bluuebunny/crossref_metadata_2025 huggingface dataset:
Ineffective leadership
Authors: Toor Shamas‐ur‐Rehman , Ogunlana Stephen
Published: January 2010

Purpose

A large portion of the extant literature on leadership focuses only on the positive traits of leaders. However, the so‐called “dark side of leadership”, or negative personal traits of leaders, has received relatively less attention. Also, in practice, leadership is mostly evaluated in terms of the positive traits and strengths of leaders, even though certain organizational factors and followers' characteristics significantly contribute to the effectiveness or ineffectiveness of leaders. This paper aims to examine the negative personal attributes and organizational factors – termed “organizational neutralizers” – that impede the leadership effectiveness of project managers on construction projects.

Design/methodology/approach

To achieve the research objectives, questionnaire surveys and interviews are conducted on a large construction project in Thailand. In total, 78 questionnaires and 35 interviews are conducted with project managers, deputy project managers, and other senior managers working for various stakeholders involved in the construction of the Second Bangkok International Airport (SBIA).

Findings

Findings reveal that wrongful use of power, poor communication, and low experience are the leading negative personal factors which make project leaders appear incompetent and ineffective in the workplace. Also, organizational factors that hinder the leadership performance of project managers include: lack of resources, lack of planning and control, lack of synergy between performance and goals, and lack of higher management support.

Practical implications

Practical implications are discussed for the selection and development of project managers and project staff, personnel performance management, and improvements in organizational culture, strategy, and approach towards project management.

Original/value

The research findings presented here show that certain negative attributes of leaders and organizational factors can impede leadership effectiveness and performance. A number of possible directions are proposed in which future research can be directed to explore what hinders project managers from performing their leadership roles more effectively in construction projects.
The job satisfaction of UK architects and relationships with work‐life balance and turnover intentions
Authors: Sang Katherine J.C. , Ison Stephen G. , Dainty Andrew R.J.
Published: January 2010

Purpose

There is evidence that those working within the construction industry are exposed to a number of stressors which potentially negatively impact well‐being, namely; long working hours, high workload, poor work‐life balance, low sense of professional worth and lack of job security. Additionally there is some evidence architects may also be vulnerable to an erosion of professional status, low pay and limited scope to use their creative skills. This paper aims to explore the job satisfaction of architects who are currently employed within the UK.

Design/methodology/approach

A questionnaire is used to elicit data from 110 practising architects on their occupational well‐being and work‐life balance.

Findings

The results reveal that between 20 and 40 percent of respondents are dissatisfied with their rate of pay, practice management, promotion prospects, working hours and opportunity to use their abilities. Additionally the majority of respondents report some work‐life balance difficulties and approximately one‐third were considering leaving their current employer. The causes of poor well‐being are associated with organisational factors rather than factors intrinsic to the work of an architect. Further analysis demonstrates that those who are self employed may experience better occupational well‐being.

Research limitations/implications

The small sample size means that any generalisations to the entire architectural profession should be treated with caution. A cross‐sectional approach can only highlight the existence of relationships between variables; it cannot comment on their exact nature.

Originality/value

The implications for the profession are discussed and tentative recommendations put forward as to how the profession may address the situation.
Building capability in construction projects: a relationship‐based approach
Authors: Davis P.R. , Walker D.H.T.
Published: January 2010

Purpose

The aim of this paper is to propose a way that the development of human social relationship capital can be identified and measured in a construction project environment.

Design/methodology/approach

Theory on the creation of social capital and consequent intellectual capital between parties to collaborative project procurement is explored. This is an exploratory study using grounded theory.

Findings

A proposed capability maturity model (CMM) is posited that can be used to measure improvement in developing human social capital, and assisting in project strategy formulation. Two recent Australian alliance projects are analysed using the model to gain insights into how the quality of relationships within project alliances can be assessed.

Practical implications

The model described in this paper may be used to measure performance or as an initial step towards strategising a change management plan based upon identifying a “current” situation.

Originality/value

Each alliance is unique and so its goals with regard to social capital will vary. Accordingly the results should be viewed accordingly. Work in this area using a CMM approach is relatively rare, and so this paper provides a novel way of measuring a complex concept such as social capital.
Understanding the corporate governance quadrilateral
Authors: Praveen Bhasa Malla
Published: January 2010

This paper wades through the extant corporate governance literature and identifies the existence of four different governance models in practice. Though market‐centric and relationship‐based models have been widely discussed in corporate governance literature, a dearth of two other governance models viz., transition and emerging governance models have not been extensively covered. This paper tries to identify the existence of the transition governance model and also a new governance model that is emerging in some developing countries. An attempt has been made to narrate the way all the four governance models function in different economies, and assumes that understanding the governance quadrilateral would be a pre‐requisite for understanding global corporate governance.
Evaluating and monitoring CEO performance: evidence from US compensation committee reports
Authors: Epstein Marc J. , Roy Marie‐Josée
Published: January 2010

Purpose

Concerns for improving governance have focused attention on the role of boards of directors in evaluating the performance of the CEOs. There have been numerous discussions about how performance and strategic management systems aid in the evaluation and implementation of strategy and improve corporate performance. However, the value of those systems to boards of directors has not been extensively discussed. The purpose of this article is to describe the use of non‐financial metrics for CEO performance evaluations and offer specific guidance as to how boards of directors can design a performance measurement system that provides a sound basis for evaluating CEO performance.

Design/methodology/approach

The sample for this study was drawn from Fortune magazine's America's Most Admired Companies industry list. Compensation committee reports found in 59 proxy statements were examined.

Findings

Although there are a growing number of companies using non‐financial metrics, results confirm that CEOs are primarily evaluated on financial criteria, indicating a narrow definition of corporate performance. Few attempts are made to ascertain and disclose the appropriateness of the performance measures and to demonstrate how these measures are consistent with the company's vision, mission, and strategies for long‐term performance success.

Originality/value

While some surveys have investigated the growing trend of using non‐financial criteria, in this survey, these criteria are examined in the context of a multidimensional performance evaluation system. Also, a framework for improving the measurement and performance of CEOs is presented. This is an important part of an overall program that should be in place to improve overall corporate governance.
Justice, management, and governance
Authors: Hsieh Nien‐hê
Published: January 2010

Purpose

The object of this paper is to examine the debate in business ethics over extending insights from political philosophy (e.g. theories of distributive justice) to address questions about the management and governance of economic enterprises.

Design/methodology/approach

The paper engages in a philosophical argument.

Findings

Even if justice does not matter in a direct manner for questions about economic enterprises, current debate overlooks the possibility that justice matters in an indirect manner for questions about the management and governance of economic enterprises. The paper illustrates two ways in which justice matters for such questions. The first concerns the promotion of stakeholder interests by multinational corporations. The second concerns the claims of workers to participate in the governance of economic enterprises.

Originality/value

The paper is offered as a contribution to the literature on normative theories of managerial responsibility and corporate governance.
Developing the wider role of business in society: the experience of Microsoft in developing training and supporting employability
Authors: Bonfiglioli Elena , Moir Lance , Ambrosini Véronique
Published: January 2010

Purpose

The purpose of this paper is to describe Microsoft's activities in encouraging employability and to show how these activities provide strategic advantage

Design/methodology/approach

Two of Microsoft's corporate responsibility initiatives linked to the development of employment in Europe are described and it is shown how these activities have created sustainable competitive advantage for Microsoft through an analysis of industrial organisation economics and the resource‐based view of the firm. Reflects on the characteristics of these involvements and points to aspects which may have wider applicability.

Findings

Involvement in societal projects can contribute intangible assets to the firm whilst delivering social value. However these projects are part of wider coordinated activities with other organisations and with government.

Research limitations

These are reflections on participation in business and hence the conclusions are not representative and the analysis is unstructured.

Practical implications

These case studies will show other businesses how to think about their corporate social responsibility activities from a strategic viewpoint and will allow academics to see how business develops such strategies.

Originality/value

These are rare descriptions of such projects, which are becoming more common in business.
Corporate social responsibility: a trend and a movement, but of what and for what?
Authors: Sahlin‐Andersson Kerstin
Published: January 2010

Purpose

Corporate social responsibility (CSR) has emerged as a global trend involving corporations, states, international organizations and civil society organizations. It is far from clear what CSR stands for, what the trend really is, where it comes from, where it is heading and who the leading actors are. If one views it as a social movement, one must ask: a movement of what and for whom? The purpose of this paper is to examine the CSR trend in all its complexity and draw conclusions regarding its development and potential impact.

Design/methodology/approach

Analysis of central documents and publications on CSR is combined with interviews with driving corporate actors.

Findings

This article portrays the CSR trend in three ways: as a regulatory framework that places new demands on corporations; as a mobilization of corporate actors to assist the development aid of states; and as a management trend. Each of these portraits suggests certain actors, relations, driving forces and interests as being central. An analysis shows that no one of these views seems to be more accurate than the others: rather the movement comprises a collection of diverse interests, actors, origins and trajectories. These multiple identities may partially describe the trend's success, but could equally well describe its contestation, fragility and fluidity.

Originality/value

The conceptual distinction shows the likely development and potential impact of a corporate social development. Moreover, the discussions help us reflect on the formation of management trends and how certain models come to flow rapidly and extensively around the globe, following and adding to institutional change – especially to changes in the roles, relations and boundaries between and among states, business corporations and civil society organizations.
The link between corporate governance and performance of the non‐traditional export sector: evidence from Ghana
Authors: Kyereboah‐Coleman Anthony , Biekpe Nicholas
Published: January 2010

Purpose

The purpose of this paper is to examine how corporate governance affects performance of firms in the non‐traditional export (NTE) sector in Ghana.

Design/methodology/approach

Panel data covering the ten‐year period 1995‐2004 were analyzed within the generalized least squares (GLS) framework.

Findings

For efficient performance, firms in the NTE sector in Ghana should have indigenous ownership and must ensure more non‐executive directors on their boards.

Research limitations/implications

More indicators of corporate governance are needed, due to the fact that corporate governance embraces a broader set of indicators.

Practical implications

There are practical implications for both academics and practitioners.

Originality/value

Provides an examination of the link between corporate governance and the performance of the NTE sector, which has hitherto not been researched.
Group affiliation and North American firms' value
Authors: Gadhoum Yoser , Gueyié Jean‐Pierre , Zoubeidi Maher
Published: January 2010

Purpose

This paper aims to assess the impact of group affiliation and anticipated expropriation on North American firms' value.

Design/methodology/approach

The net impact of firms' affiliation to groups is generally far from evident. While group affiliation can be perceived as positive news because of the benefits of internal capital markets, the fear of expropriation of minority interests by large shareholders can mitigate such benefits. This commands some empirical investigations, which are done in this paper through statistical analyses.

Findings

The results indicate that group affiliation has a positive and significant impact on North American firms' value and, more specifically, on US firms' value. The negative impact of the anticipated expropriation of minority shareholders mainly comes from divergence in ownership and voting rights between the first and second ultimate owners. Group affiliation, then, is valuable, even in countries with well‐organized capital markets. The results may explain the current wave toward mergers and acquisitions.

Originality/value

The paper provides useful information on the impact of group affiliation and anticipated expropriation on North American firms' value.
Corporate governance efficiency: an indexing approach using the stochastic frontier analysis
Authors: Khiari Wided , Karaa Adel , Omri Abdelwahed
Published: January 2010

Purpose

The purpose of this paper is to identify efficient governance using a governance efficiency score based on recommendations provided by codes of best practices in order to determine “good governance”.

Design/methodology/approach

Based on a sample of 320 US listed firms from 1994‐2001, governance practices were synthesized by an index computed according to a parametric method, the stochastic frontier analysis, which allows taking into account the relation between inputs (governance axes) and outputs (performance).

Findings

The use of a latent classis in the specification of the model allowed detecting two groups of firms according to their specific characteristics. The results of affectation equation show that the probability of being in the highest performing group is more important when the firm size, the dividend yield and the return on equity (ROE) are high, while a high leverage level decreases the chance to be in the non‐performing group. Moreover, the model allows establishing a dualist description of the two groups which point out two opposite governance systems. The non‐performing system is characterized by a managerial discretion, an ownership concentration, a dominance of the board by the CEO and a manager entrenchment. However, the highest performing system is characterized by an inside control efficiency and an inside financial control efficiency.

Research limitations/implications

The sample choice presents a selectivity bias. Firms of the sample present some particularities in relation to other US firms, which limits the study generalisation. This study can also be the object of replications in other contexts.

Originality/value

This work is a demarcation in relation to previous works studying corporate governance quality, and particularly the relation between governance and performance. It provides a new econometric approach to develop a synthetic index to evaluate corporate governance firms' practices, wedged on performance level achieved by different firms.
Filling a position of corporate governance in France: a practical introduction
Authors: Snyder Laura
Published: January 2010

Purpose

The purpose of this article is to provide a practical overview of the personal liabilities (criminal, civil and other) that a governor of a French company may incur, to consider the chances that a corporate governor will actually incur personal liability, and to explain the forms of protection available.

Design/methodology/approach

This article is based on an analysis of French legal provisions and case law, as well as on both French and English‐language commentary. It is written from the perspective of a governor of a French company and, especially, of a privately‐held French subsidiary of a foreign parent. This article analyzes in a general manner the entire spectrum of possible liabilities that a corporate governor may incur.

Findings

There exist particularities of French law which often come as a surprise to foreigners. The corporate governors involved in an LBO of a French target must structure the acquisition carefully in order to avoid violating French criminal law. There has been an increasing trend in France to make corporate governors accountable, and French case law is full of examples of corporate governors being held liable by reason of their position, on the basis of many types of violations. A corporate governor may be at least partially protected from personal liability with insurance, with increased cash compensation, and/or with one or more delegations of powers.

Practical implications

Enables both foreign multinationals and those they appoint to positions of governance of French companies to obtain a full understanding of the legal issues involved.

Originality/value

First English‐language analysis of the legal issues involved in serving as a governor of a French company, from the perspective of a governor. This article is useful for both foreign parent companies who seek to fill a position of corporate governance of their French subsidiaries, and those who contemplate filling such a position.
Using infomediaries to build effective networks between business and society
Authors: Johnson Victoria E. , Brennan Linda L.
Published: January 2010

Purpose

This paper sets out to present an innovative model for managing stakeholder relationships in the networked society.

Design/methodology/approach

In the proposed network model, socially‐responsible investment organizations (SRIOs) collaborate with corporations to enhance the flow of information through the network, providing a key focal point and filter for information to and from the various stakeholders of the corporation.

Findings

Illustrations show SRIOs becoming a catalyst towards best practices, emphasizing strategic options, monitoring functions, benchmarking peer firms, and providing stronger linkages to the global environment.

Research limitations/implications

The model is illustrated with anecdotal evidence.

Practical implications

Utilizing SRIOs as intermediaries in the relationship between businesses and their multiple stakeholders is attractive because SRIOs possess the capabilities and skills of experts and matchmakers. The implications of increased access to information and greater valuation of corporate social responsibility are projected as a result of the SRIOs' role as expert, driving greater accountability with increased access to information. It is also seen as a direct result of the SRIOs' role as matchmaker, providing more explicit valuation of corporate social responsibility.

Originality/value

In the global economy, the concept of “managing stakeholders” may be an anachronism. As the importance of corporate social responsibility grows, efforts to address corporations' social responsibilities are increasingly challenged by: the complexity of globalization; the immediacy of digital networks; and the blurring of organizational boundaries.
The influence of corporate governance on the relation between capital structure and value
Authors: La Rocca Maurizio
Published: January 2010

Purpose

The paper aims to focus on a well‐known topic in the financial literature: the relation between capital structure and firm value. The controversial empirical results on this topic can be attributable to a lack of attention to the interaction between capital structure and other corporate governance variables. In fact, capital structure represents a corporate governance device that can preserve corporate governance efficiency and protect its ability to create value.

Design/methodology/approach

The paper, after a synthetic review of the main literature, defines, with a descriptive model, a theoretical approach that can contribute in clearing up the relation between capital structure, corporate governance and value. It provides a research proposition, and some suggestions, that should be applied for future empirical research on this topic while it also promotes a more precise design for empirical analysis.

Findings

The debate on the relation between capital structure and a firm's value needs to take directly into account the role of moderation and/or mediation of the corporate governance. It is necessary to consider the presence of complementarity between capital structure and other corporate governance variables such as: ownership concentration; managerial ownership; the role of the board of directors; and so on.

Research limitations/implications

This paper promotes, as an aim for future research, a verification of the validity of this model through application of the analysis to a wide sample of firms.

Originality/value

The paper tried to suggest how to improve previous controversial analysis on this topic.
Incorporating CSR and stakeholder management into corporate strategy: a case study of the CAN experience 2002‐2006
Authors: Vélaz Iñaki , José G. Sison Alejo , Fontrodona Joan
Published: January 2010

Purpose

The purpose of this article is to present how innovations in the social action program of a Spanish savings bank produce strategic changes in the organization.

Design/methodology/approach

The paper follows a historical approach, first studying Spanish savings banks in general and the Caja de Ahorros de Navarra (CAN) in particular. It then examines the strategic challenges that the CAN faced in 2002 and the organizational response through the “You choose, you decide” initiative. The implementation of the program is chronicled and results evaluated against strategic objectives.

Findings

In embodying the social action program of the CAN, the “You choose, you decide” campaign has successfully differentiated the bank. Customer‐stakeholders have acquired a high degree of identification with the bank since they now decide on the beneficiaries of the social action program as well as their level of prioritization.

Originality/value

This work is of special interest to bank managers who would like to incorporate CSR and increased stakeholder involvement into their strategic and differentiation objectives.
Corporate responsibility in the Italian banking industry: creating value through listening to stakeholders
Authors: Zappi Gianna
Published: January 2010

Purpose

This paper aims to offer the Italian Banking Association's view on corporate social responsibility (CSR) as the strategic management of a firm that is multistakeholder‐oriented and that is careful to produce value for all those with whom the firm has relationships and daily interchange.

Design/methodology/approach

The strategic approach outlined, which gives rise to a variety of activities in different firms, is shared by the banks that have worked on the subject. This contribution falls within the logical framework on CSR developed by ABI, interested banks, and stakeholders that have been provided, analyzing the central role of stakeholder engagement.

Findings

The paper presents the modular approach given to CSR and the need for integrating CSR into the “fundamental strategic orientation” of a bank, in order to mainstream CSR into the heart of business theory and practice.

Originality/value

The paper contains a brief reflection on stakeholder engagement, its main challenges and open questions. Finally some possible practical steps are suggested.
Corporate social responsibility in Ireland: barriers and opportunities experienced by SMEs when undertaking CSR
Authors: Sweeney Lorraine
Published: January 2010

Purpose

The corporate social responsibility (CSR) movement has gathered great momentum over the past number of years and is now regarded as being at its most prevalent. However, there has been a lack of attention to, and discussion of, CSR in Ireland and in relation to small and medium‐sized enterprises (SMEs). The purpose of this paper is to overcome both of these research gaps and provide deep understanding of the nature of CSR in Ireland. Specifically this research aims to uncover the difference between large firms and SMEs operating in Ireland with regard to their understanding of CSR, the type of CSR activities undertaken and the management of CSR. In addition, this research analyses the barriers and opportunities experienced by SMEs when undertaking CSR.

Design/methodology/approach

This paper reviews the relevant literature of CSR. Then, through semi‐structured in‐depth interviews with 13 firms, this study analyses CSR from both a large firm and an SME perspective in an Irish context.

Findings

This paper highlights the way in which firms operating in Ireland define CSR. It differentiates between the management and activities of CSR among SMEs and large firms and uncovers barriers and opportunities experienced by SMEs when undertaking CSR.

Originality/value

It is hoped that this paper provides initial insights into the nature of CSR in Ireland.
Determinants of firm level governance: Malaysian evidence
Authors: Mohamad Ariff Akmalia , Kamil Ibrahim Muhd , Othman Radiah
Published: January 2010

Purpose

The purpose of this paper is to provide an extension of the Corporate Governance Reporting Initiative (CGI) 2004, which reports on Malaysia's first corporate governance ratings. Characteristics of firms with high and low scores in the corporate governance ratings are analysed by comparing companies based on their corporate governance ranking as reported in the CGI.

Design/methodology/approach

Firms are classified into those at the top 50 percent and the bottom 50 percent of the corporate governance ratings list to examine whether there are any differences in the characteristics of firms in both classified samples. The characteristics of firms that are being examined are firms' profitability, leverage, growth, market valuation, size, age, ownership structure and countries of operation based on the Logit analysis.

Findings

The result shows that firm size has a strong influence with corporate governance ratings, but not so for other variables tested.

Research limitations/implications

This study analyses only eight corporate characteristics. There are other measures that can represent firms' size such as market capitalization.

Practical implications

It is hoped that the traits found from the analysis will be able to provide additional information concerning corporate governance to interested parties. The characteristics revealed may probably be found to be essential elements in the development of effective and efficient corporate governance structure. The study could also help corporations in their short‐ and long‐term strategies.

Originality/value

This study bridges the gap of previous studies by using a complete set of governance standards on the analysis and directly identifies firms with certain scores of corporate governance and addresses issues related to these exceptional companies.
A development perspective for “corporate social responsibility”: case of Turkey
Authors: Ararat Melsa
Published: January 2010

Purpose

The purpose of this paper is to take a snapshot of corporate social responsibility (CSR) practices in Turkey by exploring the role of the economy, state and societal culture. It aims to focus on the impact of cultural values on the role stakeholders play in driving corporate behaviour.

Design/methodology/approach

The paper is based on a review of existing research into cultural dimensions and attitudes, surveys of corporate disclosures, interviews and cumulative knowledge of economic and social development.

Findings

External factors have been major factors driving the emergence of the “CSR” discourse in emerging markets. In the case of Turkey, for example, economic fundamentals and cultural dimensions do not reflect a strong societal influence on corporate behaviour. Drivers for CSR in Turkey will be exogenous and institutional rather than endogenous and cultural.

Practical implications

The paper recommends a stronger role for regulations and law‐enforcement in driving corporate accountability and social performance, also highlighting the importance of international influences.

Originality/value

The originality of the paper is in exhibiting the role of societal culture in shaping business expectations and in arguing for a stronger role for public enforcement and international monitoring. The paper has relevance for regulators and international agencies.
Three conceptual models of board role performance
Authors: Ong C.H. , Wan David
Published: January 2010

Purpose

Past literature on board research has centred on board structure and firm performance. Since empirical studies do not reveal a conclusive relationship between the two, attention has shifted towards board role performance. This paper aims to investigate this issue.

Design/methodology/approach

The paper examines three conceptual models for the studying of board role performance: structure, process, and mediation.

Findings

Current literature provides little consensus as to the specific configuration for effective board role performance.

Originality/value

First, the study examines various aspects of board role performance. This is in contrast with previous research which largely investigates board role performance in general or under the dominant agency perspective which emphasises the board's monitoring role. Second, unlike traditional governance models, the role of board process is explicitly advocated here. Third, the three conceptual models regarding the relationship among board structure, process and performance give an alternative avenue for researchers to explain inconsistencies in past board research. They complement the growing interest in opening up the “black‐box” of decision making that has been manifested in studies involving top management teams.
Corporate responsibility, governance and accountability: from self‐regulation to co‐regulation
Authors: Albareda Laura
Published: January 2010

Purpose

The aim of this paper is to analyze the changing role of business in a globalized society, focusing on transnational corporations as private authorities which have gained power in global governance. The paper will aim to address the following issues: the development of CSR as a voluntary framework based on self‐regulation instruments through which corporations can manage their social and environmental impacts; corporations' exercise of power and authority in developing CSR standards globally through inter‐firm cooperation; and CSR as a mechanism to transform business culture through the development of co‐regulatory instruments between corporations and their stakeholders.

Design/methodology/approach

This paper describes the emergence of corporate social responsibility (CSR) as a new governance framework, essentially created by the pressure of global civil society on corporations. The research focuses on the analysis of new forms of business political activities: self‐regulation and co‐regulation.

Findings

The findings describe how transnational corporations have become private authorities, competing or collaborating with global civil society or public authorities to develop a new framework of social and environmental regulations to manage their responsibilities and exercise their global power.

Practical implications

This paper highlights the need for regulatory tools to transform global governance. CSR requires the development of public accountability mechanisms for private authorities, an issue that can be resolved by developing global governance networks between public and private actors.

Originality/value

This paper explains why CSR has taken shape through the creation of self‐regulation management standards and co‐regulating norms and instruments where transnational corporations are a major driving force.
Stakeholder ownership and maximization
Authors: Mygind Niels
Published: January 2010

Purpose

The purpose of the paper is to clarify the relationship between stakeholder interests and the ownership of a company, and to specify the distinctions between three types of maximization: shareholder‐, stakeholder‐owner‐ and total stakeholder maximization.

Design/methodology/approach

This conceptual paper first analyzes how company‐related rents are connected to different stakeholder groups. These rents are defined as the monetary and non‐monetary returns from stakeholder involvement in a company, in excess of what stakeholders could achieve from their best alternatives. The paper distinguishes between general stakeholder benefits and the additional owner benefits a stakeholder secures by having controlling ownership. The stakeholder having the highest net benefits (benefits minus costs), and thus paying the highest price for ownership, will be the controlling owner. The controlling stakeholder‐owners' benefits are those which are maximized by the company. This leads to the second part of the paper, which analyzes different types of maximization.

Findings

The general type of maximization that companies pursue is stakeholder‐owner maximization. Maximization of shareholder value is a special case of stakeholder‐owner maximization. Only under quite restrictive assumptions is shareholder maximization larger or equal to stakeholder‐owner maximization. Total stakeholder maximization is calculated on the sum of the returns to all stakeholders including shareholders. Because of problems of measurement and practical application, total stakeholder maximization is difficult or impossible to achieve. Firms generally approximate to total stakeholder maximization by implementing stakeholder‐owner maximization under constraints defined by other stakeholder interests. With stronger regulation, pressure from different stakeholder groups, and more emphasis on corporate social responsibility, the decision area where the company can simultaneously maximize stakeholder‐owners' returns and stakeholder interests will be increased.

Originality/value

This paper breaks new ground by linking controlling ownership and stakeholder interests/rents. This is used to give precise definitions on three types of maximization: shareholder‐, stakeholder‐owner, and total stakeholder maximization.
Cross‐sector organizational engagement with ethics: a comparison between private sector companies and public sector entities of Sweden
Authors: Svensson Göran , Wood Greg , Callaghan Michael
Published: January 2010

Purpose

The purpose of the paper is to describe and compare similarities as well as differences in the organizational engagement with ethics between private sector companies and public sector entities.

Design/methodology/approach

A survey was conducted in order to examine the organizational engagement with ethics in the largest private sector companies and the largest public sector entities in Sweden. Two adapted questionnaires were developed for each sector. The outcome of this research procedure is reported in this paper.

Findings

There are both minor and major differences between the private sector and public sectors, where the private sector companies overall tend to be more engaged with ethics than the public sector entities in areas such as: ethical bodies, ethical tools, internal and external ethical usage, and ethical support measures and ethical performance measures.

Research limitations/implications

This paper makes a contribution to theory as it outlines findings for the benefit of other researchers working in private and/or public sectors in the field. A suggestion for further research is to examine the organizational engagement with ethics in other countries/cultures that differ from the ones in this research effort performed in the private and public sectors of Sweden.

Practical implications

The research may be of managerial interest as it provides a grounded framework of areas to be considered in the examination of organizational engagement with ethics in both private sector companies and public sector entities. It may be used as a benchmark by either sector.

Originality/value

It reports a research effort to develop and describe a cross‐sector comparison of the organizational engagement with ethics between private sector companies and public sector entities of Sweden. A framework is also introduced and illustrated. It also makes a contribution to theory and practice in the field as it is based upon a dual sample that provides insight into cross‐sector organizational engagement with ethics.
Embedding corporate responsibility and sustainability – everybody's business
Authors: Rake Michael , Grayson David
Published: January 2010

Purpose

This paper aims to deal with the significance of leadership as driver of corporate responsibility and complementary, dynamic organizational change. It seeks to focus on the continuous attention required by competitiveness, and the cultural complexity of renewing business processes in a global environment.

Design/methodology/approach

The paper opens by adopting the insecurity context that is clearly reflected in a range of contemporary management and non‐management discourses. Among the negative attributes of advanced globalization the authors trace the erosion of trust between society and institutions to perceptions of impropriety by managers in large firms. Reflecting on their extensive joint experience of the corporate responsibility vanguard from the early 1990s, they suggest some interesting themes that will be familiar to governance and CSR academics and practitioners alike. Strands of social, political, economic, cultural and environmental complexity are evident in the narratives.

Findings

Perhaps reflecting this decline in trust, the chorus of stakeholders calling for CSR two decades ago has now segued into a demand for sustainable enterprise. But are the dimensions of sustainability any more distinct and measurable than its conceptual antecedent: what is it for a firm to be responsible, accountable, sustainable and transparent? While aspiration can be seen to be running well ahead of capability on such a score in many businesses there are some showing clear leadership in the challenge to be more sustainable.

Originality/value

The paper offers an insight on the responses to this challenge at telecoms multinational BT. It articulates a comprehensive approach to what is a highly socialized (human‐focused) approach to managing the multiplicity of risks inherent in the opening context.
The challenge of integrating sustainability into talent and organization strategies: investing in the knowledge, skills and attitudes to achieve high performance
Authors: Lacy Peter , Arnott James , Lowitt Eric
Published: January 2010

Purpose

This paper aims to address the importance of a framework for developing employees' sustainability knowledge, skills, and behaviors.

Design/methodology/approach

The paper draws on in‐depth interviews with executives from five Fortune 1000 companies that are viewed as market leaders in addressing sustainability.

Findings

This paper provides a series of initiatives to equip their employees' talent – from top executives to employees throughout the organization – with the much needed, but often sorely lacking knowledge, skills and attitudes to spearhead efforts to attend to sustainability both today and tomorrow.

Practical implications

The usefulness of demonstrating a company's suite of ongoing initiatives to address sustainability to potential employees during the recruiting process is highlighted by each company.

Originality/value

The framework covered by this paper can help companies enhance their talent management skills.
Ten steps to enterprise‐wide risk management
Authors: Burnaby Priscilla , Hass Susan
Published: January 2010

Purpose

The purpose of this paper is to discuss the objectives of enterprise‐wide risk management (ERM), the Committee of Sponsoring Organizations (COSO) ERM Framework, and outline a method to implement ERM in organizations.

Design/methodology/approach

This paper delineates ten steps organizations can use to develop a viable ERM system for any organization.

Findings

It is highly recommended that a high‐level risk officer with visible support from senior and board level executives has a separate function to oversee the development of an ERM department.

Practical implications

Although the internal audit department has a large role in evaluation and monitoring the ERM system, it is management's responsibility to develop a strong ERM function that ties corporate strategy, the budget, controls, and the entity's performance measurement systems to risk management.

Originality/value

The cost to the entity of implementing and maintaining of an ERM system is grossly out‐weighed by the results and knowledge gained in evaluating, assessing, and overseeing risk to insure achievement of strategic objectives over the short‐ and long‐term life of the organization.
The duty to negotiate in good faith
Authors: Barasnevicius Quagliato Pedro
Published: January 2010

Purpose

Precontractual liability may be imposed when a party acts in bad faith to damage the other party, when a party negotiates in order to discover business secrets with no intention of reaching a final agreement, or when a party to a non‐binding letter of intent terminates negotiations during a later phase of negotiations without legitimate reason. The purpose of this article is to clarify the concept of the duty to negotiate in good faith, either for Civil Law or Common Law system practitioners.

Design/methodology/approach

The paper describes the concept of good faith and fair dealing and its effects on the negotiation process. After establishing this description, we will analyze the differences in the interpretation and the application of the concept of good faith in the pre‐contractual procedure. The article explores the Civil Law approach for this matter, followed by the Common Law approach. In order to illustrate the Common Law System, we will focus on English and American Law, while we will look mainly at German, Brazilian and French Law to illustrate the Civil Law. In the conclusion, we will compare the approaches of the two systems.

Findings

The obligation of good faith in negotiation is found practically in all civil law system countries and generally provides a remedy for a wrongful conduct produced by a bad faith act. However, there is no general rule in Common Law requiring the parties to negotiate in good faith. We are in favor of applying a more expansive view of good faith obligations for international business transactions involving two or more different countries from these two different legal systems (civil law and common law), so as to apply them to the duty to negotiate arising from preliminary agreements and negotiations.Although there is no general rule about pre‐contractual liability in the common law system, we strongly believe that the existing body of case law and statutes may punish a party which engages in unfair conduct at the pre‐contract stage if the parties had signed a letter of intent or a memorandum of understanding, requiring them expressly and clearly to “act in good faith” and/or “to use their best efforts to reach an agreement”.

Originality/value

This article has discussed a relatively unexplored area related to the obligation of good faith in negotiation either for civil law and common law's practitioners. Our research has highlighted the complexity of this matter between these two legal systems, and has helped to the identification of the concept of good faith in a relation between two or more parties.
Credit union regulation and the financial services authority: less is more, but better!
Authors: Baker Andrew
Published: January 2010

Purpose

The UK's financial watchdog, The financial services authority (FSA) took over prudential regulation and control of credit unions on 2nd July 2002. The purpose of this paper is to assess the impact of the new regulatory framework and its impact on the continued poor perception of credit unions among users of financial services products. It also aims to assess what the future may hold for the direction of the UK credit union sector.

Design/methodology/approach

An assessment is made of the impact of the new regulatory framework and its impact on the continued poor perception of credit unions among users of financial services products. Also, an assessment is made of what the future may hold for the direction of the UK credit union sector.

Findings

The paper finds that credit union membership is growing, as are members’ deposits and loans, however at the same time the numbers of individual credit unions are falling. Overall, with supervision and regulation passing to the FSA, the outlook for credit unions in the UK is better than at any time in their history. The result of the new regime will ultimately lead to a strong, secure and professional credit union sector, capable of meeting the credit needs of a wide range of persons.

Originality/value

The paper provides a useful overview of the history and present status of UK credit unions, and the effects of recent legislation and regulation.