This document summarizes and analyzes a paper that presents a microeconomic model of corporate social responsibility (CSR). The model explores how assumptions about costs and benefits affect a firm's CSR behavior through the accumulation of goodwill capital over time. The model characterizes the equilibrium level of CSR investment that balances marginal costs and benefits. Comparative statics and dynamics are examined to understand how the equilibrium responds to changes in parameters. The model aims to provide testable hypotheses about the relationship between economic performance and CSR for empirical studies.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Influence of Corporate Governance and Corporate Social Responsibility on...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Triple Bottom Line (TBL) is a societal and ecological agreement between the community and
businesses. TBL “captures the essence of sustainability by measuring the impact of an organization’s
activities on the world ... including both its profitability and shareholder values and its social, human
and environmental capital” (Savitz, 2006). TBL is an accounting framework that incorporates three
dimensions of performance: social, environmental and financial. This differs from traditional
reporting frameworks, as besides financial part it also includes ecological (or environmental) and
social measures where it is difficult to assign appropriate means of measurement. But with the
current breakdown of confidence in financial reporting, large companies are facing increasing
demands and expectations from stakeholders and are being held more accountable for their
performance and actions. TBL approach is a proactive step in providing shareholders with increased
transparency and a broader framework for decision-making. It’s a great way for companies to
disclose meaningful non-financial results. TBL dimensions are also commonly called the three Ps:
People, Planet and Profits.
Triple Bottom Line Reporting (TBLR) reflects a corporation’s greater transparency and
accountability in its public reporting, communication and disclosure with regard to how the corporate
entity performs in its environmental, social and economic dimensions (Lewis, 2011). TBLR
incorporates presenting what the business is doing well, along with areas that need improvement.
Reporting in this way demonstrates a drive towards increased transparency, which can mitigate
concerns by stakeholders on hidden information. Everyone involved in the process of TBL, including
employees and external stakeholders, can increase their knowledge of the company and expand their
relationships with other stakeholders in the company. Participating in a learning environment is
beneficial and necessary for a business to meet the goals of sustainability. The process of building a
Page 3
sustainable environment can lead to other disclosures on how the business world can lend a helping
hand in protecting the natural resources that are quickly evaporating.
The Impact of Corporate Sustainability on Organizational Processes and Perfor...Sustainable Brands
This 2011 report is a must-read for sustainability executives and a valuable go-to resource for engaging senior management in the benefits of sustainability integration.
Abstract
We investigate the effect of corporate sustainability on organizational processes and performance. Using a matched sample of 180 US companies, we find that corporations that voluntarily adopted sustainability policies by 1993 -- termed as High Sustainability companies -- exhibit by 2009, distinct organizational processes compared to a matched sample of firms that adopted almost none of these policies -- termed as Low Sustainability companies. We find that the boards of directors of these companies are more likely to be formally responsible for sustainability and top executive compensation incentives are more likely to be a function of sustainability metrics. Moreover, High Sustainability companies are more likely to have established processes for stakeholder engagement, to be more long-term oriented, and to exhibit higher measurement and disclosure of nonfinancial information. Finally, we provide evidence that High Sustainability companies significantly outperform their counterparts over the long-term, both in terms of stock market as well as accounting performance.
Discussion of the Paper "Endogeneizing Institutions and Institutional Change"...Matheus Albergaria
Matheus Albergaria de Magalhães - Apresentação para a Disciplina "Economia das Organizações II" (Professora Maria Sylvia Saes). Programa de Pós-Graduação em Administração da Universidade de São Paulo (PPGA-USP), São Paulo, 13 de Maio de 2015.
Corporate social reporting discloses social and environmental information relating to an organisation’s interaction with its community, shareholders, physical and social environment to outsiders through corporate annual reports. Triple Bottom Line Reporting (subsequently refer to as TBLR) goes beyond the traditional way of reporting mechanism and encourages businesses to give closer attention to the whole impact of their commercial activities, over and above their financial performance. The Corporate Triple Bottom Line Reporting is based on three pillars - (i) environmental, (ii) social, (iii) economic causes. In this study, Corporate Triple Bottom Line (CTBL) disclosure items are handpicked from the annual reports/corporate social responsibility reports/sustainability reports of the sample units after a thorough examination of the contents of annual reports/corporate social responsibility reports/sustainability reports. The level of Triple Bottom Line reporting in India is in its infancy and still evolving. The three dimensions for TBL Reporting in India are people, planet and profit, which lead to sustainable development. We have considered listed companies of Bombay Stock Exchange (BSE) comprising BSE 500 index as our population. Considering time and resource constraints, it was decided to restrict the survey only power generating companies (15 units) among those 500 units. Accordingly, annual reports/corporate social responsibility reports/sustainability reports for these 15 numbers of listed power companies were planned to be reviewed. For measuring the extent of corporate triple bottom line reporting in annual reports/corporate social responsibility reports/sustainability reports of the companies, we have constructed a weighted disclosure index based on the previous empirical studies. The study evaluated the combined corporate triple bottom line disclosure score value of the sa
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Influence of Corporate Governance and Corporate Social Responsibility on...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Triple Bottom Line (TBL) is a societal and ecological agreement between the community and
businesses. TBL “captures the essence of sustainability by measuring the impact of an organization’s
activities on the world ... including both its profitability and shareholder values and its social, human
and environmental capital” (Savitz, 2006). TBL is an accounting framework that incorporates three
dimensions of performance: social, environmental and financial. This differs from traditional
reporting frameworks, as besides financial part it also includes ecological (or environmental) and
social measures where it is difficult to assign appropriate means of measurement. But with the
current breakdown of confidence in financial reporting, large companies are facing increasing
demands and expectations from stakeholders and are being held more accountable for their
performance and actions. TBL approach is a proactive step in providing shareholders with increased
transparency and a broader framework for decision-making. It’s a great way for companies to
disclose meaningful non-financial results. TBL dimensions are also commonly called the three Ps:
People, Planet and Profits.
Triple Bottom Line Reporting (TBLR) reflects a corporation’s greater transparency and
accountability in its public reporting, communication and disclosure with regard to how the corporate
entity performs in its environmental, social and economic dimensions (Lewis, 2011). TBLR
incorporates presenting what the business is doing well, along with areas that need improvement.
Reporting in this way demonstrates a drive towards increased transparency, which can mitigate
concerns by stakeholders on hidden information. Everyone involved in the process of TBL, including
employees and external stakeholders, can increase their knowledge of the company and expand their
relationships with other stakeholders in the company. Participating in a learning environment is
beneficial and necessary for a business to meet the goals of sustainability. The process of building a
Page 3
sustainable environment can lead to other disclosures on how the business world can lend a helping
hand in protecting the natural resources that are quickly evaporating.
The Impact of Corporate Sustainability on Organizational Processes and Perfor...Sustainable Brands
This 2011 report is a must-read for sustainability executives and a valuable go-to resource for engaging senior management in the benefits of sustainability integration.
Abstract
We investigate the effect of corporate sustainability on organizational processes and performance. Using a matched sample of 180 US companies, we find that corporations that voluntarily adopted sustainability policies by 1993 -- termed as High Sustainability companies -- exhibit by 2009, distinct organizational processes compared to a matched sample of firms that adopted almost none of these policies -- termed as Low Sustainability companies. We find that the boards of directors of these companies are more likely to be formally responsible for sustainability and top executive compensation incentives are more likely to be a function of sustainability metrics. Moreover, High Sustainability companies are more likely to have established processes for stakeholder engagement, to be more long-term oriented, and to exhibit higher measurement and disclosure of nonfinancial information. Finally, we provide evidence that High Sustainability companies significantly outperform their counterparts over the long-term, both in terms of stock market as well as accounting performance.
Discussion of the Paper "Endogeneizing Institutions and Institutional Change"...Matheus Albergaria
Matheus Albergaria de Magalhães - Apresentação para a Disciplina "Economia das Organizações II" (Professora Maria Sylvia Saes). Programa de Pós-Graduação em Administração da Universidade de São Paulo (PPGA-USP), São Paulo, 13 de Maio de 2015.
Corporate social reporting discloses social and environmental information relating to an organisation’s interaction with its community, shareholders, physical and social environment to outsiders through corporate annual reports. Triple Bottom Line Reporting (subsequently refer to as TBLR) goes beyond the traditional way of reporting mechanism and encourages businesses to give closer attention to the whole impact of their commercial activities, over and above their financial performance. The Corporate Triple Bottom Line Reporting is based on three pillars - (i) environmental, (ii) social, (iii) economic causes. In this study, Corporate Triple Bottom Line (CTBL) disclosure items are handpicked from the annual reports/corporate social responsibility reports/sustainability reports of the sample units after a thorough examination of the contents of annual reports/corporate social responsibility reports/sustainability reports. The level of Triple Bottom Line reporting in India is in its infancy and still evolving. The three dimensions for TBL Reporting in India are people, planet and profit, which lead to sustainable development. We have considered listed companies of Bombay Stock Exchange (BSE) comprising BSE 500 index as our population. Considering time and resource constraints, it was decided to restrict the survey only power generating companies (15 units) among those 500 units. Accordingly, annual reports/corporate social responsibility reports/sustainability reports for these 15 numbers of listed power companies were planned to be reviewed. For measuring the extent of corporate triple bottom line reporting in annual reports/corporate social responsibility reports/sustainability reports of the companies, we have constructed a weighted disclosure index based on the previous empirical studies. The study evaluated the combined corporate triple bottom line disclosure score value of the sa
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Stakeholder pressures created the legal implications to the companies for the CSR activities and its reporting. CSR is gaining the importance in the field of research. The aim of the study is to provide the review of the development in the field of CSR. The analysis is carried out to understand the areas of the researches in CSR. In total 95 studies from various countries are selected. It is carried out by explaining various studies in the field of CSR to know the definition, the areas of researches and research methods used.
Corporate Social Responsibility and Profitability in the Banking Sector: The ...Dr. Amarjeet Singh
In this article, we explore the relationship between corporate social responsibility and profitability with particular reference to Ethiopian financial industry. In line with this, the paper investigated the practice of corporate social responsibility and its impact on profitability in two private banks in Ethiopia. The study used two sampling phases. The first one is to sample out the two banks among the sixteen private banks operated in the country and the second phase is to select number of respondents within the selected banks. According to National Bank of Ethiopia, (NBE, 2020) annual report among the sixteen private commercial banks operated in the country, six of them were operated in the industry for more than 20 years and two banks namely Dashen and United banks were randomly selected for the study. The study used questionnaires as an instrument for data collection and the Cronbach alpha test was used to test the reliability of the instrument. Correlation analysis was carried out to identify the nature of strength and direction of the relationship between the independent variables (philanthropic, ethical, legal and economic responsibilities) and the dependent variables (profitability), regression analysis was also employed to determine the degree in which the dependent variable can be predicated or explained from the independent variables. The finding reveals that ethical, philanthropic, legal and economic responsibilities of CSR dimension have a positive and significant impact on profitability of the banks. Furthermore, the overall finding of the study suggested that CSR practice of banks has a significant impact on the level of their profitability. The study recommends that banks should improve their efforts exerted towards their CSR practice in order to enhance their profitability.
Why join a carbon club? A study of the banks participating in the Brazilian "...FGV Brazil
Originally published in the Journal of Cleaner Production.
Why do firms that present low levels of (direct) carbon emissions participate in “carbon clubs”, which have the goal of managing and reducing greenhouse gas (GHG) emissions? In order to answer this question, we collected data from both primary and secondary sources from firms operating in the Brazilian banking sector, which are members of the Businesses for Climate Platform (Plataforma Empresas pelo Clima, EPC). We first looked for answers in the institutional theory and resource based view of the firm (RBV). By confronting the arguments presented by these streams of scientific enquiry with empirical data, we worked on theory testing. In particular, we analyzed the institutional pressures and resources and capabilities of the focus companies, in order to understand the rationales for proactive sustainability management. We found evidences of the arguments presented by both the institutional theory and the RBV. By studying an industry that is not a frequent subject to research on socio-environmental issues - for not being considered of high impact - in an emerging market economy, the research contributes to both the further development of the institutional theory and the advancement of sustainability management in corporations.
GVces - Center for Sustainability Studies
www.gvces.com.br
Determinants of Corporate SocialResponsibility Disclosure .docxduketjoy27252
Determinants of Corporate Social
Responsibility Disclosure Ratings
by Spanish Listed Firms Carmelo Reverte
ABSTRACT. The aim of this paper is to analyze whether
a number of firm and industry characteristics, as well as
media exposure, are potential determinants of corporate
social responsibility (CSR) disclosure practices by Spanish
listed firms. Empirical studies have shown that CSR dis-
closure activism varies across companies, industries, and
time (Gray et al., Accounting, Auditing & Accountability
Journal 8(2), 47–77, 1995; Journal of Business Finance &
Accounting 28(3/4), 327–356, 2001; Hackston and Milne,
Accounting, Auditing & Accountability Journal 9(1), 77–108,
1996; Cormier and Magnan, Journal of International Finan-
cial Management and Accounting 1(2), 171–195, 2003; Cor-
mier et al., European Accounting Review 14(1), 3–39, 2005),
which is usually justified by reference to several theoretical
constructs, such as the legitimacy, stakeholder, and agency
theories. Our findings evidence that firms with higher
CSR ratings present a statistically significant larger size and
a higher media exposure, and belong to more environ-
mentally sensitive industries, as compared to firms with
lower CSR ratings. However, neither profitability nor
leverage seem to explain differences in CSR disclosure
practices between Spanish listed firms. The most influen-
tial variable for explaining firms’ variation in CSR ratings is
media exposure, followed by size and industry. Therefore,
it seems that the legitimacy theory, as captured by those
variables related to public or social visibility, is the most
relevant theory for explaining CSR disclosure practices of
Spanish listed firms.
KEY WORDS: corporate social responsibility disclosure,
Spain
Introduction
Over the last few decades there has been a growing
public awareness of the role of corporations in
society. Many of the firms which have been credited
with contributing to economic and technological
progress have been criticized for creating social
problems. Issues such as pollution, waste, resource
depletion, product quality and safety, the rights and
status of workers, and the power of large corpora-
tions have become the focus of increasing attention
and concern. In this context, companies have been
increasingly urged to become accountable to a wider
audience than shareholder and creditor groups. As a
matter of fact, public awareness and interest in
environmental and social issues and increased
attention in mass media have resulted in more social
disclosures from corporations in the last two decades
(Deegan and Gordon, 1996; Gray et al., 1995;
Hooghiemstra, 2000; Kolk, 2003). In the European
Union context, the publication of the Green Paper
(2001) by the European Commission launched a
wide debate on how the EU could promote cor-
porate social responsibility (CSR). Although there is
still no universal definition of CSR (Godfrey and
Hatch, 2007), mos.
Corporate Social and FinancialPerformance An Extended.docxrichardnorman90310
Corporate Social and Financial
Performance: An Extended
Stakeholder Theory, and Empirical
Test with Accounting Measures
Gerwin Van der Laan
Hans Van Ees
Arjen Van Witteloostuijn
ABSTRACT. Although agreement on the positive sign
of the relationship between corporate social and financial
performance is observed in the literature, the mechanisms
that constitute this relationship are not yet well-known.
We address this issue by extending management�s stake-
holder theory by adding insights from psychology�s
prospect decision theory and sociology�s resource
dependence theory. Empirically, we analyze an extensive
panel dataset, including information on disaggregated
measures of social performance for the S&P 500 in the
1997–2002 period. In so doing, we enrich the extant
literature by focusing on stakeholder heterogeneity, per-
ceptional framing, and disaggregated measures of corpo-
rate social performance.
KEY WORDS: panel data analysis, prospect decision
theory, resource dependence theory, social responsibility,
stakeholder theory
Introduction
Three decades of research into the relationship
between corporate social performance (CSP) and
corporate financial performance (CFP) suggest, by
and large, that corporate well-doing enhances firm
profitability (Orlitzky et al., 2003). The analyses
have remained at a fairly high level of aggregation,
giving rise to the criticism that overall measures of
CSP and CFP do not take the rich variety of
underlying determinants into account (Wood and
Jones, 1995). The current study aims to enhance the
understanding of the drivers of the relationship
between corporate social and financial performance.
For one, theoretically, we will develop hypotheses as
to the impact on the CSP–CFP relationship of
stakeholder heterogeneity and perception biases.
Additionally, empirically, we will explore an
extensive panel dataset that covers the corporations
in the S&P 500 over the 1997–2002 period,
including decomposed information about underly-
ing dimensions of corporate social performance.
More specifically, our key contribution is two-fold.
First, we analyze the effect of heterogeneity
among corporate stakeholder groups on the CSP–
CFP nexus, following Clarkson�s (1995) distinction
between primary or �private� stakeholders, and
secondary or �public� stakeholders. Wood and
Jones (1995) argued that there is a mismatch
between the variables in previous research. For
instance, employees and Greenpeace put different
emphasis on issues of labor conditions and envi-
ronmental pollution. With this critique in mind,
we explicitly incorporate more fine-grained mea-
sures of corporate social performance into our
analysis. After all, the question as to the relation-
ship between corporate social and financial per-
formance cannot be considered separate from the
analysis of how corporations interact with different
stakeholder groups that weigh the underlying CSP
dimensions differe.
Weekly LecturesWeek 9 Lecture Ethics, Social Responsibility, a.docxhelzerpatrina
Weekly Lectures/Week 9 Lecture Ethics, Social Responsibility, and Environmental Sustainability.htmlMGMT 670: Week 9 Lecture
Week 9: Ethics, Social Responsibility, and Environmental Sustainability. The students examine the triple bottom line--social, environmental, and financial performance factors.
Learning Objectives:Understand what corporate ethics is.Discuss the theories of corporate responsibility and environmental sustainability.Examine the changing role of strategic human resources management in international businessAnalyze the triple bottom line to improve the performance and success of a business.Introduction
After numerous corporate scandals in the 1990s and 2000s, firms began paying more attention to corporate ethics, social responsibility, and environmental sustainability. This commitment people, the planet, and economic value is exemplified by three theories: corporate social responsibility, the triple bottom line, and stakeholder theory (“Three theories of corporate social responsibility,” 2012). Although economic performance is certainly important to a firm’s stakeholders, “increasingly though, it seems clear that noneconomic accomplishments, such as reducing waste and pollution, for example, are key indicators of performance as well. … Increasingly, evidence is mounting that attention to a triple bottom line is more than being “responsible” but instead just good business” (Economic, social, and environmental performance,” 2012). Corporate social responsibility
Corporate social responsibility is “a general name for any theory of the corporation that emphasizes both the responsibility to make money and the responsibility to interact ethically with the surrounding community. … Corporate social responsibility is also a specific conception of that responsibility to profit while playing a role in broader questions of community welfare” (“Three theories of corporate social responsibility,” 2012). The triple bottom line “is a form of corporate social responsibility dictating that corporate leaders tabulate bottom-line results not only in economic terms (costs versus revenue) but also in terms of company effects in the social realm, and with respect to the environment” (“Three theories of corporate social responsibility,” 2012). Stakeholder theory
is the mirror image of corporate social responsibility. Instead of starting with a business and looking out into the world to see what ethical obligations are there, stakeholder theory starts in the world. It lists and describes those individuals and groups who will be affected by (or affect) the company’s actions and asks, “What are their legitimate claims on the business?” “What rights do they have with respect to the company’s actions?” and “What kind of responsibilities and obligations can they justifiably impose on a particular business?” In a single sentence, stakeholder theory affirms that those whose lives are touched by a corporation hold a right and obligation to participate in di ...
The objective of the study is to measure the impact of the commitment in corporate social
responsibility (CSR) in its various forms on the financial performance (FP). Thus, on the basis of a
questionnaire theoretically constructed and administered to 327 managers operating in four business sectors
Global governance and the interface withbusiness new instit.docxbudbarber38650
Global governance and the interface with
business: new institutions, processes and
partnerships
Partnered governance: aligning corporate
responsibility and public policy in the global
economy
Atle Midttun
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 with industry in a partnered mode.
Research limitations/implications – The paper establishes a conceptual base for exploring the
governance implications of CSR, casuistically underpinned by three case studies. Further studies are
needed, however, to explore the scale and scope of partnered governance in the global economy.
Practical implications – The paper provides insights into an approach to increase governability of the
global economy.
Originality/value – The originality of the paper lies in exploring the implications of CSR for governance,
and for highlighting how the governance potential may be enhanced by reorientation of public policy.
Keywords Governance, Corporate social responsibility, Globalization, Regulation
Paper type Conceptual paper
Introduction
The late twentieth and the early twenty-first centuries have seen increasing economic
globalization in the form of both globally extended capital markets and extended
outsourcing of production in global supply systems across the world. After three decades of
predominant liberalist orientation, the international economy remains strongly
pro-commercially biased.
International governance of social and environmental concerns has been relatively much
weaker, reflecting the lack of resourceful engagement by committed powerful actors and
PAGE 406 j CORPORATE GOVERNANCE j VOL. 8 NO. 4 2008, pp. 406-418, Q Emerald Group Publishing Limited, ISSN 1472-0701 DOI 10.1108/14720700810899158
Atle Midttun is based at the
Norwegian School of
Management, Oslo,
Norway.
The author is grateful to the
Research Council of Norway for
support to this article under the
projects ‘‘C(S)R in Global Value
Chains’’ and ‘‘Sustainability for
the 21st Century: Overcomi.
How Ethical Behavior of Firms is Influenced by the Legaland LizbethQuinonez813
How Ethical Behavior of Firms is Influenced by the Legal
and Political Environments: A Bayesian Causal Map Analysis
Based on Stages of Development
Ahmet Ekici • Sule Onsel
Received: 26 July 2011 / Accepted: 25 June 2012 / Published online: 12 July 2012
� Springer Science+Business Media B.V. 2012
Abstract Even though potential impacts of political and
legal environments of business on ethical behavior of firms
(EBOF) have been conceptually recognized, not much
evidence (i.e., empirical work) has been produced to clarify
their role. In this paper, using Bayesian causal maps
(BCMs) methodology, relationships between legal and
political environments of business and EBOF are investi-
gated. The unique design of our study allows us to analyze
these relationships based on the stages of development in
92 countries around the world. The EBOF models struc-
tured through BCMs are used to explain how EBOF in a
given country group are shaped by how managers perceive
political, legislative, and protective environments of busi-
ness in these countries. The results suggest that irregular
payments and bribes are the most influential factors
affecting managers’ perceptions of business ethics in rel-
atively more advanced economies, whereas intellectual
property protection is the most influential factor affecting
managers’ perceptions of business ethics in less-advanced
economies. The results also suggest that regardless of
where the business is conducted in the world, judicial
independence is the driving force behind managers’ per-
ceptions of business ethics. In addition, the results of this
study provide further support for scholars who argue that
business ethics is likely to vary among countries based on
their socio-economic factors. In addition to its managerial
implications, the study provides directions for policy
makers to improve the ethical conduct of businesses in
their respective countries.
Keywords Bayesian causal map � Ethical behavior of
firms � Judicial independence � Bribery � Intellectual
property protection � Country development stage
Abbreviations
WEF World Economic Forum
BCM Bayesian causal map
EOS Executive Opinion Survey
GCI Global Competitiveness Index
EBOF Ethical behavior of firms
IPP Intellectual property protection
IPAB Irregular payments and bribes
JI Judicial independence
FDGO Favoritism in decisions of government officials
TGP Transparency of government policymaking
SARS Strength of auditing and reporting standards
ECB Efficacy of corporate boards
SIP Strength of investor protection
IPR Intellectual property rights
Introduction
Ethical issues are a major concern for businesses because
they have significant impacts on various stakeholders
including the company, customers, employees, sharehold-
ers, and society in general. Considering the significance of
this impact, a great deal of scholarly work (both theoretical
and empirical) has been devoted to advance our under-
standing ...
In recent decades, climate change, globalisation and business .docxjaggernaoma
In recent decades, climate change, globalisation and business scandals, such as the “Eron-
scandal” (Maak 2008) initiated an environmental and social consciousness, which brought the
ethical behaviour of organisations more into focus. Therefore, the concept of corporate social
responsibility (CSR) has become increasingly important for large companies, as they operate
in a world with greater levels of integration between their stakeholders and local
communities. This social concept includes the adherence to regulations and societal standards
for ethical business practice, as well as the permanent consideration by organisations of their
roles, decisions and consequences towards society and environment. Supporters of CSR
believe that the corporation is obligated to promote social progress due to its dependence on
society. Opponents on the other hand argue, that these demands are unjustified and see the
only purpose of the business in increasing shareholder wealth within legal and social norms
(Morrison & Bridwell 2011). This essay briefly describes ethical organisational behaviour and
refers to the “Triple Bottom Line”. The main topic is the concept of corporate social
responsibility, which will be defined and critically evaluated. Benefits in regards to the
organisation and its stakeholders will be discussed and major critics and limitations in regards
to this theory highlighted.
Ethical behaviour in organisations is systematically developed and monitored by most
corporate leaders in the Asia-Pacific region. In supporting ethical and moral practice and
decision making, most companies construct a code of ethical conduct, in which organisational
behaviour is regulated. However, many companies need to engage in effective ethical training
to establish and foster a comprehensive corporate culture which supports ethical values and
practice. Role-modelling of leaders and top-management, transparency and disclosure of the
business practice but also a sense of diversity within the company can facilitate the ethical
standards (McShane & Travaglione 2007).
One aspect of ethical behaviour generated by an organisation is the topic of CSR. The
theory received more attention by stakeholders towards the end of the 20th century, when
environmental and social awareness increased, for example in connection with the global
climate change. During that time the rule of triple responsibility (Triple Bottom Line)
developed, which is associated with the corporate concern of the environmental and social
sphere besides the financial aspect of the company. CSR can be seen as a commitment to this
3
“Triple Bottom Line” (Stanislavská, Margarisová & Štastná 2010). For instance, Branco and
Rodrigues (2006) relate CSR to ethical and moral aspects concerning the overall (internal and
external) decision-making and behaviour of the organisation. Complex issues such as health
and safety at work, environmental .
The impact of CSR on corporate behaviour and performance – by London Business...London Business School
How to achieve Corporate Social Responsibility? Professor Ioannis Ioannou’s research includes a very practical list of what sustainable organisations are doing different.
Environmental sustainability is an important component of a firm’s Corporate Social Responsibility. It relates to
firm practices that ensure the conservation of the environment and natural resources, such as water, land and air.
This research study aims to study the concept in relation to firm performance in Jordan. It proposes that
environmental sustainability practices of a company in Jordan’s manufacturing industry positively influence its
financial performance. For this purpose, the study assesses the relationship between environmental sustainability
score and the profitability ratios. Results reveal a significant positive impact of sustainability score on the ROA of
the companies. It is therefore recommended to manufacturing firms in Jordan to focus more on environmental CSR
and sustainability practices, which would result in improved efficiency and profitability.
Similar to A microeconomic model of corporate (20)
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.