The Governance of Corporate Sustainability: Empirical Insights into the Development,Leadership and Implementation of Responsible Business Strategy

This article explores how corporate governance processes and structures are being used in large Australian companies to develop, lead and implement corporate responsibility strategies. It presents an empirical analysis of the governance of sustainability in fifty large listed companies based on each company’s disclosures in annual and sustainability reports. We find that significant progress is being made by large listed Australian companies towards integrating sustainability into core business operations. There is evidence of leadership structures being put in place to ensure that board and senior management are involved in sustainability strategy development and are then incentivised to monitor and ensure implementation of that strategy through financial rewards. There is evidence of a willingness to engage and communicate clearly the results of these strategies to interested stakeholders. Overall, there appears to be a developing acceptance amongst large corporations that efforts towards improved corporate sustainability are not only expected but are of value to the business. We suggest that this is evidence of a managerial shift away from an orthodox shareholder primacy understanding of the corporation towards a more enlightened shareholder value approach, often encompassing a stakeholder-orientated view of business strategy. However, strong underlying tensions remain due to the insistent market emphasis on shareholder value.     

The Urgency and Necessity of a Different Type of Market: The Perspective of Producers Organized Within the Fair Trade Market

The development of the certified Fair Trade market was initiated by a group of indigenous communities in Mexico. Over time, their vision of Fair Trade as a different type of market has become increasingly marginalized by an emphasis on poverty reduction. This article presents their understanding of what Fair Trade should and should not be. It presents the key principles of the Fair Trade market as effectiveness, ecological sustainability, social sustainability, and more direct producer–consumer relationships. The key challenges that confront Fair Trade in living up to these principles are the need to democratize the formal structures of Fair Trade so as to give a greater voice to small producers and to link with other social movements to confront the dominant neo-liberal trade regime.     

Strategic and Regulatory Approaches to Increasing Women in Leadership: Multilevel Targets and Mandatory Quotas as Levers for Cultural Change

While substantial evidence is emerging internationally of positive increases in the participation of women on company boards, there is less evidence of any significant change in the proportion of women in senior executive ranks. This paper describes evidence of positive changes in the number of women on boards in Australia. Unfortunately these changes are not mirrored in the senior executive ranks where the proportion of women remains consistently low. We explore some of the reasons for these disproportionate changes and examine the likely effect of the recent amendments to the Australian stock exchange’s corporate governance code designed to improve gender diversity both on boards and throughout organisations. Based on the early corporate response to these regulatory changes, it is interesting to consider whether Australia’s approach in promoting voluntary self-regulation at the corporate level may be as effective in the long run as the emerging trend in Europe to apply legislated quotas for female corporate board representation. Interview evidence is presented suggesting that the primary reasons for the lack of women in leadership are not simply lack of opportunity at the apex of the corporation, but issues at mid-management level that are unlikely to be resolved by mandatory board quotas. In some circumstances carefully monitored voluntary targets may be more effective at promoting cultural and strategic change at the heart of the corporation. In summary, mandatory quotas (set through hard law usually with sanctions for noncompliance) may achieve early and significant results in terms of female board representation. However, voluntary targets for women’s participation on boards and in executive ranks (proposed in soft regulation such as corporate governance codes and set as part of corporate strategy) may promote more effective cultural and practical change in support of greater representation of women in leadership.     

Tensions within an Industrial Research Laboratory: The Philips Laboratory's X-Ray Department between the Wars

Tensions arose in the X-ray department of the Philips researchlaboratory during the interwar period, caused by the interplayamong technological development, organizational culture, andindividual behavior. This article traces the efforts of Philipsresearchers to find a balance between their professional goalsand status and the company's strategy. The X-ray research, overseenby Gilles Holst, the laboratory's director, and Albert Bouwers,the group leader for the X-ray department, was a financial failuredespite technological successes. Nevertheless, Bouwers was ableto continue his X-ray research, having gained the support ofcompany owner Anton Philips. The narrative of the X-ray departmentallows us to explore not only the personal tensions betweenHolst and Bouwers, but also the interaction between individualgoals and company strategy in an industrial research laboratory.