scholarly journals Sustainable long-term value creation: New finance focus for boards of directors

2021 ◽  
Vol 5 (1) ◽  
pp. 22-30
Author(s):  
Hugh Grove ◽  
Maclyn Clouse ◽  
Tracy Xu
Keyword(s):  
Value Creation ◽  
Circular Economy ◽  
Boards Of Directors ◽  
Research Question ◽  
Business Strategies ◽  
Future Research ◽  
Clear Understanding ◽  
Sustainable Value ◽  
And Performance

The major research question of this paper is how boards of directors’ practices and performance can facilitate the new finance focus on sustainable, long-term value creation. This new finance focus presents opportunities to strengthen corporate performance which enhances the gatekeeper role of boards of directors in helping both shareholders and stakeholders. The following topics are discussed and analyzed in this paper: potential examples, strategic analysis, sustainability analysis, and the circular economy. We discovered several guiding principles based on previous literature, regulatory proposals, and industry practices. Effective boards of directors need to be engaged in sustainable strategy formation and make sure long-term sustainable value creation continues to develop and does not erode. They need to have relevant industry knowledge, diverse expertise, and a proclivity for thinking independently in both good times and bad times, such as the coronavirus pandemic. They also need to develop a clear understanding of sustainable business strategies and how long-term value is created and driven through innovation and the deployment of resources. In addition, we find that boards can assess and monitor ways to measure and manage long-term value creators and drivers and encourage their companies to become involved in the circular economy with its $4.5 trillion investment opportunities. Future research could use case studies and board interviews to investigate boards of directors’ practices and performance, concerning how boards have helped develop strategies and procedures to facilitate this new finance focus on long-term sustainable value creation.

scholarly journals Long-term stockholder and stakeholder value and corporate governance implications

2020 ◽  
Vol 2 (1) ◽  
pp. 18-26 ◽  
Author(s):  
Hugh Grove ◽  
Mac Clouse ◽  
Tracy Xu
Keyword(s):  
Corporate Governance ◽  
Business Strategy ◽  
Boards Of Directors ◽  
Research Question ◽  
Initial Step ◽  
Vital Role ◽  
Clear Understanding ◽  
Sustainable Value ◽  
Key Indicators

The key research question of this paper is to explore the major implications for corporate governance from the emergence of long-term stockholder and stakeholder value perspectives for the purpose of a corporation. The major implication for corporate governance is the significant opportunity for boards of directors to play a vital role in helping companies create long-term sustainable value. An initial step is to develop a clear understanding of the company’s business strategy and how long-term value is created through innovation and deployment of resources. Boards of directors need to understand what really creates long-term value in their companies and then make sure their companies develop ways to measure and manage such value in order to be able to “govern like owners” and fulfill their fiduciary roles. To facilitate this fiduciary role, McKinsey & Company’s Corporate Horizon Index with its five key indicators, investment, earnings quality, margin growth, quarterly management, and earnings-per-share growth, and their related hypotheses and measurement approaches can be used as a roadmap.

scholarly journals Renewable energy commitments versus greenwashing: Board responsibilities

2021 ◽  
Vol 18 (3, special issue) ◽  
pp. 423-437
Author(s):  
Hugh Grove ◽  
Maclyn Clouse
Keyword(s):  
Renewable Energy ◽  
Boards Of Directors ◽  
Task Force ◽  
Research Question ◽  
Empirical Studies ◽  
Future Research ◽  
Business Plans ◽  
Subsequent Performance ◽  
Global Corporations

Since many companies are making renewable energy commitments, boards of directors have responsibilities to monitor such commitments for enhanced corporate governance. This paper develops such board corporate social responsibilities for renewable energy commitments, especially in response to activist investors. In the existing literature, there are no research papers that addressed the major research question, and corresponding relevance, of this paper. What are the boards of directors’ responsibilities for monitoring their companies’ commitments to renewable energy and are they making significant efforts, or just greenwashing, i.e., just making commitments or pledges without any substantial subsequent performance? The shifting energy landscape to renewables, especially for carbon-free electricity, and the affordability and reliability of renewables are developed. Global corporations committed to 100% renewable electricity are cited for boards to monitor. Following guidelines from activist investors, boards of directors can assess whether their companies are reporting in alignment with the Task Force on Climate-related Financial Disclosures or other reporting systems. Boards can monitor how their companies’ business plans are compatible with transitioning to a net-zero economy and how such plans are incorporated into long-term strategies. They can monitor if sustainability connections to stakeholders are driving long-term durable profits and delivering value to shareholders, customers, employees, and communities. Future research could investigate these board responsibilities with case studies or empirical studies, especially to see if greenwashing exists

scholarly journals Big data in the Danish industry: application and value creation

2017 ◽  
Vol 23 (3) ◽  
pp. 645-670 ◽  
Author(s):  
Sune Dueholm Müller ◽  
Preben Jensen
Keyword(s):  
Big Data ◽  
Value Creation ◽  
Online Survey ◽  
Organizational Context ◽  
Business Processes ◽  
Research Question ◽  
Business Strategies ◽  
Processing Technologies ◽  
Content Type ◽  
Analytical Skills

Purpose The development within storage and processing technologies combined with the growing collection of data has created opportunities for companies to create value through the application of big data. The purpose of this paper is to focus on how small and medium-sized companies in Denmark are using big data to create value. Design/methodology/approach The research is based on a literature review and on data collected from 457 Danish companies through an online survey. The paper looks at big data from the perspective of SMEs in order to answer the following research question: to what extent does the application of big data create value for small and medium-sized companies. Findings The findings show clear links between the application of big data and value creation. The analysis also shows that the value created through big data does not arise from data or technology alone but is dependent on the organizational context and managerial action. A holistic perspective on big data is advocated, not only focusing on the capture, storage, and analysis of data, but also leadership through goal setting and alignment of business strategies and goals, IT capabilities, and analytical skills. Managers are advised to communicate the business value of big data, adapt business processes to data-driven business opportunities, and in general act on the basis of data. Originality/value The paper provides researchers and practitioners with empirically based insights into how the application of big data creates value for SMEs.

scholarly journals A Framework for Material Selection in Multi-Generational Components: Sustainable Value Creation for a Circular Economy

Procedia CIRP ◽  
2016 ◽  
Vol 48 ◽  
pp. 370-375 ◽  
Author(s):  
Ryan Bradley ◽  
I.S. Jawahir ◽  
Fazleena Badurdeen ◽  
Keith Rouch
Keyword(s):  
Value Creation ◽  
Circular Economy ◽  
Material Selection ◽  
Sustainable Value

scholarly journals Climate change risk: Challenge for corporate governance

2021 ◽  
Vol 10 (2, special issue) ◽  
pp. 258-268
Author(s):  
Hugh Grove ◽  
Maclyn Clouse ◽  
Tracy Xu
Keyword(s):  
Climate Change ◽  
Corporate Governance ◽  
Global Climate Change ◽  
Boards Of Directors ◽  
Global Climate ◽  
Research Question ◽  
Empirical Studies ◽  
Future Research ◽  
Climate Change Risk ◽  
Climate Change Risks

The major research question of this paper is to analyze climate change risk as a challenge to corporate governance. Climate action failure was the environmental risk most frequently listed in the top ten country risks. It also becomes a major reason that many companies are taking their own initiatives on climate change action which poses an imminent challenge for corporate governance as boards of directors track and assess such initiatives by their own companies. Boards can play a key role in guiding their organizations into the next new normal in the wake of global pandemic, economic disruptions, and ongoing climate change problems. This paper identifies and studies the corporate governance risks and opportunities related to global climate change risk and provides recommendations to boards of directors. The major sections of this paper are global climate change risks, corporate climate change pledges, climate-related financial disclosures, major topics in the Global Climate Change report, whether companies are ready to manage major climate change risks and opportunities, climate-related investment benchmarks, and conclusions. Future research could investigate this climate change risk challenge with case studies or empirical studies.

Interorganizational Collaboration and Start-Up Innovation

2019 ◽  
pp. 609-627
Author(s):  
Vikas Aggarwal ◽  
Andy Wu
Keyword(s):  
Value Creation ◽  
Knowledge Flows ◽  
Future Research ◽  
Collaborative Relationships ◽  
Value Capture ◽  
Time Value ◽  
Start Up ◽  
Complementary Assets ◽  
And Performance ◽  
Start Ups

This chapter presents an overview of the literature on collaborative relationships between start-ups and incumbent firms, focusing on the implications of these relationships for start-up innovation and performance. Value creation in such relationships occurs when assets are exchanged by the parties involved. Collaboration allows for passive knowledge flows and active knowledge creation. In addition, collaboration provides start-ups with access to the complementary assets of the incumbent. At the same time, value creation presents opportunities for value capture by either party, where value capture by the start-up is a consequence of the broader knowledge appropriation regime and the start-up’s own social capital. The form in which the start-up appropriates value has implications for the assets that enable value creation. The framework for value creation and capture in bilateral start-up–incumbent collaborations extends to start-up–incumbent collaborations in a platform and ecosystem context, where there are fruitful future research opportunities.

Ownership, Strategy and Performance: Is the Dichotomy Sufficient?

1993 ◽  
Vol 14 (5) ◽  
pp. 731-752 ◽  
Author(s):  
Eric Gedajlovic
Keyword(s):  
Research Question ◽  
Foreign Ownership ◽  
Future Research ◽  
Ownership Strategy ◽  
Canadian Context ◽  
Symmetrical Model ◽  
And Performance ◽  
And Control ◽  
Shed Light

Do ownership characteristics moderate strategy, or is ownership a strategic vari able in itself? This is the research question that motivates this study. In order to shed light on this issue, Berle and Means' (1932) separation of ownership and control thesis as well as Demsetz and Lehn's (1985) symmetrical model of owner ship are empirically evaluated in the Canadian context. The findings indicate that neither framework is sufficient to explain the strategic conduct and profitability of firms operating in Canada. It is suggested that a broader based approach incorporating government and foreign ownership distinctions would be more promising avenues for future research than those which solely consider Berle and Means' (1932) dichotomy.

Is Corporate Social Responsibility Really Able to Create Long-Term Sustainability Value?

2022 ◽  
pp. 194-216
Author(s):  
Manuel Moreno ◽  
Elena Mañas-Alcón ◽  
Oscar Montes-Pineda ◽  
Beatriz Fernández-Olit
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Value Creation ◽  
Social Values ◽  
Shared Value ◽  
Csr Strategies ◽  
Sustainable Value ◽  
Short Run ◽  
Corporate Social

This chapter analyzes the academic debate regarding the need to adopt a long-term vision of CSR strategies. It's based on the premise that short run is the dominant approach in financial markets, and this situation could be negatively conditioning the long-term sustainability value creation. New social values may be requesting different management decisions from companies, prioritizing long-term over short term results. A thorough literature review has been done across specialized journals, international reports, and key legislation, trying to determine and model the elements facilitating this sustainable value creation. It shows the alignment needed between CEO and their shareholders within the framework of corporate governance to create long-term value within CSR. There are signs of a possible financial over-performance of companies that strategically create a shared value with stakeholders based on environmental, social, and governance objectives, selected due to their materiality. A model is proposed to consider a long-term approach creating sustainable value in organizations.

scholarly journals Sustainable value creation? Entrepreneurial orientations in the football industry

2020 ◽  
Vol 27 (1) ◽  
pp. 27-44
Author(s):  
Mike Bull ◽  
Geoff Whittam
Keyword(s):  
Value Creation ◽  
Research Question ◽  
Professional Football ◽  
Content Type ◽  
Secondary Sources ◽  
Business Interests ◽  
Football Clubs ◽  
Sustainable Value ◽  
Context Specific ◽  
Football Industry

PurposeIn this paper the authors investigate precarious value creation in English football clubs. They examine strategic, economic, cultural and social capital to analyse the orientations of legal owners of football clubs (entrepreneurs) and the implications for moral owners (the fans). Their research question is not if entrepreneurs create value – but whether the value created is productive or destructive.Design/methodology/approachThe research design is a case study of the professional football industry, specifically 44 football clubs in the top two professional divisions in England, namely the English Premier League and the English Football League Championship. The authors’ methodology is secondary textual data. Their approach is to examine official club statements, triangulated with regional and national press reports, fan accounts and narratives from published artefacts; fan blogs and websites.FindingsThe “opening up” of the professional football industry in England to market forces in 1983 has subsequently attracted entrepreneurs that use football clubs as artefacts to pursue other business interests. Over-grazing on strategic and economic capital at the expense and exploitation of social and cultural capital exists. As entrepreneurial opportunities to exploit a football club's assets becomes more apparent, the unique relationship between club and fan is being strained. The authors observe detachment, disenchantment and protest.Research limitations/implicationsThe data sought for this study design was necessarily in the public domain and therefore drawn from secondary sources. The scope was English football and the top two divisions, thus the findings are context specific to that region and level.Practical implicationsFor policy, the authors call for a new government inquiry into football ownership in English football, re-examining heritage, purpose and value creation.Social implicationsFootball fans are the majority stakeholder in the football industry but are under-represented in English football because of the private ownership of football clubs. Fans are, however, a barometer for how their owners are acting as custodians of their clubs and if the value created by entrepreneurs is productive or exploitative.Originality/valueThis paper has value in drawing attention to this unique and ignored industry from an entrepreneurship perspective, provoking a call for further research to explore this phenomenon. Sustainable value creation may be a useful framework for further research in this and other industries.

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