bluuebunny/crossref_metadata_2025 huggingface dataset:
The education of innovative engineers
Authors: MacLeod Iain A.
Published: January 2010

Purpose

Traditional engineering education in the UK, as established in the nineteenth century, is based on the principle that a degree in engineering should be focused on engineering science and not on the practice of engineering. This has proved to be seriously negative to the development of engineering ability in general and innovative engineering in particular. The purpose of this paper is to discuss the reasons for this situation.

Design/methodology/approach

Features of innovative engineering are outlined and a structure for learning which has potential to promote innovation is proposed.

Findings

Because of principles based on misplaced academic elitism established in the nineteenth century, traditional engineering curricula tend to develop an academic mindset rather than an engineering mindset in students. They do little to support innovative engineering. As a result, the large amount of money spent on engineering education in the UK does not represent a good investment. The academic mindset does not well support any professional context.

Originality/value

The paper provides a challenge to universities and professional engineering institutions which should be addressed.
Concrete prefabricated housing via advances in systems technologies
Authors: Blismas Nick , Wakefield Ron , Hauser Brian
Published: January 2010

Purpose

The purpose of this paper is to discuss the roadmapping methodology and its application to concrete prefabricated housing in Australia.

Design/methodology/approach

The paper describes the concrete and housing industries of Australia collaboration in a project to develop a technology and innovation roadmap that will advance the concrete industry's supply chain capabilities by identifying and mapping innovation necessary for prefabricated concrete house construction. The roadmap lays out what is necessary for an off‐site systems‐based approach to housing construction in Australia. The systems‐based approach to prefabricated concrete products is a relatively new and developing extension of the concrete industry supply chain in Australia. New manufacturing technologies and innovations, which are emerging locally and from overseas, make these potential extensions possible. For the long‐term sustainability of the concrete industry, it is critical that it better understands how to adopt cooperative innovations in prefabrication to realise these benefits in the housing industry and advance Australia's competitiveness. The first phase of the mapping involved the development of an industry‐maturity model that determined the current state of the industry, and plotted this against the desired route for the future. Numerous industry‐based workshops and interviews gathered the views of the industry towards existing concrete housing systems, and where their main difficulties are in relation to adoption. Using these data, a technology roadmap is developed, together with three options on how these might be realised using the roadmap. The options offered through the roadmapping process form the basis for ongoing experimental trials of concrete houses in the major cities of Australia.

Findings

The system‐based approach to prefabrication is seen as innovative and the industry needs to understand how to adopt cooperative innovations in prefabrication in order to be competitive.

Originality/value

The paper offers insights into the technology roadmapping process in Australia, offering an exciting prospect for moving the industry into a new model of delivery.
Employee share‐ownership trusts and corporate governance
Authors: Michie Jonathan , Oughton Christine
Published: January 2010

The March 2000 Budget in the UK introduced tax incentives to encourage employee shareholding. The theory is that if employees feel that they have a stake in the enterprise or organisation in which they work, they will be more motivated and committed, with positive outcomes in terms of productivity and organisational performance. This theory has received support from research currently being conducted within the School of Management and Organizational Psychology at Birkbeck, University of London, which has found significant positive links between “progressive” human resource practices that promote participation and involvement on the one hand, and corporate performance and organisational outcomes on the other. This is in line with other recent research in the UK and internationally. The question both for business and government is how to engender such participation and involvement and, specifically, whether this can be brought about through employee shareholding, when such individual shareholdings, taken separately, are insignificant in terms of the overall share capital of the corporation. By pooling the voting rights – although not necessarily the actual ownership – of their shares, an employee shareholder trust could represent a significant voice. However, some mechanism is needed to translate individual employee shareholding stakes into a collective voice that can deliver results, both in terms of representing the interests of employees and in convincing employees that their shareholding gives them a stake in the enterprise. Such a move could have important beneficial effects for corporate performance and hence economic growth. It could also have significant welfare effects in terms of enriching the experience of working life.
Global outsourcing: effective functional strategy or deficient corporate governance?
Authors: Hemphill Thomas A.
Published: January 2010

Outsourcing information technology functions has become an increasingly accepted cost‐reducing strategy in both the USA and Western Europe. What these managerial decisions mean in human resource terms is the elimination of high paying employment. In the USA, global outsourcing is now raising public policy concerns about its effects on the nation’s long‐term technological leadership and the ethical propriety of such corporate decisions on a key stakeholder – employees. Global outsourcing is a direct challenge to corporate citizenship (the new corporate governance model) and human capital theory (which recognizes the value of the knowledge worker to the success of the firm) now recognized by many US corporations. While accepting the managerial limits of these approaches, it is argued that corporations and industry associations need to develop and implement a human capital strategy which balances the negative consequences of global outsourcing with corporate citizenship responsibilities to employee and community stakeholders.
Strategic risk: am I doing ok?
Authors: Kendrick Terry
Published: January 2010

This article outlines a practical set of four challenges to senior management who wish to quickly self assess the “fitness” of their organization to manage risk. These four challenges arise from the business and project risk environment in the context of organizational and personal attitudes to risk: Do we understand the shareholder value risks of our strategy choices? Do we understand the risks that our structure and processes pose for implementation of chosen strategies? Is the risk appetite of the organization consistent with the risk appetite of our staff? Are we confident that our staff are effective and efficient in reacting to, and dealing with, risk? The four challenges offered in this paper will enable senior managers to broadly self‐assess an organization’s ability to manage risk as both a value‐creating opportunity as well as a value‐protecting activity.
Business innovations and structure of corporate ownership in Ukraine
Authors: Kostyuk Alexander
Published: January 2010

Purpose

The purpose of this paper is to test a link between the type of corporate ownership and business innovation activities, with application to Ukrainian joint stock companies.

Design/methodology/approach

The objective of the paper is achieved through conducting a series of observations of 42 of the largest companies of metallurgy and machine‐building industries for the years 1998‐2001. The theoretical scope of the paper is to identify the motives of owners in Ukraine which affect their views on innovation policy in companies which they own.

Findings

The research found that approaches of various groups of owners to the innovation policy differ and depend on the motives of their behavior at the market for corporate control. Thus, executives who owe companies, try to keep the control in their hands in order to set an abnormally high remuneration. This leads to the lack of funds to finance innovation projects because of cash flows reduction and absence of intentions to issue equity.

Originality/value

The value of this paper is that it explains an impact of ownership structure on market opportunities of companies via an impact on the business innovation parameters.
The relevance to international mergers of the ethical perspectives of participants
Authors: Wood Greg
Published: January 2010

Purpose

International mergers are becoming more widespread among medium‐sized companies that for decades have held a prime position in their home country market, but who now feel threatened that they may not be of a significant size to continue to be viable in the international marketplace. The purpose of this paper is to examine the merger of one Australian company and one of its former competitors in the international marketplace from the perspective of the congruence between their espoused ethical cultures in business prior to the merger.

Design/methodology/approach

A questionnaire comprising 46 questions was sent to the public relations manager of each organisation prior to the merger. These managers were asked to fill in the questionnaire and to provide a copy of their code of ethics.

Findings

The research found that organisations need to not only have a code of ethics, but also need to focus especially on the area of code augmentation to ensure that they communicate the ethos of their code to their employees. The examination of the content of the code and the artefacts in place to communicate the ethos of each company's code would enable one to compare for ethical congruence between the two companies. The examination of these ethical artefacts highlighted that the companies appeared to have been quite divergent in their commitment to business ethics when they entered the merger. If companies are to merge across country, and thus cultural boundaries, they need to examine the ethical standpoints of potential partners in order to alleviate any potential conflicts from an ethical, corporate culture perspective.

Originality/value

This paper provides useful information for those companies planning to merge across country, and thus cultural boundaries.
The sum of all fears: do directors have valid concerns on the unintended impact of new regulations?
Authors: Clarke Christopher J.
Published: January 2010

Purpose

The purpose of the research and paper is to ensure that the views of incumbent directors are not ignored. This is against a background of baying for reform from the media, politicians and badly burned investors following the wave of corporate scandals.

Design/methodology/approach

This research was conducted by members of the Board practice of Boyden global executive search. It comprised focus groups of incumbent directors in the USA and Australia as well as interviews in these countries and in the UK.

Findings

Directors had been holding back. They felt that new regulations and restrictions would have major impacts. There is the danger that over‐regulation in the developed world will merely drive even more business and jobs offshore to more loosely governed economies in the Far East.

Research limitations/implications

The research sought the point of view of incumbent directors. One needs to consider that their comments and feedback might be self‐serving. The number of countries included was limited, though they include those to the fore in governance debate and thinking.

Practical implications

Regulations need to have the flexibility to be altered relatively easily lest they have deleterious effects. Those involved in Board recruitment, especially nomination committees need to be alert to the dangers of new regulation explained here.

Originality/value

This paper adds a different and relatively unheard viewpoint to the current public debate and regulatory climate. It sounds important words of caution to those whose knee‐jerk reaction is that tough new regulation and lots of it must be introduced immediately.
The gender composition of boards after an IPO
Authors: Dimovski William , Brooks Robert
Published: January 2010

Purpose

The purpose of this paper is to empirically analyse the change in the gender composition of the boards of large Australian companies, after listing.

Design/methodology/approach

This study investigates the gender composition of the boards of large Australian companies at the time of the initial public offering (IPO) and subsequently as these companies mature into established public companies. It also investigates industry influences and organizational size influences on the board composition at the time of the IPO and subsequently.

Findings

No significant change is found in the proportion of male and female directors holding directorships at the time of the IPO and some five to eight years later when the company is recorded as a top 500 company (by market capitalization) on the Australian lists. This implies that the capital market is generally satisfied by the gender composition of boards from the time of the IPO.

Originality/value

This paper follows extends on previous work which provides evidence of a relatively low proportion of female directors on the boards of Australian initial public offerings.
Predicting corporate bankruptcy: where we stand?
Authors: Adnan Aziz M. , Dar Humayon A.
Published: January 2010

Purpose

The incidence of important bankruptcy cases has led to a growing interest in corporate bankruptcy prediction models since the 1960s. Several past reviews of this literature are now either out‐of‐date or too narrowly focused. They do not provide a complete comparison of the many different approaches towards bankruptcy prediction and have also failed to provide a solution to the problem of model choice in empirical application. Seeks to address this issue.

Design/methodology/approach

Through an extensive literature review, this study provides a comprehensive analysis of the methodologies and empirical findings from these models in their applications across ten different countries.

Findings

The predictive accuracies of different models seem to be generally comparable, although artificially intelligent expert system models perform marginally better than statistical and theoretical models. Individually, the use of multiple discriminant analysis (MDA) and logit models dominates the research. Given that financial ratios have been dominant in most research to date, it may be worthwhile increasing the variety of explanatory variables to include corporate governance structures and management practices while developing the research model. Similarly, evidence from past research suggests that small sample size, in such studies, should not impede future research but it may lead researchers away from methodologies where large samples are critically necessary.

Originality/value

It is hoped that this study will be the most comprehensive to‐date review of the literature in the field. The study also provides a unique ranking system, the first ever of its kind, to solve the problem of model choice in empirical application of bankruptcy prediction models.
Corporate Governance after Sarbanes‐Oxley: an Australian perspective
Authors: Robins Fred
Published: January 2010

Purpose

This paper aims to offer an Australian perspective on the recent crisis of confidence in corporate governance and its legislative and regulatory aftermath. It is informative because Australia's experience is directly comparable with that of the USA but its professional and regulatory traditions are much less prescriptive.

Design/methodology/approach

The author dissects the corporate scandal of recent years and analyses the several issues which have arisen. Problem elements, once identified, are evaluated separately, followed by an examination of the responses in each country. The main value of the paper lies in the separation and categorisation of these issues. For clarity, the author groups them as technical, political and cultural and uses these three labels to distinguish between problems which are the responsibility of the accounting profession, the responsibility of regulatory agencies, and those faced by managers individually. There is brief mention of some other groups, like suppliers of professional business services, who have also fallen under critical scrutiny. At the same time, other groups associated with contemporary financial scandal are omitted for lack of space.

Findings

The paper includes some observed contrasts between the consequences of scandal in the two jurisdictions and ends with a number of personal judgements.

Originality/value

It is hoped that the judgements made in this paper may offer food for thought and some guidance for those seeking to advance best practice in this important but delicate area.
Audit committee pre‐Enron efforts to increase the effectiveness of corporate governance
Authors: Myers Patricia M. , Ziegenfuss Douglas E.
Published: January 2010

Purpose

This study of audit committee effectiveness, performed in the period immediately preceding the Enron collapse, seeks to determine whether audit committees were beginning to accept more responsibility for corporate governance before such behavior became mandatory.

Design/methodology/approach

The period studied was approximately two years prior to the Sarbanes‐Oxley Act of 2002 and roughly one year after the Blue Ribbon Committee published its recommendations on audit committee effectiveness. The efforts of 296 audit committees to improve their effectiveness as reported by Chief Audit Executives (CAEs) to the Global Audit Information Network (GAIN) database maintained by the Institute of Internal Auditors (IIA) were investigated.

Findings

It was found that audit committees' responsiveness to each of eight effectiveness steps was surprisingly high. For instance, almost all (w99.6 percent) audit committees meet with CAEs. It is recommended that audit committees focus more on big picture/strategic concerns in their discussions with CAEs.

Research limitations/implications

The study's chief limitation is that only companies with internal audit functions were studied and thus the results cannot be generalized to companies without internal audit functions.

Originality/value

This study was the first to utilize the GAIN database and provides specifics about 15 different topics that CAEs might bring to audit committees for discussion. Topics of communication more often focused on specifics such as “significant audit findings” (95.9 percent) and less often dealt with big picture/strategic concerns such as “overall corporate control environment” (68.9 percent).
The role of the non‐executive director: a personal view
Authors: Treadwell David
Published: January 2010

Purpose

The purpose of the paper is to provide an informed but personal view on the debate surrounding the role of the non‐executive director and the board.

Design/methodology/approach

The approach is that of a practitioner recruiting non‐executive directors. The author offers a personal view.

Findings

The author has had extensive discussions with both chairmen and non‐executive directors of FTSE companies and the views in the paper reflect these discussions.

Originality/value

The value of the paper is to stimulate debate and to promote a realistic climate within which business can operate effectively.
The increasing cost of corporate governance: decision speed‐bumps for managers
Authors: Durden Chris , Pech Richard
Published: January 2010

Purpose

Decision speed, flexibility, and innovation have often been cited as key ingredients to business success on the turbulent twenty‐first century business landscape. Sets out to argue that the increasing emphasis on legal and regulatory compliance, the push for which can be attributed to the spectacular collapses of WorldCom and Enron, will burden management with decision‐making speed‐bumps as opposed to protecting shareholders' interests.

Design/methodology/approach

The impact of legal and regulatory compliance is discussed within the business decision‐making context. Businesses succeed or fail in a dynamic environment where the smallest advantage can push one competitor ahead of another. Arguments in favour of increasing legal compliance are debated and the impacts of proposed regulatory compliance issues are discussed within the context of the competing business firm and its need for speed and flexibility.

Findings

The issue of increasing and stricter compliance for business is far‐reaching. Attempting to protect shareholder interests through further measures of compliance will only introduce further operating complexities for management while increasing costs and reducing decision speeds and flexibility. The impact on firms forced to compete under such conditions will be considerable, particularly if they find themselves on an international landscape competing against firms not burdened with the same regulatory requirements.

Originality/value

This paper is based on original work by the authors commencing with issues surrounding shareholders versus stakeholders, followed by a debate concerning corporate governance mechanisms and a discussion concerning the consequences and impacts of levying further regulatory burdens on business and managers.
Corporate governance reforms: fact or fiction?
Authors: Petra Steven T.
Published: January 2010

Purpose

Reforms set forth in Sarbanes‐Oxley and the NYSE, AMEX, and NASD are designed to prevent the reoccurrence of corporate collapses at companies such as Enron Corp., WorldCom Inc., and Global Crossing Ltd. The purpose of this paper is to discuss the possible impact the reforms may or may not have had in controlling the abuses uncovered in recent corporate failures.

Design/methodology/approach

This paper examines the reforms to corporate governance and the rationale behind the reforms, and examines how the actual governance structures of Enron, WorldCom, and Global Crossing during the years of their accounting scandals compared to the new requirements. It also offers a discussion as to whether the new reforms would have been helpful in preventing management's manipulation of earnings.

Findings

Global Crossing's governance structure would have satisfied a majority of the reforms. Enron's and WorldCom's governance structures would have satisfied less than half of the reforms.

Practical implications

This paper highlights the need for management and shareholders alike to focus on the substance of the reforms and not merely the form of the reforms in order to make meaningful improvements to corporate governance.

Originality/value

This paper should serve as a warning to the investing public. The reforms in and of themselves should not be relied on to prevent future corporate scandals. The reforms, however, do focus the spotlight directly on corporate boardrooms where shareholders can now insist that directors' interests be separate from those of the CEO and upper management.
Board configuration: are diverse boards better boards?
Authors: Van der Walt N. , Ingley C. , Shergill G.S. , Townsend A.
Published: January 2010

Purpose

The purpose of this research paper is to explore the proposition that diversifying the board in terms of gender, ethnicity or skill base may require consideration of the specific strategic environment of the organisation. The proposition arises from the question as to whether or not greater diversity in board configuration is desirable in certain circumstances and considers the group dynamics, skill mix and capabilities that are required by boards under different conditions of change and strategic complexity.

Design/methodology/approach

The study examines the financial performance of New Zealand publicly listed companies over a five‐year period and focuses on changes in board composition, strategic activity and implications for corporate performance.

Findings

The study finds limited support for the idea that board configuration, strategic context and corporate decision quality may be linked.

Originality/value

This paper will be of particular value to those involved in the appointment of directors within the private and public sectors. In particular, it focuses discussion on the strategic environment faced by the organisation and the relevance of a range of potential selection criteria when appointing new directors. It is also of interest to researchers evaluating the value of social capital and gender equity in contemporary organisations as, based on empirical reseach, it challenges conventional thinking. By implication, the paper also questions whether or not boards are actually able to influence key outcomes in the manner expected by legislators.
Corporate social responsibility strategy: strategic options, global considerations
Authors: Galbreath Jeremy
Published: January 2010

Purpose

To further the dialogue on corporate strategy and corporate social responsibility (CSR). Specifically, to describe four options with respect to CSR strategies and to offer points of consideration for moving home country CSR strategies to host countries.

Design/methodology/approach

The approach is based on developing a conceptualization of various CSR strategic options. The paper also incorporates key global considerations for moving home country CSR strategies to host country operations.

Findings

The analysis suggests that CSR can not be separated from corporate strategy. Thus, firms have several factors to consider with respect to choosing appropriate CSR strategies. Not only are there fundamental strategic goals and outcomes to consider, but also a variety of cross‐border factors that can potentially complicate the success of CSR strategies if not examined appropriately.

Practical implications

As with any good decision‐making exercise, managers would do well to explore a variety of options before making a final decision. This paper offers four CSR strategic options from which managers can explore the development of a CSR strategy. However, recognizing the increasing influence of globalization and the need to expand operations overseas for many, if not most companies, the paper also suggests a number of salient factors that can effect the movement of CSR strategies from a home to host country. Thus, the paper offers a useful framework for making strategic decisions with respect to CSR.

Originality/value

The value of the paper rests in its dialogue of CSR in the context of corporate strategy and global business. With few exceptions, CSR and strategy have been given short shrift in the literature. Thus, by expanding an important component of corporate strategy and placing it in a global context, the paper properly expands on an essential topic in business.
Organizational conformity and contrarianism: regular irregular trading at National Australia Bank
Authors: Vit Gregory B.
Published: January 2010

Purpose

To provide a conceptual framework and case study of organizational conformity and contrarianism that will be of interest and utility to both corporate governance theorists and practitioners.

Design/methodology/approach

The paper presents a conceptual framework that examines the risk of risk management systems. The framework is rooted in the logics of economics and sociology, and describes the interplay of eco‐logics, socio‐logics and ideo‐logics in creating organizational conformity and contrarianism. Data from a comprehensive report by the Australian Prudential Regulation Authority presented in 2004 are used to illustrate how the framework might be applied to explain the breakdown in risk management systems within a large organization, the National Australia Bank.

Findings

The framework presented helps to explain the de‐coupling of technical rationality by examining and illustrating cognitive and normative mechanisms that build legitimacy and reduce uncertainty. This leads to an illusory sense of control that can threaten the survival of an organization.

Research limitations/implications

Illustrative data are principally drawn from a comprehensive analysis by an Australian Government bank regulator. A general descriptive conceptual framework is presented.

Practical implications

This conceptual framework and case study will be of particular interest and importance to risk managers/governors within large financial service organizations and academics. An awareness of the different logics facing risk governors and risk takers within a large organization is another step towards understanding and possibly avoiding financial service industry mismanagement.

Originality/value

The paper presents a unique synthesis of three logics within a financial services organization. It is original because it links a recent real world management meltdown with a conceptual framework that examines the social risk of risk management systems and the dialogue between organizational conformity and contrarianism. The illustrative data presented is also very rare, since the subject organization has exceptionally made a highly confidential document public.
A failed strategy of using voluntary codes of conduct by the global mining industry
Authors: Sethi S. Prakash , Emelianova Olga
Published: January 2010

Purpose

This paper aims to focus on an analysis of industry‐based voluntary codes of conduct in the international arena with special reference to the operations of the global mining industry.

Design/methodology/approach

The paper examines the working of the mining industry's voluntary code of conduct, i.e. International Council on Mining and Metals (ICMM) sustainable development framework. The paper develops an analytical framework, which sets forth some of the necessary preconditions that must be met for such a code to be credible and effective in meeting societal.

Findings

An in‐depth analysis of the data produced by ICMM conclusively proved that the industry had substantially failed in meeting any of its objectives in terms of adequacy of principles, establishment and implementation of the framework, allocation of sufficient financial and human resources, and independent external monitoring for compliance verification. The result is that despite spending millions of dollars, industry has failed to gain any public credibility. Instead, industry's code effort is viewed with disdain as a largely public relations exercise.

Originality/value

The paper provides important lessons and specific guidelines that can help companies and industries in creating meaningful and effective codes of conduct. A failure to do so would exacerbate the problem of public distrust in the industry and would lead to greater restraints on the industry's modus operandi and opportunities for growth and profitability.
Relationships between board structure and takeover defenses
Authors: Webb Elizabeth
Published: January 2010

Purpose

As corporations continue to face substantial information asymmetries between managers and shareholders, they must decide how to mitigate this agency problem using various mechanisms of corporate governance. Two of these mechanisms include the board of directors and takeover defenses. The purpose of this paper is to show that rather than having an additive effect, the marginal benefit of using one of these mechanisms declines as the use of the other increases.

Design/methodology/approach

Using a governance index that measures the firm's takeover defenses and a unique board of directors index, the study employs both univariate analyses and multivariate simultaneous equation modeling in order to test the hypotheses.

Findings

The results of these tests show that these two measures of corporate governance should be viewed as a set rather than as individual components. In other words, a strong board is inversely related to strong shareholder protection in the form of takeover defenses. The study further analyzes the extent to which growth opportunities influence this relationship using a logistic regression approach. It appears that a firm's opportunity for growth is related to the strength of its board of directors, yet not to its governance provisions.

Originality/value

By analyzing a specific combination of current corporate governance practices, these results can assist firms at a practical level by providing information on optimal solutions to the agency problem.
Corporate governance, shareholder value and societal expectations
Authors: Tudway Richard , Pascal Ana‐Maria
Published: January 2010

Purpose

This purpose of this paper is to examine four separate though interconnected questions concerning corporations operating, in Anglo American jurisdictions.

Design/methodology/approach

The paper first examines the nature of the limited liability corporation as an entity dedicated to maximizing shareholder value, and how far this role is consistent with the pursuit of wider policies of corporate social responsibility (CSR). Second, it reviews the ownership arrangements of the corporation, the fiduciary duties of board directors and how this is translated into the task of maximizing shareholder value through the pursuit of profits. Third, it investigates how directors position themselves commercially in maximizing shareholder value and whether shareholders express views on how shareholder value can best be maximized. Finally conclusions are drawn on how best corporations and their directors can address the challenge of meeting shareholder value and how far this implies realignment in terms of wider societal expectations. The method of research used includes an examination of statute law governing the corporation, judge's law, regulatory law, other soft law in the context of outsider controlled capital markets. Relevant published research material is also declared in the bibliography.

Findings

Conclusions drawn suggest that the premise of maximization of shareholder value may very well entail the pursuit by directors of wider social and economic objectives consistent with CSR, if this is consistent with the enhancement of shareholder value. They also point to a lack of clarity on the question of what is expected of directors in meeting their fiduciary and broader director's duties as expressed in the objective of maximizing shareholder value. Evidence suggests that there is little effective communication between shareholders and directors on how best shareholder value can be maximized. Specifically the analysis focuses on how best to overhaul the mechanisms of governance and accountability if directors and the shareholders they represent are to develop and execute rational commercial policies aimed at maximizing shareholder value.

Originality/value

The paper breaks new ground in linking CSR to the enhancement of shareholder value and in suggesting that directors may be negligent in their duty to promote shareholder value if they fail do so. The paper should be of interest to company directors, company legal advisors; other corporate lawyers involved in litigation against directors, and policy makers in government.
Corporate social responsibility as a new paradigm in the European policy: how CSR comes to legitimate the European regulation process
Authors: Eberhard‐Harribey Laurence
Published: January 2010

Purpose

Since its Green Paper (2002) entitled “Promoting a European framework for Corporate Social Responsibility”, the European Commission multiplies communications and actions about corporate social responsibility (CSR). The purpose of this article is to question the emergence of CSR as a paradigm of the European referential in terms of public policy.

Design/methodology/approach

This article analyses the emergence of this concept in the Community Action asking the question of the nature of this action and the link with the main Community policies. To achieve it the research leans on a public policy analysis by a mixed approach founded on a causal analysis and a cognitive approach.

Findings

If the main theoretical founders of the discourse about CSR seem to be effectively inspired by the North American school of business ethics, in fact we can also argue that there are some specificities in Community action in CSR. More than a specific policy of CSR in the Community, CSR seems to become an element of transversal policy which has to be re‐considered in the larger triptych “CSR‐sustainable development‐governance” promoted by European Commission as a way of a new European regulation.

Research limitations/implications

This hypothesis should have to be worth thinking about in the light of the new communication of European Commission published in 2006 and future development.

Originality/value

Opening the question of the specificity of a CSR European approach, this article also offers a new contribution to the debate on the European regulation process.
The political economy of CSR in Western Europe
Authors: Midttun Atle , Gautesen Kristian , Gjølberg Maria
Published: January 2010

Purpose

The increasing engagement in corporate social responsibility (CSR) potentially indicates an attempt to “re‐embed” the economy in a wider societal context, following a period of neoliberal market exposure, deregulation, and separation of commercial and societal concerns. The purpose of this paper is to explore the relationship between this new social embedding of the economy and older traditions of social embeddedness, such as the welfare state, neocorporatist arrangements, and other socio‐political and labour market arrangements.

Design/methodology/approach

The paper explores the relationship between old and new embeddedness by examining how 17 West European nations and the USA are ranked on “old” embeddedness dimensions and comparing this ranking with “new” CSR rankings of nationally aggregated industrial performance.

Findings

The overall findings at an aggregate level provides some support for the idea of a symmetric relationship between the “old”, politically‐driven embeddedness and the “new”, industry‐driven embeddedness. However, a finer inspection of the results reveals interesting diversity and variation between countries and between scores, indicating more complex national story lines.

Research limitations/implications

Despite the limited set of countries and some measurement challenges, the analysis illustrates that the patterns of national industrial adaptation to the CSR agenda is strongly shaped by regional and national institutional contexts. While some of the institutional patterns shaping CSR in the “old” EU 15++ have been analysed in this paper, much work still remains to be done in extending and deepening our knowledge in this field.

Practical implications

The findings may help understand how a general framework like CSR interplays with political and institutional contexts as it trickles down into different West European political economies.

Originality/value

The systematic analysis of old political and new corporate social embeddedness of the economy based on a broad set of indicators is new and sheds light on the institutional preconditions for‐ and shaping of CSR.
The government's role in promoting corporate responsibility: a comparative analysis of Italy and UK from the relational state perspective
Authors: Albareda Laura , Tencati Antonio , Lozano Josep M. , Perrini Francesco
Published: January 2010

Purpose

The purpose of this paper is to analyse the changing role of governments promoting corporate responsibility (CR) as a result of the challenges raised by globalisation.

Design/methodology/approach

CR is linked to the restructuring of governments' agendas in the framework of government/private sector/civil society relationships. It is a result of the research project that applies the Relational State Model Approach to the analysis of CR public policies. The relational state situates the relations between the public and private sectors, between the state and society, in the sphere of co‐responsibility.

Findings

The paper concludes that in the UK a more systemic, national government‐centred and business‐oriented approach prevails, while Italy has a more extensive, multi‐stakeholder and multi‐level approach.

Research limitations/implications

Future research should complete the comparative analysis expanding it to other European countries: northern and central European countries to analyse the difference between all European governments in order to promote CR.

Practical implications

The analytical framework of this paper could be used for academic, business leaders and policy makers to develop future actions in relation to CR public development.

Originality/value

The objective to be achieved is to understand the new political and public framework incorporating CR as a new form of governance. We compare two countries that represent two very different models of government action. The theoretical approach of the paper is based on the comparative analysis of CR governmental vision, objectives, strategies and internal government CR structure.
Key models for delivering sector‐level corporate responsibility
Authors: Draper Stephanie
Published: January 2010

Purpose

The purpose of this paper is to provide a blueprint for an optimal model of sectoral corporate responsibility (CR), through exploring a variety of current approaches. The necessity for a more sector‐wide approach is discussed and the best way to make it happen identified.

Design/methodology/approach

An exploration of the models for industry‐wide CR, based on practical experience and case study evidence. The approaches are critically appraised and developed into an overarching model for sector change. The paper answers five key questions: why is sector corporate responsibility important; how does this relate to competitiveness; what are the five existing models for sector change; what are their advantages and disadvantages and what does this teach us about the approach to take?

Findings

There are five established models for sector‐level corporate responsibility, each has pros and cons and each contributes to company and/or sector competitiveness and performance. The optimal model for sector change combines two or three models and that's where competitiveness gains really lie. Ideally all sectors would have a clear vision of the shift that they need to make. This vision would then drive leadership, some specific market‐based action and potentially form the basis for some smart regulation. Finally, education on CR would ensure embedding of a responsible approach into the future.

Practical implications

This viewpoint delivers a very useful model for industry groups to take a more meso‐level approach to corporate responsibility or address particular challenges that an industry faces.

Originality/value

More and more industries are facing clear social and environmental risks and opportunities. This paper provides an important model for them to address them effectively. It is based on the author's knowledge and experience and as such is an original piece of work.
Investing in health care management: a way to explore the future value outlook of the health care sector
Authors: Agyeman‐Budu Esther A. , Welvaert Frank
Published: January 2010

Purpose

This paper aims to show the need for Europe to invest more in health care management training. It should be seen as a catalyst for accelerating the restructuring of the sector.

Design/methodology/approach

The paper reports on an existing change management program developed and managed by Project Hope. The project is evaluated by investigating results achieved to date and the need for its services.

Findings

Empirical research suggests that there is considerable need for management training in health care. This is especially the case in some Central and Eastern European countries, reinforcing the need for health care management programs such as the one conducted by Project Hope.

Originality/value

The paper looks at a unique health care management training program in Central and Eastern Europe.
Opportunities and limitations of CSR in the postcommunist countries: Polish case
Authors: Lewicka‐Strzalecka Anna
Published: January 2010

Purpose

The purpose of this paper is to identify the main opportunities and limitations of corporate social responsibility (CSR) in the countries of transformation.

Design/methodology/approach

The conditions determining the success of CSR in Poland have been defined in the paper on the basis of the previously cumulative knowledge as well as the results of various sociological research.

Findings

The paper finds that the main obstacles of CSR are: negative image of business, dysfunctional legal background, corruption, weakness of the III sector, difficult economic situation of many companies, the lack of an ethics and ethical standards, and difficult situation on the job market. The main opportunities are: contacts of the companies with the foreign partners, self‐regulation trends of business, good economic growth rate.

Originality/value

This paper provides knowledge which may be useful in the programs promoting CSR.
Using stakeholder dialogue as a source for new ideas: a dynamic capability underlying sustainable innovation
Authors: Ayuso Silvia , Ángel Rodríguez Miguel , Enric Ricart Joan
Published: January 2010

Purpose

The purpose of this research is to attempt to gain a deeper understanding on the firm's ability to integrate stakeholder insights into the process of organizational innovation from a sustainable development viewpoint.

Design/methodology/approach

Given the early stage of empirical research on the topic, an exploratory case study was used of two Spanish companies that have successfully learned from stakeholder dialogue and have generated innovations that are beneficial both for the company and for sustainable development in general.

Findings

The evidence from the two case studies suggests the existence of two simple capabilities – stakeholder dialogue and stakeholder knowledge integration – for generating innovations in accordance with stakeholder needs. Whereas stakeholder dialogue leverages organizational resources that promote two‐way communication, transparency and appropriate feedback to stakeholders, stakeholder knowledge integration relies on non‐hierarchical structures, flexibility and openness to change.

Research limitations/implications

The fact that the two companies studied are rather special cases of companies without shareholders might limit the results of the present research. Thus, future research could explore sustainable innovation as a response to the demands of other kinds of stakeholders and refine, validate and test the concept of dynamic capability identified in this paper.

Originality/value

The paper sheds some light on the under‐researched issue of linking stakeholder dialogue and sustainable innovation, and thus contributes to open the “black box” of dynamic capabilities and advance in the understanding of this fundamental organizational concept.