsible gambling. More specifically, the paper focuses upon four sets of CSR issues namely those relating to the marketplace; the workplace; the environment; and the community and then provides some reflections on these issues.

Research limitations/implications

CSR within the UK's gambling industry has received relatively little attention from academics but the paper suggests a number of fertile grounds for future enquiry and research. The paper offers a preliminary exploration of CSR issues as reported on the world wide web and more in depth work will be needed before more definitive conclusions can be drawn.

Originality/value

The paper provides an accessible review of the CSR issues and agendas being reported by some of the UK's major gambling operators and as such it will interest academics and practitioners working on and in the gambling industry and those professionals who work with the industry.
Roles of academic directors on US Fortune 500 boards
Authors: Peterson Craig A. , Philpot James
Published: January 2010

Purpose

This paper aims to examine the prevalence of directors of US Fortune 500 firms who come from an academic background, and possible unique reasons for their appointment.

Design/methodology/approach

Based on extant theory of the resource‐dependence roles of non‐management directors, this study proposes and tests three hypotheses concerning distinctive reasons firms may appoint an academic to their boards. Academic directors may serve unique roles in increasing board demographic diversity, increasing firm intellectual capital, and providing links to local geographic constituents. Using year 2002 data from the US Fortune 500 firms, this study presents descriptive statistics and uses t‐tests and χ2 tests to examine hypotheses.

Findings

Firms having academics on their boards have greater board demographic diversity than firms without an academic director. Firms with academic directors have the same average emphasis on knowledge‐based earnings as other firms. Academics associated with US top‐ranked universities tend to be more likely to hold board seats. Firms tend to select academic directors from the geographic regions where the firm is headquartered and have a slight tendency to use them on public affairs committees.

Research limitations/implications

This study's findings highlight a unique non‐monitoring advantage of academic directors for firms seeking increased board diversity, and potential community/stakeholder liaisons.

Practical implications

Firms wishing to increase board diversity or improve relationships with other stakeholder groups may find academic directors useful to such efforts. Academic directors appear to be just as capable as other outside directors in developing firm intellectual capital.

Originality/value

This paper extends the present literature in resource dependence by examining academic directors, a new director subset. The paper is also unique in that it uses data collected from proxy statements, rather than survey data.
Corporate governance structure and firm performance in developing economies: evidence from Nigeria
Authors: Ehikioya Benjamin I.
Published: January 2010

Purpose

The purpose of this paper is to examine the link between corporate governance structure and firm performance in Nigeria.

Design/methodology/approach

The present study uses the regression model to analyze publicly available data for a sample of 107 firms quoted in the Nigerian Stock Exchange for the fiscal years 1998 to 2002.

Findings

The empirical investigations showed that ownership concentration has a positive impact on performance. Although the results revealed no evidence to support the impact of board composition on performance, there is significant evidence to support the fact that CEO duality adversely impact firm performance. The result also suggests firm size and leverage to impact on firm performance. A new variable, identified as more than one family member on the board, is found to have an adverse effect on firm performance.

Research limitations/implications

The study relied much on publicly available data for a sample of 107 listed firms in Nigeria for the fiscal years 1998 to 2002. Thus, effort should be made to look at this study in a more elaborate viewpoint and across borders.

Practical implications

Good corporate governance standards are imperative to every organization and should be encouraged for the interest of the investors and other stakeholders.

Originality/value

Interestingly, from a developing country perspective, especially in sub‐Saharan Africa, the paper is the first of its kind and offers evidence on the impact of corporate governance structure on firm performance. The paper provides useful information that is of great value to policy makers, academics and other stakeholders.
Agrícola Ebro's tender offer for Campos Chilenos to control Iansa
Authors: Parisi Franco , Nail Lance , Sciaraffia Vito
Published: January 2010

Purpose

The purpose of this paper is to describe the wealth expropriation from minority to majority shareholders due to the lack of legislation protecting the interests of minority shareholders in an acquisition deal, validating the claims made on studies made by Zingales and by La Porta et al.

Design/methodology/approach

Despite an overall takeover premium of nearly 250 percent, most minority shareholders actually suffered wealth losses ranging from US$ 7.1 to 31.14 millions. These losses are measured using different methodologies, such as accounting value; liquidation value; and economic value.

Findings

The Campos Chilenos case study presented here serves as a testing platform for the relationship between well‐developed legal systems and economic development in both a current and future sense. In a current sense, the case illustrates how inadequate minority shareholder protection led to minority shareholder wealth expropriation, discouraging minority investment from both domestic and foreign investors (and limiting economic development).

Practical implications

Future implications lay in the corporate governance regulation reforms passed in the aftermath of the Campos Chilenos case. If the Chilean government actively enforces new regulations, the level of economic development in Chile will exceed that of its peers in Latin America and other emerging economies, as claimed by La Porta et al.

Originality/value

This study will be useful for governance makers and regulators in emerging countries.
The effect of CEO ownership and shareholder rights on cost of equity capital
Authors: Huang Henry , Wang Quanxi , Zhang Xiaonong
Published: January 2010

Purpose

The purpose of this paper is to investigate whether managerial ownership affects the association between shareholder rights and the cost of equity capital.

Design/methodology/approach

Prior literature has shown that strong shareholder rights are associated with a lower level of cost of equity capital. This paper empirically tests the interaction between managerial ownership and shareholder rights on affecting the cost of equity capital, using Gompers et al.'s governance score and Ohlson and Juettner‐Nauroth's estimate of cost of equity capital. To mitigate the endogeneity arising from other governance variables affecting both shareholder rights and the cost of equity capital, the paper adopts both OLS and two‐stage regression.

Findings

The results indicate that managerial ownership aligns managers' interests with those of shareholders, leading to a lesser degree of agency problems and lower cost of equity capital. Furthermore, the evidence suggests that managerial ownership could substitute for shareholder rights in affecting the cost of equity capital, making strong shareholder rights less important in a high managerial ownership setting.

Research limitations/applications

Findings in this paper suggest that firms need to consider the interaction between managerial ownership and shareholder rights in designing their governance structure to minimize their cost of equity capital.

Originality/value

This paper reveals the interaction between two major governance variables in affecting firm valuation.
CEO compensation as a process and a product of negotiation
Authors: Yao Yongheng , Appelbaum Steven H.
Published: January 2010

Purpose

The purpose of this paper is to extend our understanding of CEO compensation by looking into the CEO pay‐setting process. Particularly, a process model is proposed to specify the interaction between situational indicators, process variables, contextual factors and CEO pay.

Design/methodology/approach

A modest review the major theories that are driving the field of CEO compensation study reveals several interesting findings. These models or perspectives provide valuable but incomplete understanding of the multifaceted phenomenon. Especially, the realm of CEO pay‐setting process is still unexplored. A process model of CEO compensation is developed to fill in this gap.

Findings

CEO compensation is a negotiation between a CEO and a principal. Negotiated CEO pay is better predicted by CEO aspirations and principal reservations, rather than economic indicators. CEO power and the institutional environment have a moderating effect.

Practical implications

The study suggests that a better theory is critically in demand in order to improve effectiveness of corporate governance. This paper underscores that a real challenge for a principal in influencing CEO pay is to anticipate CEO aspirations and to monitor the gaps between CEO aspirations and principal reservations, rather than to control economic indicators. Unfortunately, until now there has been very limited information about principal reservation and CEO aspiration.

Originality/value

This inquiry seeks to make a difference by moving CEO compensation research into a fruitful direction. To our knowledge, this inquiry is the first attempt that provides systematic explanation as to how and why situational indicators do not directly influence the negotiated CEO pay. The newly proposed model is much realistic, much integrative and much dynamic, compared with existing conceptualizations. Eight propositions are presented to guide empirical research as well as future theory development.
Towards an internal change management perspective of CSR: evidence from project RESPONSE on the sources of cognitive alignment between managers and their stakeholders, and their implications for social performance
Authors: Zollo Maurizio , Minoja Mario , Casanova Lourdes , Hockerts Kai , Neergaard Peter , Schneider Susan , Tencati Antonio
Published: January 2010

Purpose

This paper aims to juxtapose two separate perspectives on corporate social responsibility (CSR) in terms of their ability to explain the cognitive alignment between managers and stakeholders on what constitutes the social responsibility of the focal firm, and to explain social performance.

Design/methodology/approach

The authors take two perspectives: that of stakeholder engagement, which has historically characterized the debate on CSR; and that of internal change processes required to integrate CSR in a firm's operations. The authors analyze data from 427 interviews, of which 209 were with managers and 219 with stakeholders of 19 multinational firms in eight sectors, to assess the extent of cognitive alignment between managers and stakeholders on the conceptualization of CSR for the relevant firm, to determine which of the two theoretical perspectives is connected with the degree of cognitive alignment, and to determine which of the two is connected with the perception of corporate social performance (CSP).

Findings

The data examined show no evidence that the degree of sophistication in stakeholder engagement practices is connected with either the magnitude of cognitive gaps, or the level of CSP; whereas the degree of integration in internal operations is connected with both narrower cognitive gaps and higher CSP.

Originality/value

This paper tackles for the first time the problem of measuring and explaining the gaps between managers and stakeholders about their cognitive representations of CSR. The key result of the analysis is that the standard conceptualization of CSR as a stakeholder engagement process does not suffice neither to explain the variation across firms in their managers' cognitive alignment with stakeholders, nor to explain inter‐firm variation in social performance. The strongest explanation for both alignment and performance comes from the extent to which the firm has actually invested in internal change processes aimed at integrating the principles of CSR in the operations and strategies of the firm.
Toward an integrated model of leadership for corporate responsibility and sustainable development: a process model of corporate responsibility beyond management innovation
Authors: D'Amato Alessia , Roome Nigel
Published: January 2010

Purpose

The literature on corporate responsibility (CR) increasingly recognizes the importance of leadership in support of organizational change. This is particularly the case when CR provides the basis for the business contribution to sustainable development, which is understood to involve organizational and social innovation leading to change. The paper draws on theoretical and empirical studies to examine leadership for CR as a particular example of management innovation.

Design/methodology/approach

The paper develops a model of leadership for CR as the business contribution to sustainable development by confronting and integrating the literatures on management innovation and leadership for CR. The proposed model is consistent with the direction, alignment, commitment (DAC) framework that fosters a culture of organizational leadership relevant to the specific case of business and sustainable development.

Findings

The process model described in the paper connects leadership in organizational change with literature on management innovation. The paper draws on theoretical and empirically grounded literature on management, corporate responsibility and organizational psychology. It puts forward a sequence of mechanisms that contribute to successful change and discusses how they are linked. This sequence provides a process model of leadership practices for CR as the business contribution to sustainable development viewed as a particular form of management innovation, which involves the advancement of leadership practices for CR as organizational and social change.

Research limitations/implications

The model is useful as a reference to practice and as a basis for leadership development. In terms of theory the model needs to be more thoroughly tested in empirical settings to understand better the interdependencies between leadership practices for CR and management innovation.

Originality/value

This process model is the first attempt to develop a comprehensive understanding of CR in a management innovation framework. In doing this it moves beyond the recent focus on leadership skills and competences of individuals.
Context, complexity and connectedness: dimensions of globalization revealed
Authors: Bevan David , Gitsham Matthew
Published: January 2010

Purpose

This paper sets out to reveal the extent to which the experience of senior managers as organizational change leaders in a time of contemporary crisis may be discerned to reflect strands of earlier globalization theories; to consider any implications for leadership and management learning.

Design/methodology/approach

The authors proceed from the colloquium model for knowledge exchange outlined in the editorial introduction to this special issue. In the spirit of reflexive management research the authors bring an epistemological subjectivism – the context of indicative globalization literature (“research”) – to bear upon and interpret ontological realism as revealed by the experiences of senior managers through a contemporary survey of global firms (“practice”). This methodology enlists an ontology informed by critical theory; it proceeds through process denaturalization to potentially transformational knowledge development.

Findings

The authors interpret globalization literature to reveal one strand as historically predictive of the insecurity and complexity we have recently experienced in the global economies. An informal and experimental survey along with a range of interviews with senior managers in global firms is undertaken in the wake of a market meltdown (September 2008). Interpreting the experience of these managers in the light of selected globalization literature, we find economic reasoning is more implicit in managers' experiences of globalization, while sociological experience or feeling is more explicit in the same discourses. This epistemological distinction – vocalized as a performance gap – has profound implications for leadership and management education and learning.

Research limitations/implications

The empirical survey was exploratory in nature and not designed to test any particular hypothesis. The theoretical framework and interpretive account were reflexive afterthoughts – an informal, initial take on some results from a survey. Such methodological bricolage is envisaged in reflexive management research and not limited by compliance with normal standards of academic rigor. Beyond the similarities in conceptualization as between selected readings and selected practice, the authors suggest that management learning and education will need to be organized more structurally and systemically if we are to reproduce a more sustainable organizational future.

Practical implications

Senior managers are clearly aware of the problems resulting from systemic failure – they may need to consider a systemic and not a linear solution. This has consequences for management learning and the business school.

Originality/value

This is the first empirical in‐crisis survey interpreted through lenses of economic and sociological dimensions of globalization.
CSR: the role of leadership in driving ethical outcomes
Authors: Mostovicz Isaac , Kakabadse Nada , Kakabadse Andrew
Published: January 2010

Purpose

This paper aims to explain why CSR policies have failed to render organizations more ethical and to propose concepts for using CSR for improving the ethics of organizations.

Design/methodology/approach

The paper examines the literature on CSR to compare how gaps in this field of literature are similar to those in leadership theory.

Findings

The paper posits that the different logical approaches to CSR are not necessarily ethical since ethics is based on the emotional involvement of the actor. The paper explains that leadership is not a hierarchical position but the emotional ability to follow one's worldview – either the Theta or Lambda worldviews – based on how one perceives his life purpose. The paper shows how to integrate knowledge from leadership theory to render the various CSR policies more ethical.

Research limitations/implications

The paper shows the implication of the need for emotional involvement in research, in general. While the paper indicates a direction for how to integrate CSR policies into organizations, it does not provide examples.

Originality/value

The paper argues for a definition of leadership as the ability to act authentically according to one's worldview, either Theta or Lambda. Based on this context, it provides a better definition of strategy and tactics while arguing that CSR is only applicable to the latter category.
The development of governance structures for corporate responsibility
Authors: Spitzeck Heiko
Published: January 2010

Purpose

This paper seeks to explore patterns of integrating corporate responsibility issues into corporate governance mechanisms and their development over time.

Design/methodology/approach

Data from the Business in the Community Corporate Responsibility Index is explored to reveal dominant governance patterns of corporate responsibility issues for the 51 organizations continuously participating in the index since its launch in 2002.

Findings

This research reports three major findings: First, there is increasing CEO leadership for the corporate responsibility agenda of the firm. Second, governance structures developed over time are now increasingly making use of corporate responsibility committees. In 2002 about 15 percent of the firms were using a CR committee, the number had increased by 2008 to more than 60 percent. Third, firms with a CR committee in place outperform others in the Corporate Responsibility Index.

Research limitations/implications

While this paper gives a good insight into which structures companies set up to deal with the corporate responsibility agenda, interviews with practitioners would help to understand why this is the case and in which direction the governance of corporate responsibility is expected to evolve.

Practical implications

To understand how companies are governing their corporate responsibility activities is useful for managers seeking to learn from best practices.

Originality/value

This paper is the first empirical research looking at the development of governance structures for corporate responsibility beyond a single case study design.
Questioning the corporate responsibility (CR) department alignment with the business model of the company
Authors: Jacopin Tanguy , Fontrodona Joan
Published: January 2010

Purpose

This paper seeks to question the corporate responsibility (CR) department alignment with the business model of the company to provide some insights concerning the strategic focus of the CR department, the necessity or not to align the CR department to the business model of the company, and the ability to incorporate CR into the organization as competitive advantage from a specific business model.

Design/methodology/approach

The capacity to discern some key success factors between the alignment of the CR department with the rest of the organization is done in three stages. The methodology sets the emphasis first, on the cognitive process approach of CEOs as strategists and second, on the cognitive process approach of the CR department using in both cases the Kase et al. framework. The third stage consists in crossing the results of the two first stages in a matrix where the alignment and misalignment cases are studied.

Findings

The findings show that embedding CR into the organizations is one of the most challenging issues CR faces today. The question of aligning the CR Department with the business model of the organization can be an option to elapse current obstacles in the deepening of CR.

Originality/value

This paper provides a new framework to analyze the cognitive process of the CR managers and a new matrix to study the alignment of the CR Department strategy with the rest of the organization.