Assessing the Accountability of the Benefit Corporation: Will This New Gray Sector Organization Enhance Corporate Social Responsibility?

In recent years the benefit corporation has emerged as a new organizational form dedicated to legitimizing the pursuit of corporate social responsibility (CSR). Eschewing traditional governmental authority, the benefit corporation derives its moral legitimacy from the values of its owners and the oversight of a third party evaluator. This research identifies the benefit corporation as a new type of gray sector organization (GSO) and applies extant theory on GSOs to analyze its design. In particular, it shows how the theory of GSO accountability can be used to assess the potential of benefit corporations for enhancing CSR. This research first examines the statutes that have established benefit corporations in five states in the US, along with bills in other states, to show how legislation defines their specific public benefits and holds them accountable for delivering these benefits. It then compares the accountability of the benefit corporation with that of other corporate-centric GSOs, e.g., GSOs that closely resemble traditional corporations. It concludes with significant design-based concerns about the utility of the benefit corporation as an effective organization for implementing CSR.     

Three chronological steps toward encouraging intrapreneurship: Lessons from the Wehkamp case

In today’s turbulent business environment, innovation and organizational renewal are key. Employees are encouraged to act as intrapreneurs (entrepreneurs within their employing unit or organization) and instigate change from the bottom up. However, accomplishing this company wide is highly challenging. In this article, we examine the case of Wehkamp, a Dutch e-tailer that overcame these challenges and succeeded in creating a flourishing climate for intrapreneurship. We describe the three-step chronological process for intensive change wherein the initiatives of some intrapreneurs can produce widely held organizational value for intrapreneurship. Key to this change process are three insights: (1) Team leaders can feed the incremental and radical initiative of the few; (2) top management can give meaning and guard fairness to stimulate overall intrapreneurship; and (3) corporate entrepreneurship can be used to continuously revive widespread intrapreneurship. Organizations seeking to encourage intrapreneurship from their employees can benefit from these guidelines.     

Investigating the direct and indirect effects of corporate hypocrisy and perceived corporate reputation on consumers’ attitudes toward the company

Consumers are placing increasing importance on the social responsibility of firms when making purchase decisions. Nonetheless, corporate irresponsibility has become more prevalent in the corporate world. Through corporate social responsibility (CSR), companies can showcase their virtues and appear as good citizens while ignoring many internal standards. Hence, the primary purpose of this study was to explore the impact of corporate hypocrisy on CSR belief, corporate reputation, and consumers’ attitudes toward a company that may have a bad reputation. Second, we investigated the mediating effect of CSR belief and perceived corporate reputation on the relationships between corporate hypocrisy and consumers’ attitudes toward the company. We asked a sample of respondents in Australia (n =518) to respond to a real CSR campaign launched by a beer company. The results showed that CSR belief mediates the relationship between corporate hypocrisy and consumers’ attitudes toward the company. The results indicated a perception that companies may use CSR to try to shift the blame from producers to users. The results of this study provide guidelines for managers, social marketers, and public policy makers on how to create and evaluate companies’ CSR campaigns. The results of this study contribute to the debate on how consumers respond to various CSR campaigns as well as the intended or unintended consequences of CSR in directing consumers’ attention away from the negative impacts businesses have on society.     

The Sarbanes-Oxley Act Will Change the Governance of Non Profit Organizations

As a public director of a NASDAQ stock exchange listed public corporation, I have seen how quickly the reforms in corporate governance imposed by the Sarbanes-Oxley Act have changed procedures and policies in public corporations. In areas such as transparency of financial records and other financial matters including compensation of top executives and conflict of interest policies affecting both corporate boards of directors and employees of the corporation the reforms of this new federal law have quickly changed corporate practices in many corporations. Many persons who have studied this new law believe that these changes will benefit the public, shareholders, employees, and other stakeholders in the modern corporation by increasing the reputation of these organizations for integrity and transparency. Stock exchanges such as NASDAQ and the New York Stock Exchange now require all listed companies to have (after a transition time) a majority of independent directors on their boards of directors. Only independent directors may serve on the audit, nominating and compensation committees of boards in most cases. Some exceptions are made to these rules for foreign and domestic issues of companies where a majority of the voting power is held by one person. According to Morrison & Foster LLP, Corporate Board Advisory March , 2004, NASDAQ requires that the board of directors of a listed company determine that an independent director does not have a relationship that would “interfere with the exercise of independent judgment” in carrying out the responsibilities of a director. Donald Grunewald served as President of Mercy College from 1972 to 1984. He has served as a member of the board of trustees of several colleges and proprietary educational institutions and on the boards of other charitable institutions. Currently he is a member of the Board of Directors of EVCI Career Colleges, Inc., a NASDAQ listed corporation.     

Leadership Discourse, Culture, and Corporate Ethics: CEO-speak at News Corporation

We explore the language of leadership of global media mogul Rupert Murdoch in 2010, the year before the phone-hacking scandal in the UK came to public attention. Subsequent public enquiries in the UK exposed unethical conduct by staff of News Corporation, a global corporation whose Chairman and CEO was Rupert Murdoch. We focus on the ethical climate fashioned by ‘A Letter from Rupert Murdoch’ that appeared in the opening pages of the annual report of News Corporation for the year ended 30 June 2010. Plausibly, Murdoch’s discourse in that letter helped condition the inapt, unethical conduct of News Corporation staff. We highlight the cultural and ethical signs that were embedded in Murdoch’s letter and which reflected the company’s tone at the top and ethical values. We identify signs of a perverse leadership thinking that possibly help explain the inappropriate cultural values and ethical behaviours that were revealed subsequently in evidence presented to public inquiries.     

A Study on IPO of CITIC Securities Company

On January 6, 2003, CITIC Securities Co., Ltd. (CITICS hereafter) issued A-shares in the Shanghai Stock Exchange to become the first public listed securities company through IPO in China. CITICS’s net capital rose to about 5 billion yuan, much higher than any other competitor. This teaching case aims to demonstrate how a company gains first-mover advantage as being the first company to go public in an industry, how its competitors respond by changing their strategies after the IPO, and consequently, how a series of relevant events influence the competition. This case offers important implications for understanding the competitive dynamics of a securities company in China.     

中国国有上市公司治理结构的探析

公司治理结构作为现代上市公司企业制度的核心,在促进中国上市公司发展方面发挥着重要的作用。当前,中国国有上市公司治理结构存在一定的问题,严重阻碍了上市公司的发展。中国国有上市公司要优化股权结构,规范公司的运作,增强董事会的独立性、有效性和强化董事会外部监督作用,建立有效的激励和监督约束机制。     

Decision-making problems of the council of agriculture ministers

Joint decisions each year on agricultural prices by the Council of Ministers of Agriculture are a requisite of the European Community’s Common Agricultural Policy. It is however more and more difficult to reach joint decisions on these prices. Divergencies of national aims and economic starting positions (in regard to growth, inflation, unemployment, balance of payments position) are often held responsible for this fact in the public discussion. While not questioning the relevance of these factors the present contribution focuses on the importance of institutional rules for the divergence of national interests.     

Not walking the talk? How host country cultural orientations may buffer the damage of corporate values’ misalignment in multinational corporations

We argue that a perceived misalignment between a multinational corporation’s espoused values and how those values are lived in the subsidiary has detrimental effects on group outcomes, specifically groups’ affective organizational commitment. Using data from 1760 work groups in the foreign subsidiaries of a large European MNC, we find support to our hypotheses and show that when there is a misalignment between a particular espoused value and the lived value, and the value at stake is central to the value system of the country in which the subsidiary is located, the detrimental effect on the group’s outcomes is more pronounced.     

Corporate Responsibility for Economic,Social and Cultural Rights: Rights in Search of a Remedy?

It is no longer a revelation that companies have some responsibility to uphold human rights. However, delineating the boundaries of the relationship between business and human rights is more vexed. What is it that we are asking corporations to assume responsibility for and how far does that responsibility extend? This article focuses on the extent to which economic, social and cultural rights fall within a corporation’s sphere of responsibility. It then analyses how corporations may be held accountable for violations of such rights. Specifically, the article considers the use of soft law as a protective mechanism; it also details how victims of harmful corporate behaviour are using litigation (pursuant to ATCA and common law domestic causes of action) to seek redress and recognition of the harms they have directly or indirectly experienced. The article concludes with an analysis of Professor Ruggie’s (the United Nations Special Representative on the issue of transnational corporations and human rights) 2008 and 2009 Reports in which it is suggested that a respect-based framework must be interpreted as imposing proactive requirements on companies to prevent the infringement of human rights. Future efforts must also be directed towards the recognition of a specialised complementary corporate responsibility to protect human rights.     

基于经济伦理视角的我国上市公司过度融资问题研究

上市公司过度融资现象在我国普遍存在,基于经济伦理的视角,上市公司过度融资的危害体现在以下方面：控股股东在义利观方面的倒置导致公司经营业绩下降;上市公司义利关系的扭曲恶化了公司治理机制;义利观模糊状态下政府监管不到位严重阻碍经济社会的健康发展。上市公司过度融资产生的根本原因是不健全的股权结构安排,上市公司伦理责任的缺失和政府经济伦理意识的不健全分别是其产生的内外原因。只有有效增强公司股东和政府部门经济伦理意识,并不断健全以职业经理人市场及相应监管制度为代表的制度安排,才能克服企业过度融资现象,实现宏观与微观经济的良性互动。     

Corporate communication,sustainability, and social media: It's not easy (really) being green

This empirical research explores how 16 global corporations from four different industry sectors—retail, technology equipment, food/beverage/tobacco, and consumer goods—use social media platforms and corporate social responsibility (CSR) reports to communicate about sustainability. Facebook, Twitter, CEO letters from annual reports and CSR/sustainability reports, and other company documentation are examined to compare the content and scope of these firms’ corporate communication. The sample is divided into two subsamples (Green and Not Green firms) using Newsweek's Greenest Company 2012 rankings, and compared for differential use of social media and corporate reports. Results show that communication varies across firm and industry regarding types of sustainability initiatives reported, metrics employed, and communication media utilized, and that Green firms are more active than Not Green firms both in addressing sustainability and in general social media activity. Implications are discussed herein and recommendations are presented for companies seeking to better understand the effective use of social media and sustainability communication.     

Store Manager–Store Performance Relationship: A Research Note

Despite the critical role that store managers play in linking top management teams and service/retail employees, as well as in fulfilling corporate strategy within chain store environments, service management research infrequently addresses the factors that may promote store managers’ effective exchange relationships within the firm and subsequent effects on store operations and profitability. This study focuses on how store managers’ performance orientation, trust of a regional manager’s capabilities, and organizational commitment affect a manager’s relationships relative to regional managers and frontline employees. The direct effect of store managers’ relationship capacity on store performance is also examined. The results, based on survey data from managers of stores of a retail and service chain and company financial reports, generally support the suggested hypotheses. Specifically, a store manager’s relationship with his/her supervisor has a strong influence on how the manager views the supervisor’s leadership support and leadership style, which ultimately influence store performance (primary goods/service sales and store profits).     

Cadbury and the rise of the supermarket: innovation in marketing 1953–1975

This article uses company archival data, supported by evidence from the trade press, to examine the development of the manufacturer–retailer relationship in the case of Cadbury and the supermarket retailers distributing its products in the period 1953–1975. It reveals the influence upon Cadbury’s marketing strategies and practices of the increasing importance of supermarket retailing in relation to the confectionery as well as the grocery goods trades. It also provides new insight into the significance of these changes for Cadbury’s relationships with other manufacturers, and with small-scale retailers typified by confectioners, tobacconists and newsagents.     

体育用品制造企业物流管理的个性特征——以李宁为例

本文运用文献资料法、调查法等方法,对体育用品制造企业——李宁物流进行探讨。总结了其物流分拨时间短、效率高的原因,即物流管理上的个性特征。结果表明,李宁物流管理的特点主要表现在:以3PL为标准的物流操作、精心挑选物流公司、严格的绩效考核、重视仓库与配送中心的建设、实现安全库存、信息化助力等。     

Management caveats for measuring and assessing public responsibility performance

More and more, stakeholders are demanding company performance information in the areas of public responsibility. Unfortunately, as companies report these activities, stakeholders, rather than being satisfied, are increasingly demanding additional information. Management is then left wondering why actions meant to satisfy lead instead to greater dissatisfaction. Often, managers do not understand what steps to take in developing good measurement and assessment plans and communicating performance results. This article presents fourteen caveats in a checklist for managers to use as they go through this process. Recommendations for deciding what to measure, developing and interpreting appropriate metrics, setting benchmark standards, building learning systems, developing policies for inclusion of external stakeholders, and communication are given.     

Framing the Corporation: Royal Dutch/Shell and Human Rights Woes in Nigeria

Transnational corporations are often implicated in conflicts over environmental problems and human rights in developing countries. As a result they become targets of both local and transnational campaigns. Given the lack of resources and influence of local activists, campaigning groups often turn to consumer audiences abroad to pressurize a certain company or brand. That requires agenda-setting and “framing” of the issues concerned in order to gain consumers’ attention. Local activists and campaigning groups use the public sphere to call attention to allegedly dubious corporate policies and practices that lie behind the consumer goods offered for sale in the Western world. Based on an analysis of the public discourse about the operations of the oil multinational Royal Dutch/Shell in Nigeria in the year 1995, this paper suggests that once the corporation is framed as a moral actor, it gets difficult for the corporation to deny its responsibility for human rights—even though the actual influence of the corporation may be limited.

Case Study in the Evolution of Sustainability: Baxter International Inc.

Baxter International Inc. (Baxter) is a global, diversified healthcare company based in Deerfield, IL. In 2011, Baxter had sales of $13.9 billion and employed approximately 48,500 people worldwide (Baxter’s 2011 Sustainability Report). Baxter is also recognized for its efforts toward environmental/sustainability performance and reporting. The company defines sustainability as ‘a long-term approach to including our social, economic and environmental responsibilities among our business priorities. Baxter’s efforts in this area align with and support our mission of saving and sustaining lives.’ This case study attempts to analyze the progress of the company on its journey along the path toward sustainability. The formal environmental initiatives at Baxter were started in the 1970s. The acquisition of American Hospital Supply Corporation intensified the environmental challenges for the company. A new environmental course was set in the 1990s that led to the development of the State-of-the-Art (SOA) Environmental Standards. At this time, the company started measuring its efforts and began publishing an Environmental Financial Statement in its annual public Environmental Report. In 2005, an executive level Sustainability Steering Committee was proposed and subsequently created in 2006 to accelerate the integration of sustainability within all facets of the organization. This case study articulates the evolution of Sustainability at Baxter Inc. As a result of its efforts, Baxter has received numerous awards and accolades for its efforts in sustainability performance and reporting. For example, in 2011 Newsweek Magazine ranked Baxter the 4th greenest company in the United States (Newsweek Magazine, October 17, 2011, accessed online at http://www.baxter.com/press_room/features/2011/newsweek_green_rankings.html). Going forward, it would be noteworthy to see whether Baxter can keep up its momentum and continue to be a sustainability leader.     

基于服务价值的快递企业竞争力实证研究

通过文献研究总结归纳出服务价值的四个维度:服务质量、感知利失、企业形象、情感价值,构建了基于服务价值的快递企业竞争力概念模型,探讨了服务价值的四个维度与顾客满意和企业竞争力的关系,并运用结构方程对模型的假设关系进行了验证。结果表明,服务价值的四个维度均对顾客满意有显著影响进而对企业竞争力产生影响。