Showing papers in "Corporate Governance in 2007"
TL;DR: In this article, the influence of ownership structure on corporate social responsibility disclosure in Malaysian company annual reports (CARs) was examined using a multiple regression analysis to examine the association between ownership structure and the extent of CSR disclosure in annual reports.
Abstract: 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 re...
529 citations
TL;DR: In this paper, the authors examine the impact on organizations of both negative deviant workplace behaviors (those that violate organizational norms, policies or internal rules) and positive deviant behaviors ( those that honorably violate them).
Abstract: Purpose – The purpose of this paper is to examine the impact on organizations of both negative deviant workplace behaviors – those that violate organizational norms, policies or internal rules – and positive deviant workplace behaviors – those that honorably violate them. The reasons why people engage in such behaviors are explored, along with some of the reasons why organizations allow such behaviors to thrive within their walls. A typology of positive workplace behavior is determined and is compared with other pro‐social behaviors such as: whistleblowing, corporate social responsibility, organizational citizenship behavior and innovation. Possible solutions to overcome problems associated with negative deviant behavior in the workplace are examined, along with how to promote positive deviant behavior in the workplace.Design/methodology/approach – A literature review on current positive and negative deviant workplace behavior was conducted.Findings – Regardless of whether negative deviance is overt or im...
342 citations
TL;DR: In this article, the authors examined the relationship between corporate governance and the capital structure decisions of listed firms in Ghana and found statistically significant and positive associations between capital structure and board size, board composition, and CEO duality.
Abstract: Purpose – This paper seeks to examine the relationship between corporate governance and the capital structure decisions of listed firms in Ghana.Design/methodology/approach – Multiple regression analysis is used in the study in estimating the relationship between the corporate governance characteristics and capital structure.Findings – The empirical results show statistically significant and positive associations between capital structure and board size, board composition, and CEO duality. The results generally indicate that Ghanaian listed firms pursue high debt policy with larger board size, higher percentage of non‐executive directors, and CEO duality. The results also show a negative (though statistically insignificant) relationship between the tenure of the CEO and capital structure, suggesting that, entrenched CEOs employ lower debt in order to reduce the performance pressures associated with high debt capital.Originality/value – The main value of this paper is the analysis of the effect of corporat...
336 citations
TL;DR: In this paper, the authors investigate the effect of differences in national cultures on the social and environmental performance of companies around the world, and find that companies based in countries characterized by higher levels of power distance, individualism, masculinity, and uncertainty avoidance exhibit lower levels of environmental performance.
Abstract: 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...
317 citations
TL;DR: In this paper, the authors assess how the adoption of corporate governance structures affects the performance of SMEs (small to medium-sized enterprises) in Ghana and find that board size, board composition, management skill level, CEO duality, inside ownership, family business, and foreign ownership have significantly positive impacts on profitability.
Abstract: 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 implicat...
293 citations
TL;DR: In this paper, the extent to which the corporate governance framework can be applied to small and medium enterprises (SMEs), and discuss these issues further within the Ghanaian context.
Abstract: Purpose – The purpose of this paper is to identify the extent to which the corporate governance framework can be applied to small and medium enterprises (SMEs), and discuss these issues further within the Ghanaian context.Design/methodology/approach – After considering some of the key issues, the paper shows how relevant these issues are to the SME sector.Findings – It is clear that corporate governance brings new strategic outlook through external independent directors and enhances firms' corporate entrepreneurship and competitiveness. Again the problems of credit constraint and managerial incompetence in the Ghanaian SME sector could also be overcome with a good corporate governance structure in place.Research limitations/implications – The discussion mainly focuses on corporate governance within the context of Ghanaian SMEs.Originality/value – This paper provides conceptual insights on the application of corporate governance among SMEs.
190 citations
TL;DR: In this article, the difference between large firms and SMEs operating in Ireland with regard to their understanding of corporate social responsibility, the type of CSR activities undertaken, and the management of the CSR is discussed.
Abstract: Purpose – The corporate social responsibility (CSR) movement has gathered great momentum over the past number of years and is now regarded as being at its most prevalent. However, there has been a lack of attention to, and discussion of, CSR in Ireland and in relation to small and medium‐sized enterprises (SMEs). The purpose of this paper is to overcome both of these research gaps and provide deep understanding of the nature of CSR in Ireland. Specifically this research aims to uncover the difference between large firms and SMEs operating in Ireland with regard to their understanding of CSR, the type of CSR activities undertaken and the management of CSR. In addition, this research analyses the barriers and opportunities experienced by SMEs when undertaking CSR.Design/methodology/approach – This paper reviews the relevant literature of CSR. Then, through semi‐structured in‐depth interviews with 13 firms, this study analyses CSR from both a large firm and an SME perspective in an Irish context.Findings – T...
183 citations
TL;DR: In this paper, the extent of recognition, nature and content of socially responsible actions by firms located in Ghana was investigated. But, although local versus internationally connected firms in Ghana performed well, they did not demonstrate high ethical standards.
Abstract: Purpose – Corporate social responsibility (CSR) research has blossomed in this new millennium. This has been due to: the increasing concern expressed by policy makers about corporate social responsibility; the pressure exerted on firms to demonstrate high ethical standards; and for developing countries, the increasing demands on their firms exporting to Europe and other western countries to document adherence to high ethical standards in order to be competitive. This study sought to ascertain and document the extent of recognition, nature and content of socially responsible actions by firms located in Ghana.Design/methodology/approach – The study used a sample of companies listed in the Ghana Club 100 database, an annual ranking of the most prestigious firms in Ghana. The study adopted an in‐depth, exploratory and comparative approach in examining the CSR issues from the perspectives of local versus internationally‐connected firms in Ghana.Findings – The key findings of the study were that, although local...
170 citations
TL;DR: In this article, the authors argue that boards can play 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, empirically examining the relationship between key board composition variables and firm performance.
Abstract: 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 fir...
140 citations
TL;DR: In this article, the authors use 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.
Abstract: 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 ...
124 citations
TL;DR: In this article, the authors examined the impact of ownership structure on firm performance and the default risk of a sample of 59 publicly listed firms in Jordan from 1989 to 2002, and found that ownership structure has significant effects on the accounting measure of performance return on assets (ROE).
Abstract: Purpose – This paper seeks to examine the impact of ownership structure on firm performance and the default risk of a sample of publicly listed firms.Design/methodology/approach – This paper examines the impact of ownership structure on firm performance and the default risk of a sample of 59 publicly listed firms in Jordan from 1989 to 2002.Findings – The main findings were: ownership structure has significant effects on the accounting measure of performance return on assets (ROE); government shares are significantly negatively related to the firm's performance ROE; defaulted firms have a high concentration ownership compared with non‐defaulted firms and also high foreign ownership firms have a low incidence of default; government ownership is significantly negatively related to the firm's probability of default; both mix and concentration ownership structure data can be used to predict the probability of default as the largest five shareholders (C5) and government ownership fraction (FGO) are significant...
TL;DR: In this paper, the motivations of modern corporations in issuing corporate social responsibility (CSR) reports to their stakeholders were investigated and it was shown that doing so is good for business, to derive positive public relations benefits, to comply with the government's request for them to issue information on CSR, etc.
Abstract: Purpose – This paper documents the motivations of modern corporations in issuing corporate social responsibility (CSR) reports to their stakeholders. It further demonstrates why these entities have suddenly become more moral or ethical.Design/methodology/approach – An empirical methodology was used to gather and analyse the required information from companies drawn from two sectors of the capital market.Findings – The study results suggest that UK companies have different reasons for issuing CSR reports, for instance; in response to an increasing number of stakeholders requesting information on CSR, companies believe that doing so is good for business, to derive positive public relations benefits, to comply with the government's request for them to issue information on CSR, etc.Originality/value – Information on corporate entities' CSR activities is considered to be valuable by both academic researchers and business managers as it provides a working framework on which future studies can be based. In addit...
TL;DR: In this paper, a stakeholder-oriented integrative strategic management framework linking the main strategic management theories across value, responsiveness and responsibility dimensions is presented, and a mathematical model is presented describing the synergistic development of advantage.
Abstract: 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 a...
TL;DR: In this article, a mixed methods design was employed featuring semi-structured interviews with managers (sustainability experts, business managers from various functions) and external stakeholders; and self-completion questionnaires (also targeting sustainability experts and business managers) to collect complementary quantitative data.
Abstract: Purpose – The purpose of this paper is to fill the void of empirical cross‐industry research in the area of corporate sustainability management and its business case.Design/methodology/approach – Nine industries (oil and gas, utility, aviation, automotive, chemical, pharmaceutical, technology, financial services and food and beverage) are compared in terms of their environmental and social issues, the pressure they face from their stakeholders, and the resulting business case for corporate sustainability. For this approach, a mixed methods design was employed featuring semi‐structured interviews with managers (sustainability experts, business managers from various functions) and external stakeholders); and self‐completion questionnaires (also targeting sustainability experts and business managers) to collect complementary quantitative data. It was possible to draw upon more than 400 interviews and 1,100 questionnaires.Findings – It was ascertained that the business case is clearly sector‐specific and diff...
TL;DR: In this paper, the authors proposed a model to assess the performance of a board and situates board performance as one input into firm performance, based on the group dynamics literature, and proposed a comprehensive model, based largely on the board characteristics, functionality and performance.
Abstract: Purpose – This paper proposes mainly that boards of directors (BOD) are teams that share characteristics with many other kinds of teams. As a consequence, some of the factors that lead to board effectiveness are the same factors that lead to team effectiveness in general. By integrating the organizational behaviour literature on teams with the governance literature, a comprehensive model of BOD performance is proposed.Design/methodology/approach – This conceptual paper proposes a model to assess the performance of a board and situates board performance as one input into firm performance.Findings – This paper outlines the dynamic interplay between board characteristics, functionality and performance and proposes a comprehensive model, based largely on the group dynamics literature.Research limitations/implications – Suggests that future research attempt to empirically address some (or all) of the items in the conceptual model. Acknowledges that operationalizing certain variables will prove challenging, but...
TL;DR: In this paper, a literature review utilizing a selective bibliography providing advice on information sources and it is comprehensive in that the objective is to cover the mainstream and unique contributors of toxicity, and also a general review providing an overview of this contemporary issue facing organizations with descriptions of what the problem is and how to address it.
Abstract: Purpose – The purpose of this article is to define toxins such as toxic leader, toxic manager, toxic culture, and toxic organization and explore how they affect the organization's performance and its employees.Design/methodology/approach – This article is basically twofold. It is a literature review utilizing a selective bibliography providing advice on information sources and it is comprehensive in that the objective is to cover the mainstream and unique contributors of toxicity. It is also a general review providing an overview of this contemporary issue facing organizations with descriptions of what the problem is and how to address it.Findings – Organizations as well as their employees suffer from the affects of toxins that are present within the organization. They also suffer from psychological effects, such as; impaired judgment, irritability, anxiety, anger, an inability to concentrate and memory loss. On the other hand, it has also been found that companies in North America alone lose an excess of...
TL;DR: In this article, the authors provided an extension of the Corporate Governance Reporting Initiative (CGI) 2004, which reports on Malaysia's first corporate governance ratings, and compared companies based on their corporate governance ranking as reported in the CGI.
Abstract: Purpose – The purpose of this paper is to provide an extension of the Corporate Governance Reporting Initiative (CGI) 2004, which reports on Malaysia's first corporate governance ratings. Characteristics of firms with high and low scores in the corporate governance ratings are analysed by comparing companies based on their corporate governance ranking as reported in the CGI.Design/methodology/approach – Firms are classified into those at the top 50 percent and the bottom 50 percent of the corporate governance ratings list to examine whether there are any differences in the characteristics of firms in both classified samples. The characteristics of firms that are being examined are firms' profitability, leverage, growth, market valuation, size, age, ownership structure and countries of operation based on the Logit analysis.Findings – The result shows that firm size has a strong influence with corporate governance ratings, but not so for other variables tested.Research limitations/implications – This study ...
TL;DR: In this paper, the authors examine business-non-profit relations specifically in the context of innovation generation and identify factors that can foster or impede the identification and development of firm-related innovations that result from engagement with non-profit stakeholders.
Abstract: 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.
TL;DR: In this article, the authors examine the strategic implications of stakeholder engagement in emerging economies and conclude that only when firm-stakeholder interactions are overwhelmingly rule-governed will developing a trustworthy and cooperative relationship with stakeholders result in competitiveness.
Abstract: Purpose – This paper aims to examine the strategic implications of stakeholder engagement in emerging economies.Design/methodology/approach – The author examines a range of current theories that address the question of “why corporate morality pays”, most notably instrumental stakeholder theory. The focus is not on theoretical validity but the institutional assumptions that underpin the theory. It then compares these assumptions with the reality in emerging economies to challenge the universality of the theory.Findings – Existing interpretations of stakeholder theory and corporate social responsibility (CSR) are heavily influenced by the west and developed countries. Only when firm‐stakeholder interactions are overwhelmingly rule‐governed will developing a trustworthy and cooperative relationship with stakeholders result in competitiveness.Practical implications – A warning to CSR managers and multinational corporations that pursue competitive advantages in emerging economies such as China and India.Origin...
TL;DR: In this article, the authors 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.
Abstract: 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...
TL;DR: In this paper, the authors investigate the increased mass-marketing in the fair trade industry to provide a robust analysis of the industry, participants and growth for use both as a starting point for researchers in this field and as a case study for readers with an interest in any ethical trading initiative.
Abstract: Purpose – This paper aims to investigate the increased mass‐marketing in the fair trade industry to provide a robust analysis of the industry, participants and growth for use both as a starting‐point for researchers in this field and as a case study for readers with an interest in any ethical trading initiative.Design/methodology/approach – Utilizing data from a longitudinal exploratory research project, participant observation from two organizations and in‐depth interviews from a total of 15 organizations are combined to build a strong theory grounded in the data.Findings – The paper provides insight into the nature of participants and industry structure in fair trade over time. Four distinct eras are identified which reflect both current literature and the practitioners' perspective. The four eras can be split into three extant eras – the solidarity era, niche‐market era, and mass‐market era, and the fourth – the institutionalisation era – depicts participants' beliefs about the future for the industry....
TL;DR: In this paper, the authors overview the goals of corporate governance in the financial services sector from a theoretical perspective, 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.
Abstract: 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...
TL;DR: In this article, the extent of compliance with the governance regulatory requirements by small and medium-sized companies (SMEs) listed on the alternative investment market (AIM) was examined.
Abstract: 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
TL;DR: In this article, the authors developed an SME four-cell ideal type of social issues management response typology based on drivers and barriers of social performance, and identified 80 drivers and 96 barriers to SME high social performance.
Abstract: Purpose – Small and medium enterprises (SMEs) are often neglected in the context of business and society theory building. The purpose of this article is to build a model of why SMEs address social issues by integrating internal and external drivers and barriers to social performance (SP).Design/methodology/approach – Using thematic analysis, barriers and drivers to SME social performance are clustered along key stakeholders and presented in a theoretical model. The analysis dates from 1973 until 2006 and is grounded in an extensive literature review that represents a total of 83 countries. It includes academic and practitioner accounts stemming from theoretical and empirical work, as well as conference proceedings. A total of 80 drivers and 96 barriers to SME high social performance are identified.Findings – This paper develops an SME four‐cell ideal type of social issues management (SIM) response typology based on drivers and barriers of social performance.Practical implications – The importance of under...
TL;DR: In this paper, a case study based on an in-depth case study is presented to illustrate how market access for the poorest of the poor is facilitated through the creation of platforms for participation in the economy and broader society.
Abstract: Purpose – In many developing countries those living in poverty are unable to participate in markets due to the weakness or complete absence of supportive institutions. This study aims to examine, in microcosm, such an institutional void and to illustrate the strategy and activities employed by an entrepreneurial actor in rural Bangladesh in addressing it.Design/methodology/approach – The paper is based on an in‐depth case study. Data were gathered over two years from field interviews, archives, and secondary sources.Findings – The data illustrate how market access for the poorest of the poor is facilitated through the creation of platforms for participation in the economy and broader society. The authors conceptualize this process as the crafting of new institutional arrangements and as resource and institutional bricolage occurring in parallel.Practical implications – The study offers insights for development agencies, policy makers and companies on how to combat poverty, fight corruption, and stimulate ...
TL;DR: In this article, the authors focus on the relation between capital structure and firm value and propose a theoretical approach that can contribute in clearing up the relationship between capital structures, corporate governance and value.
Abstract: Purpose – The paper aims to focus on a well‐known topic in the financial literature: the relation between capital structure and firm value. The controversial empirical results on this topic can be attributable to a lack of attention to the interaction between capital structure and other corporate governance variables. In fact, capital structure represents a corporate governance device that can preserve corporate governance efficiency and protect its ability to create value.Design/methodology/approach – The paper, after a synthetic review of the main literature, defines, with a descriptive model, a theoretical approach that can contribute in clearing up the relation between capital structure, corporate governance and value. It provides a research proposition, and some suggestions, that should be applied for future empirical research on this topic while it also promotes a more precise design for empirical analysis.Findings – The debate on the relation between capital structure and a firm's value needs to ta...
TL;DR: In this paper, the challenges of integrating corporate social responsibility (CSR) with other strategic foci into the supply/contractor chain, both conceptually and empirically, with a focus on one sectorial case: the Norwegian upstream petroleum industry.
Abstract: Purpose – The purpose of the paper is to explore the challenges of integrating corporate social responsibility (CSR) with other strategic foci into the supply/contractor chain, both conceptually and empirically, with a focus on one sectorial case: the Norwegian upstream petroleum industry. It compares contradictory theories of strategic focus and explores their implications for the organisation of the supply chain and discusses challenges and solutions for operative CSR‐oriented supply chain managementDesign/methodology/approach – The empirical analysis, inspired by the cognitive mapping approach, seeks to elicit the strategic profiles of the oil majors and suppliers/contractors in the petroleum industry. This is based on textual analysis of core statements of overall business strategy such as the CEO's and the Chairman's statement letter to the shareholders. The paper also draws on research and workshops with petroleum companies and their suppliers in the North Sea, as well as contracting experts and res...
TL;DR: In this paper, the authors explore the interplay between corporate social responsibility and innovation and question the premise, often underlying EU communications, that the two agendas are in general mutually supportive, and argue for a dynamic reinterpretation of CSR.
Abstract: 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 findin...
TL;DR: In this article, the authors identify efficient governance using a governance efficiency score based on recommendations provided by codes of best practices in order to determine "good governance" using a stochastic frontier analysis, which takes into account the relation between inputs (governance axes) and outputs (performance).
Abstract: Purpose – The purpose of this paper is to identify efficient governance using a governance efficiency score based on recommendations provided by codes of best practices in order to determine “good governance”.Design/methodology/approach – Based on a sample of 320 US listed firms from 1994‐2001, governance practices were synthesized by an index computed according to a parametric method, the stochastic frontier analysis, which allows taking into account the relation between inputs (governance axes) and outputs (performance).Findings – The use of a latent classis in the specification of the model allowed detecting two groups of firms according to their specific characteristics. The results of affectation equation show that the probability of being in the highest performing group is more important when the firm size, the dividend yield and the return on equity (ROE) are high, while a high leverage level decreases the chance to be in the non‐performing group. Moreover, the model allows establishing a dualist d...
TL;DR: In this paper, a conceptual discussion of the issue of conflict of interest as it relates to the management and governance of sports organizations is provided, where the relationship between sport and business has increased the complexity of ethical issues affecting contemporary sport management.
Abstract: 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.