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Publication date: 9 June 2020

Anna Melinda and Ratna Wardhani

With the increasing understanding of stakeholders on sustainability aspects for the business, companies are nowadays paying more attention to environmental and social…

Abstract

With the increasing understanding of stakeholders on sustainability aspects for the business, companies are nowadays paying more attention to environmental and social issues. This study aims to examine the relationship between Environmental, Social, Governance (ESG) Index and firms’ value. Moreover, this study also examines how the controversy score influences the company’s value. The authors employ a dataset of 1.356 companies from 22 countries in Asia which representing the Asian market from 2014 to 2018. This study shows that ESG index score and controversy score are statistically significant, affecting the firms’ value, measured by Tobin’s Q. From the individual tests, the findings of this study indicate that ESG-environmental, ESG-social, and ESG-governance, individually affect the firms’ value. This study suggests that providing disclosure on ESG aspects is essential, not only to increase company value but also to show the company resilience and sustainability. On the other hand, ESG controversy score surprisingly indicates a positive relationship with the company value. The result implies that controversies provide a positive signal to the investor because controversies could provide a signal to the public of companies’ willingness to have transparency and accountability.

Details

Advanced Issues in the Economics of Emerging Markets
Type: Book
ISBN: 978-1-78973-578-9

Keywords

Abstract

Details

Connecting Values to Action: Non-Corporeal Actants and Choice
Type: Book
ISBN: 978-1-78973-308-2

Article
Publication date: 29 August 2022

Fabio La Rosa and Francesca Bernini

This paper aims to investigate the effect of environmental, social and governance (ESG) controversies on the cost of equity (COE) capital, exploring the moderating role of…

Abstract

Purpose

This paper aims to investigate the effect of environmental, social and governance (ESG) controversies on the cost of equity (COE) capital, exploring the moderating role of both positive ESG performance and market securities regulation.

Design/methodology/approach

This paper adopts a sample of 2,599 time observations related to European listed companies for which the authors examine a set of 30 negative ESG scores across the three pillars in terms of controversies, compliance and other negative issues. This study uses the average of seven implied COE estimates.

Findings

The results show that negative ESG performance, particularly environmental controversies, increases the COE, although this impact is mitigated when associated with company efforts to improve environmental performance. Besides, environmental controversies are likely to increase the COE in countries where the market regulation is stronger, as a consequence of higher investors’ expectations towards the scrutiny role of more efficient markets against companies’ controversies.

Practical implications

Companies should take care seriously of environmental issues such as biodiversity, product impact and resource impact, because investors do react accordingly. As despite no direct effects of positive ESG performance are observed in terms of COE reduction, the mitigating role on the ESG controversies–COE relationship makes ESG practices still significant for European investors.

Social implications

The effects of ESG performance on company financial performance should be investigated under the assumption that bad events weight more than positive ESG performance.

Originality/value

Because no prior studies have specifically assessed the effect of the European listed companies’ ESG controversies on their COE, this paper delivers insights into the relationship between positive and negative ESG performance and their effects on capital market financing.

Details

International Journal of Accounting & Information Management, vol. 30 no. 5
Type: Research Article
ISSN: 1834-7649

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Article
Publication date: 9 May 2022

Rafi M.M.I. Chowdhury, Denni Arli and Felix Septianto

This study aims to examine how religiosity influences brand loyalty toward religiously positioned brands (Chick-fil-A, Forever 21, etc.) when these brands engage in…

Abstract

Purpose

This study aims to examine how religiosity influences brand loyalty toward religiously positioned brands (Chick-fil-A, Forever 21, etc.) when these brands engage in morally controversial actions.

Design/methodology/approach

Study 1 investigates how religiosity affects brand loyalty when religiously positioned brands engage in religiousness-related vs nonreligiousness-related morally controversial actions. Study 2 examines several psychological processes (reactance, forgiveness and moral decoupling) as mediators of the effects of intrinsic religiosity and extrinsic religiosity on brand loyalty for controversial religious brands.

Findings

Study 1 demonstrates that religiosity leads to positive brand loyalty for religiously positioned brands in the case of both religiousness-related and nonreligiousness-related controversies. Study 2 reveals that intrinsic religiosity (extrinsic religiosity) leads to brand loyalty through moral decoupling and forgiveness, but not through reactance, when religious brands engage in religiousness-related (nonreligiousness-related) controversies.

Research limitations/implications

This research focuses on the effects of religiosity on brand loyalty for morally controversial religious brands but does not examine the effects of religious affiliation (Christianity, Islam, Hinduism, etc.). The samples include only US residents.

Practical implications

Religious positioning of brands can engender brand loyalty for consumers with high levels of intrinsic religiosity and/or extrinsic religiosity, even when these brands engage in morally controversial actions.

Originality/value

This research shows that religiosity affects brand loyalty for morally controversial religious brands and demonstrates that psychological processes used by consumers to justify support for morally controversial religious brands depend on type of religiosity (intrinsic vs extrinsic) and type of controversy (religiousness-related and nonreligiousness-related).

Details

European Journal of Marketing, vol. 56 no. 5
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 6 May 2014

Anthony Hussenot

The purpose of this paper is to develop the concept of managerial controversy. This concept focusses on organizational disagreements in order to understand the emergence…

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Abstract

Purpose

The purpose of this paper is to develop the concept of managerial controversy. This concept focusses on organizational disagreements in order to understand the emergence of organization, and also postulates that researchers can better understand organizational phenomena through the ruptures that occur in an organization's everyday activities.

Design/methodology/approach

While the concept of controversy was initially developed to understand the emergence of outputs, this paper develops the concept of managerial controversy in order to understand the emergence of ways of working.

Findings

The concept of managerial controversy demonstrates that the authors can improve the understanding of organization by focussing on the disagreements, the associations of heterogeneous elements, the mediators, and the traces left by actors, as well as by considering the viewpoints of these actors.

Research limitations/implications

The concept of managerial controversy can be used as a framework for describing the development of organization over time. This concept is suitable for management and organization scholars interested by issues related to organization and organizing.

Originality/value

This paper offers an analytical framework for analyzing the emergence of organizational features from ruptures. Furthermore, the concept of managerial controversy extends to not only the literature of actor-network theory, but also to the literature related to organizing.

Details

Journal of Organizational Change Management, vol. 27 no. 3
Type: Research Article
ISSN: 0953-4814

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Article
Publication date: 14 August 2017

Yi-Feng Chen, Yi Kang and Dean Tjosvold

How can governments and survivors prepare for and manage natural disasters? Post-disaster reconstruction researchers advocate that community involvement is needed to help…

Abstract

Purpose

How can governments and survivors prepare for and manage natural disasters? Post-disaster reconstruction researchers advocate that community involvement is needed to help survivors recover effectively. This study aims to propose that cooperative goals between government officials and survivors develop guanxi relationships and constructive controversy wherein survivors voice their opinions to aid disaster recovery.

Design/methodology/approach

The authors adopted the critical incident technique (CIT), which has proved especially useful for studying complex issues, as well as site-intensive research for interviews and participant observation. After developing a local reputation and rapport by working in a residential resettlement area for two months, an author used the CIT to ask 118 survivors of the 2008 Sichuan earthquake to describe specific incidents when they interacted with government officials about recovery issues and then to rate survey items that measure independent and dependent variables.

Findings

Results, including structural equation analyses, support the reasoning that cooperative goals between government and survivors facilitate guanxi and constructive controversy, which in turn produced effective disaster recovery, as indicated by survivors’ social support, satisfaction, reduced stress and beliefs that government officials led effectively.

Research limitations/implications

The data are self-reported and subject to biases and may not be accurate.

Practical implications

In addition to developing theoretical understanding, the results can have important practical implications for strengthening relationships and constructive controversy between government and survivors.

Social implications

Results suggest that communities have practical ways to prepare for disasters. Structuring cooperative goals among survivors, encouraging guanxi relationships, and training in constructive controversy should promote effective recovery from natural disasters.

Originality/value

The paper develops theory and research on how leaders can promote community involvement for effective disaster management. The paper proposes that high-quality interpersonal relationships, also referred to guanxi, and the open-minded discussion of opposing ideas, labeled constructive controversy, are major components of effective community involvement. The paper adds to the literature by empirically documenting the utility of the Western-developed theory of cooperation and competition and the concept of constructive controversy for understanding the effectiveness of government leadership for disaster recovery in China.

Details

International Journal of Conflict Management, vol. 28 no. 4
Type: Research Article
ISSN: 1044-4068

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Article
Publication date: 30 September 2013

Albert Vollmer and Sarah Seyr

The purpose of this paper is to present the state-of-the-art in empirical research on constructive controversy in the context of business organizations and to outline…

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Abstract

Purpose

The purpose of this paper is to present the state-of-the-art in empirical research on constructive controversy in the context of business organizations and to outline strategic implications both for research and practical application.

Design/methodology/approach

Literature search on constructive controversy in relevant databases identified 33 empirical publications from 1980 to 2009. The paper analyzes and summarizes characteristics of the studies, methodological approaches, and empirical findings.

Findings

The literature review reveals that most studies are conducted in the industrial and service sector. Authors mostly apply a quantitative approach using interviews, experiments, and surveys. Empirical findings show that constructive controversy supports decision making, learning, interpersonal relationships, and productivity. In most cases goal interdependence is taken as independent variable.

Research limitations/implications

There is a need for further consolidating the findings either by experimental verification or by field studies. A processual and longitudinal approach should be emphasized and the methodical repertory should be expanded by applying qualitative methods like observation. There is a need for expanding the scope of constructs and analyzing post-modern collaboration forms. Linking controversy to organizational processes like organizational learning would lead to a deeper understanding of innovation processes in organizations.

Practical implications

The implementation of the controversy procedure can support organizational processes like decision making, problem solving, learning, and innovation. This offers opportunities to expand the research field.

Originality/value

This article provides a systematic review on constructive controversy in the business context for the first time.

Details

International Journal of Conflict Management, vol. 24 no. 4
Type: Research Article
ISSN: 1044-4068

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Article
Publication date: 6 June 2019

Yasamin Vahdati and Kevin E. Voss

The purpose of this study is to examine the extent to which a cause-brand alliance (CBA) leads to improved attitude toward cause-brand alliance, which in turn leads to…

Abstract

Purpose

The purpose of this study is to examine the extent to which a cause-brand alliance (CBA) leads to improved attitude toward cause-brand alliance, which in turn leads to improved brand identification.

Design/methodology/approach

The approach uses a 2 × 2 × 2 between-subjects experimental design to examine the interaction effect of the brand ally, the non-profit ally, and the perception of cause controversy on a customer’s attitude toward the CBA, which in turn affects identification with the brand ally.

Findings

On average, customers’ perception of cause controversy influences attitude toward the CBA and subsequently the level of identification with the brand ally. When a non-profit organization is connected to a controversial issue, managerial options for building a successful CBA are more limited than when the non-profit is noncontroversial.

Research limitations/implications

We contribute to consumer learning theory in the context of CBA research by identifying an important boundary condition – perceived cause controversy. Perceived cause controversy impedes the customer’s learning about partners in CBA. Moreover, fit and cue consistency are separate constructs.

Practical implications

CBAs help build customer brand identification. Brand managers must include the customer’s perceived cause controversy, the ally’s unique information, and the customer’s attitude toward the nonprofit in the decision calculus. Brands have an opportunity to demonstrate corporate social responsibility and build identification by helping a less well-established nonprofit to build positive customer attitudes. If the non-profit is linked to controversy, this opportunity is constrained.

Originality/value

A boundary condition-perceived cause controversy influences how the partners in a CBA differentially influence the customer’s attitude toward the CBA and, ultimately, brand identification.

Details

Journal of Product & Brand Management, vol. 28 no. 7
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 17 May 2021

Mohamed Esmail Elmaghrabi

This study aims to explore the set of corporate social responsibility (CSR) committee attributes that may enhance CSR performance and CSR strategy formation and reduce CSR…

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Abstract

Purpose

This study aims to explore the set of corporate social responsibility (CSR) committee attributes that may enhance CSR performance and CSR strategy formation and reduce CSR controversies.[AQ1] Towards this end, the study also explores the differences between companies with and without CSR committees in terms of these three CSR performance facets.

Design/methodology/approach

The study uses a sample of financial times stock exchange (FTSE) 100 non-financial companies in 2015–2017. Kruskal-Wallis test is conducted to test the differences in CSR performance in firms with CSR board-level committee, CSR management committee and no committees. Additionally, a regression model is used to explore the attributes of CSR committees that lead to better/less CSR performance and CSR strategy/CSR controversies. A two-stage least squares regression model was used as a robustness check.

Findings

Firms with board CSR committee have better CSR performance and CSR strategy and lower CSR controversies than both firms with no CSR committees and firms with a CSR management committee. Regression results show that CSR committees that are predominantly consisting of independent board members, chaired by a female director and setting more meetings have better CSR performance. Additionally, CSR committees were found to have lower CSR controversies when having more independent directors and a chair with CSR expertise. CSR strategy was better with the CSR committee represented by a larger group of members.

Originality/value

This study makes several contributions to the sustainability governance literature and regulatory/guidance interfaces. There is extant literature examining audit committee attributes and their effects on various firm outcomes. The same can be said on the regulations of the audit committee. CSR committees’ composition and benefits are, by far, less regulated and largely under-researched. Hence, this paper is considered an early attempt to explore the CSR performance improvements a CSR committee may bring and the composition that would bring better CSR performance.

Details

Corporate Governance: The International Journal of Business in Society, vol. 21 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 6 November 2020

Mohammad Hassan Shakil, Mashiyat Tasnia and Md Imtiaz Mostafiz

Gender diversity in corporate boards is broadly studied in existing corporate governance literature. However, the role of board gender diversity on environmental, social…

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Abstract

Purpose

Gender diversity in corporate boards is broadly studied in existing corporate governance literature. However, the role of board gender diversity on environmental, social and governance (ESG) performance of the banks is still unaccounted for. Drawing on resource dependence and legitimacy theory, this study addresses this pressing research issue. Moreover, investigation of ESG controversies as a moderator paves the existing corporate governance research to the new avenues.

Design/methodology/approach

Data were sourced from Refinitiv database on 37 US banks from the period of 2013 to 2017. This study employs static and dynamic panel regression models that include random effects, fixed effects and dynamic generalised method of moments (GMMs) to test the hypotheses. Furthermore, system GMM is used to reduce the issue of endogeneity, measurement error, omitted variables bias and bank-specific heterogeneity.

Findings

We identify a significant positive relationship between board gender diversity and the ESG performance of US banks. However, the result propounds non-significant moderating effect of ESG controversies on the board gender diversity–ESG performance nexus.

Originality/value

Literature on board gender diversity and ESG separately and predominantly explains firm/bank's financial performance. This study is one of the pioneering attempts to explain the role of board gender diversity on ESG performance. Although incremental, however, this study also contributes to the literature on ESG in the US context.

Details

International Journal of Bank Marketing, vol. 39 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

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