ESG push will help improve diversity in US companies

2021 ◽  
Keyword(s):  
Executive Compensation ◽  
Labour Market ◽  
Reporting Standards ◽  
Content Type ◽  
Diversity And Inclusion ◽  
Disclosure Requirements ◽  
Form Part ◽  
International Coordination ◽  
Stakeholder Pressures

Significance Policy, disclosure requirements and stakeholder pressures, particularly from investors, push them in that direction. The exception is diversity and inclusion, which form part of corporate responses to the competition for talent and labour market tightness. Rebalancing environmental, social and governance (ESG) progress requires realigning the incentives. Impacts Efforts will intensify for international coordination on ESG reporting standards and auditing. Executive compensation will increasingly be linked to meeting ESG goals but this will need close investor scrutiny of authenticity. If banks expand sustainability loans beyond green projects, it will mitigate corporate prioritisation of environmental over other ESG aims.

SEC proposes new compensation clawback rules

2015 ◽  
Vol 16 (4) ◽  
pp. 43-46 ◽  
Author(s):  
Andrew Brady ◽  
Rolf Zaiss ◽  
Nyron Persaud
Keyword(s):  
Executive Compensation ◽  
Financial Reporting ◽  
Securities And Exchange Commission ◽  
Stock Exchanges ◽  
Wall Street ◽  
Content Type ◽  
Consumer Protection Act ◽  
Disclosure Requirements ◽  
New Public ◽  
Expert Analysis

Purpose – To examine the proposed rules issued by the Securities and Exchange Commission (SEC) pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which, if adopted, would require national stock exchanges to establish listing standards that would require listed issuers to adopt so-called clawback policies for the recovery of excess incentive-based compensation in the event that an issuer is required to prepare an accounting restatement resulting from material noncompliance with any financial reporting requirement. Design/methodology/approach – The article discusses the SEC’s proposed rules, including the circumstances that would require recovery of excess incentive-based compensation, the types of compensation that, and the individuals whose compensation, would be subject to recovery, and certain new disclosure requirements for listed issuers. Findings – The SEC’s proposed rules will, if adopted, impose additional burdens on listed issuers to adopt and comply with recovery policies for excess incentive-based compensation and adhere to new public disclosure requirements. Originality/value – Expert analysis from experienced securities and executive compensation lawyers.

“Making up” workers in an inclusive organisation

2014 ◽  
Vol 33 (3) ◽  
pp. 249-260 ◽  
Author(s):  
Dorte Boesby Dahl
Keyword(s):  
Labour Market ◽  
Participant Observation ◽  
Unintended Consequences ◽  
Social Constructionist ◽  
Content Type ◽  
Diversity And Inclusion ◽  
The Social ◽  
Inclusive Policy ◽  
Empirical Context ◽  
Inclusion And Diversity

Purpose – The purpose of this paper is to investigate the unintended consequences of managing inclusion and diversity and how these unintended consequences relate to organisation members’ mediation between work tasks and practices of inclusion and diversity. Design/methodology/approach – The study uses critical diversity and inclusion studies as the theoretical context and a Danish municipal centre responsible for parking patrol as the empirical context. The researcher has conducted interviews and participant observation in this organisation and particularly analyses the “making up” of abstract categories of employees and the mundane “making of” employees in the light of diversity and inclusion practices. Findings – The analysis shows that parking attendants are “made up” as an increasingly professionalised brand and that the inclusive policy of diversity becomes part of this brand. However, the study also shows that in spite of this external brand, local and internal practices of inclusion and diversity create categories of people that employees may avoid or resist and some that carry unfulfilled promises of inclusion. Moreover, an internal image of the parking attendant as a person on the edge of the labour market persists internally in spite of the effort to brand this person otherwise externally. Originality/value – The paper applies the notion of “making up” people, to accommodate critique of the social constructionist approach, that is common to much critical research on diversity and inclusion. Furthermore, the paper agitates for “bringing work back in” to the study of diversity and inclusion and does this by focusing on the work of parking attendants. Given that this work is formally unskilled, the organisation represents an example of a workplace that represents a gateway to the Danish labour market, which makes the management and organisation of inclusion very pertinent. The paper provides new perspectives, particularly in terms of the unintended consequences of inclusion in organisations.

Aggregate financial disclosure practice: evidence from the emerging capital market of Kuwait

2018 ◽  
Vol 19 (4) ◽  
pp. 626-647 ◽  
Author(s):  
Issa Dawd
Keyword(s):  
Financial Reporting ◽  
Voluntary Disclosure ◽  
Multivariate Regression ◽  
Emerging Market ◽  
Developed Countries ◽  
Reporting Standards ◽  
Mandatory Disclosure ◽  
Content Type ◽  
Disclosure Requirements ◽  
Disclosure Practice

PurposeThe purpose of this paper is to evaluate the mandatory and voluntary disclosure practice and its determinants in Kuwait, an emerging market that applies International Financial Reporting Standards (IFRS).Design/methodology/approachThe study employs two main methods: an index-based analysis of mandatory, voluntary and aggregate disclosure as well as univariate and multivariate regression analysis of the determinants of disclosure levels.FindingsThe results show that the average aggregate disclosure level is 44 per cent. None of the sample companies complied fully with the disclosure requirements of IAS/IFRS. The extent of voluntary disclosure is also relatively low, although the documented amount represents an increase on that revealed in earlier studies in Kuwait. The multivariate regression results reveal that firm size is positively associated with voluntary disclosure, while mandatory disclosure is negatively linked to profit.Research limitations/implicationsThe findings are based on evidence from a single country and further work is needed to ascertain the extent of generalisability.Practical implicationsThe results of the study have implications for policy makers, professional accounting bodies and regulators as they contribute to the debate on to develop and encourage both compliance with mandatory disclosure requirements and voluntary practice. The evidence also has implications for attempts to derive full understanding of the factors driving disclosure practices in the developing world, and how these differ from behaviour in the world’s richest nations.Originality/valueThe study contributes to the existing literature in the area in two main ways. First, as compliance with mandatory disclosure requirements in developed countries is total (or near to total) in most cases, it has been the subject of little empirical enquiry. By focussing instead on a developing nation – one that has adopted IFRS – the analysis facilitates the provision of novel evidence regarding both the nature and determinants of failure to follow disclosure rules. Second, prior studies generally fail to distinguish between financial and non-financial firms, despite differences in reporting standards and norms across the two groups; the present study makes this distinction.

Still focusing on the “essential 2:1”: exploring student attitudes to extra-curricular activities

2015 ◽  
Vol 57 (2) ◽  
pp. 184-203 ◽  
Author(s):  
Paul Greenbank
Keyword(s):  
Labour Market ◽  
Student Attitudes ◽  
Student Participation ◽  
Small Sample ◽  
Peer Norms ◽  
Market Outcomes ◽  
Content Type ◽  
Factors Influencing ◽  
Extra Curricular Activities ◽  
Degree Classification

Purpose – In order to compete for positional advantage in the graduate labour market students need more than a good degree classification. The evidence suggests that participation in extra-curricular activities (ECAs) can have a significant influence on labour market outcomes. The purpose of this paper is to examine the extent to which undergraduates engage in ECAs during their studies and analyses the factors influencing their participation in such activities. Design/methodology/approach – This study is based on a sample of 21 undergraduates in the Business School at a “new” university. These students completed two questionnaires in their first year of study. These were followed-up by in-depth interviews which were carried out in their first and final year of study. Findings – The study found that many of these students were not participating in ECAs because they lacked an appreciation of the value of ECAs to graduate employers. The students were also influenced by social and peer norms, especially the fact that their peers were not engaging in ECAs. Finally, the students often exhibited an extrinsic locus of control and dependency which was not conducive to engagement in ECAs. Research limitations/implications – The generalisability of the findings may be seen as limited by the fact that the study is based on a relatively small sample of students from one university. This research, however, provides detailed insights into the factors influencing student participation in ECAs and adds new perspectives to this under-researched area. Practical implications – The paper concludes by suggesting a range of inter-related approaches that higher education institutions could adopt in order to improve student participation in ECAs. These include careers education at all stages of the students’ studies; the use of unfreezing techniques in conjunction with case studies; a more substantial role for personal tutors; and the development of an institutional habitus that encourages autonomy and agency. Originality/value – Despite the importance of ECAs to graduate employers there have been relatively few studies into the factors influencing undergraduate participation in such activities.

Are federal single audit reports of internal control weaknesses a useful tool for evaluating management? The case of charter schools

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean Ryberg Bradley ◽  
Dana A. Forgione ◽  
Joel E. Michalek
Keyword(s):  
Charter Schools ◽  
Executive Compensation ◽  
Internal Control ◽  
Boards Of Directors ◽  
Content Type ◽  
External Stakeholder ◽  
Wide Range ◽  
Internal Control Weaknesses ◽  
Single Audit ◽  
The Relationship

PurposeThe authors examine whether reports of internal control weaknesses (ICWs) under federal single audit (FSA) guidelines are a useful tool for evaluating non-profit (NP) management, using a unique nationwide sample of NP charter schools. While prior research focuses on external stakeholder reactions to reported ICWs, little if any research addresses the utility of these reports for internal users. The authors fill this gap in the literature, finding evidence suggesting that NP charter school decision-makers use internal control (IC) reports when setting executive compensation – awarding lower pay increases when deficiencies are reported.Design/methodology/approachThe authors regress executive compensation changes on reported ICWs and likely determinants of NP compensation, including organization size, growth, liquidity and management performance, using a sample of 173 school/year observations representing 113 unique schools for the years 2012–2015.FindingsThe authors find a negative relationship with executive pay increases subsequent to reports of initial and repeated IC deficiencies, indicating that lower than average pay increases are awarded subsequent to reports of ICWs.Research limitations/implicationsInterpretation of the authors' results is subject to several limitations, including the possibility of omitted variable bias and the authors' sample, though it comprises all available data for the sample period, and is relatively small and may be considered exploratory in nature. Further, charter schools represent a unique public/private partnership in the educational sector, and the results may not be generalizable to other NPs. Future research could explore the relationship between reported IC deficiencies and governance in other, broader NP sectors.Practical implicationsThe authors' findings are useful to NP organization boards of directors as they consider what factors to evaluate in their chief executive officer (CEO) compensation decisions. In addition to other criteria, inclusion of IC effectiveness in the CEO reward system is prudent, especially in today's environment of increasingly important information security and IC matters. The results suggest such information is being included. This previously undocumented use is also of particular value to regulators when weighing the costs and benefits of mandating single audits for smaller NPs, who are otherwise unlikely to obtain information on the organization's IC environment.Social implicationsThese findings may help inform the debate regarding NP charter schools, a fast-growing, economically significant and highly controversial sector in public education. Charters are predominantly funded by state and local taxes. As such, the quality of governance in NP charter schools is of interest to a wide range of stakeholders including parents, regulators and the public at large.Originality/valueWhile prior research on ICWs and NPs focuses on external stakeholder reactions to reported ICWs, little if any research addresses the utility of these reports for internal users, especially in relatively smaller organizations. The research leverages the existence of charter schools, which are independent but present nationwide, providing a suitable sample of like organizations. Further, no extant research to the authors' knowledge examines the relationship of NP executive compensation and reported ICWs – a topic previously addressed in the for-profit (FP) literature.

Ecuador prison crisis threatens to escalate

2021 ◽  
Keyword(s):  
Human Rights ◽  
International Human Rights ◽  
Prison Violence ◽  
Content Type ◽  
The Us ◽  
International Coordination ◽  
Drug Cartels ◽  
International Human ◽  
International Investors

Significance The attack, which involved drones, illustrates the evolving tactics of crime groups, and follows a string of violent, sometimes coordinated, incidents at prisons this year. These have resulted in the deaths of over 120 inmates. Prison violence comes alongside rising crime and growing concerns over the strengthening of transnational drug cartels. Impacts Lasso will face increasing pressure from international human rights groups to protect prisoners and improve prison conditions. Rising violence and crime will increase concerns among international investors about the security of investments and risks of extortion. Lasso might seek to exploit improved relations with the US and Colombian governments to strengthen international coordination.

Addressing diversity, equity and inclusion (DEI) through service learning in management education: insights from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaushik Ranjan Bandyopadhyay ◽  
Kasturi Das ◽  
Ritika Mahajan
Keyword(s):  
Service Learning ◽  
Literature Review ◽  
Management Education ◽  
Business Schools ◽  
Theory And Practice ◽  
Social Implications ◽  
Content Type ◽  
Diversity And Inclusion ◽  
Long Run ◽  
Equity And Inclusion

PurposeThe paper makes an endeavour to explore the efficacy of service learning (SL) pedagogy in inculcating the value of diversity, equity and inclusion (DEI) with a focus on management education in India.Design/methodology/approachThe research methodology comprises a systematic survey of select relevant literature on SL and applying a novel approach to bring out certain key traits of SL initiatives. The paper also tries to decipher how the identified key traits could be regarded as contributing to the ethos of DEI among the learners. Based on insights from the systematic literature review and identified research gaps, an in-depth study of three SL initiatives in India, have been undertaken to demonstrate how implementation of the SL pedagogy in management education creates an impact on the attributes of DEI and inculcates an inclusive mindset.FindingsAlthough the design, process and learning outcomes of SL pedagogy varies depending on the context, there is commonality in the core attributes that emerges from the literature review which has a potential impact on inculcation of the values of inclusion and appreciation of diversity. The select case studies successfully expand on the list of these identified relevant attributes. The findings have also been corroborated by participants' reflection.Research limitations/implicationsThe paper is, however, limited in its scope of assessing the impact in creating an inclusive mindset. To gauge whether such impact is pervasive and persists in the long run, one needs to examine if these values are carried forward by the participants in their professional and daily life. It would, therefore, be more meaningful to carry out a primary survey of the participants, who took part in such SL initiatives, to understand whether the values have really been assimilated in the real life. This is outside the scope of this paper but does open the scope for further research.Practical implicationsThe paper would be highly relevant for the accreditation agencies who are increasingly prescribing the role that business schools can and should play towards inculcating the ethos of diversity and inclusion among future business leaders and managers. For the administrators of business schools and other higher education institutions who may be considering how to incorporate the ethos of diversity and inclusion in the curriculum and pedagogy, the paper will provide some direction through the SL route. The detailed exposition of the three SL initiatives will enlighten the administrators or the faculty responsible for designing and delivering any SL programme in other business schools or higher educational institutions as to how to go about developing and delivering such an initiative. To the extent such SL initiatives succeed in leaving a lasting impact on the participants regarding ethos of inclusion and diversity, the business implications in the long run could be immense.Social implicationsThe purpose of the paper by itself establishes its social relevance. The very fact that the paper is focused on SL initiatives that involve social problem-solving approaches through hands-on working on social projects and working with communities the social implications are rather obvious.Originality/valueGiven the paucity of information and analysis on potential fit of SL for fostering DEI especially in developing countries, the present paper contributes to the existing body of literature and aptly fills the void. It builds a theoretical construct relating SL with the traits of DEI and then bridges theory and practice by demonstrating the efficacy of three SL programmes in Indian context to internalise the elements of DEI.

Prospects for the global economy in 2022

2021 ◽  
Keyword(s):  
Labour Market ◽  
Global Economy ◽  
Energy Transport ◽  
Government Intervention ◽  
Supply Side ◽  
Content Type

Significance Services and investment should recover this year but all regions are vulnerable to disruptions. Many supply-side strains will persist, as will the energy, transport and labour market dislocations, which will create shortages, volatile prices and pressure for government intervention.

Community of practice: converting IT graduate students into specialists via professional knowledge sharing

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liana Stanca ◽  
Dan-Cristian Dabija ◽  
Elena Păcurar
Keyword(s):  
Cluster Analysis ◽  
Knowledge Transfer ◽  
Learning Styles ◽  
Labour Market ◽  
Community Of Practice ◽  
Labour Force ◽  
Emerging Market ◽  
Professional Knowledge ◽  
Content Type ◽  
Learning Framework

Purpose The paper aims to highlight how an applied learning framework or “community of practice” (CoP) combined with a traditional theoretical course of study enables the identification of teaching-learning processes which facilitate knowledge transfer from practitioners to graduate information technology (IT) students for quicker integration in the labour market. Design/methodology/approach CoPs are identified based on cluster analysis according to Kolb’s Learning Style Inventory (1984), with data obtained through a survey. Empirical research is applied to the CoP developed within a non-formal learning framework, principal new actors being IT specialists linked to graduate IT students and teachers on a traditional university course. Graduate IT students can gain knowledge of the ideal employee and the social and emotional skills needed to integrate with the IT labour market. Findings The K-Means algorithm helps to identify clusters of graduate IT students displaying necessary knowledge acceptance behaviour to convert them into specialists. The results of the cluster analysis show different learning styles of the labour force, providing an overview of candidate selection methods and the knowledge, skills and attitudes expected by users. Research limitations/implications Although the research adds value to the existing literature on learning styles and the knowledge and core skills needed by IT specialists, it was limited to an emerging market. Originality/value The study provides a preliminary overview of graduate IT students’ attitudes from an emerging market to the re-engineering of academic learning contexts to facilitate professional knowledge transfer, converting them into IT practitioners and integrating them in the labour market of an emerging economy.

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