Business Commons^™

Stakeholderism, Corporate Purpose, And Credible Commitment, Lisa Fairfax

All Faculty Scholarship

One of the most significant recent phenomena in corporate governance is the embrace, by some of the most influential actors in the corporate community, of the view that corporations should be focused on furthering the interests of all corporate stakeholders as well as the broader society. This stakeholder vision of corporate purpose is not new. Instead, it has emerged in cycles throughout corporate law history. However, for much of that history—including recent history—the consensus has been that stakeholderism has not achieved dominance or otherwise significantly influenced corporate behavior. That honor is reserved for the corporate purpose theory that focuses on …

Repurposing The Corporation Through Stakeholder Markets, Lynn M. Lopucki

UF Law Faculty Publications

Corporate social responsibility (CSR) is immensely popular. Rhetorically, nearly all public corporations have committed to it. But corporations don’t act responsibly. That is because no system exists by which their responsibility levels can be measured and rewarded or punished. Thousands of organizations worldwide are engaged in a cooperative effort to build such a system. After two decades of work, the system is almost entirely in place. It may become effective in the next two to three years. When it does, the system will continually measure and report publicly as many as a thousand audited data points on the CSR of …

Should Corporations Have A Purpose?, Jill E. Fisch, Steven Davidoff Solomon

All Faculty Scholarship

Corporate purpose is the hot topic in corporate governance. Critics are calling for corporations to shift their purpose away from shareholder value as a means of addressing climate change, equity and inclusion, and other social values. We argue that this debate has overlooked the critical predicate questions of whether a corporation should have a purpose at all and, if so, what role it serves.

We start by exploring and rejecting historical, doctrinal, and theoretical bases for corporate purpose. We challenge the premise that purpose can serve a useful function either as a legal constraint on managerial discretion or as a …

The Corporate Governance Machine, Dorothy S. Lund, Elizabeth Pollman

All Faculty Scholarship

The conventional view of corporate governance is that it is a neutral set of processes and practices that govern how a company is managed. We demonstrate that this view is profoundly mistaken: in the United States, corporate governance has become a “system” composed of an array of institutional players, with a powerful shareholderist orientation. Our original account of this “corporate governance machine” generates insights about the past, present, and future of corporate governance. As for the past, we show how the concept of corporate governance developed alongside the shareholder primacy movement. This relationship is reflected in the common refrain of …

Corporate Social Responsibility And Sustainable Finance: A Review Of The Literature, Hao Liang, Luc Renneboog

Research Collection Lee Kong Chian School Of Business

Corporate Social Responsibility (CSR) refers to the incorporation of Environmental, Social, and Governance (ESG) considerations into corporate management, financial decision making, and investors’ portfolio decisions. Socially responsible firms are expected to internalize the externalities (e.g. pollution) they create, and are willing to be accountable to shareholders as well as a broader group of stakeholders (employees, customers, suppliers, local communities,…). Over the past two decades, various rating agencies developed firm-level measures of ESG performance, which are widely used in the literature. A problem for past and a challenge for future research is that these ratings show inconsistencies, which depend on the …

Sustainability In Business: Developing An Undergraduate Business Course, Julie Nelsen, Mary Henderson, Sarah Rand

Business Administration Faculty Scholarship

The purpose of this paper is to discuss the rationale and process of creating a new course focused on business sustainability in the University’s Department of Business Administration. Currently, the University offers just one business sustainability course, delivered once every two years as a January study-abroad course in Chile. While an outstanding experience, a limited number of students can take advantage of the opportunity. After identifying this gap in our business programs, we created a stand-alone course that focuses on business sustainability. This paper addresses the following questions: What is the business case for adding the course? What should the …

Making Sustainability Disclosure Sustainable, Jill E. Fisch

All Faculty Scholarship

Sustainability is receiving increasing attention from issuers, investors and regulators. The desire to understand issuer sustainability practices and their relationship to economic performance has resulted in a proliferation of sustainability disclosure regimes and standards. The range of approaches to disclosure, however, limit the comparability and reliability of the information disclosed. The Securities & Exchange Commission (SEC) has solicited comment on whether to require expanded sustainability disclosures in issuer’s periodic financial reporting, and investors have communicated broad-based support for such expanded disclosures, but, to date, the SEC has not required general sustainability disclosure.

This Article argues that claims about the relationship …

The Geography Of Csr, David K. Ding, Christo Ferreira, Udomsak Wongchoti

Research Collection Lee Kong Chian School Of Business

We regress socio-economic indicators against firm level CSR scores using a sample of over 26,000 firm year observations from 1991 through 2009. We find that a firm's CSR profile is linked to the socio-economic conditions of the firm's geographic headquarters (HQ) location. The study documents that the legal, cultural, economic, and demographic differences across geography significantly explain the variation in CSR means between metropolitan statistical areas, states, and regions. We also find that the relation between CSR and firm performance is conditional on socio-economic factors, which highlight the endogeneity concerns inherent in CSR studies. Lastly, we show that firms that …

Stages Of Corporate Sustainability: Integrating The Strong Sustainability Worldview, Nancy E. Landrum

School of Environmental Sustainability: Faculty Publications and Other Works

Businesses are increasingly adopting sustainability, yet the environment continues to decline. This research responds to Dyllick and Muff’s assertion that this paradox is caused by a constricted understanding of the meaning of corporate sustainability, lack of inclusion of constructs from related streams of literature, and failure to integrate micro and macro perspectives of sustainability. The current research addresses these concerns through an integration of 22 microand macro-level models of stages of development from literature in corporate sustainability, corporate social responsibility, environmental management, and sustainable development. This integration results in a new unified model of stages of corporate sustainability that broadens …

Cross-Country Evidence On The Role Of Independent Media In Constraining Corporate Tax Aggressiveness, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of firms from 32 countries, we study the relation between media independence and corporate tax aggressiveness. We measure media independence by the extent of private ownership and competition in the media industry. Using an indicator variable for tax aggressiveness when the firm’s corporate tax avoidance measure is within the top quartile of each country-industry combination, we find strong evidence that media independence is associated with a lower likelihood of tax aggressiveness, after controlling for other institutional determinants, including home-country tax system characteristics. We also find that the effect of media independence is more pronounced when the …

The Internal Effects Of Corporate Social Responsibility On Firm Performance, Lindsay Harris

Senior Honors Theses

The purpose of this thesis is to identify the internal effects of corporate social responsibility on firm performance. It also examines the definition of corporate social responsibility and two varying theories about the topic. This thesis explores the human resource, quality and financial aspects of firm performance and how those aspects of a company are affected by adopting significant corporate social responsibility programs. This research seeks to answer the claim that corporate social responsibility programs do not have a positive effect on the actual performance of an organization. It will examine the effect of CSR on employee attitudes, moral and …

Maximizing Shareholder Wealth And Stakeholder Value Through Benefit Corporations: Doing Good And Doing Well, Arlene J. Nicholas, Samuel A. Sacco

Faculty and Staff - Articles & Papers

Benefit Corporations must create a "general public benefit," and answer to shareholders while decisions based on society or environment, rather than solely on profit, are legally protected (Alpern, 2015). The Benefit Corporation's legal and performance standards help ensure market growth, valuation, impact, and integrity (Neubauer, 2016). This paper examines the evolution of Benefit Corporations and some of the legal differences between traditional for-profit corporations including related court cases. The authors provide a business rationale in support of conscientious for-profit organizations. How a company can become a Benefit Corporation and the value added will be discussed.

Global Diversity & Inclusion At Microsoft, Joe Lawless

MICCSR Case Studies

This case discusses diversity and inclusion initiatives at Microsoft, as well as criticisms of the state of industry efforts to increase diversity in the tech sector. Students are asked to develop ideas that leverage current efforts at Microsoft and come up with new ideas that should be considered.

Corporate Power Is Corporate Purpose I: Evidence From My Hometown, Leo E. Strine Jr.

All Faculty Scholarship

This paper is the first in a series considering a rather tired argument in corporate governance circles, that corporate laws that give only rights to stockholders somehow implicitly empower directors to regard other constituencies as equal ends in governance. By continuing to suggest that corporate boards themselves are empowered to treat the best interests of other corporate constituencies as ends in themselves, no less important than stockholders, scholars and commentators obscure the need for legal protections for other constituencies and for other legal reforms that give these constituencies the means to more effectively protect themselves.

Using recent events in the …

Corporate Social Responsibility: Implications For Businesses Operating In The United States And The European Union, Kaitlyn Sapp

Honors Scholar Theses

The expectations of what businesses should be responsible for has changed more and more as the consumer consciousness has evolved. For many businesses, especially those in the United States, change in their approach to corporate social responsibility (CSR) is necessary in order to satisfy customers and stay competitive. This paper will discuss and compare the history and current practice of CSR between the United States and the European Union. I find that since the European Union has a history of holding companies to higher CSR standards, European-based companies have an advantage in various consumer markets with growing consciousness. Meanwhile, companies …

2016 Csr Planning At Pemco Insurance, Joe Lawless

MICCSR Case Studies

No abstract provided.

Sustainable Innovation At Rei, Joe Lawless

MICCSR Case Studies

Recreational Equipment Inc. (REI) was founded in the 1930’s as a co-op for climbers to acquire quality gear. As a major (US) retailer of outdoor equipment and gear, REI has been a leader in sustainability with everything from their products and packaging design, retail building efficiency and contributions to environmental conservation and outdoor recreation. This mini-case offers students an opportunity to explore the “Catalyzing Experiences” section of REI’s new sustainability integration initiative. Looking at the new sharing economy and innovative business models will challenge students to develop creative solutions to the consumption-based economic model of traditional retailers.

Outerwall And Beyond, Joe Lawless

MICCSR Case Studies

In 2013, Outerwall (parent company of Coinstar and RedBox) acquired ecoATM, an automated e-waste recycling station. As a disruptive technology in the e-recycling business, ecoATM has demonstrated significant potential for triple-bottom-line success. Outerwall has struggled with negative press related to law-enforcement belief that these kiosks are “a motivator for the criminal element.” This CSR mini-case provides students an opportunity to work creatively to solve a public relations and perception problem in order to fully realize a company’s full potential for positive social, environmental and economic impact.

Better Living At Walmart?, Joe Lawless

MICCSR Case Studies

In November of 2013, Walmart was widely criticized on social media, then through traditional media, for asking employees to contribute food to other employees who couldn’t afford their Thanksgiving meal. This mini-case asks students to explore the issues related to minimum wage laws, corporate social responsibility, HR practices, and the social impact of large global corporations like Walmart. Students are asked to make recommendations to the leadership of Walmart on strategies for moving forward.

Corporate Social Responsibility, Daniel H. Brown

Senior Honors Theses

This paper will address Corporate Social Responsibility (CSR) and its far-reaching implications. Initially, the term CSR will be introduced and defined to provide the backbone for the following discussions. The paper will address the theoretical constructs of CSR, managerial strategies for implementing CSR and the application of stakeholder theory. The thesis is built upon Dr. Archie Carroll’s four-part CSR construct. In addition, international standards of CSR, with a focus on Nike, Inc.’s actions, will be evaluated.

Csr: Good Intentions And Wild Dreams Are Not Enough, Singapore Management University

Perspectives@SMU

When Mariam Al Foudery graduated over a decade ago, the people recruiting aggressively on campus were from investment banking and management consulting firms. But that’s changed, giving rise to more opportunities in corporate social responsibility and social entrepreneurship.

Kentucky Fried Transparency, Joe Lawless

MICCSR Case Studies

This CSR mini-case provides students with an opportunity to explore the ethical issues related to transparency and reporting in an international corporation. Yum! Brands, the parent corporation of Kentucky Fried Chicken had a supply chain issue with their Chinese suppliers that went public in China and affected sales. This is their immediate issue, but longer term, the reputational harm of disclosure and transparency that subsequently emerged pose a challenge for students to address.

Corporate Historical Responsibility (Chr): Addressing A Past Of Forced Labor At Volkswagen, Claudia Janssen Danyi

Faculty Research and Creative Activity

This article introduces corporate historical responsibility (CHR), a concept that can guide organizations when addressing dark corporate histories. CHR holds that organizations have responsibilities toward victims of past corporate practices and toward present reconciliatory discourse. Volkswagen’s discourse about its history of forced labor during WW II serves as an example of CHR. The rhetorical analysis illustrates that CHR hinges on the recognition of the past as a moral issue and on the organization’s ability to create historical accountability, take responsibility, make public acknowledgements, and remember its past. It further illustrates that CHR creates sustainable policies that can strengthen corporate citizenship …

Engaging The Corporate Citizen: Social Challenges, Business Solutions, Singapore Management University

Perspectives@SMU

When he came up with the idea of selling toilets in Cambodia, where more than 60 per cent of the population does not have access to basic sanitation, National Volunteer and Philanthropy Centre chief executive Laurence Lien was laughed at. His detractors told him: "Nobody is going to purchase toilets from you because this is a community that is dependent on (financial) aid. "But tens of thousands of the toilets were sold within the first few months. Speaking at the Africa Singapore Business Forum, Connex, held at Singapore Management University in August 2012, Lien credits the success of the …

Victoria's Little Secret, Joe Lawless

MICCSR Case Studies

This mini-case outlines a series of articles that ran in Bloomberg outlining the use of child slave labor in the fair trade cotton fields of Burkina Faso that had been used exclusively in Victoria’s Secret products. Giving students and opportunity to develop strategies and tactics that respond to a real-world public relations issue, this case also lets students explore the CSR issues inherent in a firm’s supply chain. Although trying to do the “right thing” Victoria’s Secret got caught up in the certification dilemma that many firms face.

Obtaining Intangible And Tangible Benefits From Corporate Social Responsibility, Wei Nurn Chong, Gilbert Tan

Research Collection Lee Kong Chian School Of Business

The relationship between corporate social responsibility (CSR) and corporate financial performance has been heavily studied in past research. However, little theory has been developed on how CSR may lead to greater corporate financial performance. In this paper, the authors attempt to fill this theoretical gap by explaining how CSR leads to the tangible benefits of attracting better employees, reduced turnover rate, greater efficiency, and reduced operating costs, via the intangible benefits of firm reputation, organizational commitment, and learning. Thereafter, managerial implications and further research opportunities are discussed.

Usage Of Public Corporate Communications Of Social Responsibility Within Brazil, Russia, India And China (Bric), Ilan Alon, Christopher Lattemann, Marc Fetscherin, Shaomin Li, Anna-Maria Schneider

Faculty Publications

Purpose: The purpose of the paper is to analyze the status of Corporate Social Responsibility (CSR) communications in BRIC nations (Brazil, Russia, India, and China). The four countries are among the biggest emerging markets, forecasted to have increasing influence in economic and political spheres. How these countries manage their corporate communication in regards to CSR is, thus, the focus of our investigation. Design/methodology/approach: This paper compares the extent and content of corporate communication with respect to CSR from a sample of over 100 companies from the BRIC nations by investigating the nature of CSR motives, processes, and stakeholder. Findings: The …

A Study Of Current Practice Of Corporate Social Responsibility (Csr) And An Examination Of The Relationship Between Csr And Financial Performance Using Structural Equation Modelling (Sem), Lorraine Sweeney

Doctoral

There has been a significant increase in interest in CSR in recent years (Gulyas, 2009; McGehee et al, 2009) and it is regarded as an important topic for research (Burton and Goldsby, 2009). Not only has this topic received academic attention but it is becoming a mainstream issue for many organisations (Renneboog et al, 2008; Nijof and Brujin, 2008). However, it has been noted that research on CSR in SMEs is quite scant (Burton and Goldsby, 2008; Cilberti et al, 2008). A second area of literature that remains unresolved is the relationship between CSR and financial performance (Park and Lee, …