CSR in multiple environments: the impact of headquartering

2014 ◽  
Vol 10 (3) ◽  
pp. 124-151 ◽  
Author(s):  
Ralf Barkemeyer ◽  
Frank Figge
Keyword(s):  
Decision Making ◽  
International Business ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Organizational Legitimacy ◽  
Strategic Decision ◽  
Content Type ◽  
Corporate Social ◽  
Global And Local ◽  
The Impact

Purpose – This paper aims to argue that the on-going professionalization and dissemination of the current wave of corporate social responsibility (CSR) concepts and instruments leads to a headquartering effect, i.e. the concentration of CSR-related decision-making within corporate headquarters. This headquartering effect casts doubt on earlier studies suggesting that the “transnational” or “glocal” model can effectively address the multitude of global and local CSR challenges modern multinational companies (MNCs) face. Design/methodology/approach – This conceptual paper uses a stakeholder lens, in turn, drawing from resource dependence theory and organizational legitimacy theory to develop under which conditions claims of Southern stakeholders will be considered by Northern MNCs. It provides evidence for the existence of a headquartering effect as a defining characteristic of mainstream CSR approaches. Findings – The authors argue that the increasing professionalization and dissemination of mainstream CSR approaches among MNCs reinforce the headquartering effect, with strategic decision-making increasingly confined to the companies’ headquarters, while the scope of action within the subsidiaries and the supply chain of MNCs becomes increasingly restricted over time. Ultimately, this headquartering effect strengthens a Northern CSR/sustainability agenda and fails to empower developing country stakeholders. Originality/value – The paper contributes by exploring how international CSR follows a different underlying rationale than international business. While international business research follows an instrumental perspective, international CSR is driven by both instrumental and normative considerations. Thus, international business theories may not be directly applicable to international CSR contexts.

Understanding how the contextual variables influence political behaviour in strategic decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 226-250 ◽  
Author(s):  
Said Elbanna ◽  
Ioannis C. Thanos ◽  
Vassilis M. Papadakis
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Empirical Examination ◽  
Content Type ◽  
Political Behaviour ◽  
Practitioner Education ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to enhance the knowledge of the antecedents of political behaviour. Whereas political behaviour in strategic decision-making (SDM) has received sustained interest in the literature, empirical examination of its antecedents has been meagre. Design/methodology/approach – The authors conducted a constructive replication to examine the impact of three layers of context, namely, decision, firm and environment, on political behaviour. In Study 1, Greece, we gathered data on 143 strategic decisions, while in Study 2, Egypt, we collected data on 169 strategic decisions. Findings – The evidence suggests that both decision-specific and firm factors act as antecedents to political behaviour, while environmental factors do not. Practical implications – The findings support enhanced practitioner education regarding political behaviour and provide practitioners with a place from which to start by identifying the factors which might influence the occurrence of political behaviour in SDM. Originality/value – The paper fills important gaps in the existing research on the influence of context on political behaviour and delineates interesting areas for further research.

scholarly journals Women on corporate boards and allocation of capital raised through IPOs

2019 ◽  
Vol 57 (3) ◽  
pp. 547-568 ◽  
Author(s):  
Bazeet Olayemi Badru ◽  
Nurwati A. Ahmad-Zaluki ◽  
Wan Nordin Wan-Hussin
Keyword(s):  
Decision Making ◽  
Governance Structure ◽  
Capital Allocation ◽  
Strategic Decision ◽  
Corporate Boards ◽  
Content Type ◽  
Investment Opportunities ◽  
Women On Corporate Boards ◽  
The Impact ◽  
A Company

Purpose The purpose of this paper is to examine whether the differences in men and women, such as risk aversion in decision making, can influence the amount of capital that the board of directors can allocate for investment opportunities. Design/methodology/approach This study sampled 212 IPOs over the period of 2005–2015 and employed the OLS and the quantile regression techniques to examine the impact of female directors on capital allocation. Findings The results show that women on corporate boards have a positive influence on the amount of capital an IPO company can allocate for investment opportunities. These findings suggest that the investment strategies of women in an emerging financial market, like Malaysia, may differ from women in other financial markets. Practical implications The presence of women on corporate boards plays an important role in board involvement in a company’s strategic decision at the time of the IPO. Therefore, regulators and IPO issuers should pay close attention to the corporate governance structure of a company at the time of an IPO. In addition, investors and other stakeholders of a company may consider women on corporate boards as an important factor in financing and investment decisions. Originality/value Despite several studies that have examined the influence of women on corporate boards on corporate outcomes, globally, the presence of women on corporate boards and their influence on corporate decision-making related to allocation of capital to investment opportunities, have not been fully explored in the IPO literature.

Do board interlocks support monitoring effectiveness?

2019 ◽  
Vol 42 (11) ◽  
pp. 1278-1296 ◽  
Author(s):  
Franziska Handschumacher ◽  
Maximilian Behrmann ◽  
Willi Ceschinski ◽  
Remmer Sassen
Keyword(s):  
Panel Data ◽  
Resource Dependence ◽  
Pay For Performance ◽  
Resource Dependence Theory ◽  
Risk Governance ◽  
Data Set ◽  
Content Type ◽  
Board Interlocks ◽  
Performance Sensitivity ◽  
The Impact

Purpose This paper aims to investigate the relationship between board interlocks and monitoring effectiveness for listed German companies in a context of risk governance. While agency-theory and resource-dependence-theory suggest a positive association between board interlocks and monitoring effectiveness, reasons such as limited temporal resources of busy board members may suggest a negative association. Design/methodology/approach By using panel data regression, the authors examined the association between board interlocks and monitoring effectiveness, which was approximated by excessive management compensation, pay-for-performance-sensitivity and CEO turnover-performance-sensitivity. The data set comprises 3,998 directorships for 132 listed German companies covering the period 2015-2017. Findings The authors find that board interlocks are associated with not only a more excessive management pay and less performance-sensitive turnover but also a higher pay-for-performance-sensitivity. Originality/value The study examines the impact of multiple directorships based on a German panel data set that includes both multiple appointments of members to national supervisory boards and all other appointments to national and international executive and supervisory bodies. The authors compile three measures to operationalize monitoring effectiveness.

Strategic implications of HR role management in a dynamic environment

2016 ◽  
Vol 45 (2) ◽  
pp. 353-373 ◽  
Author(s):  
Cathy Sheehan ◽  
Helen De Cieri ◽  
Brian Cooper ◽  
Tracey Shea
Keyword(s):  
Decision Making ◽  
Role Conflict ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Role Overload ◽  
Environmental Dynamism ◽  
Content Type ◽  
Hr Role ◽  
The Impact ◽  
Role Management

Purpose – The purpose of this paper is to consider the impact of human resource (HR) role overload and HR role conflict on the HR function’s involvement in strategic decision making and to examine whether conditions of environmental dynamism moderate the impact of HR role conflict and HR role overload in that relationship. Design/methodology/approach – The authors collected data from two sources, senior HR and top management team (TMT) executives. A total of 180 HR executives and 109 TMT members completed the survey. In all, 102 organisations were included in the sample with matched HR executive and TMT responses. Findings – Results did not support hypothesised negative relationships between HR role management and involvement in strategic decision making but did establish the moderating effect of environmental dynamism, such that these associations were more negative at higher levels of dynamism. Research limitations/implications – The cross-sectional nature of the study precludes making inferences about causality and would need to be replicated with a longitudinal design before stronger inferences could be drawn with regard to the relationships between the variables. A strength of the study however is the use of two sources of data to address the issue of common method variance. Practical implications – The research has implications for the potential value that HR provides in dynamic environments and the risk that HR role conflict and overload pose to the contribution that HR can make during these periods. Originality/value – The research shifts the focus away from the definition of HR roles to considering how these roles are enacted and kept in balance.

Board structure: an empirical study of firms in Anglo-American governance environments

2014 ◽  
Vol 40 (7) ◽  
pp. 681-699 ◽  
Author(s):  
M.I. Muller-Kahle ◽  
Liu Wang ◽  
Jun Wu
Keyword(s):  
Firm Value ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Board Independence ◽  
Board Structure ◽  
Board Size ◽  
Content Type ◽  
The Usa ◽  
The Uk ◽  
The Impact

Purpose – With boards of directors playing both monitoring and guidance roles, the purpose of this paper is to examine the impact of board structure on firm value in large US and UK firms using the lenses of agency and resource dependence theories. Design/methodology/approach – Using a sample of firms in the USA and the UK from 2000 to 2007, the paper conducts a panel data analysis of the impact of board structure on firm value and examine the nuances of different governance environments. Findings – The paper finds distinct differences in the impact of board independence, board size, and outside director busyness on firm value between UK and US firms. Specifically, the paper finds that board independence, board size, and board busyness all have a significant positive impact on firm value in the UK. However, the paper finds no significant relationship between board independence and firm value among US firms. Both board size and board busyness are found to be positively associated with firm value in the USA. Social implications – The paper finds strong support for resource dependence theory in the UK but limited support for agency theory in the USA. Originality/value – This paper takes a multi-country approach to examining the impact of board structure on firm value.

A novel technique for evaluating and ranking green airlines: benchmarking-base comparison

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saleh Fahed Alkhatib ◽  
Yazan Khalid Abed-Allah Migdadi
Keyword(s):  
Decision Making ◽  
Content Type ◽  
Cause And Effect ◽  
Green Strength ◽  
Novel Approach ◽  
Global And Local ◽  
The Impact ◽  
Hierarchy Process ◽  
Ranking Technique

PurposeThis study aims to evaluate and rank green airlines by proposing a novel approach that integrates different multi-criteria decision-making (MCDM) techniques.Design/methodology/approachThree MCDM techniques were adopted: Decision-Making Trial and Evaluation Laboratory (DEMATEL) addressed the impact relationships between Airline Green Operations (AGOs) and classified them into cause and effect; analytical hierarchy process (AHP) prioritized these actions and found their global and local weights; and Techniques to Order Preferences by Similarity to Ideal Solution (TOPSIS) used the weighted actions to evaluate and rank 20 green airlines as a case study.FindingsDEMATEL outcomes provide the first AGOs impact relationships map (IRM), classify AGOs into cause and effect actions and provide better understanding how these green operations affect each other. According to the AHP outcomes, “GHG1and fuel” and “GHG2 and Energy” were the most important set of actions, respectively. Finally, a new evaluation and ranking for 20 green airlines has been presented.Practical implicationsThe AGOs IRM provides a better understanding of the airline green operations and how they affect each other. The new evaluation and ranking technique helps airlines to identify their green strength and weakness areas and supports their sustainability processes.Originality/valueThe increasing importance of AGOs evaluation and analysis highlights the importance of green airlines studies like this one. This study analyzed AGOs, their impact relationships, developed their IRM and provided a new worldwide green airline benchmarking base.

Affective states and ecological rationality in entrepreneurial decision making

2016 ◽  
Vol 31 (7) ◽  
pp. 1182-1197 ◽  
Author(s):  
Oana Catalina Fodor ◽  
Petru Lucian Curşeu ◽  
Alina Maria Fleştea
Keyword(s):  
Decision Making ◽  
Design Methodology ◽  
Strategic Decision ◽  
Ecological Rationality ◽  
Affective States ◽  
Content Type ◽  
Final Sample ◽  
Initial Support ◽  
Entrepreneurial Decision ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of affective appraisal dimensions on the use of two ecologically rational, social heuristics: imitate the majority (IMH) and imitate the best (IBH) during an entrepreneurial strategic decision-making process (ESDM). Design/methodology/approach The authors test the hypotheses in a controlled field experiment, on a final sample of 98 entrepreneurs. Findings The study shows that entrepreneurs experiencing affect described by certainty appraisal display a preference for relying on IMH, but not on IBH. Moreover, entrepreneurs who experience unpleasant affect tend to rely more on IMH, rather than IBH. The reverse is true for the entrepreneurs who experience positive affect. Finally, the use of IMH is most likely under unpleasant and certain affect, while the use of IBH is most likely under pleasant and certain affect. Originality/value The main contribution of this study is that it provides initial support for the impact of affective appraisal dimensions on the use of ecologically rational heuristics (i.e. heuristics that save important resources, but bring beneficial results) during an ESDM process.

Corporate Social Responsibility Actions and Organizational Legitimacy at the Peak of COVID-19: a Sentiment Analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Davide Giacomini ◽  
Mattia Martini ◽  
Alessandro Sancino ◽  
Paola Zola ◽  
Dario Cavenago
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Sentiment Analysis ◽  
Organizational Legitimacy ◽  
Positive Interactions ◽  
Content Type ◽  
Strategic Approach ◽  
News Agencies ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to analyse stakeholder sentiment about the corporate social responsibility (CSR) actions implemented by Italian companies between February 20, 2020 and April 20, 2020, which was the first peak in the outbreak of the COVID-19 health emergency in Italy. Design/methodology/approach Using sentiment analysis, the impact of COVID-19 on CSR actions is analysed through reactions to the news published on Twitter by a sample of Italian news agencies. Findings The analysis indicates that the actions most appreciated are those that are more radical, e.g. where the company has converted part of its production to make goods that are useful in dealing with the COVID-19 emergency. The study identifies a new category of actions definable as “crisis-shaped CSR.” Practical implications This is one of the first studies concerning the effects of the pandemic on both CSR actions and organizational legitimacy. Originality/value This work explains which strategic approach to CSR is the most effective in supporting corporate reputation in times of crisis, this study identified which of the CSR initiatives adopted by companies in Italy were more effective in stimulating positive interactions and sentiment among the general public.

scholarly journals The impact of mood on decision-making process

2017 ◽  
Vol 12 (3) ◽  
pp. 242-257 ◽  
Author(s):  
Tony Gear ◽  
Hong Shi ◽  
Barry J. Davies ◽  
Nagah Abdlelaziz Fets
Keyword(s):  
Decision Making ◽  
Emotional State ◽  
Strategic Decision ◽  
Dominant Factor ◽  
Decision Making Process ◽  
Strategic Decisions ◽  
Content Type ◽  
Future Studies ◽  
Relational Factors ◽  
The Impact

Purpose The purpose of this paper is to explore and analyze relationships between contextual factors, and micro-cognitive, emotional and relational factors, influencing the strategic decision-making process. Design/methodology/approach The relative roles of “rationality,” “intuition” and “political behavior” in five recent and critical strategic decisions have been explored using 16 semi-structured interviews with senior decision-makers in three Middle Eastern Arabic commercial banks. Findings Context specific macro-factors were found to influence the emotional state of strategists, leading them to adopt a rational approach, rather than use intuitive judgment, to making all five decisions. Research limitations/implications The study was limited to one contextual situation and business sector in order to maintain these variables relatively constant, with proposals for extending studies to other business situations and contexts. Practical implications The paper provides evidence for the impact of micro emotional and relational factors on decision-making practice, which should lead to increased recognition for strategists, and organizations, of the importance of these influences on strategic decision practice. Social implications A social implication is that organizations should build a level of awareness of the impact of the mood of strategists who are involved with strategic decisions, perhaps through appropriately designed social processes of organizational learning. Originality/value The paper examines the little-researched influence of the mood of strategists on the nature of decision-making process, and demonstrates the importance of including emotional factors in future studies. An explanatory framework is developed which is consistent with an interpretation that places the emotional state (mood) of “concerned attention” which existed within the senior management groups as the dominant factor driving the nature of process. A generalized research framework is proposed to aid future studies of strategic processes.

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