Increasingly the business community is being asked to respond to growing societal concerns about the environment (Gray et al., 1996; O'Donovan, 2002; Raar, 2002; Adams, 2002, 2004; KPMG, 2002). One business response which has been widely researched from a number of aspects has been the development of standalone environmental reports (Brown and Deegan, 1998; Deegan and Gordon, 1996; Adams et al., 1998; Holland and Foo, 2003; Buhr, 1998; Cormier and Gordon, 2000; Deegan et al., 2000; Milne and Patten, 2002; O'Donovan (...) 2002; Rahaman et al., 2004). However, one key aspect which has not yet been fully investigated is the impact of environmental reporting upon organisational activity (Dillard et al., 2004; Larringa-Gonzalez and Bebbington, 2001; Ball, 2007). Using an institutional theory perspective, this paper provides a framework for the examination of the embedding of environmental reporting structures into organisational processes and culture. Using this outline framework to analyse existing literature, the paper concludes that there are many issues about the impact of environmental reporting which are still unclear and that many of the attributes of the environmental agenda suggest that it could be another management fad. (shrink)

The rise of international businesses' self-regulation regimes offers a challenging case study for those interested in the relationship between ethics and business. Regulation without external enforcement has always been a focal point for explorations into the relationship between morality and economic behaviour. Are self-regulatory arrangements viable? Are they stable? What are the factors and conditions that determine their stability and viability? Using these questions as a vehicle, the article explores the functional anatomy of self-regulation. As such, it is an attempt (...) to offer a broad conceptual picture in a way that creates a bridge between the current developments in the literature and the intellectual traditions that have framed the setting of the current intellectual efforts exploring the issue. Therefore the article may be seen as a conceptual and theoretical introduction to the topic as well as an attempt to frame it in a way that connects and integrates it to a broader intellectual perspective. (shrink)

Increasingly the business community is being asked to respond to growing societal concerns about the environment (Gray et al., 1996; O'Donovan, 2002; Raar, 2002; Adams, 2002, 2004; KPMG, 2002). One business response which has been widely researched from a number of aspects has been the development of standalone environmental reports (Brown and Deegan, 1998; Deegan and Gordon, 1996; Adams et al., 1998; Holland and Foo, 2003; Buhr, 1998; Cormier and Gordon, 2000; Deegan et al., 2000; Milne and Patten, 2002; O'Donovan (...) 2002; Rahaman et al., 2004). However, one key aspect which has not yet been fully investigated is the impact of environmental reporting upon organisational activity (Dillard et al., 2004; Larringa-Gonzalez and Bebbington, 2001; Ball, 2007). Using an institutional theory perspective, this paper provides a framework for the examination of the embedding of environmental reporting structures into organisational processes and culture. Using this outline framework to analyse existing literature, the paper concludes that there are many issues about the impact of environmental reporting which are still unclear and that many of the attributes of the environmental agenda suggest that it could be another management fad. (shrink)

This study aims at analyzing the board structure and its impact on firm performance in the context of an emerging economy, Turkey. Emerging economies are characterised by poorly-developed legal systems, under-developed markets for corporate control and concentrated ownership structures. This context is expected to have an impact not only on the board structure but also on the relationship between board structure and firm performance. Drawing from agency, stewardship and resource dependence theories and emphasising the impact of the societal context in (...) line with macro institutional approaches, hypotheses are developed regarding the board structure/firm performance relationship. Findings tend to show that board structure does not have a significant impact on performance. (shrink)

The practice of corporate social responsibility (CSR) has often been described as a balance of profitability and social or societal responsibility by scholars as well as practitioners. It is assumed that regulations and guidelines of CSR practices link competitiveness and responsibility together. While recognising that formal CSR statements represent a goal-oriented managerial approach to CSR, we argue based on the description of a qualitative case study that the relationship between profitability and social or societal responsibility is not as clear and (...) simple as it is often described. Instead, CSR should be considered as a continuously negotiated process between companies and stakeholders. Hence, the creation of a constructive link between profitability and social or societal responsibility is dependent on the amount of effort that has been put into exploring the concerns of the stakeholders, vis-a-vis the company, while simultaneously accepting changes when they are necessary. (shrink)

Recent corporate scandals in the USA forced regulatory change and brought the governance dialogue to new heights and domains. In an attempt to strengthen understanding of the role of governance in the nonprofit organisational setting, this manuscript reviews theoretical directions and practical approaches to corporate governance and discusses the applicability of these factors to nonprofit organisations. Instead of examining inter-organisational relationships, the focus is on the governance dimensions that inform stakeholders of the general operations and performance of nonprofits. It is (...) relevant to developed countries where there is a strong presence of nonprofit organisations operating. (shrink)

Companies are beginning to recognise the concept of Corporate Social Responsibility (CSR) as presenting a new business model and an opportunity for building innovative forms of competitive advantage. Boards are instrumental in shaping and overseeing such strategies and active engagement around what it means to be a responsible and responsive enterprise can strengthen the Board's potential as a strategic influence on long-term value creation. Yet many companies align with Friedman's contention that adopting and practising CSR is a distraction from their (...) core obligation, which is to act in their shareholders' best interests. Based on directors' perceptions, the paper examines responses by Boards to socially related aspects of their governance role and reports on their external orientation and receptiveness toward wider social obligations. The findings suggest that these Boards hold a narrow view of their fiduciary duty, which is closer to the shareholder model than the stakeholder approach to corporate governance. (shrink)

The objectives of this study are to survey, post the latest Combined Code, current board practice concerning (a) the appointment, evaluation and development of directors and (b) performance evaluation of boards and their committees. The Company Secretaries of all FTSE 100 and 250 companies were invited to complete, online or on paper, a survey questionnaire designed to investigate several aspects of the performance of their Boards of Directors, including the impact of relevant parts of the latest Combined Code. The more (...) positive findings are that: the Code's principles yield discernible benefits for board and company performances; board performance is most affected by new appointments which has implications for director induction; New Directors' roles and competencies are well articulated by Nomination Committees; a majority use explicit performance criteria; a majority of directors commit 3 5 days per annum to their professional development. Areas for attention suggested by the findings are as follows: a minority translate explicit performance criteria into specific improvement targets; some ambivalence characterises public disclosure of board evaluation results; evaluation of Committees' performance is less rigorous than for Main Boards; the powers and responsibilities of Subsidiary/Divisional boards are not well defined; only a minority of Nomination Committees focus on Descriptors of High Performance; traditional methods of Director selection and induction prevail; Non-Executive Directors' (NEDs') suitability to coach their Executive Director colleagues or other members of the executive team; only one in seven boards uses External Facilitators to assist in benchmarking their performance. The implications of these results are discussed. (shrink)

Directors rate integrity as having the greatest impact on successful Board performance. Yet, no shared meaning exists about what integrity means because it is dependent on one's personal values. This paper builds on research into integrity and top teams by investigating how integrity varies by director's personal values and implications for the Board agenda. It will explore how executives' and directors' definitions of integrity are based on their values, beliefs and underlying needs. Data from UK society was collected from 500 (...) UK adults, aged 18 and over. Results of the research found that definitions of integrity vary by ones value system. Implications include that what director's mean by integrity differs substantially from other employees with different values. Recommendations include re-focusing the Board agenda on issues that resonate with the director's personal values. A passionate Board requires integrity plus action; action without integrity equals indifference. (shrink)

Institutional investors are increasingly focusing on firms that prioritise Corporate Social Responsibility (CSR). In the absence of any objective measure of a firm's CSR Performance (CSP), their investment choices are largely guided by independent rating indices that rank firms according to their social performance metrics. As a result, firms looking to increase their attractiveness as targets of social investment focus their CSR efforts on increasing the visibility of activities that are recognised by such indices. However, the validity of these indices (...) as accurate measures of firms' actual social performance has repeatedly been called into question. This means that the ability of these indices to measure and report on firms' actual social impact cannot be ascertained with any degree of accuracy. The result is that firms are incentivised to engage in activities (whether genuine or 'greenwashing') that cannot be said to improve social responsibility, and may even ultimately harm society. Thus, another method of measuring CSP must be found that enables firms to measure their true impact on society. We propose a new approach to measuring CSP that is integrated with stakeholder theory. Such an approach provides managers of firms with an interest in engaging in real social development for the purposes of ensuring firm survival with the ability to understand their social obligations, and the ability to measure the resulting benefit to society. (shrink)

The purpose of this paper is to examine the effect of corporate governance practices of small cap companies have had on their financial performances. Previous studies have mainly examined governance practices of larger corporations. This analysis focuses on the governance variables that have been highlighted by the New Zealand Securities Commission (2004) governance principles and guidelines and also on the governance variables that are supported in the literature as providing an appropriate structure for the firm in the environment in which (...) it operates. The data for 71 small cap companies listed in New Zealand over a five-year period from 2001 to 2005 was analysed. Pooled data, OLS and 2SLS regression techniques were used and Tobin's Q, ROA and OPINC were used as the dependent variables. The evidence does support the hypothesis that the existence of board independence and audit committee has enhanced firm financial performance, as measured by Tobin's Q. (shrink)

In 2003, the Combined Code emphasised two important aspects of Board contribution: the importance of induction for newly appointed Public Limited Company (PLC) board members, and appropriate training and development for all directors serving on a PLC board and its delegated committees, including the Audit and Remuneration Committees. This paper explores the principles of good induction and re-induction programmes for boards of directors and trustees, and its conclusions draw on the author's previous research on non-executive contribution (Long, 2004; Long et (...) al., 2005) and her recent experience of reviewing board and committee performance and effectiveness through Boardroom Review. (shrink)