To that end, the Godrej Group recently instituted the EVA performance management framework in six of its key businesses. In particular, the management teams running those businesses are rewarded according to the terms of an EVA-based incentive plan. Each business has since seen significant improvements in capital efficiency, market share, and overall performance. The stock price of the Godrej Group's publicly held entity has more than doubled (in a flat market), and the vast majority of the employees believe that the EVA implementation has been the company's most important recent initiative. Management teams are said now to look much more carefully at options for outsourcing, contract manufacturing, eliminating bottlenecks, and even reusing old equipment at new facilities.
Perhaps the most significant change, however, is that the "improved rigor and discipline of our EVA-based capital allocation system" has permitted Godrej family members to move from operationsoriented, owner-manager functions to a broader leadership role. The EVA system has allowed them to feel more comfortable in decentralizing day-to-day decision-making because they are confident that managers and employees are all working in the shareholders' interests. 相似文献
This study answers Vazquez’s (J Bus Ethics 150(3):691–709, 2016) call for more research focused on the intersection between family firms and business ethics. We investigate two contextual factors potentially affecting the ethical reporting of chief financial officers (CFOs): a firm’s social ties to the controlling family and the CFOs’ perceived relationship quality with the CEO. We test our hypotheses by examining the financial reporting behavior of Chinese CFOs who work at (1) family or nonfamily businesses and in (2) private or public firms. Results of this study advance our understanding of social and contextual factors that may compromise CFOs' reporting behavior in family firms (Suh et al., J Bus Ethics, 2018, https://doi.org/10.1007/s10551-018-3982-3). This research also suggests that failure to distinguish between public and private companies may bias the results of studies that examine family firms.
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