Showing papers in "Corporate Governance in 2008"
TL;DR: In this paper, the authors examined 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.
Abstract: 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 co...
238 citations
181 citations
TL;DR: In this article, the authors investigate the corporate social responsibility (CSR) policy orientations in the Euopean Union (EU) by focusing on the specific case of the French legislation on compulsory sustainability reporting for publicly-listed companies.
Abstract: Purpose – The aim of this paper is to investigate the corporate social responsibility (CSR) policy orientations in the Euopean Union (EU) by focusing on the specific case of the French legislation on compulsory sustainability reporting for publicly‐listed companies.Design/methodology/approach – The approach is mostly exploratory and based on secondary literature review as well as empirical classroom work on reporting.Findings – This exploratory paper provides findings about the relevance of the French law, thus highlighting some critical aspects of sustainability reporting practices. It also raises the broader issue of the consistency of the European CSR approach.Research limitations/implications – This research needs to be completed by field studies on sustainability reporting practices both in France and in all EU members.Practical implications – This paper may help firms improve their sustainability reporting practices.Originality/value – There have been hardly any papers on the impact of the French NR...
137 citations
TL;DR: The authors examined the influence of ownership structure, independent directors, managerial agency costs and audit's opinion on the firm's financially distressed status using a sample of distressed companies and a matchedpair sample of non-distressed companies listed on Chinese stock markets.
Abstract: Purpose – The purpose of this research is to examine the influence of ownership structure, independent directors, managerial agency costs and audit's opinion on the firm's financially distressed status using a sample of distressed companies and a matched‐pair sample of non‐distressed companies listed on Chinese stock markets.Design/methodology/approach – The study utilizes publicly‐available data from annual reports of a sample of 404 non‐finance distressed firms listed on Chinese stock markets and a sample of matched 404 non‐distressed firms for a period covering the 1998‐2005 financial years with binary logistic analysis.Findings – Ownership concentration, state ownership, ultimate owner, independent directors and auditors' opinion turn out to be negatively associated with the probability of financial distress, while administrative expense ratio is positively related with the likelihood of financial distress. Managerial ownership does not appear to be a significant determinant.Originality/value – The pa...
124 citations
TL;DR: In this paper, the authors classify corporate responsibility actions into three types: philanthropy, CR integration and CR innovation, and examine different forms of corporate engagement with nongovernmental organizations (NGOs) through this categorization.
Abstract: Purpose – This paper aims to classify different corporate responsibility (CR) actions into three types – philanthropy, CR integration and CR innovation – and examines different forms of corporate engagement with nongovernmental organizations (NGOs) through this categorization. The focus is on the societal and business outcomes of engagement.Design/methodology/approach – The study analyzes 20 business‐NGO collaborations of three case companies – Hindustan Unilever, Nokia and Stora Enso. Cases are chosen based on revelatory sampling and data are gathered through documentary research of corporate sustainability reports, project reports and websites. Data analysis focuses on engagement forms, business and societal outcomes of engagement and utilizes a categorization of CR.Findings – Different CR types involve different forms of cooperation ranging from sponsorship to partnership. Furthermore, CR integration and CR innovation seem to have more potential for long‐term positive business outcomes than philanthrop...
95 citations
TL;DR: In this paper, the authors proposed 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.
Abstract: 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 vee...
93 citations
TL;DR: In this paper, a logistic regression analysis is used to predict the probability of CEOs receiving low performance-based incentives when various characteristics of firms' boards of directors and compensation committees exist.
Abstract: Purpose – This paper aims to examine whether there is an association between the level of performance‐based incentives offered to CEOs and the composition of firms' boards of directors and the compensation committee.Design/methodology/approach – Univariate tests are used to test the relation between the level of performance‐based incentives and corporate governance structures. A logistic regression analysis is used to predict the probability of CEOs receiving low performance‐based incentives when various characteristics of firms' boards of directors and compensation committees exist.Findings – The authors find the presence of CEO duality reduces the likelihood of lower levels of performance‐based incentives offered to CEOs. Additionally, the authors find CEOs are more likely to receive lower levels of performance‐based incentives when the majority of the compensation committee members serve on less than three other boards, and when the size of the board is less than or equal to nine members.Research limit...
79 citations
TL;DR: In this paper, the authors analyze the changing role of business in a globalized society, focusing on transnational corporations as private authorities which have gained power in global governance, and describe the emergence of corporate social responsibility (CSR) as a new governance framework, essentially created by the pressure of global civil society on corporations.
Abstract: Purpose – The aim of this paper is to analyze the changing role of business in a globalized society, focusing on transnational corporations as private authorities which have gained power in global governance. The paper will aim to address the following issues: the development of CSR as a voluntary framework based on self‐regulation instruments through which corporations can manage their social and environmental impacts; corporations' exercise of power and authority in developing CSR standards globally through inter‐firm cooperation; and CSR as a mechanism to transform business culture through the development of co‐regulatory instruments between corporations and their stakeholders.Design/methodology/approach – This paper describes the emergence of corporate social responsibility (CSR) as a new governance framework, essentially created by the pressure of global civil society on corporations. The research focuses on the analysis of new forms of business political activities: self‐regulation and co‐regulation...
77 citations
TL;DR: In this article, the authors examined how ownership structure and national culture influence the size and leadership structure of the corporate boards of multinational firms based in 15 industrial countries and found that national culture has a dominant influence on corporate governance structure.
Abstract: Purpose – The purpose of this paper is to show that corporate governance structures differ significantly across countries. Using agency theory and institutional theory, it examines how ownership structure and national culture influence the size and leadership structure of the corporate boards of multinational firms based in industrial countries.Design/methodology/approach – The hypotheses are tested with data on 399 multinational manufacturing firms based in 15 industrial countries. The authors use ownership concentration, bank control, and state ownership to represent ownership structure. They view institutional structural norms as components of national culture and infer the nature of these norms for governance structure from Hofstede's national culture dimensions.Findings – The findings show that national culture has a dominant influence on corporate governance structure, and its emphasis is recommended in future cross‐national organizational research.Research limitations/implications – Although the mo...
76 citations
TL;DR: In this article, the authors investigate the most popular corporate governance rating systems and scrutinize their usefulness to shareholders and the public at large, and propose to examine whether the advertised good governance scores reflect corporate performance, fraud, lawsuits, and the like.
Abstract: 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 suc...
70 citations
TL;DR: In this paper, a broad general review and practical assessment of contemporary thinking about CSR is presented, focusing on three precise questions: who pays for CSR, who makes decisions, and what are the long-term, potential implications of CSR.
Abstract: 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...
TL;DR: In this article, the authors find that governance characteristics are important in explaining the differences between the results provided by created shareholder value (CSV) and economic value added (EVA), and that board independence, the auditors' expertise and reputation, the ownership structure and the stock options contribute significantly in explaining these differences.
Abstract: Purpose – The purpose of this paper is to find out whether governance mechanisms approximated by the board of directors' characteristics, auditors' quality, ownership structure and compensation mix, can help bridge the gap between economic value added (EVA) and market values approximated by created shareholder value (CSV).Design/methodology/approach – Based on a sample of US firms and using available data for EVA, discriminant analysis and stepwise regression are used to test whether governance characteristics explain the differences between the results provided by the two measures of performance.Findings – The results show that governance characteristics are important in explaining the differences between the results provided by CSV and EVA and that board independence, the auditors' expertise and reputation, the ownership structure and the stock‐options contribute significantly in explaining these differences.Originality/value – The results are very relevant to academicians and practitioners concerned wi...
TL;DR: In this article, the authors investigate the influence of increasingly sustainable sourcing policies of many multinational companies on suppliers located in developing countries such as Vietnam, and reveal how CSR makes business sense even in a developing country like Vietnam and, on the other hand, the difficulties of maintaining sustainability as products move from northern consumers to Vietnamese suppliers.
Abstract: Purpose – This paper seeks to investigate the influence of the increasingly sustainable sourcing policies of many multinational companies on suppliers located in developing countries such as Vietnam. The focus is the process through which corporate social responsibility (CSR) is reaching this Southeast Asian country.Design/methodology/approach – The research was conducted in Vietnam through the support of the United Nations Industrial Development Organization's (UNIDO) regional office. The survey was based on a questionnaire used during direct interviews or sent out electronically when onsite visits were not possible. The research involved 25 Vietnamese enterprises.Findings – The results reveal, on the one hand, how CSR makes business sense even in a developing country such as Vietnam and, on the other hand, the difficulties of maintaining sustainability as products move from northern consumers to Vietnamese suppliers. This process calls for more collaborative models of governance among the companies alon...
TL;DR: In this paper, the authors examined the nature and impact of human resource capabilities and involvement on the firm's performance in the SME sector and found that increasing the core competencies of a firm, in particular in HR, is the key element to the success of the firm.
Abstract: 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 f...
TL;DR: In this article, the authors provide the criteria for fairly assessing corporate citizenship initiatives as these form an integral part of the changing nature of corporate governance, and refer to the gap found among participants and their inability to answer to the relevant questions of corporate social responsibility (CSR) as originally set forth by the UN.
Abstract: Purpose – The changing nature of the interaction between multilateral institutions and the private sector, such as the one extended by the United Nations (UN) through the Global Compact, has raised profound questions about authority and legitimacy in international relations. This paper seeks to provide the criteria for fairly assessing corporate citizenship initiatives as these form an integral part of the changing nature of corporate governance.Design/methodology/approach – This paper uses the Global Compact's 2007 annual review as a point of reference and critical evaluation. The paper refers to the gap found among participants and their inability to answer to the relevant questions of corporate social responsibility (CSR) as originally set forth by the UN.Findings – There has been a substantial increase in both scale and impact by this type of private sector initiative: a 50‐fold growth in just seven years – unlike any other international collaborative partnership. Based on the assessment, the ongoing ...
TL;DR: In this article, the authors examined three conceptual models for the studying of board role performance: structure, process, and mediation, and found that the role of board process is explicitly advocated.
Abstract: Purpose – Past literature on board research has centred on board structure and firm performance. Since empirical studies do not reveal a conclusive relationship between the two, attention has shifted towards board role performance. This paper aims to investigate this issue.Design/methodology/approach – The paper examines three conceptual models for the studying of board role performance: structure, process, and mediation.Findings – Current literature provides little consensus as to the specific configuration for effective board role performance.Originality/value – First, the study examines various aspects of board role performance. This is in contrast with previous research which largely investigates board role performance in general or under the dominant agency perspective which emphasises the board's monitoring role. Second, unlike traditional governance models, the role of board process is explicitly advocated here. Third, the three conceptual models regarding the relationship among board structure, pr...
TL;DR: In this paper, the authors take a snapshot of corporate social responsibility practices in Turkey by exploring the role of the economy, state and societal culture, focusing on the impact of cultural values on the role stakeholders play in driving corporate behaviour.
Abstract: Purpose – The purpose of this paper is to take a snapshot of corporate social responsibility (CSR) practices in Turkey by exploring the role of the economy, state and societal culture. It aims to focus on the impact of cultural values on the role stakeholders play in driving corporate behaviour.Design/methodology/approach – The paper is based on a review of existing research into cultural dimensions and attitudes, surveys of corporate disclosures, interviews and cumulative knowledge of economic and social development.Findings – External factors have been major factors driving the emergence of the “CSR” discourse in emerging markets. In the case of Turkey, for example, economic fundamentals and cultural dimensions do not reflect a strong societal influence on corporate behaviour. Drivers for CSR in Turkey will be exogenous and institutional rather than endogenous and cultural.Practical implications – The paper recommends a stronger role for regulations and law‐enforcement in driving corporate accountabilit...
TL;DR: In this paper, a set of good governance criteria and principles including legitimacy and voice, direction, performance, accountability, and fairness are developed for the oversight and operation of cultural heritage institutions.
Abstract: Purpose – The collapse of some prominent corporations over the last ten years has been attributed to poor governance. Not-for-profit agencies are now examining their own governance policies and practices in an attempt to prevent the calamities that have plagued the private sector. Because heritage sites, conservation organizations and heritage-based tourism are significant factors in the social life and economies of many countries, the proper management of cultural heritage initiatives is vital. This paper seeks to undertake the development of a set of good governance principles applicable to the oversight and operation of cultural heritage institutions. Design/methodology/approach – The fifth World Parks Congress, in South Africa in 2003, encouraged the development of governance principles for protected areas based on the UNDP document Governance for Sustainable Human Development. Using these standards as a reference for the cultural heritage setting, UNESCO and ICOMOS charters and conventions, along with documents from National Trusts in specific countries are examined with regard to their relevance to good governance. Findings – A set of good governance criteria and principles including legitimacy and voice, direction, performance, accountability, and fairness, is developed. Practical implications – The paper addresses governance issues and principles relevant to non-governmental and public sector governance in the cultural heritage sector. Originality/value – The paper draws on principles of good governance from several international heritage related agencies, trusts and organizations to develop a set of principles that can be recommended for use in the cultural heritage sector.
TL;DR: The relational state as mentioned in this paper aims to achieve the greatest possible synergy between the resources, knowledge and capacities of the public sector and those of civil society and business organizations by using competitive or cooperative arrangements.
Abstract: Purpose – The paper aims to answer the question of what the new role of government in advanced democracies for the twenty-first century should be and what institutional and organizational capabilities are required for that role to face the challenges of globalization and the crisis of the welfare state. Design/methodology/approach – The literature on public management reform and modernization initiatives in developed countries over the last two decades, along with the growing body of literature on public governance, provide the reference framework from which the contents of the relational state are formulated. Findings – The relational state seeks to achieve the greatest possible synergy between the resources, knowledge and capacities of the public sector and those of civil society and business organizations. It does so by its ability to articulate social interrelationships and the intangible aspects involved (by using competitive or cooperative arrangements to incorporate civil society and business organizations in particular policy fields, raising society’s awareness of its own responsibility, promoting social self-regulation, acting as intermediary between different social actors, providing strategic direction, etc.). Hence, the relational nature of its activities becomes the core attribute of the process of public value creation. Originality/value – The relational state locates the relations between the state, the market and civil society in the field of co-responsibility, which is a crucial but missing feature in the neo-liberal state and the welfare state models. The paper analyses emerging forms of the relational state and highlights the challenges that confront its adoption.
TL;DR: In this paper, the extent and nature of executive remuneration disclosure are obtained from the content analysis of annual reports of 191 Australian listed companies for the years 2003 and 2004, prior to a more detailed prescriptive regulatory environment occurring in this area when international financial reporting standards became effective in 2005.
Abstract: Purpose – The purpose of this paper is to provide Australian evidence on both the extent and key determinants of discretionary disclosure in company annual reports of information about top executives' share rights, options and termination entitlement. Such information has value‐relevance to shareholders and the public, but prior evidence is lacking about the factors that influence top managements' decisions to voluntarily disclose or withhold personally sensitive details about their own remuneration.Design/methodology/approach – The extent and nature of executive remuneration disclosure are obtained from the content analysis of annual reports of 191 Australian listed companies for the years 2003 and 2004, prior to a more detailed prescriptive regulatory environment occurring in this area when international financial reporting standards became effective in 2005. To explain the factors that could influence managements' decisions about the extent of discretionary disclosure details concerning their own remun...
TL;DR: In this paper, the authors explore the potential role and the measurement of the effectiveness of boards of directors in strategy formulation and implementation and suggest that, by ensuring consistency between resource allocation processes and the firm's intended strategy, boards could fulfil a meaningful role in strategy implementation.
Abstract: Purpose – The purpose of this research is to explore the potential role and the measurement of the effectiveness of boards of directors in strategy formulation and implementation – two aspects that have so far been left largely unaddressed by corporate governance research and practice.Design/methodology/approach – Based on insights from strategy process literature, the paper suggests that, by ensuring consistency between resource allocation processes and the firm's intended strategy, boards could fulfil a meaningful role in strategy implementation. The proposed outside‐in analysis of resource allocation decisions is illustrated by a single case study of a major Swiss pharmaceutical company.Findings – The proposed approach enables corporate governance scholars to look at how boards fulfil their role in strategy implementation from a perspective similar to that of financial analysts. It might thus be suited to complement existing methods in empirical corporate governance research.Practical implications – Th...
TL;DR: In this paper, the authors explore how multinational corporations operate in the context of a so-called emergent institution which is not yet settled and taken for granted, thus helping to shape a new form of governance with considerable private involvement.
Abstract: Purpose – This paper aims to explore how multinational corporations (MNCs) may operate in the context of a so‐called emergent institution which is not yet settled and taken for granted, thus helping to shape a new form of governance with considerable private involvement. The case used to illustrate emergent institutions involves market mechanisms for climate change, particularly emissions trading. This instrument is a crucial component of the Kyoto Protocol, which has started to be implemented, but is still surrounded by uncertainty and diversity across countries/regions.Design/methodology/approach – Information from MNCs' responses to the Carbon Disclosure Project is used to shed light on their bargaining and nonbargaining activities and how these seem to relate to their overall strategy and location.Findings – Both with regard to nonbargaining and bargaining strategies MNCs' prevailing view seems that they have to deal with distinctive national patterns, adopting a multidomestic, frequently home‐country...
TL;DR: In this article, the authors discuss the potential for aligning corporate social responsibility (CSR)-oriented industrial self-regulation with public governance to fill some of the governance gap in the global economy.
Abstract: Purpose – The purpose of this paper is to note the remarkable expansion of corporate social responsibility (CSR) throughout the late 1990s and early 2000s. Taking this as point of departure, it aims to discuss the potential for aligning CSR‐oriented industrial self‐regulation with public governance to fill some of the governance gap in the global economy.Design/methodology/approach – The paper provides a conceptual discussion, empirically underpinned by three case studies.Findings – The paper finds that it is plausible, and empirically supported by the case studies, to conceive of a considerable role for CSR based self‐regulation in the global economy. A central precondition is the ability of civil society organizations to establish “moral rights” as credible voices for “just causes” in a media‐driven communicative society, and thereby put pressure on brand sensitive industry. The paper finds that corporate self‐regulation may fill a larger part of the governance gap if public policy is oriented to engage...
TL;DR: In this paper, the impact 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 are examined.
Abstract: 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...
TL;DR: In this paper, the authors explore the question whether formal mechanics rooted in complex institutional alliances are today's prototype of tomorrow's mainstream approaches to governance, or such mechanics are transitory stages or symptoms of governance challenges that will eventually be resolved through more traditional means.
Abstract: Purpose – Emerging collaborative arrangements between public and private institutions provide the potential for novel ways of enhancing the provision of public goods. This paper aims to explore the question whether formal mechanics rooted in complex institutional alliances are today's prototype of tomorrow's mainstream approaches to governance, or such mechanics are transitory stages or symptoms of governance challenges that will eventually be resolved through more traditional means.Design/methodology/approach – The paper focus on the role of business in these governance micro‐climates, although the analysis carries implications for public institutions and civil society organizations, and the final sections extend the country case analysis to related public policy strategies.Findings – Collaborative governance could be the common currency of decision making in the future and is preferable if it provides a means to overcome existing institutional constraints to effectively addressing social and environment...
TL;DR: In this article, the authors investigate whether corporate governance structures influence the audit process in terms of audit fee pricing for regulated companies and find no significant association between most corporate governance variables and audit fees, suggesting that governance agents do not require additional assurance from the auditor.
Abstract: Purpose – The purpose of this paper is to investigate whether corporate governance structures influence the audit process in terms of audit fee pricing for regulated companies. Design/methodology/approach – The paper first reviews prior literature and identifies factors within the categories of client size, audit risk, audit complexity, auditor-related issues and corporate governance characteristics that are likely to influence audit fees of banking clients. It then regresses these variables on audit fees using an ordinary least square regression model for a sample of US listed bank holding companies (BHC). Findings – The paper finds no significant association between most corporate governance variables and audit fees, suggesting that governance agents do not require additional assurance from the auditor, given close oversight by regulators. It also observes a negative association between audit committee independence and audit fees, implying that auditors reduce their effort and thus audit fees in the presence of an independent audit committee because they perceive that such committees reduce control and financial reporting risks. Originality/value – In contrast with prior findings based on non-regulated companies, governance agents in regulated companies such as BHC do not demand a more extensive audit. This reflects a substitution effect of regulatory oversight for internal governance monitoring. The paper also shows that BigN auditors modify their audit strategies in response to corporate governance mechanisms. Modifying audit strategies in accordance with the strength of governance mechanisms is consistent with recommendations in professional standards and would enable auditors to address risks more appropriately, thereby increasing audit quality and efficiency.
TL;DR: In this paper, the authors examined the key corporate governance structure through an explanatory case analysis of Swissair and found that corporate governance structures must comply with the norms generated by various stakeholders as well as economic incentives.
Abstract: Purpose – The purpose of this paper is to address corporate governance structures. Effective corporate governance can lead to managerial excellence but managerial ethical excellence does not always exist without effective corporate governance. Embedded in both effective corporate governance and managerial excellence is the “rightness of decisions” or the ethical decision making process. This paper analyzes this key process in the case of the failure of Swissair.Design/methodology/approach – The authors examine the key corporate governance structure through an explanatory case analysis of Swissair. They look at the structure by applying institutional theory rather than agency theory. It is hypothesized that corporate governance structures must comply with the norms generated by various stakeholders as well as economic incentives. No one set of norms may dominate the compliance; otherwise a corporation loses legitimacy and resources. It is contended that this lack of compliance of all stakeholder norms led ...
TL;DR: In this article, a survey was conducted which included 12 questions and focused on the role of banks in fostering proper practices of governance amongst their corporate clients, and the completed surveys represent 24 banks, with more than 85 percent of the total deposits, 89 percent of total loan portfolio, and spanning all bank groupings.
Abstract: Purpose – Prior research suggests that corporations in countries with a weak and illiquid stock market rely either on internal resources or on loans from the banking system, while family businesses, in their desire to maintain control, prefer debt to equity. Owing to the weak external monitoring role played by the financial markets in Lebanon, this paper aims to goes beyond the financial role played by Lebanese banks by investigating their role in monitoring corporate clients.Design/methodology/approach – A survey was conducted which included 12 questions and focused on the role of banks in Lebanon in fostering proper practices of governance amongst their corporate clients. The completed surveys represent 24 banks, with more than 85 percent of the total deposits, 89 percent of the total loan portfolio, and spanning all bank groupings.Findings – The paper finds that, in addition to their financing role, Lebanese banks are both active monitors of and resource providers to their corporate clients, which is c...
TL;DR: In this article, the authors investigate what motivated Shell Canada, a subsidiary of Royal Dutch Shell, to be one of the first companies in the world to report its environmental initiatives in 1991.
Abstract: Purpose – The purpose of this paper is to investigate what motivated Shell Canada, a subsidiary of Royal Dutch Shell, to be one of the first companies in the world to report its environmental initiatives in 1991. It aims to explore how Shell Canada, driven by a set of core values and business principles, continues to make strides in the quality of its sustainability reporting and communication.Design/methodology/approach – Shell historical reports and documents were reviewed and interview data gathered from company personnel.Findings – The paper reveals that Shell Canada has gained a reputation for striving toward stakeholder engagement and transparency in its reporting as well as through its actions.Practical implications – The paper offers advice to other companies as to how to improve their corporate communications regarding their environmental and sustainability performance.Originality/value – The paper demonstrates Shell Canada's efforts to initiate transparent sustainable development reporting and s...
TL;DR: In this paper, the authors illustrate spiritual performance from the perspective of a globally operating corporation and find that spiritual behavior at the organizational level does lead to enhanced corporate performance, and workplace spirituality, when encouraged by top management, is oftentimes instigated by personal life experiences.
Abstract: 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 r...