bluuebunny/crossref_metadata_2025 huggingface dataset:
Hardwiring and softwiring corporate responsibility: a vital combination
Authors: de Wit Monique , Wade Mark , Schouten Esther
Published: January 2010

Purpose

This case study paper has the purpose of showing that both processes of hardwiring and soft wiring together is essential for embedding corporate responsibility across a global organisation to achieve lasting change.

Design/methodology/approach

The approach taken in this paper is first to describe the experiences in the Shell Group in terms of tools and approaches. In Shell, governance and business processes are being aligned, “hardwired”, while communications, leadership development programmes and competency frameworks reach the “hearts and minds” of Shell people – “soft wiring”. Informal networks tap into the enthusiasm of people, developing intrinsic motivation. These experiences of Shell are then compared with the sense making model of Cramer et al.

Findings

The findings show a high level of alignment.

Practical implications

The practical implication of this finding is that hardwiring and softwiring processes appear to be a vital combination for changing the way business do things.

Originality/value

The value of this paper lies in making the business efforts of embedding corporate responsibility into business practice more effective by focussing on hardwiring and softwiring at the same time.
Corporate social responsibility from a “stakeholder view” perspective: CSR implementation by a Swiss mobile telecommunication provider
Authors: Sachs Sybille , Maurer Marc , Rühli Edwin , Hoffmann Reto
Published: January 2010

Purpose

The purpose of this research is to show how corporate social responsibility (CSR) is actually implemented and managed in business practice by a mobile communications provider in Switzerland. Based on this presentation the paper aims to analyze whether this implementation in the firm is consistent or not, to the responsibilities derived from the stakeholder view framework as it has been proposed by Postet al.(2002).

Design/methodology/approach

The goal of this investigation is twofold. From a theoretical perspective, the paper aims to find out if the stakeholder view framework is a suitable tool to assess a firm's practical efforts in the area of CSR. And from a practitioners perspective, the application of the stakeholder view framework may help in identifying “blind spots” whereby closing them could increase the firm's effectiveness concerning the implementation of their specific corporate responsibility.

Findings

Because of the empirical findings it is concluded that the application of the stakeholder responsibility framework yields interesting insights into how corporate responsibilities are managed from a stakeholder perspective.

Originality/value

The paper ends by suggesting several recommendations for the further CSR implementation of the company analyzed and for business practice in general.
Voluntarism as an organizing principle for “responsible organizations”
Authors: Clarke Martin , Butcher David
Published: January 2010

Purpose

The aim of this paper is to promote the concept of organizational voluntarism, borrowed from political philosophy and to stimulate feedback and debate as to its efficacy in furthering the discourse on corporate responsibility.

Design/methodology/approach

The paper examines a range of current theories that address the issue of balancing organizational plurality and coherence. It identifies both shortfalls in current research and provides criteria for developing new theory in this area. The concept of organizational voluntarism is developed and these criteria used to test the robustness of the model and to explore future areas of research.

Findings

The criteria used to assess the voluntarism model are: the centrality of organizational plurality, the embeddedness of social relations and power in organization working, accounting for the motivations of managers to work this way; and the need for clear organizational benefits. Four potential cognitions are proposed that define a voluntaristic mindset.

Research limitations/implications

The aim is only to develop the concept of voluntarism and promote debate about its value as an organizing principle in multi stakeholder settings.

Practical implications

The paper offers a research proposition that managers who pursue voluntaristic behaviour will be influenced by cognitions that reflect plurality of interests, the value of personal interest, the need to “take” authority and who value political models of working in the reconciliation of competing interests.

Originality/value

The paper provides an additional perspective that can further the development of corporate responsibility by mediating the demands for corporate control and efficiency and the calls for greater inclusion.
The role of audit committees in Barbados
Authors: Alleyne Philmore , Howard Michael , Greenidge Dion
Published: January 2010

Purpose

The purpose of this paper is to examine the role and function of audit committees in public companies in Barbados since the corporate scandals of Enron and WorldCom in the USA.

Design/methodology/approach

The study used a mixed‐methods approach of self‐administered questionnaires, interviews with directors, audit committee members and auditors, and a content analysis of the published annual reports.

Findings

There was no full‐scale adoption of audit committees. Membership in audit committees tended to vary between three and four, and audit committees met on average four times a year. There were mixed views on audit committees having broader roles such as business strategy, assessment and management of risks. There were also excellent working relationships among audit committees, internal and external auditors. The independence of audit committees was questionable.

Research limitations/implications

The concept of audit committee is relatively new in Barbados. Further, there are Boards dominated by directors with major shareholdings. This study also relied heavily on US‐centric literature and the perceptions of audit committee members. These factors are likely to limit its usefulness to other non‐US countries. Future research can measure stakeholders' perceptions of the role of audit committees.

Practical implications

This study is important to academics and practitioners in understanding the role and function of audit committees in a small country.

Originality/value

This study sets out a best practice model for the adoption of audit committees in small countries like Barbados.
Board structure and ownership in Malaysia: the case of distressed listed companies
Authors: Nahar Abdullah Shamsul
Published: January 2010

Purpose

This study seeks to examine the influence of board independence, CEO duality and ownership structure on the firm financial distressed status using a sample of distressed companies and a matched‐pair sample of non‐distressed companies listed on the Bursa Malaysia.

Design/methodology/approach

This study utilized publicly available data from annual reports of a sample of 86 non‐finance distressed firms listed on the Bursa Malaysia and a sample of matched 86 non‐distressed firms for a period covering the 1999‐2001 financial years.

Findings

Board independence and CEO duality are not associated with financial distressed status. Management and non‐executive directors' interests are associated negatively with financial distress. A negative association is also documented for outside blockholders. The evidence also supports the contention that ownership by non‐executive directors and outside blockholders effectively increases their incentives to monitor management in ensuring their wealth in the firms is intact.

Research limitations/implications

One limitation of this research is that it relies on publicly available data and agency theory. Future research could apply other theories, such as resource dependency and stewardship. Use of process‐oriented data could also improve the findings.

Practical implications

Independent directors need to undergo training to help them improve and be aware of their responsibilities.

Originality/value

This paper offers evidence on the extent to which distress is associated with corporate governance from a developing country. The paper should be of interest to the regulatory bodies and practitioners.
Benchmarking the performance of nations: non‐uniform weighting and non‐economic dimensions
Authors: Bowen Harry P. , Moesen Wim
Published: January 2010

Purpose

Most composite indicators of national performance limit their scope to only economic performance criteria and aggregate primitive performance data using subjective fixed weight values applied uniformly to all countries. This paper proposes a weighting method to correct for biases inherent in the use of fixed and uniform weights, and it presents a composite performance indicator that encompasses both economic and non‐economic performance criteria.

Design/methodology/approach

The paper presents a method that endogenously determines country‐specific weights that explicitly take account of a country's own choices and achievements across primitive dimensions of performance. The method is then used to construct a composite inclusive index that combines economic performance with two other performance dimensions: environmental sustainability and governance.

Findings

Comparison of the endogenous weight method with the method of using fixed and uniform weights indicates a bias in the latter that penalizes countries, in terms of indicating lower relative performance, which are more diverse in their achievements among primitive performance dimensions. When the endogenous weight method is used, the performance ranking of countries is altered such that countries with greater diversity improve their relative performance while the relative performance of countries having less diversity may either rise or fall.

Originality/value

The weighting method discussed in this paper: is applicable at any level of analysis (e.g. nations, companies, business units, etc.), obviates objections about the “importance” of alternative primitive dimensions that can arise when subjective fixed weights are used; and indicates more accurately relative performance since each unit of analysis is first allowed to obtain its best performance before relative performance is assessed. The method can therefore assist policy makers, companies, etc. to more accurately benchmark performance and it can, in particular, assist companies to respond to perceptions of low performance or compliance among different performance dimensions when performance has been determined using the traditional method of fixed and uniform weights.
Toxins in the workplace: affect on organizations and employees
Authors: Appelbaum Steven H. , Roy‐Girard David
Published: January 2010

Purpose

The purpose of this article is to define toxins such as toxic leader, toxic manager, toxic culture, and toxic organization and explore how they affect the organization's performance and its employees.

Design/methodology/approach

This article is basically twofold. It is a literature review utilizing a selective bibliography providing advice on information sources and it is comprehensive in that the objective is to cover the mainstream and unique contributors of toxicity. It is also a general review providing an overview of this contemporary issue facing organizations with descriptions of what the problem is and how to address it.

Findings

Organizations as well as their employees suffer from the affects of toxins that are present within the organization. They also suffer from psychological effects, such as; impaired judgment, irritability, anxiety, anger, an inability to concentrate and memory loss. On the other hand, it has also been found that companies in North America alone lose an excess of $200 billion each year due to employee deviance. Employee deviance has also been found to be the cause of approximately 30 percent of all business failures.

Practical implications

There are possible solutions to reduce, and sometimes even eliminate, toxicity in an organization. Possible solutions, such as recognition, and the use of toxin handlers to eliminate, reduce, or avoid the infiltration and spreading of these toxins is very important to organizations that suffer from or would like to prevent toxicity in the workplace.

Originality/value

The article is unique and highly practical for all individuals who are in management and for those who are called on to assume leadership roles mandated to deal with deviance, organizational citizen behavior and toxicity in the organization.
Strategic approaches of corporate codes of ethics in Australia: a framework for classification and empirical illustration
Authors: Svensson Göran , Wood Greg
Published: January 2010

Purpose

Research has so far not approached the contents of corporate code of ethics from a strategic classification point of view. Therefore, the objective of this paper is to introduce and describe a framework of classification and empirical illustration to provide insights into the strategic approaches of corporate code of ethics content within and across contextual business environments.

Design/methodology/approach

The paper summarizes the content analysis of code prescription and the intensity of codification in the contents of 78 corporate codes of ethics in Australia.

Findings

The paper finds that, generally, the studied corporate codes of ethics in Australia are of standardized and replicated strategic approaches. In particular, customized and individualized strategic approaches are far from penetrating the ethos of corporate codes of ethics content.

Research limitations/implications

The research is limited to Australian codes of ethics. Suggestions for further research are provided in terms of the search for best practice of customized and individualized corporate codes of ethics content across countries.

Practical implications

The framework contributes to an identification of four strategic approaches of corporate codes of ethics content, namely standardized, replicated, individualized and customized.

Originality/value

The principal contribution of this paper is a generic framework to identify strategic approaches of corporate codes of ethics content. The framework is derived from two generic dimensions: the context of application and the application of content. The timing of application is also a crucial generic dimension to the success or failure of codes of ethics content. Empirical illustrations based upon corporate codes of ethics in Australia's top companies underpin the topic explored.
Integrating corporate social responsibility and other strategic foci in a distributed production system: a transaction cost perspective on the North Sea offshore petroleum industry
Authors: Midttun Atle , Dirdal Tore , Gautesen Kristian , Omland Terje , Wenstøp Søren
Published: January 2010

Purpose

The purpose of the paper is to explore the challenges of integrating corporate social responsibility (CSR) with other strategic foci into the supply/contractor chain, both conceptually and empirically, with a focus on one sectorial case: the Norwegian upstream petroleum industry. It compares contradictory theories of strategic focus and explores their implications for the organisation of the supply chain and discusses challenges and solutions for operative CSR‐oriented supply chain management

Design/methodology/approach

The empirical analysis, inspired by the cognitive mapping approach, seeks to elicit the strategic profiles of the oil majors and suppliers/contractors in the petroleum industry. This is based on textual analysis of core statements of overall business strategy such as the CEO's and the Chairman's statement letter to the shareholders. The paper also draws on research and workshops with petroleum companies and their suppliers in the North Sea, as well as contracting experts and researchers taking part in the EU‐TRENDS project which focused on satisfying Europe's future demands and needs for sustainable, secure, safe and clean energy supplies.

Findings

The strategic profiles of the petroleum companies and their suppliers/contractors indicate that, while they coincide on many points, there is considerable discrepancy as far as CSR and HSE are concerned. The suppliers/contractors tend to emphasise the technology dimension more strongly than the petroleum companies. HSE and CSR are, on average, strategically under‐communicated within the supply industry compared with the petroleum companies, but there is also considerable variation within each group.

Research limitations/implications

The paper explores how transaction cost theory may help frame managerial challenges and approaches in integrating CSR consistently throughout supply chains. It shows some of the limitations of the “rationalist” model of industrial organisation both at the firm level and at the supply chain level and discusses possible expansions into broader managerial approaches.

Practical implications

The paper highlights some of the managerial challenges and basic approaches for integrating CSR consistently throughout the value chain.

Originality/value

The originality of the article lies conceptually in linking the CSR literature to transaction cost theory of industrial organisation. Empirically the article presents new insights into strategic foci of the petroleum companies and their supply chain.
Stakeholder relations and maintaining the licence to operate: a comparative case study of the Swiss telecommunications industry
Authors: Kern Isabelle , Sachs Sybille , Rühli Edwin
Published: January 2010

Purpose

In the research project “Good practices of stakeholder view” three firms in the Swiss telecommunications industry were analysed in order to compare their stakeholder involvement. This paper seeks to illustrate how these three firms, namely Swisscom, Sunrise, and Orange, dealt with a particular problem all of them faced: the deployment of antennas for mobile telephony that in some cases was strongly opposed by the population. Thereby, the “Telco” firms were challenged as societal institutions and had to defend their licence to operate. The three firms chose different strategies to deal with the problem.

Design/methodology/approach

The paper is based on comparative case studies that combine qualitative and quantitative aspects.

Findings

The benefits of good stakeholder relations are illustrated as well as the problems that might arise when stakeholders are ignored.

Research limitations/implications

The findings are based on a sample of three telecommunication firms.

Practical implications

The paper suggests good practices for firms that aim to improve their stakeholder interactions.

Originality/value

This paper sheds light on the value of different strategies in the stakeholder relations to maintain a firm's licence to operate and to pursue its business in the intended way.
The eras and participants of fair trade: an industry structure/stakeholder perspective on the growth of the fair trade industry
Authors: Davies Iain A.
Published: January 2010

Purpose

This paper aims to investigate the increased mass‐marketing in the fair trade industry to provide a robust analysis of the industry, participants and growth for use both as a starting‐point for researchers in this field and as a case study for readers with an interest in any ethical trading initiative.

Design/methodology/approach

Utilizing data from a longitudinal exploratory research project, participant observation from two organizations and in‐depth interviews from a total of 15 organizations are combined to build a strong theory grounded in the data.

Findings

The paper provides insight into the nature of participants and industry structure in fair trade over time. Four distinct eras are identified which reflect both current literature and the practitioners' perspective. The four eras can be split into three extant eras – the solidarity era, niche‐market era, and mass‐market era, and the fourth – the institutionalisation era – depicts participants' beliefs about the future for the industry.

Research limitations/implications

The three principal theoretical contributions are the definitions which are provided for the different eras of the market's progression, the view of industry structure and the newly defined participants from both the commodity and under‐considered craft markets.

Practical implications

Practical contributions are provided since the paper offers a holistic view of the fair trade market, so acting as a starting‐point for those new to fair trade.

Originality/value

This paper provides deep empirically grounded theory from which fair trade research can grow. It also provides future insights from participants in the industry, advancing current theory.
SME social performance: a four‐cell typology of key drivers and barriers on social issues and their implications for stakeholder theory
Authors: Kusyk Sophia Maria , Lozano Josep M.
Published: January 2010

Purpose

Small and medium enterprises (SMEs) are often neglected in the context of business and society theory building. The purpose of this article is to build a model of why SMEs address social issues by integrating internal and external drivers and barriers to social performance (SP).

Design/methodology/approach

Using thematic analysis, barriers and drivers to SME social performance are clustered along key stakeholders and presented in a theoretical model. The analysis dates from 1973 until 2006 and is grounded in an extensive literature review that represents a total of 83 countries. It includes academic and practitioner accounts stemming from theoretical and empirical work, as well as conference proceedings. A total of 80 drivers and 96 barriers to SME high social performance are identified.

Findings

This paper develops an SME four‐cell ideal type of social issues management (SIM) response typology based on drivers and barriers of social performance.

Practical implications

The importance of understanding barriers and drivers to social responsibility (SR) of SIM for stakeholder theory, policy makers, and practitioners is discussed, concluding with implications for further SME‐SR research.

Originality/value

The four‐cell typology considers the theoretical claims of stakeholder theory within the context of SMEs and proposes a heteronomy of stakeholder salience.
Bodega Jiménez‐Landi and Javier Benjumea Chair: the collaborative creation of a strategic stakeholder management approach in a small Spanish enterprise
Authors: Luis Fernández Fernández José , Benavides Delgado Juan , Villagra García Nuria
Published: January 2010

Purpose

The purpose of this research is to attempt to gain a deeper understanding on small to medium‐sized enterprises (SMEs) and point out some of the most serious barriers for small Spanish companies to implement such kind of strategic approach and connect it with its day‐to‐day operations.

Design/methodology/approach

After laying out the conceptual framework, and after giving a short description of the Spanish institutional landscape on corporate social responsibility (CSR), the paper focuses on SMEs and the practical issues relating to strategy design, core business and implementation as identified by managers and academics.

Findings

The paper shows a joint venture and a strategic partnership between the Javier Benjumea Chair and a new small Spanish company, in which the partners start a process of mutual help and learning. That partnership is itself an interesting experiment as a case of collaboration between the enterprise and an academic institution.

Research limitations/implications

This is only the first step in generating a model applied to improve CSR uptake at the SME level.

Originality/value

The theoretical goal that is sought after in this paper is how to advance the design of a conceptual model and tools for analyzing and managing dynamically some of the most relevant intangible aspects of an SME, in order to improve its strategic management of the relationships with the stakeholders.
Positive and negative deviant workplace behaviors: causes, impacts, and solutions
Authors: Appelbaum Steven H. , Iaconi Giulio David , Matousek Albert
Published: January 2010

Purpose

The purpose of this paper is to examine the impact on organizations of both negative deviant workplace behaviors – those that violate organizational norms, policies or internal rules – and positive deviant workplace behaviors – those that honorably violate them. The reasons why people engage in such behaviors are explored, along with some of the reasons why organizations allow such behaviors to thrive within their walls. A typology of positive workplace behavior is determined and is compared with other pro‐social behaviors such as: whistleblowing, corporate social responsibility, organizational citizenship behavior and innovation. Possible solutions to overcome problems associated with negative deviant behavior in the workplace are examined, along with how to promote positive deviant behavior in the workplace.

Design/methodology/approach

A literature review on current positive and negative deviant workplace behavior was conducted.

Findings

Regardless of whether negative deviance is overt or implicit, it has negative consequences for the entity and its affiliates. The estimated impact of the widespread theft by employees on the US economy has been reported to be $50 billion annually. Toxic organizations depend on employees that are dishonest and deceitful in order to be successful. Furthermore, it is found that psychological empowerment is likely to be a key enabler of positive deviance.

Originality/value

It is proposed that the survival of an organization in the face of negative deviant employees is possible with a remodeling of an organization's norms, attitudes and social values to a specific organizational culture centered on important ethical core values; by addressing value differences between employee subcultures, and more frequent background checks when hiring. Adhering tightly to organizational norms may preclude positive deviant behaviors that would be beneficial to the organization, and thus employee psychological empowerment is recommended.
Decreasing corporate governance in an ethico‐economic general equilibrium model of unity of knowledge
Authors: Alam Choudhury Masudul , Harahap Sofyan S.
Published: January 2010

Purpose

The purpose of this paper is to explain how to reduce transaction cost in corporate governance by subjecting it institutionally to ethics and values of interactive and consensual decision making with transparency gained from participation between managers and shareholders/stakeholders and the community at large. This is an epistemological problem in the Islamic approach to corporate governance. The paper brings these out in technical language and methodology.

Design/methodology/approach

An analytical epistemological and comparative study between mainstream and Islamic conceptions in corporate governance is used to develop the idea mentioned above. The analytical model used is of an ethico‐economic general equilibrium type with learning variables.

Findings

The Islamic theory of corporate governance under the rubric of its epistemology of unity of knowledge treated within a systems approach is found to reduce transaction cost and produce better management decisions.

Research limitations/implications

The paper is mostly theoretical in nature but carries quantitative facts on the limitations of existing corporate governance practice at the accountancy level in the global scene.

Practical implications

The adoption of institutional modes to generate interactive, integrative and evolutionary frameworks of corporate decision making is derived from the content of the paper. Recent global incidents with WorldCom and Enron are cited to show how corporate governance has failed as an effective means of reducing the immense transaction costs that were engendered by the failure of these mega corporations.

Originality/value

The paper conveys an original idea that has not been taken up elsewhere. It reflects the systems approach to the study of behavior in a corporate setting within the epistemology of systemic unity of knowledge. Besides, in the Islamic comparison that the paper undertakes in contradistinction to the mainstream approach, the methodology of systemic unity of knowledge conveys an altogether new way of studying corporate governance in the related new institutional framework.
Compliance obstacles to competitiveness
Authors: Doyle Eleanor
Published: January 2010

Purpose

The purpose of this paper is to explain the competitiveness obstacles that European businesses face, which, if not addressed, limit the potential of the EU economy, particularly in terms of the Lisbon goals. Adopting a broadly defined compliance‐centred approach, the paper seeks to identify how some significant competitiveness obstacles of European business might best be addressed.

Design/methodology/approach

In‐depth interviews in 44 multinational and medium‐sized companies were used to investigate compliance requirements, the tools and methods used to manage compliance, compliance‐related obstacles to competitiveness. A survey of four European Information Centres was conducted to evaluate their effectiveness in achieving their stated mission.

Findings

Organisations lacked systems to proactively manage compliance to allow them to deepen or sustain their competitive positioning. Companies were concerned with the reliability and comprehensiveness of reports on compliance risks and how these could be related to prioritised strategic goals. A gap was identified between regulation production and dissemination, and conversion of regulatory information into knowledge used to gain and maintain business advantage. This gap is inadequately filled by business supports, including the European Information Centres.

Originality/value

The business‐focused approach to managing compliance suggested here could increase the competitiveness of EU businesses and the EIC Network is potentially well positioned to play its part in the value‐adding process of both the providers and consumers of EU information.
Marketing in governance: leader‐managerial practices for efficiency in competency‐based administration and transformational marketing model
Authors: Gladson Nwokah N.
Published: January 2010

Purpose

The purpose of this paper is to determine steps to be taken to educate, train, and achieve effective positive attitude and behavior modification of members and transformational managerial practices in corporate organizations.

Design/methodology/approach

The paper adopted a descriptive methodology in describing leader‐managerial practices for efficiency in competency‐based administration and transformational marketing model.

Findings

The paper finds that transactional managerial leadership focuses mainly on role clarification, and the initiation of structure, meeting the social needs of subordinates, and the distribution of rewards and punishment according to performance. But the new system of transformational managerial leadership accomplishes all these, and goes further, to adopt certain meta‐managerial orientations, which include individualized consideration, intellectual stimulation, inspirational motivation and idealized influence, that enable such a transformationally conscientized leader‐manager to achieve superior results in the organization.

Originality/value

The specific work organizational practices discussed in this paper are very potent tools in the hands of managers. A conceptual model, known as the strategic corporate intelligence and transformational marketing (SATELLITE) model, is outlined, and can be used by corporate intelligence staff to provide marketing intelligence.
The association between corporate governance and audit fees of bank holding companies
Authors: Boo El'Fred , Sharma Divesh
Published: January 2010

Purpose

The purpose of this paper is to investigate whether corporate governance structures influence the audit process in terms of audit fee pricing for regulated companies.

Design/methodology/approach

The paper first reviews prior literature and identifies factors within the categories of client size, audit risk, audit complexity, auditor‐related issues and corporate governance characteristics that are likely to influence audit fees of banking clients. It then regresses these variables on audit fees using an ordinary least square regression model for a sample of US listed bank holding companies (BHC).

Findings

The paper finds no significant association between most corporate governance variables and audit fees, suggesting that governance agents do not require additional assurance from the auditor, given close oversight by regulators. It also observes a negative association between audit committee independence and audit fees, implying that auditors reduce their effort and thus audit fees in the presence of an independent audit committee because they perceive that such committees reduce control and financial reporting risks.

Originality/value

In contrast with prior findings based on non‐regulated companies, governance agents in regulated companies such as BHC do not demand a more extensive audit. This reflects a substitution effect of regulatory oversight for internal governance monitoring. The paper also shows that BigN auditors modify their audit strategies in response to corporate governance mechanisms. Modifying audit strategies in accordance with the strength of governance mechanisms is consistent with recommendations in professional standards and would enable auditors to address risks more appropriately, thereby increasing audit quality and efficiency.
Corporate governance and the relationship between EVA and created shareholder value
Authors: El Mir Ali , Seboui Souad
Published: January 2010

Purpose

The purpose of this paper is to find out whether governance mechanisms approximated by the board of directors' characteristics, auditors' quality, ownership structure and compensation mix, can help bridge the gap between economic value added (EVA) and market values approximated by created shareholder value (CSV).

Design/methodology/approach

Based on a sample of US firms and using available data for EVA, discriminant analysis and stepwise regression are used to test whether governance characteristics explain the differences between the results provided by the two measures of performance.

Findings

The results show that governance characteristics are important in explaining the differences between the results provided by CSV and EVA and that board independence, the auditors' expertise and reputation, the ownership structure and the stock‐options contribute significantly in explaining these differences.

Originality/value

The results are very relevant to academicians and practitioners concerned with performance measurement. They basically underline the importance of including governance characteristics in any evaluation formula.
Critiquing and contrasting “moral” stakeholder theory and “strategic” stakeholder: implications for the board of directors
Authors: Maharaj Rookmin
Published: January 2010

Purpose

This paper aims to critique moral stakeholder theory (MST) and to contrast it to earlier strategic stakeholder approach (SSA).

Design/methodology/approach

Interview data were gathered from top executives at 12 companies in the energy sector in Canada and an in‐depth literature review was conducted on MST and SSA.

Findings

“Value” for shareholder and stakeholder may not be mutually exclusive in some instances. MST may hold the key to giving the board a more useful, comprehensive framework of the firm's utility and purpose to society.

Practical implications

Organizations may be selected on their ethical performance by investors. Depending on whether ethical criteria are included in the definition of “firm's value”, decisions about which stakeholder theory to use become an issue of strategic importance to all organizations.

Originality/value

The paper illustrates how the board of directors as the governing body of the organisation may find that continuous assessment of the company's stakeholders is valuable in reducing risks.
Corporate governance and chief executive officer compensation
Authors: Petra Steven T. , Dorata Nina T.
Published: January 2010

Purpose

This paper aims to examine whether there is an association between the level of performance‐based incentives offered to CEOs and the composition of firms' boards of directors and the compensation committee.

Design/methodology/approach

Univariate tests are used to test the relation between the level of performance‐based incentives and corporate governance structures. A logistic regression analysis is used to predict the probability of CEOs receiving low performance‐based incentives when various characteristics of firms' boards of directors and compensation committees exist.

Findings

The authors find the presence of CEO duality reduces the likelihood of lower levels of performance‐based incentives offered to CEOs. Additionally, the authors find CEOs are more likely to receive lower levels of performance‐based incentives when the majority of the compensation committee members serve on less than three other boards, and when the size of the board is less than or equal to nine members.

Research limitations/implications

This study is limited by the fact that the sample may not be representative of the general population of companies in the US.

Practical implications

Shareholders who desire to keep CEO compensation levels low may consider supporting the separation of the positions of CEO and Chairperson of the Board, as well as supporting limiting the number of other boards directors may serve, and reducing or keeping the size of the board to a maximum of nine members.

Originality/value

The authors have documented an association between board structure and CEO compensation. It appears that company boards are able to monitor and control the compensation level offered to CEOs.
Rethinking directors' duties in changing global markets
Authors: Waring Peter
Published: January 2010

Purpose

This paper aims to examine whether directors duties, as they are typically presented in Anglo‐American corporations law, remain appropriate and relevant given recent corporate governance developments and trends in global product and capital markets.

Design/methodology/approach

The paper employs a comparative approach, examining aspects of corporate governance developments in the UK, the US and Australia.

Findings

The paper finds that product and capital markets are increasingly placing a premium on good corporate social responsibility and hence, Anglo‐American corporations law should be reformed to clarify directors' capacity to address broader stakeholder concerns.

Originality/value

The paper provides a comprehensive summary of important currents in contemporary corporate governance and provides a market‐driven justification for changing corporations law.
Corporate governance and the external monitoring of banks in Lebanon
Authors: Chahine Salim , Safieddine Assem
Published: January 2010

Purpose

Prior research suggests that corporations in countries with a weak and illiquid stock market rely either on internal resources or on loans from the banking system, while family businesses, in their desire to maintain control, prefer debt to equity. Owing to the weak external monitoring role played by the financial markets in Lebanon, this paper aims to goes beyond the financial role played by Lebanese banks by investigating their role in monitoring corporate clients.

Design/methodology/approach

A survey was conducted which included 12 questions and focused on the role of banks in Lebanon in fostering proper practices of governance amongst their corporate clients. The completed surveys represent 24 banks, with more than 85 percent of the total deposits, 89 percent of the total loan portfolio, and spanning all bank groupings.

Findings

The paper finds that, in addition to their financing role, Lebanese banks are both active monitors of and resource providers to their corporate clients, which is consistent with Hillman and Dalziel.

Originality/value

The paper contributes to prior research on the role played by the banking system in supporting economic growth in developing countries, as well as the large number of reports and recommendations on corporate governance in the MENA region. The empirical findings indicate that developing‐country banks have a substitution role that allows them to act as channels for implementing good corporate governance practices. Specifically, the greater involvement of banks with their larger corporate clients may ensure better oversight of the risks encountered by banks in their clients' operating activities.
Complex accountability and power in global governance: issues for global business
Authors: Keohane Robert O.
Published: January 2010

Purpose

Firms and their executives need to recognize the political complexity of accountability demands, so that they are prepared by training to recognize the signs of change, analyze the strength of the forces behind various and often competing demands, and devise a response that is not only responsive to valid and strongly supported demands, but consistent with their organization's mission and ethic of responsibility toward broader publics and the public‐spirited values that we should all share. This paper aims to investigate these issues

Design/methodology/approach

The paper identifies seven types of accountability mechanisms and considers their applicability to multinational corporations.

Findings

The paper finds that, to be able to respond quickly and effectively, firms need to be linked institutionally with advocacy groups as well as other firms, so that they get information about demands in a timely fashion and are able to communicate with the relevant actors to devise responses.

Originality/value

The paper gives an overview about different types of accountability in global governance and discusses how firms could face the challenges of complex accountability demands.
Global collaborative governance: there is no alternative
Authors: Zadek Simon
Published: January 2010

Purpose

Emerging collaborative arrangements between public and private institutions provide the potential for novel ways of enhancing the provision of public goods. This paper aims to explore the question whether formal mechanics rooted in complex institutional alliances are today's prototype of tomorrow's mainstream approaches to governance, or such mechanics are transitory stages or symptoms of governance challenges that will eventually be resolved through more traditional means.

Design/methodology/approach

The paper focus on the role of business in these governance micro‐climates, although the analysis carries implications for public institutions and civil society organizations, and the final sections extend the country case analysis to related public policy strategies.

Findings

Collaborative governance could be the common currency of decision making in the future and is preferable if it provides a means to overcome existing institutional constraints to effectively addressing social and environmental challenges.

Originality/value

The paper brings together the phenomena of collaborative governance and corporate responsibility.
CSR legislation in France and the European regulatory paradox: an analysis of EU CSR policy and sustainability reporting practice
Authors: Delbard Olivier
Published: January 2010

Purpose

The aim of this paper is to investigate the corporate social responsibility (CSR) policy orientations in the Euopean Union (EU) by focusing on the specific case of the French legislation on compulsory sustainability reporting for publicly‐listed companies.

Design/methodology/approach

The approach is mostly exploratory and based on secondary literature review as well as empirical classroom work on reporting.

Findings

This exploratory paper provides findings about the relevance of the French law, thus highlighting some critical aspects of sustainability reporting practices. It also raises the broader issue of the consistency of the European CSR approach.

Research limitations/implications

This research needs to be completed by field studies on sustainability reporting practices both in France and in all EU members.

Practical implications

This paper may help firms improve their sustainability reporting practices.

Originality/value

There have been hardly any papers on the impact of the French NRE law so far. Another original feature is the issue raised about the somewhat unclear links between environmental legislation and CSR policy in the EU. The paper provides a case for regulation in CSR, showing the possible positive impacts on corporate behavior.
Partnered governance: aligning corporate responsibility and public policy in the global economy
Authors: Midttun Atle
Published: January 2010

Purpose

The purpose of this paper is to note the remarkable expansion of corporate social responsibility (CSR) throughout the late 1990s and early 2000s. Taking this as point of departure, it aims to discuss the potential for aligning CSR‐oriented industrial self‐regulation with public governance to fill some of the governance gap in the global economy.

Design/methodology/approach

The paper provides a conceptual discussion, empirically underpinned by three case studies.

Findings

The paper finds that it is plausible, and empirically supported by the case studies, to conceive of a considerable role for CSR based self‐regulation in the global economy. A central precondition is the ability of civil society organizations to establish “moral rights” as credible voices for “just causes” in a media‐driven communicative society, and thereby put pressure on brand sensitive industry. The paper finds that corporate self‐regulation may fill a larger part of the governance gap if public policy is oriented to engage with industry in a partnered mode.

Research limitations/implications

The paper establishes a conceptual base for exploring the governance implications of CSR, casuistically underpinned by three case studies. Further studies are needed, however, to explore the scale and scope of partnered governance in the global economy.

Practical implications

The paper provides insights into an approach to increase governability of the global economy.

Originality/value

The originality of the paper lies in exploring the implications of CSR for governance, and for highlighting how the governance potential may be enhanced by reorientation of public policy.
Assessing corporate responsibility as a contribution to global governance: the case of the UN Global Compact
Authors: Arevalo Jorge A. , Fallon Francis T.
Published: January 2010

Purpose

The changing nature of the interaction between multilateral institutions and the private sector, such as the one extended by the United Nations (UN) through the Global Compact, has raised profound questions about authority and legitimacy in international relations. This paper seeks to provide the criteria for fairly assessing corporate citizenship initiatives as these form an integral part of the changing nature of corporate governance.

Design/methodology/approach

This paper uses the Global Compact's 2007 annual review as a point of reference and critical evaluation. The paper refers to the gap found among participants and their inability to answer to the relevant questions of corporate social responsibility (CSR) as originally set forth by the UN.

Findings

There has been a substantial increase in both scale and impact by this type of private sector initiative: a 50‐fold growth in just seven years – unlike any other international collaborative partnership. Based on the assessment, the ongoing question regarding its legitimacy, its operationality and efficiency for improving global governance still remains a challenge at large.

Originality/value

Empirical research on the impact, accountability, challenges and successes of the Global Compact is limited. The aim of this study is to progress understanding of both the limitations on, and opportunities for, the role of business in global governance when CSR is used as an international tool for community involvement. To this end, in addition to a critique of the UNGC's self‐assessment, the paper proposes a researcher's model for assessing corporate citizenship initiatives.