...businesses. 2. They apply their values and standards to many diverse issues—for example, working conditions, consumer rights, environmental conservation, product safety, and proper information disclosure—which may or may not directly affect an individual stakeholder’s own welfare. 3. They provide both tangible and intangible resources that are more or less critical to a firm’s long-term success. 4. Individual stakeholders that share similar expectations about desirable business conduct may choose to establish or join formal communities to advocate their values and expectations. 5. Stakeholders’ ability to withdraw—or to threaten to withdraw—valuable needed resources gives them power over businesses. B. Identifying Stakeholders 1. Stakeholders can be divided into two categories. a) Primary stakeholders are those whose continued association is absolutely necessary for a firm’s survival; these include employees, customers, investors, and stockholders, as well as the governments and communities that provide necessary infrastructure. b) Secondary stakeholders do not typically engage in transactions with a company and thus are not essential for its survival; these include the media, trade associations, and special-interest groups. c) Although primary groups may present more day-to-day concerns, secondary groups cannot be ignored or given less...
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... University Vietnam Corporate Governance and Regulations (BUSM 4158) *** Individual Social Audit Report on Vedan Vietnam’s Corporate Social Responsibility Prepared by: Nguyen Ngoc Thanh Phuong Student ID: s3480053 Lecturer: Mr. Barry Slutsky Semester 1, 2014 Word count: 1762 Corporate Governance & Regulations -‐ BUSM 4158 Table of Contents Executive summary ..................................................................................................... 3 Vedan Vietnam and Thi Vai river incident .................................................................... 3 1. Vedan Vietnam – Company in brief: ......................................................................................................... 4 2. Thi Vai river incident ....................................................................................................................................... 4 Vedan’s social and environmental impact ................................................................... 4 1. Environmental impact ....................
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...The Corporate Governance Role of the Media Alexander Dyck* Harvard Business School And Luigi Zingales University of Chicago May 2002 Abstract Do media play any role in corporate governance? In this paper we argue that media pressure corporate managers and directors to behave in ways that are “socially acceptable”. Sometimes this coincides with shareholders’ value maximization, others not. We provide both anecdotal and systematic evidence that media affect companies’ policy toward the environment and the amount of corporate resources that are diverted to the sole advantage of controlling shareholders. Our results have important consequences for the focus of the corporate governance debate and for the feasibility of reforms aimed at improving corporate governance around the world. * We thank Mehmet Beceren for assistance in preparing the data and Rakhesh Khurana, Jay Lorsch,, Forest Reinhardt, Richard Vietor, Andy Zelleke and seminar participants at Harvard Business School for helpful comments on an earlier draft. Alexander Dyck gratefully acknowledges financial support from the Division of Research of Harvard Business School and Luigi Zingales from the George Stigler Center at the University of Chicago. In April 1992 the Wall Street Journal published a strange ad. It was a full-page picture of a silhouette of the Board of Directors of Sears Roebuck with the title: the “non-performing assets of Sears”. The ad, paid by shareholder activist Robert Monks, exposed all the directors...
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...MANAGING CORPORATE RESPONSIBILITY IN WIDER BUSINESS ENVIRONMENT NAME ID INTERNATIONAL COLLEGE OF BUSINESS & TECHNOLOGY LTD Edexcel BTEC Level 7 Professional Diploma in Strategic Management & Leadership Managing Corporate Responsibility in Wider Business Environment Table of Contents INTRODUCTION .................................................................................................................... 2 Page | 1 PART 01: .................................................................................................................................. 3 LO 1.1: Briefly explain how the globalization has an impact on a national economy ......... 3 LO 1.2: Discuss the influence of international institutions. .................................................. 4 LO 1.3: Explain the role of European Union on Unilever, UK. ........................................... 6 LO 2.1: Explain the importance of having good Corporate Governance for the organization ............................................................................................................................................... 7 LO 2.2 & 2.3: Discuss what regulatory requirements exist in the country shaping the corporate governance practices of an organization and their role in ensuring corporate stakeholder’s interest. ............................................................................................................ 8 LO 3.1: Discuss the economics of adopting a policy...
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...Green Technology: A Cost Benefit Analysis of Business going Green Cost Benefit Analysis of Green Technology. I. Introduction Many business owners fear the costs associated with going green and although the net return varies according to the sector, in most cases these fears are unwarranted. Sustainable business practices should be evaluated based on a cost/benefit analysis. The benefits for things like brand reputation and employee loyalty, must be weighed against the costs and risks. When considering the value of sustainable practices businesses need to be notified of a wide range of benefits. Human resources are a good example of a department that benefits from greener practices. According to The Harvard Business Review’s summary of a number of green building studies, green facilities have been shown to increase the productivity of employees. Research further reveals that retailers who installed skylights saved energy and boosted sales by as much as 40 percent. Other research has indicated that loyalty and morale are positively impacted by a green workplace. Greening a physical environment contributes to health and reduces sick days. MonsterTRACK.com study revealed that people want to work for a company that is green. These factors enable green companies to attract and retain the best people, while saving human resources time and money. Green initiatives can save money, strengthen...
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...Customer Relationship and Corporate Governance in Sustainability of Business Vinod Krishna U. Makkimane Sr.Faculty Institute of Business Management & Technology Banashankari 3rd Stage, Bengaluru. Sustainability is a dynamic concept born out of the environmental debate of the last quarter century. There is growing concern nationally and internationally about biodiversity and protection of plants and animals and community based activity. It is important to view sustainable efforts from global perspective that addresses socio-economic and environmental issues. Sustainable Development as a norm has been accepted in the literature ever since the publication of the Brundtland Commission report in 1987.The Brundtland Commission defined Sustainable Development as that which "meets the needs of the present without compromising the ability of the future generations to meet their own needs". A primary goal of sustainable development is to achieve a reasonable and equitably distributed level of economic well being that can be perpetuated continually for many human generations. It also implies using renewable natural resources in a manner that does not eliminate or degrade them, or otherwise diminish their usefulness for future generations. Sustainable development also requires depleting non-renewable energy resources at a slow enough rate so as to ensure the high probability of an orderly society transition to renewable energy sources. Mahatma Gandhi has observed long back that...
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...Jashldkahsdkhalksdlakjsldkjasjdlkajlskdjlkajksjdlkajsd Asdj;ajsdkjakjsdkjaksjdkajskdjajsldkja jkajsldkjalkjsldkjlakjsdlkjalkjsdkakjsdkajlksjdlkajlskdx Collins, Ellen I have attained two undergraduate degrees in European studies and law and a Masters degree in trade, corporate governance and European law; in highly recognisable UK universities. Currently I am undertaking a full time Masters degree in Business law in one of the best UK and world universities. I am an experienced researcher and I have worked on different research projects demanding law elements from UK and other jurisdictions. In addition I have more than a year's legal work experience providing the law firm's clients with high quality legal research documents. I have an eye for perfection. It will be a pleasure to work for you. Sample Do the UK Combined Code on Corporate Governance and the legislative framework regulating Listed PLC's in the UK effectively address the problems revealed by the corporate scandals of recent times? Introduction> In UK there are the sole trader, the partnerships, the companies and the joint venture, structure businesses. For the sole trader and the partnerships because the businesses are controlled by the owners and they work for the benefit of the owners, it has not been necessary to have increased measures for the protection of the owners benefit. In the companies though that it is a different legal entity, not related to the persons that initially established it, there is...
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...FUSION OF CORPORATE GOVERNANCE & CSR PRACTICES BUSINESS ETHICS AND CORPORATE GOVERNANCE Submitted to: Prof. I Sridhar Submitted by: Dhvani Shah (64689) FSB II TABLE OF CONTENTS TOPIC | Pg No. | Introduction | 3 | Concepts | 6 | Conceptual Discussion | 10 | Implementation of CG & CSR in corporate | 18 | CSR/CG framework | 21 | Bibliography | 30 | I. INTRODUCTION: CSR is concerned with the impacts that the activities of an organization have on the social, environmental and economic environment in which it operates. CG is concerned with the manner in which the senior management or Board of Directors direct, manage and control the organization and relate to shareholders. The concepts cannot be mutually exclusive but merge together, each offering a different yet complementary perspective on the activities of an organization, to form a robust strategic business management tool. The aim of the CSR and CG management system is to define, understand and improve the balance between entrepreneurship and ethical practice. Organizations must demonstrate this core organizational...
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...Executive Summary ………………………………………………………………………... 2 1. Rationale for the Chosen Corporate Governance Factors ……………………………. 3 2. Assessment of the Corporate Governance System of the Selected Company….……... 3 2.1 Facebook ………………………...………………………………........................ 3 2.2 Commonwealth Bank of Australia.……………………………………………. 7 2.3 Tesco ………………………………………………………………………….......9 2.4 Tata Motors …………………………………………………………………......11 2.5 Fast Retailing ………..……………………………………………………….....13 3. Conclusion……………………………………………………………………………....17 Appendix .…………………………………………………………………………………. 18 Bibliography ……………………………………………………………………………… 23 Executive Summary The need for solid and sound corporate governance practice has become increasingly important in recent years, as the recent high profile corporate collapses (Enron, OneTel) are related to poor governance structure. The Corporate Governance Assessment Model attached in the appendix outlined five significant factors that can assist in determining the level of corporate governance of the selected firms. These include: * Appropriate Board Structure And Composition * Management Compensations * Integrity in Financial Reporting * Effective Risk management * Corporate Social Responsibility Selected companies are likely to have a well-established corporate governance system if the selected companies achieve high ratings in these corporate governance factors. This report will apply these five factors to each corporation...
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...Preliminary Draft - Comments Welcome CORPORATE SOCIAL RESPONSIBILITY: DOING WELL BY DOING GOOD?* RAY FISMAN GEOFFREY HEAL VINAY B. NAIR# Abstract We provide a framework for analyzing corporate social responsibility (CSR). Our model of CSR in this paper has two important ingredients – CSR is at least in part a profit motivated decision; and different CSR activities are aimed at different audiences. We examine the implications of our framework using a ‘visible’ CSR index that captures consumeroriented CSR. We find that CSR is more prevalent in advertisingintensive (consumer-oriented) industries, and CSR is more positively related to profitability in these industries. Further, the effect of CSR on profits is stronger in competitive industries, especially when few other firms undertake such actions, suggesting that CSR may be used as a means of differentiation in otherwise competitive environments. We also find tentative evidence that the profit effects of CSR are more positive when large external shareholders are on the board. Finally, we document that different types of CSR activities targeted toward different audiences appear to be unrelated. The authors thank Franklin Allen, Randall Morck, Michael Roberts and Jeremy Stein for discussions. # Fisman and Heal are at the Graduate School of Business, Columbia University and Nair is at The Wharton School, University of Pennsylvania. 1 * In the business community, Corporate Social Responsibility (CSR) has emerged as a...
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...characteristics on corporate social responsibility disclosure by Islamic banks: evidence from Gulf Cooperation Council countries Abdullah Awadh Bukair and Azhar Abdul Rahman Abstract Corporate social activities have become major subjects because of their effects on the quality life of citizens, in particular, and on the society at large. Therefore, today, there is an increase awareness of social responsibility due to the challenges meeting the financial institutions (particularly, Islamic banking) around the world. This paper examines the influence of the board of directors’ characteristics, consisting of board size, board composition, and the separation roles of CEO and chairman, on corporate social responsibility (CSR) disclosure in 53 annual reports of Islamic banks of Gulf Cooperation Council (GCC) countries after controlling of bank size, financial performance and relevant public. Based on the framework of legitimacy theory, the findings show that CSR disclosure has a negative and insignificant relationship with board composition. On contrast, the study found insignificantly and positive association between CSR disclosure and other characteristics of board of directors (board size and the separation roles of CEO and chairman). With regards control variables, the study indicates that bank size and financial performance have a positive and significant influence on CSR disclosure, while relevant public has no effect. Therefore, the results indicate that corporate governance structure...
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...Chapter 2 Corporate Social Responsibility, Corporate Governance and Corporate Regulation 2.1 Introduction CSR is increasingly an essential issue for companies.1 It is a complex and multidimensional organisational phenomenon that is understood as the scope for which, and the ways in which, an organisation is consciously responsible for its actions and non-actions and their impact on its stakeholders. It represents not just a change to the commercial setting in which individual companies operates, but also a pragmatic response of a company to its consumers and society.2 It is increasingly being understood as a means by which companies may endeavour to achieve a balance between their efforts to generate profits and the societies that they impact in these efforts.3 This chapter discusses these issues. First, it describes CSR and its core principles. Second, it describes CG and narrates CG’s convergence with CSR. Third, it highlights how different economies are incorporating CSR notions in their corporate regulation. 1 Jeremy Moon and David Vogel, ‘Corporate Social Responsibility, Government, and Civil Society’ in Andrew Crane et al. (eds), Oxford Handbook of Corporate Social Responsibility (2008) 303; David Vogel, The Market for Virtue: The Potential and Limits of Corporate Social Responsibility (2005); Nada K Kakabadse, Cecile Rozuel and Linda Lee-Davies, ‘Corporate Social Responsibility and Stakeholder Approach: A Conceptual Review’ (2005) 1(4) International ...
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...Management Corporate Governance www.iibmindia.in Chapter 1 Corporate Governance Corporate governance refers to the system by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, crors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. Governance provides the structure through which corporations set and pursue their objectives, while reflecting the context of the social, regulatory and market environment. Governance is a mechanism for monitoring the actions, policies and decisions of corporations. Governance involves the alignment of interests among the stakeholders. There has been renewed interest in the corporate governance practices of modern corporations, particularly in relation to accountability, since the high-profile collapses of a number of large corporations during 2001–2002, most of which involved accounting fraud. Corporate scandals of various forms have maintained public and political interest in the regulation of corporate governance. In the U.S., these include Enron Corporation and MCI Inc. (formerly WorldCom). Their demise is associated with the U.S. federal government passing the Sarbanes-Oxley Act in 2002, intending to restore public confidence in corporate governance. Comparable...
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...administration (Veleva, 2010, p. 2). James Davis saw great growth potential for the company after trying out the shoes himself (Veleva, 2010, p. 2). New Balance experienced enormous growth and its sales increased more than 600% between 1991 and 2008, achieving $1.61 billion in that year (Veleva, 2010, p. 3). The owners, James and Anne Davis had always operated New Balance in a socially responsible way, but did not have a formal CSR department or strategy for the business and did not advertise their CSR activities to the public (Veleva, 2010, p. 5). In 2006, James and Anne Davis formally integrated CSR into New Balance’s mission and values (Veleva, 2010, p. 5). Katherine Shepard, the company’s communications manager was promoted to the role of social responsibility manager in 2007, and her goals included maintaining its socially responsible culture when taking over new brands, increasing transparency to increase stakeholders’ trust, and becoming a CSR leader in the industry to keep up with CSR activities of competitors (Veleva, 2010, p. 1). Shepard joined the company after learning that their shoes are made in the United States (Veleva,...
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...Corporate Governance Blueprint 2011 Towards Excellence in Corporate Governance Suruhanjaya Sekuriti Malaysia 3 Persiaran Bukit Kiara Bukit Kiara 50490 Kuala Lumpur Malaysia Tel: 603-6204 8000 Fax: 603-6201 5078 www.sc.com.my Copyright © July 2011 Securities Commission Malaysia All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (graphical, electronic, mechanical, photocopying, recording, taping or otherwise), without the prior written permission of the Securities Commission Malaysia. Perpustakaan Negara Malaysia Corporate governance blueprint 2011 : towards excellence in corporate governance Bibliography : p. 77 ISBN 978–983–9386–67–7 1. Corporate governance--Malaysia. 2. Industrial management. 1. Suruhanjaya Sekuriti Malaysia. 658.4009595 Cataloguing-in-Publication Data This book is printed using eco-friendly recyclable and bio-degradable paper CONTENTS FOREWORD BY MINISTER OF FINANCE II, MALAYSIA MESSAGE FROM CHAIRMAN OF THE SECURITIES COMMISSION MALAYSIA INTRODUCTION CHAPTER 1 v vii 1 5 SHAREHOLDER RIGHTS CHAPTER 2 13 ROLE OF INSTITUTIONAL INVESTORS CHAPTER 3 21 THE BOARD’S ROLE IN GOVERNANCE – – – – ROLES AND RESPONSIBILITIES INDEPENDENCE OF THE BOARD COMPOSITION OF THE BOARD COMMITMENT OF BOARD MEMBERS 43 CHAPTER 4 DISCLOSURE AND TRANSPARENCY CHAPTER 5 53 ROLE OF GATEKEEPERS AND INFLUENCERS CHAPTER 6 61 PUBLIC AND...
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