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Self-regulatory organizations (SROs) can be found in education, healthcare, and other not-for-profit sectors as well as in the accounting, financial, and legal professions. DeMarzo et al. (2005) show theoretically that SROs can create monopoly market power for their affiliated agents, but that governmental oversight, even if less efficient than oversight by the SRO, can largely offset such market power. We provide an experimental test of this conjecture. For carefully rationalized parameterizations and implementation details, we find that the predictions of DeMarzo et al. (2005) are borne out.

The audit of development funds that flow between development not-for-profit organisations (DNPOs) is virtually free from effective external regulation. When programme DNPOs subcontract development work to field DNPOs, they are under current international audit rules free to specify audit frameworks that are limited to the accuracy of the books. Questions of the efficacy of the development work can thus be bracketed off. This paper aims to develop an argument for improving the regulation of cross-national audits of DNPOs.

Based on a review of the applicable audit regulation and ongoing debates of legitimacy and accountability, this paper articulates a series of problems that should be considered in the regulation of cross-national DNPO audits with reference to their specific legitimacy communities.

The special consideration that is due to the beneficiaries of development activities suggests that cross-national DNPO audits should be regulated not just with reference to general audit and accounting rules. Consideration should be given as well to some of the key context variables that potentially have a bearing on the likelihood that the audited development programmes meet the claims of the legitimacy community of development. These can include the level and depth of accountability afforded to the beneficiaries, potentially conflicting legitimacy relationships, the nature of admissible records for the audit and the provisions for programme funds to cover the overheads of field DNPOs.

The managerial implications of this paper concern the regulation, commissioning and conduct of cross-national DNPO audits. The authors propose a series of remedies to the scoping of field DNPO audits in a cross-national context.

Focusing on the functioning of cross-border NPO audits, this paper adds an important facet to ongoing discussions about the accountability of current regulation to represent the new interdependencies brought about by the forces of globalisation.

The purpose of this paper is to examine the requirement that non-profit organizations recognize unconditional promises to give as assets and revenues in the year promises are received as mandated by Statement of Financial Accounting Standards (SFAS) No. 116.

Using the adoption of SFAS No. 116 and financial information reported on Internal Revenue Service Form 990, the study examines the requirement that non-profit organizations recognize unconditional promises to give as assets and revenues in the year promises are received. Combining insights derived from a model developed by Dechow, Kothari and Watts (1998) with the rationale applied by the Financial Accounting Standards Board (FASB) in mandating recognition treatment, it adopts the view that information about promises to give is relevant if it useful in assessing probable future cash inflows. The study also employs relative tests of predictive ability to assess competing specifications.

The study finds that recognizing unconditional promises to give as assets and as revenues in the year received improves predictions of next period’s cash inflows. It also finds that accrual-based contribution revenue consistently provides information content that is incremental to cash-based contribution revenue.

This paper has implications for several other lines of research as well. First, an ancillary concern expressed by many organizations in the non-profit sector was that the recognition of multi-year promises to give would adversely affect trends in long-term giving. In this regard, another promising line of inquiry would be to empirically test the Standard’s impact on the time-series properties of contributions and short- and long-term giving trends. Second, future research might consider conducting tests after partitioning by NTEE/NAICS classification, as well as substituting or supplementing the SOI data with financial statement data. Third, future research might consider applying the approach used in this study to other industries or groups for which market prices are not readily ascertainable. Data constraints, including the calculation of cash flow information indirectly from the balance sheet, impose limitations on this study.

This study documents that by recognizing unconditional promises to give as assets and revenues in the period received, donors, creditors and other users gain useful information about probable future cash inflows – a fundamental element of the accrual process and one of several important factors used to evaluate an organization’s ability to sustain future operations. This information is valuable to stakeholders and practitioners who rely on this information to make informed decisions. It is also helpful to standard setters in establishing guidelines that improve the usefulness of financial reporting for non-profits.

The paper contributes to existing literature by operationalizing, in a non-profit setting, a model that describes the relationship among revenues, accruals and cash flows. It fills a gap in the accrual literature regarding the relevance of non-profit revenue accruals. The study is the first to employ a relative information content approach to assess non-profit standards, which provides useful input to policy makers and end users. It affirms that many of the key conventions and elements embodied in the FASB Concepts Statements apply to non-profits as well, which heretofore has not been studied extensively. The results are also consistent with Accounting Standards Update 958, Not-for-Profit Entities, which requires that non-profits provide users with information about liquidity, including how they manage liquid resources needed to meet cash requirements for general expenditures within one year of the date of the statement of financial position.

This chapter outlines the nascent history of the Benefit Movement, discusses the theoretical implications that predict the long-term success of movement goals, and provides recommendations for firms who seek to safeguard practices of corporate social responsibility (CSR). The chapter provides an overview of Benefit forms and describes the indicators of Movement success. For the Benefit Movement to achieve success, it must establish legal options in all 50 states for Benefit incorporation, pave the way for both publicly and privately held organizations to incorporate, and mobilize diverse organizational actors with high levels of commitment to sustain contention for Movement goals. The chapter provides a framework to understand how the Movement can achieve its goal of safeguarding the effective practice of CSR within firms and across the planet.

This study aims to investigate if “corporate governance practices” have any influence on firm corporate social responsibility (CSR) reporting by listed firms in Bangladesh.

This study uses a content analysis to examine specific corporate social responsibility (CSR)-related attributes from 101 publicly listed non-financial firms in Bangladesh. Using various attributes of social and environmental reporting, a disclosure index is also constructed.

The finding of this study is that corporate governance practices do not have any influence on firm CSR reporting. The findings, in particular, show that CSR disclosure by firms is not responsive to new corporate governance regulations.

This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process.

The implication of this study is that firm CSR practices are legitimization exercises and firms will not make increased disclosure due to regulator’s quest for institutionalisation of corporate governance practices.

This study contributes to the literature on the practices of CSR reporting in the context of developing countries following regulator’s quest for institutionalisation of corporate governance practices.

In 2008 San Francisco International Airport (known by its three-letter airport code, SFO) had announced a $383 million plan to renovate and reopen Terminal 2. Assistant deputy director of aviation security Kim Dickie and her team had selected Quantum Secure's SAFE software suite as the new Terminal 2 credentialing system, but she needed to develop a business case quickly that would convince senior management to give the green light to fund the purchase. The case describes a scenario that occurs frequently in the real world, in which a decision offers some real but qualitative value in ways that are difficult or impossible to quantify. The discussion and analysis gives students the opportunity to consider the factors that will drive the internal rate of return (IRR), net present value (NPV), and discounted payback period calculations without constructing comprehensive spreadsheet models. Analyzing the case suggests the limits of such approaches in cases where perceived value is difficult to quantify. The case prepares students to evaluate and justify purchasing requests when interacting with financial gatekeepers such as CFOs and CEOs by introducing a framework to analyze the quantifiable benefits of a capital expenditure while keeping in mind important intangible benefits.

After analyzing the case, students should be able to: Understand how return on investment (ROI) calculations work, with an emphasis on identifying incremental effects Decide how to use results from similar entities making similar purchases to estimate the incremental benefit of a proposed solution Identify and use the best data available in making assumptions Justify the validity of benefits that are difficult to quantify in conjunction with the presentation of a traditional ROI analysis

Purpose – This study aims at presenting an overview, development, and process of current corporate governance practices in Bangladesh.

Design/Methodology/Approach – Based on New Institutional Sociology (NIS) as a theoretical framework and by using archival data, this study highlights the roles of key institutional forces in reinforcing the existing corporate governance practices in Bangladesh.

Findings – This study notes that corporate governance practices in Bangladesh are still at infancy. While Bangladesh is trying to adopt many international corporate governance best practices for institutional legitimacy, the weak institutional enforcement regime, along with the absence of an effective check and balance, poses serious challenges to the firm-level good corporate governance practices in Bangladesh. The absence of isomorphic pressures to regulate the firms leads to many incidences of noncompliance.

Practical implications – This study takes part in the following global debate: whether corporate governance in an emerging economy is a reality or an illusion.

Originality/Value – This study seeks to contribute to the increasing literature by recognizing the interest of readers, academics, practitioners, and regulators to gain more insight and understanding of corporate governance practices in an emerging economy, such as Bangladesh.

Institutional pressure and corporate social responsibility (CSR) are gaining increasing recognition in scholarly works; however, there is an apparent and unsettled relationship between these concepts and the concept of green marketing adoption (GMA) that influences efforts to gain a relative competitive advantage (RCA). This study is aimed at examining the roles of institutional pressure and CSR on GMA and RCA and proposes recommendations for promoting green marketing management and CSC in the banking industry in Vietnam.

In this study, partial least squares structural equation modeling is utilized to investigate the evolution of the structural model, while the hypotheses are evaluated using structural equation modeling (SEM). The data are scrutinized from 288 banking employees through an online survey.

The results show that the components of institutional pressure exert a significant impact on GMA and RCA, but the level and type of this impact differ. Additionally, the mediating role of the CSR variable in this relationship is revealed. Under the influence of institutional pressure, companies tend to increase their implementation of CSR activities, thereby promoting their GMA and RCA.

This study offers both theoretical and practical implications. Theoretically, this study adds to the extant evidence concerning the significance of CSR integration and institutional pressure to the advancement of GMA. In addition, maintaining a focus on fostering holistic GMA practices has enabled the banking industry in Vietnam to achieve an RCA.

This paper seeks to provide an overview and context for the emerging field of public policies for scaling voluntary standards, or private regulations, on the social and environmental performance of business and finance, to promote sustainable development; in order to stimulate more innovation and research in this field.

The paper takes the approach of a literature review of texts from intergovernmental and non‐governmental organisations, to develop a synthesis of issues, before literature review from management studies, development studies and international relations, to revise the synthesis and identify policy relevant future research.

Governance at all levels but particularly the international level involves corporations and their stakeholders. Together they have created non‐statutory corporate social responsibility (CSR) standards which now influence significant amounts of international trade and investment, thereby presenting new benefits, risks and challenges for sustainable development. Governments around the world are now innovating public policies on these standards, which can be categorised to inform policy development: governments prepare, prefer, promote and prescribe CSR standards. Therefore, a new dimension to collaborative governance is emerging and would benefit from research and technical assistance. As concepts and practices of regulation and governance are moving beyond state versus non‐state, mandatory versus voluntary approaches, so issues about transparency, accountability and democratic participation remain important for any new manifestation of regulation or governance.

By contextualising public policy innovations on CSR standards within new theories of governance, including “private regulation” and “collaborative governance”, the paper helps to clarify a new agenda for policy making and related research.