bluuebunny/crossref_metadata_2025_split huggingface dataset:
Using capital transaction due diligence to demonstrate CSR assessment in practice
Authors: Knecht Franz , Calenbuhr Vera 
Published: January 2010

PurposeIn 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/approachThe 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.FindingsThe 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 implicationsThe 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/valueStarting 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

PurposeThis 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/approachTheoretical propositions on how the various dimensions of national culture influence corporate social responsibility are developed and empirically tested.FindingsThe 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/valueThe 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

PurposeThis 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/approachThe 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.FindingsPast 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/valueThis 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

PurposeThe purpose of this article is to discuss the risks to a company that fails to understand and respect its social contract.Design/methodology/approachThe paper provides a viewpoint on the “ethical blowback”.FindingsThe 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/valueThe 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

PurposeThis 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/approachAt 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.FindingsThe 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/implicationsBoards 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 implicationsThe 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/valueThis 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

PurposeThe 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/approachThe 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.FindingsThe 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/valueThe 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

PurposeThe 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/approachFirst, 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.FindingsThe 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/valueSome 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

PurposeThe 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/approachThe 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.FindingsOn 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/valueThe 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

PurposeThe 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/approachThis 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.FindingsThe 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/implicationsThe 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 implicationsIn 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/valueThe 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

PurposeThis 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/approachThe 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.FindingsThis 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/implicationsMany 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 implicationsSeveral 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/valueThis 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

PurposeThe 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/approachThe approach consists of theory building by reviewing the literature and examining the gaps and limitations.FindingsThe 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/ImplicationsThe challenge is to operationalize the model and test it empirically.Practical implicationsThe 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/valueThis 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

PurposeThis 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/approachThe 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.FindingsCompanies 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/valueThe 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

PurposeThis 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/approachFollowing 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.FindingsBU 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/implicationsThe 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/valueCG 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.