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1 – 10 of over 1000We study ceremonial adoption of voluntary standards, where participants adopt the standard in principle but do not change their practices. Ceremonial adoption can benefit…
Abstract
We study ceremonial adoption of voluntary standards, where participants adopt the standard in principle but do not change their practices. Ceremonial adoption can benefit individual participants, who may be able to reap the benefits of association with the standard at lower cost, but it can be problematic for overall levels of adoption. We conceive of ceremonial adoption as an interaction between strategic incentives of participants and social ties to their audiences, such that not all participants are likely to ceremonially adopt. Our setting is the Leadership in Energy and Environmental Design (LEED) certification for sustainable construction. We study the conditions under which projects register for LEED certification, allowing them to claim affiliation with LEED, but then do not actually finish certification. While our data are correlational in nature, our results suggest that studying the competition for audience members (in our case, occupants) can provide greater understanding of certification behavior as well as overall levels of adoption. Our findings have implications for organizations that design and maintain voluntary standards and for organization theorists who wish to understand field-level change. Thus, we provide more evidence that strategy and organizational theory interact in important and often unexamined ways.
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Ishwar Haritas and Arindam Das
This paper aims to present an approach for business organizations, especially multinational enterprises (MNEs), to pivot their focus from the United Nations sustainable…
Abstract
Purpose
This paper aims to present an approach for business organizations, especially multinational enterprises (MNEs), to pivot their focus from the United Nations sustainable development goals (UN SDGs) to simple doable goals (SDoGs) so that the probability of impactful and sustainable outcomes increases significantly.
Design/methodology/approach
Through multilevel analyses, the paper identifies the current challenges in the firm-level implementation of the SDGs. Consequently, it synthesizes an integrated solution that can help MNEs create sustainable business models, contributing to realizing the SDGs.
Findings
The sporadic and chaotic adoption of SDGs and ambiguous outcomes reported by businesses are due to the following: SDG adoption choices are driven by the materiality effect; the differences between the UN-defined government targets and business-level targets, often chosen by businesses on their own, make an aggregation of performances infeasible; lack of validation of the firm-level reporting leads to “greenwashing”; focusing less on business model transformation and more on reporting hinders the achievement of true sustainability; and lack of coordination and integration in actionizing among stakeholders limits the holistic change that the SDGs are expected to bring to society. Based on the Prêt à faire – Gestalt matrix, the proposed framework shifts the organization’s focus to the fundamental aspects of the purpose, strategy and business sustainability, and demonstrates how the resultant SDoGs effectively contribute to the realization of the SDGs. The matrix in the framework classifies an MNE based on its overall organizational readiness to seize business opportunities and helps pursue a course of action toward true sustainability.
Originality/value
The guidelines from the proposed framework offer different strategic paths for the MNE to achieve parity, temporary advantage, and, finally, sustained competitive advantage. This transformative approach enables businesses to develop their roadmaps for achieving business sustainability and supporting the realization of the SDGs.
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Flávio P. Martins, André C.S. Batalhão, Minna Ahokas, Lara Bartocci Liboni Amui and Luciana O. Cezarino
This paper aims to assess how cocoa supply chain companies disclose sustainable development goals (SDGs) information in their sustainability reports. This assessment highlights…
Abstract
Purpose
This paper aims to assess how cocoa supply chain companies disclose sustainable development goals (SDGs) information in their sustainability reports. This assessment highlights strategic aspects of sustainable supply chain management and reveals leveraging sustainability points in the cocoa industry.
Design/methodology/approach
The two-step qualitative approach relies on text-mining company reports and subsequent content analysis that identifies the topics disclosed and relates them to SDG targets.
Findings
This study distinguishes 18 SDG targets connected to cocoa traders and 30 SDG targets to chocolate manufacturers. The following topics represent the main nexuses of connections: decent labour promotion and gender equity (social), empowering local communities and supply chain monitoring (economic) and agroforestry and climate action (environmental).
Practical implications
By highlighting the interconnections between the SDGs targeted by companies in the cocoa supply chain, this paper sheds light on the strategic SDGs for this industry and their relationships, which can help to improve sustainability disclosure and transparency. One interesting input for companies is the improvement of climate crisis prevention, focusing on non-renewable sources minimisation, carbon footprint and clear indicators of ecologic materiality.
Social implications
This study contributes to policymakers to enhance governance and accountability of global supply chains that are submitted to different regulation regimes.
Originality/value
To the best of the authors’ knowledge, no previous study has framed the cocoa industry from a broader SDG perspective. The interconnections identified reveal the key goals of the cocoa supply chain and point to strategic sustainability choices for companies in an important global industry.
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Sylvia Rivera-Valle and Minelle E. Silva
Grounded on resource dependence theory, the authors explored how power and dependence affect sustainability adoption in an artisanal fishing supply chain (AFSC) in Mexico.
Abstract
Purpose
Grounded on resource dependence theory, the authors explored how power and dependence affect sustainability adoption in an artisanal fishing supply chain (AFSC) in Mexico.
Design/methodology/approach
An in-depth longitudinal case study was conducted to identify relationships among fishers, a cooperative and intermediaries using a content analysis of data gathered from a combination of interviews, focus groups, observations, participatory workshops and secondary data.
Findings
As a result of the existing power imbalance among AFSC members, mediated forces (e.g. rewards for intermediary–fishers relationship) were the most prominent observed. In addition, a close and high dependence on resources affecting supply chain sustainability (SCS) adoption was identified. For example, within intermediary–cooperative relationships, a power imbalance caused mostly by financial resource dependence generated a negative impact on economic sustainability related to unfair prices and unfair trade. The results, thus, showed the detrimental influence of intermediaries among AFSC members on SCS adoption.
Practical implications
A greater understanding of power imbalance and dependence can help AFSC members to identify their weaknesses and develop actions to adopt sustainability.
Originality/value
Unlike previous research, the authors go beyond the often positive research focus of SCS studies and provide, through the resource dependence theory, a longitudinal view on how power imbalance negatively affects SCS adoption.
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The purpose of this research is to study how compliance evaluation becomes performed in practice. Compliance evaluation is a common practice among organizations that need to…
Abstract
Purpose
The purpose of this research is to study how compliance evaluation becomes performed in practice. Compliance evaluation is a common practice among organizations that need to evaluate their posture against a set of criteria (e.g. a standard, legislative framework and “best practices”). The results of these evaluations have significant importance for organizations, especially in the context of information security and continuity. The author argues that how these evaluations become performed is not merely a “social” activity but shaped by the materiality of the evaluation criteria
Design/methodology/approach
The authors adopt a sociomaterial practice-based view to study the compliance evaluation through in situ participant observations from compliance evaluation workshops to evaluate organizational compliance against a information security and business continuity criteria. The empirical material was analyzed to construct vignettes that serve to illustrate the practice of compliance evaluation.
Findings
The research analysis shows how the information security and business continuity criteria themselves partake in the compliance evaluations by operating through (ventriloqually) the evaluators on three strata: the material, the textual and the structural. The author also provides a conceptualization of a hybrid agency.
Originality/value
This research contributes to lack of studies on the organizational-level compliance. Further, the research is an original contribution to information security and business continuity management by focusing on the practices of compliance evaluation. Further, the research has theoretical novelty by adopting the ventriloqual agency as a hybrid agency to study the sociomateriality of a phenomenon.
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Thembekile Debora Sepeng, Ann Lourens, Karl Van der Merwe and Robert Gerber
The purpose of this paper is to show that third-party quality audits (TPQAs) facilitate performance improvement and give confidence to organisations concerning the process quality…
Abstract
Purpose
The purpose of this paper is to show that third-party quality audits (TPQAs) facilitate performance improvement and give confidence to organisations concerning the process quality of services and products. However, because of inconsistencies and unethical practices often observed in the industry, organisations question the significance of TPQA. A perception exists that its initial purpose as an impartial tool ensuring quality of deliverables is no longer upheld. Hence, the need to determine and explain the influence of the ISO 19011 standard interpretation on the application of the audit guidelines in performing TPQA, to promote consistency in the audit process.
Design/methodology/approach
The study employed document analysis of the ISO 19011 standard, followed by semi-structured interviews with certification managers (CBs) to gain insight related to their interpretation and application of the ISO 19011 guidelines.
Findings
The CBs interpret the ISO 19011 guidelines differently; hence, their application of the standard to compile their audit documents differ. Adherence to the principles of auditing particularly, integrity and independence were found as the core of the audit process while their disregard reflects failure of the real intent of auditing. The inconsistencies in the audit procedures and documents developed for auditors are ascribed to some CBs’ personal interpretations.
Originality/value
The study explores how the different interpretations of the ISO 19011 standard prevail and are perceived by the CBs and auditors. The findings aim to support standardisation and reduce the variations across and amongst the different CBs and auditors.
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Mohd Nadeem Bhat and Mohd Hammad Naeem
The study aims to find the synchronization between foreign agriculture investment (FAI) and Sustainable Development Goals (SDGs) related to agriculture as classified by the Food…
Abstract
Purpose
The study aims to find the synchronization between foreign agriculture investment (FAI) and Sustainable Development Goals (SDGs) related to agriculture as classified by the Food and Agriculture Organization (FAO). The study tries to find such an association in India over 2 decades from 2001.
Design/methodology/approach
The Toda-Yamamoto Granger using the M-Wald test for the non-causality procedure is applied to find the synchronization. Stationarity is tested using the Augmented Dickey-Fuller, Phillips-Perron and Kwiatkowski, Phillips, Schmidt and Shin (KPSS) tests. The Johanson methodology with MacKinnon-Haug-Michelis P-value is employed for the Cointegration test.
Findings
The empirical results indicate that the FAI Granger cause SDG2 “Zero hunger” and “Overall sustainability”, but SDG13 “Climate Change”, SDG6 “Clean water and sanitation”, SDG12 “Responsible production and consumption” and SDG15 “Life on Land” granger cause global investments. Notwithstanding, SDG5 “Gender equality” and SDG14 “Life below water” found no-way causality with FAI.
Practical implications
Host governments should prioritize sector-level sustainable development, notably agricultural SDGs, to attract global investments. Foreign agriculture investment is influenced differently by various SDGs; thus, policymakers should concentrate on specific agricultural SDGs to enhance the flow of capital into the agriculture sector. Global investors should take sustainability into account while framing foreign investment plans, and the supra-national organization may consider global agricultural investments while addressing the problems related to global food security.
Originality/value
The distinguishing feature of the study is that SDGs classified by the FAO from a global investment perspective have not been studied so far.
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Hala Zaidan, Omar Mowafi, Melina Al-Hasan and Abdulrahman Al Natour
This study aims to examine the impact of Jordan’s defense law on the accounting and auditing professions during the COVID-19 pandemic.
Abstract
Purpose
This study aims to examine the impact of Jordan’s defense law on the accounting and auditing professions during the COVID-19 pandemic.
Design/methodology/approach
Using a qualitative methodology with a philosophy of interpretivism, semi-structured interviews were conducted with seven audit partners and 14 auditors to explore the consequences of the defense law in Jordan. Thematic analysis was used to identify key themes and findings.
Findings
The study reveals significant impacts of the defense law on the accounting and auditing professions. Additional disclosures in financial statements were required, increasing the workload for accounting professionals. Auditors faced challenges related to non-compliance risks, fraud risks, management override risks in collecting sufficient evidence. Specific industries, such as restaurants, transportation and tourism, were particularly affected, posing higher audit risks.
Originality/value
This study contributes to the international debate on the impact of crisis-related laws on the audit profession. It offers insights into the challenges faced by auditors during crises and underscores the necessity of adapting auditing practices to new regulatory requirements. The study’s originality lies in its examination of the specific consequences of the defense law in Jordan, providing valuable implications for professionals worldwide and emphasizing ongoing discussions on crisis-related regulations in auditing practices. It underscores the need for adaptability, learning and innovation in addressing regulatory changes and managing audit risks in crisis situations. The findings provide valuable insights for professionals worldwide and emphasize ongoing discussions on crisis-related regulations in auditing practices.
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This study aims to explore the determinants of engagement with and of stakeholders in corporate social responsibility (CSR) decision-making.
Abstract
Purpose
This study aims to explore the determinants of engagement with and of stakeholders in corporate social responsibility (CSR) decision-making.
Design/methodology/approach
Using stakeholder theory, this study is mainly based on business ethics and CSR literature to develop a model depicting social and organizational contextual factors for engagement in the context of CSR decision-making.
Findings
This study identifies nine antecedents for engagement with and of stakeholders in CSR decision-making. Based on stakeholder perspective, the author explores how engagement constructs are influenced at both social and organizational levels by the determinants stakeholder pressure, stakeholder roles, stakeholder resources, stakeholder relationships, stakeholder management, two-way communication, procedural justice, interactional justice and stakeholder proactive strategy.
Practical implications
This study provides insights for companies regarding the determinants underlying engagement to reflect its importance in the context of CSR decision-making.
Social implications
A better understanding of the determinants of engagement is critical because engagement contributes to achieving “win-win” solutions that ensure increased stakeholder satisfaction.
Originality/value
To the best of the author’s knowledge, this paper is one of the first to explore the determinants of engagement with and of stakeholders in CSR decision-making at both social and organizational levels by referring to stakeholder theory.
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Esraa Esam Alharasis, Abeer F. Alkhwaldi and Khaled Hussainey
This study aims to investigate the moderating effect of the COVID-19 epidemic on the relationship between key audit matter (KAM) and auditing quality.
Abstract
Purpose
This study aims to investigate the moderating effect of the COVID-19 epidemic on the relationship between key audit matter (KAM) and auditing quality.
Design/methodology/approach
The authors use the ordinary least squares regression on data from 942 firm-year observations of Jordanian non-financial institutions across the period (2017–2022) to test the hypotheses. The authors use content analysis method to measure levels of KAM disclosure.
Findings
The investigation’s findings highlight the importance of KAM disclosure in achieving audit quality in line with international standard on auditing no. 701 (ISA-701) requirements. COVID-19 is also found to have a positive relationship with audit quality, further confirming the crisis’s devastating impact on audit complexity and risks and providing evidence for the need for supplementary, high-quality audit services. Due to the correlation between KAM disclosure and increased auditor workload and responsibility, the analysis reveals that the COVID-19 factor strengthens the link between KAM disclosure and audit quality.
Practical implications
This study has the potential to be used as a basis for the creation of a new regulation or standard regarding the reporting of unfavourable events in financial filings. This study’s findings provide standard-setters, regulators and policymakers with current empirical data on the effects of implementing ISA-701’s mandate for external auditors to provide more information on KAM. The COVID-19 crisis offers a suitable setting in which to examine the value of precautionary disclosures in times of economic uncertainty, as well as the significance of confidence interval disclosures and the role of external auditing in calming investor fears. This analysis is helpful for stakeholders, regulatory agencies, standard-setters and readers of audit reports who are curious about the current state of KAM disclosures and the implementation of ISA-701. The results may have ramifications for academia in the form of a call for more evidence expanding this data to other burgeoning fields to have a clear explanation of the real impact of reporting KAM on audit practices.
Originality/value
To the authors’ awareness, this research is one of the few empirical studies on the effect of the COVID-19 crisis on auditing procedures, and more specifically, the effect of disclosures on KAM by external auditors on audit quality. This study’s findings represent preliminary scientific evidence linking the pandemic to business performance. Minimal research has been done on how auditors in developing nations react to pandemic investor protection and how auditors’ enlarged reporting responsibilities affect them. The vast majority of auditing studies have been conducted in a highly regulated system, so this research contributes by examining audit behaviour in a weak legal context.
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