bluuebunny/crossref_metadata_2025 huggingface dataset:
Ownership structure and corporate social responsibility disclosure: some Malaysian evidence
Authors: Mohd Ghazali Nazli A.
Published: January 2010

Purpose

The purpose of this article is to examine the influence of ownership structure on corporate social responsibility (CSR) disclosure in Malaysian company annual reports (CARs).

Design/methodology/approach

The study uses a CSR disclosure checklist to measure the extent of CSR disclosure in annual reports and a multiple regression analysis to examine the association between ownership structure and the extent of CSR disclosure in annual reports.

Findings

The paper finds that, even among the larger and actively traded stocks in Malaysia, there is considerable variability in the amount of social activities disclosed in corporate annual reports. Results from multiple regression analysis show that, consistent with expectations, companies in which the directors hold a higher proportion of equity shares (owner‐managed companies) disclosed significantly less CSR information, while companies in which the government is a substantial shareholder disclosed significantly more CSR information in their annual reports.

Research limitations/implications

The sample for this study comes from larger and actively traded stocks on the Bursa Malaysia. Thus, the results may not be generalizable to smaller and less actively traded stocks.

Practical implications

The findings appear to suggest that the level of CSR disclosure in annual reports of companies depends on the extent of “public pressure” faced by each company. The results also raise the question of whether corporate involvement in social activities should be made a mandatory disclosure in annual reports to better assess the extent of “corporate citizenship” of Malaysian companies.

Originality/value

The study finds that ownership structure, which had been ignored in prior studies on factors influencing CSR disclosure, has an impact on CSR disclosure.
Wrestling with “conflict of interest” in sport management
Authors: Sherry Emma , Shilbury David , Wood Greg
Published: January 2010

Purpose

The purpose of this paper is to discuss how the relationship between sport and business has increased the complexity of ethical issues affecting contemporary sport management. Specifically, this paper seeks to define conflict of interest and how it is manifested in both business and sport.

Design/methodology/approach

The paper provides a conceptual discussion of the issue of conflict of interest as it relates to the management and governance of sports organizations. Relationships between business ethics, governance and sport management are examined in the quest to understand conflict of interest and its prevalence in and relevance to sport management.

Findings

Conflicts of interest within the sport industry may have the same structural elements as those occurring in mainstream business, such as benefits, obligations and issues of trust, but it is the higher societal expectations and values placed on sport and sporting organizations that provide the key points of difference.

Practical implications

Through collaboration with sport management practitioners, via inductive in‐depth research, a clearer definition of conflict of interest and the range of situations in which it may occur can be developed. It is through a continued research effort in this area that sport managers will be better able to both identify and manage conflicts of interest as they occur.

Originality/value

It is the lack of definitive examples or guidelines for recognition of an actual or a potential conflict of interest that appears to cause the greatest confusion within sport management. By drawing together the key concepts found within the extant literature, a clearer understanding of what constitutes a conflict of interest is provided by this paper.
PhRMA and the Partnership for Prescription Assistance: a win‐win situation?
Authors: Hemphill Thomas A.
Published: January 2010

Purpose

The purpose of this paper is to evaluate the effectiveness (through the analytic prism of “corporate citizenship”) of the US pharmaceutical industry's political strategy behind the Partnership for Prescription Assistance, the program that the industry has recently initiated to address the prescription drug needs of senior and other low‐income American citizens.

Design/methodology/approach

By reviewing data collected by PhRMA, the industry's association, over a one‐year period, the Partnership for Prescription Assistance program is evaluated for: performance (over periods of one month, three months, six months and one year); congruence with the concept of corporate citizenship; and effectiveness as an industry political strategy.

Findings

During its first year of operation, the Partnership for Prescription Assistance has matched two million Americans with public and private assistance programs that meet their prescription health needs. Furthermore, the Partnership for Prescription Assistance fits into the corporate citizenship perspective, and offers the pharmaceutical industry a viable alternative (“industry political strategy”) to state and federal legislative efforts to establish prescription drug importation programs.

Originality/value

This article addresses recent efforts (in the form of the Partnership for Prescription Assistance) by the US pharmaceutical industry to counteract proposed legislation to allow prescription drug importation in the USA. The article provides evidence of industry political strategy success in the implementation of the Partnership for Prescription Assistance. This article will have value to pharmaceutical industry management, health care advocates, public policy makers, and business faculty whose research interest lies in the area of business and society.
Corporate governance, ownership structure and performance of SMEs in Ghana: implications for financing opportunities
Authors: Abor Joshua , Biekpe Nicholas
Published: January 2010

Purpose

This study seeks to assess how the adoption of corporate governance structures affects the performance of SMEs (small to medium‐sized enterprises) in Ghana.

Design/methodology/approach

Regression analysis is used to estimate the relationship between corporate governance and ownership structure and performance.

Findings

The results show that board size, board composition, management skill level, CEO duality, inside ownership, family business, and foreign ownership have significantly positive impacts on profitability. Corporate governance can greatly assist the SME sector by infusing better management practices, stronger internal auditing, greater opportunities for growth and new strategic outlook through non‐executive directors. It is clear that corporate governance structures influence performance of SMEs in Ghana.

Originality/value

This paper provides insights on the effects of corporate governance and ownership structure on the performance of Ghanaian SMEs. The paper also shows the implications of SMEs gaining access to finance as a result of adopting a good governance system.
Integrating corporate responsibility principles and stakeholder approaches into mainstream strategy: a stakeholder‐oriented and integrative strategic management framework
Authors: Katsoulakos Takis , Katsoulacos Yannis
Published: January 2010

Purpose

The purpose of this article is to establish a strategic management framework that supports the integration of corporate social responsibility principles and stakeholder approaches into mainstream business strategy.

Design/methodology/approach

A top‐down and bottom‐up approach was used to develop the proposed framework. The top‐down approach focused on analyzing the main strategic management theories including social responsibility movements to identify complementary concepts and create a relevant topology. The bottom‐up approach was based on empirical research on the views of business companies on corporate social responsibility, a review of best practices and case studies mainly in Greece.

Findings

The paper describes a stakeholder‐oriented integrative strategic management framework linking the main strategic management theories across value, responsiveness and responsibility dimensions. A mathematical model is presented describing the synergistic development of advantage‐creating knowledge and advantage‐creating stakeholder relations in accordance with the criteria of the resource‐based theory.

Research limitations/implications

The proposed management framework is based on the results of research projects and is not fully developed and tested. The approach will be refined, exploiting results from ongoing research including further empirical research and testing in business organizations.

Originality/value

The paper defines a novel conceptual framework extending the resource‐ and stakeholder‐based approaches by introducing two interlinked concepts: advantage‐creating knowledge and advantage‐creating stakeholder relations.
Towards strategic stakeholder management? Integrating perspectives on sustainability challenges such as corporate responses to climate change
Authors: Kolk Ans , Pinkse Jonatan
Published: January 2010

Purpose

The strategic management of corporate sustainability tends to be approached from one theoretical perspective in academic research and publications in mainstream journals simultaneously. In corporate practice, however, a sustainability issue has different dimensions that cannot be captured if only one such lens is taken. The purpose of this article is to develop a more integrated perspective, embedded in a stakeholder view.

Design/methodology/approach

This paper uses climate change as an example to illustrate how institutional, resource‐based, supply chain and stakeholder views are all important to characterize and understand corporate strategic responses to one issue. This is subsequently linked to the climate strategies and related capabilities of companies, reckoning with societal and competitive contexts.

Findings

What a corporate climate strategy looks like depends on the type of stakeholders that a company manages more proactively, which is in turn determined by the extent to which these stakeholders control critical resources.

Originality/value

While empirical literature usually adopts a particular theoretical perspective, this article has attempted to develop a more integrative approach on corporate responses to climate change.
Measuring the business case: linking stakeholder and shareholder value
Authors: Moir Lance , Kennerley Mike , Ferguson David
Published: January 2010

Purpose

The purpose of this article is to provide a detailed review of how to design and test a framework for assessing the impact of corporate responsibility on firm value.

Design/methodology/approach

Building on an earlier conceptual framework, this paper describes the testing of the framework on three cases within EDF over a period of some six months. The results of the workshops on the cases are then taken to show how to build on the earlier conceptual framework.

Findings

Much of the difficulty of trading off corporate responsibility with financial performance is due to a lack of detailed understanding of how corporate responsibility issues can affect drivers of value. The framework was validated but to be effective it requires detailed understanding of both corporate responsibility and financial management.

Research limitations/implications

The cases were undertaken within one company and so the results need to be tested in other contexts. Equally the model is too complex at this stage to be rolled out across the group.

Practical implications

Nevertheless the framework is designed to be used in business and indeed EDF have taken the results into their processes.

Originality/value

The paper sets out a detailed approach to linking corporate responsibility and business value in a practical way. The issue now is for businesses to find ways to apply the framework.
Towards a dynamic reinterpretation of C(S)R: are corporate responsibility and innovation compatible or contradictory?
Authors: Midttun Atle
Published: January 2010

Purpose

This paper seeks to explore the interplay between corporate social responsibility and innovation and questions the premise, often underlying EU communications, that the two agendas are in general mutually supportive. In order to accommodate a closer fit the paper argues for a dynamic reinterpretation of CSR.

Design/methodology/approach

This is a conceptual paper that presents discussions and conclusions at the theoretical level. It provides a brief overview of core parts of the CSR and the innovation literature and then analyses how the perspectives on the firm in these two literatures fit together. The final section raises normative and theoretical issues with respect to innovation and CSR.

Findings

The paper documents the difficulties of assuming that innovation policy and CR policy can easily be mutually supportive. While the assumption of compatibility and synergy may be reasonable for some types of innovation, and some types of CR, it can hardly be argued on a general basis. A core finding is the need to differentiate between complementary static and dynamic views. While much of the innovation literature is dynamic in its nature, much of the CR literature has traditionally been given a static interpretation.

Originality/value

The original value of the paper is that it highlights inconsistencies in the dominant static interpretation of CSR with important sides of the innovation economy. It also shows the way towards a more dynamic interpretation, but then also recognizing some of the important limits of CSR, even in a dynamic mode, calling for engagement from the state in certain types of industrial restructuration.
Developing a conceptual framework to identify corporate innovations through engagement with non‐profit stakeholders
Authors: Holmes Sara , Moir Lance
Published: January 2010

Purpose

The pressure on companies to position themselves as responsible corporate citizens has been identified as a key driver of the increase in collaborative relationships between corporations and non‐profit organizations, with innovation and learning recognized as benefits to the firms from such relationships. This paper attempts to identify factors that can foster (or impede) the identification and development of firm‐related innovations that result from engagement with non‐profit stakeholders.

Design/methodology/approach

The paper reviews literature within the stakeholder, cross‐sector collaboration, and innovation genres, to examine business‐non‐profit relations specifically in the context of innovation generation.

Findings

The outcome of the literature review is a conceptual process model of cross‐sector‐collaboration. This identifies firm motivations, engagement conditions and intra‐firm factors that would appear to influence innovation outcome, and which would benefit from empirical exploration.

Originality/value

The paper begins to develop a framework for considering business‐non‐profit relations in the context of innovation generation and aims to further one's understanding of factors in the engagement process that can influence an innovative outcome.
Using capital transaction due diligence to demonstrate CSR assessment in practice
Authors: Knecht Franz , Calenbuhr Vera
Published: January 2010

Purpose

In business activities and transactions the focus is often on tangible figures, although “soft” factors are often equally or more important. Environmental and social management schemes identify related intangibles in business operations, making them subject to fact‐based decision making. The applicability of these schemes is reduced when confronted with new situations such as mergers, acquisitions, and other asset transactions. Here due diligence (DD) procedures review factors deemed material to such a transaction including, since recently, also environmental and social ones. The purpose of the paper is to describe and conceptualize a DD procedure addressing social and environmental factors.

Design/methodology/approach

The paper describes an indicator‐based algorithm for the systematic identification of social and environmental risk factors in asset transactions. The application of the method is demonstrated and tested by example of case studies.

Findings

The paper presents and discusses an environmental and social DD procedure. The performance of the procedure is discussed on the basis of concrete case studies.

Practical implications

The DD‐method is applicable in a wide range of firms operating in cost‐driven markets for identifying social and environmental risk, putting a price tag on it, and thereby enables the firm to manage it.

Originality/value

Starting from fieldwork by one of the authors the paper introduces formally a social and environmental due diligence procedure.
The impact of national culture on corporate social performance
Authors: Ringov Dimo , Zollo Maurizio
Published: January 2010

Purpose

This paper sets out to investigate the effect of differences in national cultures on the social and environmental performance of companies around the world.

Design/methodology/approach

Theoretical propositions on how the various dimensions of national culture influence corporate social responsibility are developed and empirically tested.

Findings

The authors propose that companies based in countries characterized by higher levels of power distance, individualism, masculinity, and uncertainty avoidance exhibit lower levels of social and environmental performance. Empirical tests of these propositions are performed via pooled ordinary least squares regression models using a novel proprietary dataset on 463 firms from 23 North American, European and Asian countries. Power distance and masculinity are found to have a significant negative effect on corporate social and environmental performance, whereas cultural differences with respect to individualism and uncertainty avoidance have no significant effect.

Originality/value

The potential contribution of this work lies in offering empirical evidence to test the widely held assumption that corporations' socially responsible behavior is influenced by the cultural context in their home country. The adoption and the external appreciation of this kind of behavior does appear to be contingent on specific dimensions of national culture, but not on others. Thus, positive social change through voluntary corporate action may be optimized via initiatives that build on specific cultural values in the relevant country.
The Johnson & Johnson bridge to employment initiative: building sustainable community education partnerships
Authors: Bzdak Michael
Published: January 2010

Purpose

This paper seeks to demonstrate that a specific business/education partnership model – bridge to employment (BTE) – benefits society by re‐establishing the critical connection between academic achievement and practical application, i.e. the connection between the world of school and the world of work. Representatives of the corporation engage community stakeholders to identify opportunities in the schools where Johnson & Johnson support and volunteerism can help make a difference in the lives of young people.

Design/methodology/approach

The paper reports on an existing school to career program that was developed in the USA but has recently been adapted to meet the needs of Ireland's education community.

Findings

Past research has shown the importance of linking academic studies with real world applications to improve educational outcomes for pre‐college students. The BTE program has been shown to have positive benefits for students, schools, communities and Johnson & Johnson employees. In addition, BTE may provide a possible solution to the declining number of students pursuing health care careers.

Originality/value

This paper looks at a unique US‐based business/education intervention from the perspective of stakeholder engagement. Second, the paper provides an example of a US education model's application to a European Union context.
“Ethical blowback”: the missing piece in the corporate governance puzzle – the risks to a company which fails to understand and respect its social contract
Authors: Donaldson Thomas
Published: January 2010

Purpose

The purpose of this article is to discuss the risks to a company that fails to understand and respect its social contract.

Design/methodology/approach

The paper provides a viewpoint on the “ethical blowback”.

Findings

The paper argues that two forces that are now influencing corporate governance reform can provoke ethical blowback, namely: Sarbanes‐Oxley style regulatory initiatives; and internal corporate compliance and ethics programs.

Originality/value

The paper provides a viewpoint on the “ethical blowback”.
The top team: examining board composition and firm performance
Authors: McIntyre Michael L. , Murphy Steven A. , Mitchell Paul
Published: January 2010

Purpose

This paper seeks to argue that boards can be playing a more proactive role in contributing to organizational effectiveness and that their composition requires greater research attention. By integrating the organizational behaviour literature on teams with the governance literature, the paper empirically examines the relationship between key board composition variables and firm performance.

Design/methodology/approach

At this stage in the development of the approach, the focus is on a sub‐set of the elements proposed in the group dynamics literature. The population for this study comprises all companies included in the Canadian TSE 300 Composite Index (renamed the S&P/TSX Composite Index). This study uses cross‐sectional regression analyses to examine the nature of the relationships between board composition and firm performance.

Findings

The data analyses revealed that high levels of experience, appropriate team size, moderate levels of variation in age and team tenure were correlated with firm performance.

Research limitations/implications

Boards of directors (BOD) are teams whose effectiveness can be assessed through group dynamic constructs in the organizational behaviour literature. Further research is needed to examine the intricate dynamics that might moderate or mediate the relationship between board characteristics and firm performance.

Practical implications

The findings provide a much‐needed benchmark to consider whether the composition of boards is optimal, given the functions and mandate. In addition, the study highlights the opportunity costs of boards, restricting their roles to agency issues.

Originality/value

This interdisciplinary paper tests some of the many variables that can be extrapolated from the group dynamics research. The paper calls on boards to examine what BOD functionality really entails, and argues for more proactive behaviours aimed at strategic firm issues.
Corporate governance and women: an empirical study of top and middle women managers in the Lebanese banking sector
Authors: Jamali D. , Safieddine A. , Daouk M.
Published: January 2010

Purpose

The purpose of this paper is to look at how recent corporate scandals have translated into heightened interest in understanding various facets of corporate governance, notably the effectiveness of boards of directors and the composition of boards with particular attention to the gender dimension. In this context, the current study gauges the perceptions of Lebanese women managers regarding corporate governance issues pertaining to board effectiveness, roles and responsibilities and the benefits of female representation on boards.

Design/methodology/approach

The approach takes the form of a literature review and survey type questionnaire deriving from the literature. The questionnaire was administered to a sample of 61 top and middle level women managers, drawn from the context of 12 different banks in the Lebanese context.

Findings

The findings suggest that Lebanese women managers consider current board performance as not being satisfactory, that women are important board member candidates and that the low representation of women on boards in Lebanon is related to glass ceiling type impediments. They also believed that women board representation can reflect positively on the status of women at work and that government intervention is needed to level the playing field for women in management and at the boardroom level.

Originality/value

The value added of this research is to gauge Lebanese women's perceptions regarding corporate governance issues and the gender dimension, which is of direct relevance/interest to them. Moreover, these expressed perceptions are compared with what is reported in the literature, suggesting overall congruence between the experiences/perceptions of women in various contexts.
Corporate governance in the financial services sector
Authors: Handley‐Schachler Morrison , Juleff Linda , Paton Colin
Published: January 2010

Purpose

The purpose of this paper is to overview the goals of corporate governance in the financial services sector from a theoretical perspective. This sector has experienced some high profile corporate scandals, including BCCI, Barings Bank, and Equitable Life. Yet the UK's Combined Code on Corporate Governance does not give any special prominence to the corporate governance issues involved in this important and idiosyncratic business area.

Design/methodology/approach

First, the broad parameters of corporate governance are discussed, from a theoretical perspective. From this particular characteristics are derived applicable to the financial services sector. These issues are examined and the extent to which they have been addressed by contemporary academic or policy‐related studies is considered, and also how they are related to the activities of the main bodies responsible for external oversight.

Findings

The main attention of this paper is banks and a key issue arising is that the typical structure of their balance‐sheets – high leverage, and a mismatch in their assets and liabilities, mean that it is imperative that they keep lenders' confidence, and imply a wider duty of care for bank directors. External regulators (FSA) and auditors have vital oversight functions, which should encourage sound governance practices. One avenue of future research would be to assess the effectiveness of compliance in the UK, given that financial companies have obligations concerning both FSA requirements and Combined Code provisions.

Originality/value

Some key issues pertaining to corporate governance in financial services are addressed, highlighting their significance, to encourage further investigation by academics and practitioners in the field.
Disclosure of governance information by small and medium‐sized companies
Authors: Parsa Sepideh , Chong Gin , Isimoya Ewere
Published: January 2010

Purpose

The purpose of this paper is to examine the extent of compliance with the governance regulatory requirements by small and medium‐sized companies (SMEs) listed on the alternative investment market (AIM).

Design/methodology/approach

The paper focuses on AIM‐listed companies over a period of three years (2002, 2003 and 2004) and concentrates on their extent of compliance with the corporate governance disclosure guidelines set out by the regulatory bodies. To measure the extent of disclosure, a checklist was compiled based on the Combined Code and FSA listing rules. Having reviewed the literature on large companies (as there were no studies on SMEs), a number of governance and firm structure‐specific characteristics were selected. The relationships between the level of governance disclosure and the chosen characteristics were examined in order to highlight those factors that are associated with and affect the level of governance disclosure.

Findings

On average about 50 percent of governance items required to be disclosed had been reported by AIM‐listed companies. As for large companies, there is a positive relationship between the number of non‐executive directors in governance mechanisms and the extent of disclosure. Considering that there has been a declining interest in AIM‐listed companies, the presence of more non‐executive directors is recommended, as this would ultimately mean more compliance with the governance disclosure requirements and could result in restored investor interest and confidence. The findings also indicate that SMEs are more likely to have adopted a stakeholder approach when concentrating on their governance arrangements.

Originality/value

The study presents evidence on governance disclosure practices of SMEs and indicates that, in spite of a less stringent regulatory regime set up within AIM, non‐executive directors, who bring in an element of independence to boards, play a significant role in elevating corporate transparency.
Does strategic human resource management matter in high‐tech sector? Some learning points for SME managers
Authors: Karami Azhdar , Jones Brian M. , Kakabadse Nada
Published: January 2010

Purpose

The main purpose of this paper is to examine the nature and impact of human resource capabilities and involvement on the firm's performance in the SME sector.

Design/methodology/approach

This research is based on an empirical survey of Chief Executive Officers (CEOs) and their perception of the HR involvement in strategy development in high tech SMEs operating in the electronics industry in the UK. Postal questionnaire is the main data collection instrument for this research. A combination of qualitative and quantitative approaches has been employed for data analysis.

Findings

The important conclusion reached is that increasing the core competencies of the firm, in particular in HR, is the key element to the success of the firm. Moreover, it is posed that the growing involvement of the HR in the development and implementation of business strategy will lead to the increased effectiveness of the organisation and the industry as a whole. Finally, the competitive advantage a firm enjoys can come from the distinctive capabilities which provide it with a core competence in HR.

Research limitations/implications

The present study is concerned solely with small and medium‐sized enterprises in the electrical and electronic manufacturing sector in the UK. A further comparative international‐wide study is recommended.

Practical implications

In order to increase firm performance and to benefit from HR capabilities, it is recommended that practitioners and SME CEOs increase the involvement of their HR specialists in the processes of strategic management in their firms.

Originality/value

The principal contribution of this first‐time study has been the attempt to explore the CEO's perceptions of HR, its capabilities and its degree of strategic involvement as significant determining factors to ensure competitive advantages for the firm in a highly changing market.
Towards an impartial and effective corporate governance rating system
Authors: Donker Han , Zahir Saif
Published: January 2010

Purpose

This paper aims to investigate the most popular corporate governance rating systems and to scrutinize their usefulness to shareholders and the public at large. It proposes to examine whether the advertised good governance scores reflect corporate performance, fraud, lawsuits, and the like.

Design/methodology/approach

The analysis focused on the methodology used by rating agencies to rank corporate governance practices of companies. Analysis of the categories and variables used in the rating systems were also scrutinized and critiqued.

Findings

This research shows that there is a weak relationship between corporate performance and corporate governance rating. Ideas and suggestions have been proposes to remedy the shortfalls of existing rating systems.

Research limitations/implications

Many researchers use corporate governance scores in their studies to investigate the relationship between these single scores and corporate performance. Potential vulnerability and risk are demonstrated using such kind of methodologies. Research should be accomplished with the corporate governance indicators separately.

Practical implications

Several corporate governance ratings systems have been developed and implemented. These systems reduce a complex corporate governance process and related performance into a single score. Such outcome does not in any way reflect the real nature of corporate governance or its performance. Ranking, if it is at all needed, should be interpreted carefully and not be used as a simple measurement of good or bad corporate governance practice.

Originality/value

This paper is the first of its kind to critically evaluate corporate governance systems scores launched by different rating agencies.
A holistic model of corporate governance: a new research framework
Authors: Young Suzanne , Thyil Vijaya
Published: January 2010

Purpose

The purpose of this paper is to propose a new model of corporate governance that is holistic – incorporating internal and macro perspectives across legal, regulatory, sociological, ethical, human resource management, behavioural and corporate strategic frameworks. Researchers have signalled the need for “new theoretical perspectives and new models of governance” due to a dearth of research that is context‐driven, empirical, and encapsulating the full spectrum of reasons and actions contributing to corporate crises.

Design/methodology/approach

The approach consists of theory building by reviewing the literature and examining the gaps and limitations.

Findings

The proposed model is a distinctive contribution to theory and practice in three ways. First, it integrates the firm‐specific, micro factors with the country‐specific, macro factors to illustrate the holistic nature of corporate governance. Second, shareholders and stakeholders are shown to be only one component of the model. Third, it veers away from singular approaches, to dealing with corporate governance using a multi‐disciplinary perspective. The paper argues that such a holistic and integrated view is a necessity for understanding governance systems.

Research limitations/Implications

The challenge is to operationalize the model and test it empirically.

Practical implications

The model is instructive and of use for practitioners in attempting to understand, explain and develop governance models that are appropriate to their national and industry settings.

Originality/value

This paper argues that narrow‐based models are limited in their approach and in a sound and integrative review of the up‐to‐date literature contributes to theory‐building on corporate governance.
Social and environmental reporting in UK company law and the issue of legitimacy
Authors: Williamson David , Lynch‐Wood Gary
Published: January 2010

Purpose

This paper seeks to examine the introduction, in the UK, of reporting on social and environmental matters in the Companies Act 1985 (Operating and Financial Review and Directors' Report etc.) Regulations 2005 and the subsequent changes embodied in the Companies Act 2006. It aims to explore the potential impact of these reporting requirements on corporate legitimacy. Legitimacy is important because it reflects, and arises out of, society's support for the activities of the company.

Design/methodology/approach

The paper compares the Companies Act 1985 (Operating and Financial Review and Directors' Report etc.) Regulations 2005 with the Companies Act 2006. A postal survey was used to collect data from 79 companies that were affected by the operating and financial review. The reactions of different stakeholder groups to the changes in the law are assessed using secondary data sources, and issues surrounding legitimacy are analyzed using appropriate literature.

Findings

Companies that had to comply with the requirements of the operating and financial review were sufficiently prepared for its implementation and, given the choice, preferred the operating and financial review to be statutory. The authors therefore argue that the reasons for repealing the operating and financial review were overstated. Also, legitimacy theory indicates that the new reporting requirements are unlikely to meet the information needs of all stakeholders.

Originality/value

The paper provides a valuable analysis of how corporate social responsibility, which is deemed to be important for sustainable development, has been incorporated in law. It also provides a valuable analysis of how the law will affect corporate legitimacy.
A case study on the influence of corporate governance beyond the boardroom: perceptions from business unit managers
Authors: Soobaroyen Teerooven , Sheik‐Ellahi Aamina
Published: January 2010

Purpose

This study aims to explore the influence of corporate governance (CG) on non‐board business unit (BU) managers in relation to its perceived effects on managerial/organizational outcomes.

Design/methodology/approach

Following the recent implementation of the CG code in a conglomerate, a number of BU managers were interviewed on the meaning and implications of CG at their level with a subsequent focus on two principles advocated in CG: accountability and transparency.

Findings

BU managers perceived the CG adoption will have a positive impact on their performance via its effect on enhancing the credibility of the unit and the organization. Managers also developed a wider notion of accountability, akin to a ‘socializing form’ accountability, which improves the level of dialogue, trust and communication within the organization, thereby leading to better organizational outcomes. However, in view of the opaque business context prevailing in the country of study, these positive consequences are dampened by the managers' ambivalence to the need for higher internal transparency.

Research limitations/implications

The research adopts a case study approach in a developing economy. The scope for generalization is thus limited but the findings indicate deeper meanings and understandings of CG from non‐board actors, which could be observed in other contexts.

Originality/value

CG studies traditionally focus on the board members. There has been little exploration as to the effects of CG within the organization and how this is perceived or turned into action non‐board actors, e.g. BU managers.
Stakeholder management and human resources: development and implementation of a performance measurement system
Authors: Longo Mariolina , Mura Matteo
Published: January 2010

Purpose

The premise on which the stakeholder approach toward employees is based is that stakeholder management actions bring a strengthening of internal legitimacy and therefore the possibility of creating better working conditions that will lead to improved company competitiveness in terms of intangible resources developed by company employees. The aims of the paper are: to determine and to measure the system of resources of value developed by employees of a company that has developed a stakeholder management policy; to create a model that permits the company to evaluate the factors which have a major effect on the development of such a system; and to define the applications of the tool as a company's performance measurement and control system.

Design/methodology/approach

In order to pursue these aims two surveys were conducted in 2005 and 2006 on the employees of a leading Italian company in the agricultural food sector. Structural equation model methodology and multivariate analysis were used to define the quantitative measures of the system of resources and to determine the role played by stakeholder management policies in the development of the intangible resources.

Findings

The authors found that the company's social policies have a significant influence, even though its intensity varies, on most of the resources analyzed, and in particular on trust, job satisfaction, networking and communication, ability to work in a group and low turnover propensity. These results confirm the strong link between the resources of value developed by employees and the social strategy of the company.

Originality/value

The measurement system developed in this research can be used in any firm that wants to measure the intangible resources related to employees and represents a control tool that may support managers in planning and control the social investments of the firm.
Spiritual performance from an organizational perspective: the Starbucks way
Authors: Marques Joan F.
Published: January 2010

Purpose

The purpose of this paper is to illustrate spiritual performance from the perspective of a globally operating corporation.

Design/methodology/approach

The paper uses spirituality at work as its subject‐matter and takes the form of a literature review. The paper approaches the topic by: giving a general overview of the shift in global corporate behavior; a short historical review of American business culture; defining workplace spirituality; examining Starbucks Corporation's performance from three angles: suppliers and societies, employees, and customers; and a conclusion and postscript.

Findings

The paper finds that: spiritual behavior at the organizational level does lead to enhanced corporate performance; workplace spirituality, when encouraged by top management, is oftentimes instigated by personal life experiences; and spiritual behavior, at the organizational level, leads to advantages for multiple stakeholders.

Research limitations/implications

Limitations to the research are that the research findings were of a secondary nature. The information was gathered through massive readings, but not through primary research‐gathering processes. This study only reviews the performance of one major corporate entity, which reduces the justification of generalizability. Suggestions for future research would be: applying primary studies on a broader sample of globally operating entities to measure their spiritual performance; and formulating particular standards for this type of measurement.

Practical implications

The practical implications are that globally operating but also smaller entities may start scrutinizing their performance toward stakeholders in a more spiritual light.

Originality/value

New in this paper is the: viewpoint of the Starbucks corporation as a spiritually performing entity; reflection of this major corporation's behavior in three dimensions: toward employees, customers, and suppliers and societies; and reflection of the elements of the definition used here for spirit at work on Starbucks' performance.
Ownership structure and the private benefits of control: an analysis of Chinese firms
Authors: Weifeng He , Zhaoguo Zhang , Shasha Zhu
Published: January 2010

Purpose

This study aims to investigate the relationship between the ownership structure of firms and the private benefits of control through an analysis of Chinese listed firms.

Design/methodology/approach

Using a sample of Chinese firms, cases were examined where there had been a transaction involving non‐tradable stock. The cases where there had been stock transactions which both did and did not involve the transfer of control within a single year were selected. The difference between these two types of transaction was used to estimate the private benefits of control in Chinese listed firms. Regression analysis was used to explore the relationship between ownership structure and private benefits of control in Chinese listed firms.

Findings

The results show that the average private benefit of control is 18.52 percent in China. The regression results show a significant, positive relationship between the controlling shareholders, the combined shareholdings of the second to fifth largest shareholder and private benefits of control. However, there is a negative but insignificant relationship between the tradable share value and private benefits of control. With regard to the relationship between managerial shareholding and private benefits of control, the regression results show a positive but insignificant relationship.

Research limitations/implications

Further insights into the private benefits of control can be obtained by inspecting the change around major corporate events involving significant ownership changes. In this study, the focus was on non‐tradable stock. Investigating all stock would be a fruitful area for future research.

Practical implications

In China, firms should optimize the ownership structure and curb expropriation by controlling shareholders. This would help to promote a sound development of Chinese listed firms and the capital market.

Originality/value

The research provides useful information on the impact of ownership structure on private benefits of control in a sample of listed firms in China.
CEO duality and firm performance: evidence from Hong Kong
Authors: Yan Lam Tin , Kam Lee Shu
Published: January 2010

Purpose

This paper seeks to examine the relationship between chief executive officer (CEO) duality and firm performance and the moderating effects of the family control factor on this relationship with respect to public companies in Hong Kong.

Design/methodology/approach

This study employs publicly available data from financial databases and the annual reports of a sample of 128 publicly‐listed companies in Hong Kong in 2003.

Findings

Neither agency theory nor stewardship theory alone can adequately explain the duality‐performance relationship. The empirical evidence suggests that the relationship between CEO duality and accounting performance is contingent on the presence of the family control factor. CEO duality is good for non‐family firms, while non‐duality is good for family‐controlled firms.

Research limitations/implications

The study is based on publicly available financial data, and actual board processes are not observed.

Practical implications

The design of board leadership structure is contingent on corporate ownership and control (family control or not).

Originality/value

The paper provides empirical evidence that CEO duality is not necessarily bad for public companies in Hong Kong and would be of interest to regulatory bodies, business practitioners, and academic researchers.
Why corporate social responsibility should be popularised but not imposed
Authors: Robins Fred
Published: January 2010

Purpose

This paper aims to explore the general question: Is corporate social responsibility (CSR) a business duty, as many contend, or really just a benign delusion?

Design/methodology/approach

To provide an answer to the question the CSR literature is examined from both theoretical and practical perspectives. This paper offers a broad general review and practical assessment of contemporary thinking about CSR. It investigates three precise questions. These are: who pays for CSR, who makes decisions about CSR, and what are the long‐term, potential implications of CSR?

Findings

The three most relevant theoretical frameworks are each found wanting. In particular, none offers managers clear operational guidance. So, although CSR is recognised as morally attractive, it is judged unhelpful to force it on business through regulatory or legislative means. From the questions posed it is revealed that answers to the first two questions are quite clear. The answer to the third is conjecture. The paper finds that none of these questions has yet received adequate attention. The paper offers three main findings: that CSR has costs which may go unrecognised; that it draws managers into decisions which may lie outside their competence; and, if it were widely adopted on a major scale, CSR would have implications for government and civil society which we have scarcely begun to think about.

Practical implications

At the same time, the proven capacity of business to contribute to society through discretionary expenditure is huge. The paper therefore concludes that it is sensible to encourage business to do more. It follows that CSR should be popularised but not imposed.

Originality/value

The paper provides useful information on CSR as a business duty.