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This paper uses a stakeholder framework to review the empirical literature on corporate social performance (CSP), focusing particularly on studies attempting to correlate…
This paper uses a stakeholder framework to review the empirical literature on corporate social performance (CSP), focusing particularly on studies attempting to correlate social with financial performance. Results show first that most studies correlate measures of business performance that as yet have no theoretical relationship (for example, the level of corporate charitable giving with return on investment). To make sense of this body of research, CSP studies must be integrated with stakeholder theory. Multiple stakeholders (a) set expectations for corporate performance, (b) experience the effects of corporate behavior, and (c) evaluate the outcomes of corporate behavior. However, we find that the empirical CSP literature mismatches variables in terms of which stakeholders are relevant to which kind of measure. Second, only the studies using market‐based variables and theory show a consistent relationship between social and financial performance, particularly those showing a negative abnormal return to the stock price of companies experiencing product recalls. Although this paper shows that the CSP construct is not yet well‐specified enough to produce stronger results, recent research suggests that much progress is being made both empirically and theoretically in developing valid and reliable measures of corporate social performance.
Research in corporate social responsibility and performance (CSR/CSP) has made very significant advances over the past several decades, yet there is so much more to be…
Research in corporate social responsibility and performance (CSR/CSP) has made very significant advances over the past several decades, yet there is so much more to be done. Research in this area is exceptionally difficult because of corporate opaqueness and secrecy, the lack of a viable guiding theory, and the juxtaposition of CSR/CSP against the prevailing neoclassical economic theory of the firm. Researchers’ choices of topic, domain, theory, variables and their operational surrogates, data, and analytical method have all come a long way but require a great deal more conscious refinement. Pressures on untenured researchers and those not fully promoted are tremendous; thus, senior scholars are in the best position to organize and supervise research projects of serious benefit to CSR/CSP knowledge and understanding.
Auditors are, with some frequency, called names. Some of thesenames are universally disliked by auditors; others are seen asdesirable; and on some names, auditors are…
Auditors are, with some frequency, called names. Some of these names are universally disliked by auditors; others are seen as desirable; and on some names, auditors are ambivalent. Because naming is also deeply symbolic and meaningful behaviour, this study was carried out and included a national random sample of internal audit directors, audit managers and internal auditors based in the US and Canada. The article reports the results of this study.
Relationships between stress and interpersonal dynamics of internal auditing, particularly auditor‐auditee relations, are focused on. An overview is presented of…
Relationships between stress and interpersonal dynamics of internal auditing, particularly auditor‐auditee relations, are focused on. An overview is presented of behavioural dynamics of auditor‐auditee relations supported by survey data on relationships between a scalar measure of stress and several behavioural factors of internal auditors' relations with auditees. Summary findings are also presented on certain features of audit departments that are related to employee stress levels, and strategies for reducing stress are described.
The concept of corporate social responsibility (CSR) has a long history associated with how it impacts on organizations' behavior. In order to understand CSR's impact on…
The concept of corporate social responsibility (CSR) has a long history associated with how it impacts on organizations' behavior. In order to understand CSR's impact on organization behavior, therefore, it is necessary to comprehend its progression. Subsequently, the purpose of this paper is to trace the conceptual evolution of CSR.
The paper reviews the literature and adopts a chronological structure organized on a decade‐by‐decade basis. The results demonstrated that CSR research has changed constantly during the last 60 years.
In the 1950s the primary focus was on businesses' responsibilities to society and doing good deeds for society. In the 1960s key events, people and ideas were instrumental in characterizing the social changes ushered in during this decade. In the 1970s business managers applied the traditional management functions when dealing with CSR issues, while, in the 1980s, business and social interest came closer and firms became more responsive to their stakeholders. During the 1990s the idea of CSR became almost universally approved, also CSR was coupled with strategy literature and finally, in the 2000s, CSR became definitively an important strategic issue.
The focus of this work is on researches that have generated much of the original discourse on this issue, since it is difficult to cover all of the existing literature. In addition, this analysis of the conceptual evolution of CSR started with Bowen's, although earlier references can be found.
This paper provides didactical information of the conceptual evolution of CSR, also it advances on the discussion of the progress of CSR throughout time that has caught the attention of several researchers and finally it provides recommendations for further studies.
Calls for corporate social responsibility are widespread, yet there is no consensus about what it means; this may be its charm. However, it is possible to distinguish the…
Calls for corporate social responsibility are widespread, yet there is no consensus about what it means; this may be its charm. However, it is possible to distinguish the fi duciary obligations owed to shareholders, as expressed by Milton Friedman, from all other paradigms of corporate responsibility. Friedman maintains that: “ ...there is one and only one social responsibility of business‐to‐use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition, without deception or fraud.” All other paradigms argue that corporations have social responsibilities that extend beyond the pursuit of shareholder benefits to stakeholders. The list of cited stakeholders is ill‐defined and expanding, including non‐human animals and non‐sentient things. This paper defends the intellectual and ethical merits of fiduciary duties, and compares and contrasts it to the stakeholder paradigm. The fiduciary duty to firms’ owners is the bedrock of capitalism, and capitalism will wither without it.
As in any managerial function, the Director of Internal Audit mustbe cognisant of necessary administrative responsibilities to enable theproper functioning of an internal…
As in any managerial function, the Director of Internal Audit must be cognisant of necessary administrative responsibilities to enable the proper functioning of an internal auditing department. Not only must the generic managerial responsibilities be in existence but also those functions which are conducive to internal audit. The administrative responsibilities of the Director of Internal Audit as they pertain to the administration of the Internal Audit Department are explored – the planning process; reporting audit issues and recommendations and the major issues facing the Audit Director.
This paper fits in a research field dealing with the impact of Corporate Ethics Assessment on Financial Performance. The authors argue how environmental, social and…
This paper fits in a research field dealing with the impact of Corporate Ethics Assessment on Financial Performance. The authors argue how environmental, social and governance (ESG) paradigm, meant to measure corporate social performance by rating issuance, can impact on abnormal returns of Italian firms listed on Financial Times Stock Exchange Milano Indice di Borsa (FTSE MIB) Index, developing a panel data analysis which runs from 2007 to 2015.
This study aims at exploring whether socially responsible investors outperform an excess market return on Italian Stock Exchange because of their investment behavior, testing statistically the relationship between the yearly ESG assessment issued by Standard Ethics Agency on FTSE MIB’s companies and their abnormal returns. To verify the impact of an ESG Rating on a company’s abnormal return, the authors developed a panel data analysis through a Fixed Effects Model. They measured abnormal returns via Fama–French approach, running a yearly Jensen’s Performance Index for each company under investigation.
The empirical results denote in Italy both a growing interest to corporate social responsibility (CSR) and sustainability by managers over the past decade, as well as an improving quality in ESG assessments because of a reliable corporate disclosure. Thus, despite investors have been applying ESG criteria in their stock – picking operations, the authors found a not positive and statistically significant impact in terms of market premium, when they have been undertaking a socially responsible investment (SRI).
The findings described above show that ethics is not yet a reliable fundraising tool for Italian-listed companies, despite SRIs having a positive growth rate over past decade. Investors seem to be not pricing CSR on Stock Exchange Market; therefore, listed companies cannot be rewarded with a premium price because of their highly stakeholder oriented behavior.
This paper explores, for the first time in Italy, when market extra-returns (if any) are related to corporate social performance and how managers leverage ethics to build capital added value.