2012 ACBSP Region 4 Conference Presentation #7 - Kershaw and El Zayaty

  • 145 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
145
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
2
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Corporate Financial Reporting and Sustainable Social Well-being Ahmed El-Zayaty, PhD
  • 2. • Corporate sustainability: It requires a shift from shareholders to stakeholders concept and a business model that goes beyond shareholders’ wealth maximization to incorporate environmental and social dimensions. Lo, S-F and Sheu, H-J (2007) found a significant positive relation between corporate sustainability and corporate market value. Their study indicated that companies with remarkable sustainable development strategies are more likely to be rewarded by investors in the financial markets.•
  • 3.  Corporate Reporting: Current corporate financial reporting does not require specific disclosure of corporate social and environmental activities. Some large companies, however, voluntarily disclose their contribution to social well-fare (See handouts).
  • 4.  Financial Analysis and Social Well-Fare: traditionally, financial analysis courses focus on financial performance and more specifically on profitability and risk. Corporate social responsibility receives little or no attention in classrooms. The concept of shareholders’ wealth maximization dominates the analysis. The concept of stakeholders rarely receives attention by financial analysts.
  • 5.  Modifying Course Content and Teaching Methodology: Students were required to pick companies that offer social responsibility reports. Perform analysis for both financial as well as social performance through the use of a variety of analysis techniques such as ratios, common size, and narratives.
  • 6.  Management Ethics and Responsibility: Management performance is measured not only by achieving financial goals, but expanded to include achieving ethical standards in financial reporting and accounting quality, stakeholders wellbeing, and contribution toward sustainable social well- fare of their communities. Course Learning Outcomes: Learning outcomes are modified to align with the UN’s six principles for responsible management education.
  • 7. BaldridgeSustainability andCorporate ResponsibilityJosephine M. Kershaw, PhDACBSP Region 4 ConferenceOctober 5, 2012
  • 8. History Established by Congress in 1987 for manufacturers, service businesses and small businesses Mission: To improve the competitiveness and performance of U.S. organizations The framework for performance excellence is an integrated, systems-based approach to:  deliver value to customers and stakeholders  achieve world-class results  encourage learning and innovation  promote organizational improvement and ultimately organizational sustainability
  • 9. The Baldridge Criteria
  • 10. Societal Responsibility The concepts of social/societal responsibility and sustainability have evolved within new versions of the Baldridge Criteria, reflecting business trends in general as well as the growth of sustainability globally. Focused on organizational sustainability Has been expanded to include an organization’s impact on environmental, social and economic systems and its societal responsibility in these areas.
  • 11. What is Sustainability? Sustainability reporting is a process for publicly disclosing an organization’s economic, environmental, and social performance. It has become a standard to ensure the shareholders, customers, and community about overall organizational performance.
  • 12. Similarities in Framework GRI Baldridge Criteria Profile  Profile, Leadership, Strategic Planning  Leadership, Strategic Planning, Disclosures on management Customer Focus, Workforce approach Focus, Operations Focus Performance indicators  Results
  • 13. Criteria on LeadershipLike the GRI framework, the Criteria recognizes that an integrated and strategicapproach to societal responsibility is a senior leadership responsibility. Criteria Discusses how organizations should govern and meet their social responsibilities: Governance, a key area of sustainability and corporate responsibility addresses accountability, transparency and performance evaluation of leadership. Legal and Ethical Behavior, addresses the adverse impacts of products and operations on society and anticipates public concerns. Addresses compliance processes, including goals for surpassing regulatory and legal requirements as well as promotion and monitoring ethical behavior. Addresses the community and how an organization identifies and supports it.  Ex: philanthropic work, describing roles on non-profit boards, staff volunteering in the local community, participation in blood drives, and financial contributions to charities.
  • 14. Benefits of Reporting! Performance management and governance tools  Identification of risks and opportunities  Strengths and weaknesses  Continuous improvement and innovation Demonstration of transparency and accountability  Increased stakeholder trust and engagement  Enhanced brand value and market differentiation Workforce attraction, retention, and engagement Competitive advantages Comparability/benchmarking
  • 15. In the Classroom
  • 16. Baldridge Award WinnersSmall Business and Health Care 2010 & 2011
  • 17. K&N Management 2010 Malcolm Baldrige National Quality Award Sustainability Initiatives:  A succession plan for senior leaders, established with processes and systems to ensure the sustainability of the leadership system and the organization.  Fiscal meetings are internally conducted each month by key senior leaders to review the Profit and Loss statements in order to analyze fiscal performance opportunities  Internal and external reviews protects interests and takes measures to ensure sustainability through fiscal and legal responsibility
  • 18. Initiatives cont. Prepare for and handle seasonal or economic fluctuations in business volume through forecasting and scheduling based on historical trends Operate through tight inventory controls, security cameras, thorough training processes, and cross training to ensure labor and food cost goals are consistently met.  This is evident in the continuing rise in gross profit margin Senior leaders foster an organizational environment that requires legal and ethical behavior by stressing the organizational core value, relationships, and by using the plan-do-check-act process Promotes care for the environment through recycling efforts  Recycle glass bottles and cardboard.  Grease traps are properly rendered and collected by an approved vendor  Cups are designed to be multi-use instead of single-use  Participate in the Keep Austin Beautiful campaign, maintaining the cleanliness of two local streets.
  • 19. Henry Ford Health System 2011 Malcolm Baldrige National Quality Award Sustainability initiatives:  Vendor Compliance Policy, which specifies vendor requirements for staff interaction and enhances patient safety by controlling vendor access to patient care areas  The BOT Nominating & Governance Committee reviews the composition of all boards to ensure members possess required skill sets and reflect each BU’s community, culture, and demographics.  To ensure long-term sustainability, launched an Enterprise Risk Council (ERC) in 2010.  Responsible for designing and executing a robust enterprise risk management program.
  • 20. Initiatives Cont. HFHS conserves natural resources directly and through their supply chain.  Processes include: materials recycling, pest management to use less toxic materials, cleaning with low-volatile organic compound and Green Seal products, stocking unbleached products in bathrooms and wash stations, high-efficiency lighting, food service process redesigns to reduce food waste, and System-wide shift to healthier food choices.  All new construction meets “green” standards, using recycled flooring products with low-volatile organic compound finishes and “green” wall coverings.
  • 21. Schneck Medical Center 2011 Malcolm Baldrige National Quality Award Sustainability initiatives:  promoting and supporting the philosophy of a Just Culture  The “Green Team” was formed with the purpose of educating and promoting awareness of environmental stewardship though reducing, reusing, or recycling waste.  SMC recycles paper, bottles,plastic, batteries, cans, metal, cardboard, and light bulbs.  recycled 183.6 tons of plastic, glass, metal, paper, and cardboard in 2010 for a recycling rate of 35%. SMC was the only independent healthcare organization in Indiana to be recognized by Practice Greenhealth in 2011.
  • 22. Initiatives Cont.  The Operational Rhythm, was developed and deployed to provide a more systematic approach to performance review and evaluation, helping to sustain the key changes resulting from implementation of action plans.  Leaders review actual performance in achieving strategic objectives against measurable goals  In 2010, nursing began to evaluate how much linen was actually needed in a patient’s room. after measuring how much was actually being utilized, nursing began to cut back on the linen delivered in each room.  All employees were given insulated mugs to use in the cafeteria. When employees use the mugs in the cafeteria they are able to purchase drinks for just $0.25.
  • 23. Summary of Initiatives Commonalities shared between all winners  Social well-being programs through support of local charities  Program that tracks efficiency of current management practices  Educational services provided to clients or community members  Programs to detect future concerns  Environmental care  Either through a specific team or initiatives to reduce waste or improve waste management
  • 24. Thank You!