Success Indicators Influencing Choice Between Born Global and Born Regional Approach

This paper explores the differences between born global firms and born regional firms. It compares performance between born regional firms and born global firms within the same industry. This paper would investigate three independent variables which are: firm performance, firm size, and model on a company’s strategy. I argue that despite key success indicators being almost similar in both born global firms and born regional firms, there exist some unique commonality in born global firms that are not evident in born regional firms, and vise-versa. This uniqueness motivates them to internationalize quicker than born regional firms. This paper would contribute to IB research by explaining the motivations behind behaviors of international venture firms Keywords: Born global firms, Born regional firms, international venture firms, Internationalization, resource based theory, stakeholder theory, shareholder theory

Corporate purpose with a look on COVID-19 pandemic

What is the purpose of companies? Is that purpose unique for all companies? Is a company allowed to formulate its own purpose and to make decisions in accordance with that purpose? Is this the area where the lawmaker should intervene, to what extent and in which manner? What role should or could a company have in determining its own purpose? These are some of the questions to which the author is trying to find the answers, taking into consideration a number of theoretical discussions, as well as comparative and domestic legislative movements. Dilemma between the shareholder theory and the stakeholders' theory represents one of the most controversial topics in modern company law. The COVID pandemic has additionally emphasized the basic problems of these theories. Bearing in mind that definite solutions in this area cannot be given, the author analyses relevant Serbian statutory provisions, in order to make certain suggestions for their adequate interpretation.

Ethical Challenges of Complex Products: Case of Goldman Sachs and the Synthetic Collateralized Debt Obligations

In analyzing complex products, this study selected the company Goldman Sachs and one of its product offerings, the synthetic collateralized debt obligation (synthetic CDO). The study later analyzed the ethical implications of providing such a complex product to customers. A review of the literature indicates that researchers identified this product and other associated derivatives of the mortgage backed securities as the main causes of the 2008 financial crisis in the United States of America. As such, Goldman Sachs’ offering of the product posed ethical and moral issues. An analysis of the company and its offering was done under the lenses of various ethical theories such as Kohlberg's theory of moral reasoning, the Kantian ethics, the utilitarian perspective, Friedman’s shareholder theory, the stakeholder theory, the market approach to consumer protection, and the contract view of consumer protection. Besides Friedman’s shareholder theory, all other theories judged the product offering morally wrong and unethical. At the end of the study, the author suggested a contribution to knowledge regarding Kohlberg’s theory of moral reasoning in its application to organizations. The author also suggested further research to validate the outcome of Friedman’s shareholder theory regarding this case.

Social responsibility skepticism: shareholder and stakeholder perspectives

Purpose The purpose of this paper is to introduce the notion of social responsibility skepticism (SRS) and demonstrate its importance to the existing social responsibility literature. Stakeholder-emphasizing perspective (STEP) and shareholder-emphasizing perspective (SHEP) are tested as independent constructs that both serve to reduce skepticism. SHEP, STEP and SRS are shown to be interrelated but independent ideas. Design/methodology/approach The study is based on a primary questionnaire survey of managers. Multivariate regression analysis is used for analysis, level of management is a moderating variable and age and gender are control variables. Findings Managers who accept either the shareholder emphasis or the stakeholder emphasis have lower social responsibility skepticism. STEP and SHEP appear to be two independent constructs that both serve to reduce skepticism, although STEP is slightly more effective. The relationship is stronger for STEP managers and for higher level managers. Research limitations/implications Findings may be influenced by the existing political or business milieu. Findings on the moderating effect of level of management and age may reflect generational differences. Changes in gender roles may also affect findings. Practical implications Acceptance of management theories oriented either toward a stakeholder perspective or a shareholder perspective is associated with less skepticism. The legitimacy and value of each perspective should be acknowledged. Social implications Managers require support for decisions taking social responsibility into account. This study demonstrates that grounding in stakeholder theory or shareholder theory can reduce SRS. Originality/value This study introduces the new concept of SRS and provides a scale to measure this new variable. New scales are also provided for SHEP and STEP. Both perspectives negate tendencies toward SRS.

Weeding Out Flawed Versions of Shareholder Primacy: A Reflection on the Moral Obligations That Carry Over from Principals to Agents

ABSTRACT:The distinction between what I call nonelective obligations and discretionary obligations, a distinction that focuses on one particular thread of the distinction between perfect and imperfect duties, helps us to identify the obligations that carry over from principals to agents. Clarity on this issue is necessary to identify the moral obligations within “shareholder primacy” (i.e., “shareholder theory”), which conceives of managers as agents of shareholders. My main claim is that the principal-agent relation requires agents to fulfill nonelective obligations, but it does not always require (and sometimes actually prohibits) discharging discretionary obligations. I show that the requirement to fulfill nonelective obligations is more far-reaching than has been acknowledged by most defenders and critics of shareholder primacy. But I also show that managers are not bound by certain discretionary obligations like charity, showing that their moral obligations are more circumscribed than the obligations that apply to human beings in general.

The Relationship between Exercising of Shareholders’ Rights and the Performance of Firms listed at the Nairobi Securities Exchange

The continued decline in performance of firms listed in the Nairobi Securities Exchange (NSE) has lately become a source of concern to both the country’s policy makers and researchers. Already, reports from the Kenyan government reveal that the decline in performance is becoming an impediment to the country’s realization of Vision 2030 as the dwindling performance is leading to lower economic development and loss of jobs. This study examines the relationship between exercising of shareholders’ rights and the performance of firms listed in the NSE for the period 2011-2015. The study is anchored on the shareholder theory. The study population comprises all 60 companies listed in NSE in the stated period. The study uses descriptive research and correlational research designs. Both primary and secondary data are obtained from the 60 Chief Executive Officers of the corporations or their representatives. Descriptive statistics (mean and standard deviation) and inferential statistics (Pearson correlation and multiple regression) are used to analyze the data. The study finds that there is a statistically significant relationship between shareholders exercising their rights and performance of firms listed at the Nairobi Securities Exchange. The hypothesis that shareholders exercising their rights has no significant relationship with performance of firms listed at the NSE (p<0.001) is rejected. Finally, results vindicate tthe shareholder theory

Pengaturan CSR Menuju Pembangunan Berkelanjutan

Realitas saat ini yang tak bisa dipungkiri tentunya adalah masih banyak perusahaan terutama di daerah yang belum belum melaksanakan Corporate Social Responsibilty (CSR) atau Tanggung Jawab Sosial Perusahaan (TSP). Hal ini menunjukkan bahwa perusahaan tidak peduli pada masyarakat dan lingkungan di sekitarnya. Sebaliknya justru keberadaan perusahaan sering menimbulkan dampak negatif, baik di bidang sosial, ekonomi, dan lingkungan hidup.Akibatnya di banyak tempat masih sering terjadi gesekan atau konflik antara masyarakat setempat dengan perusahaan. Sementara itu perusahaan yang telah melaksanakan CSR/TSP pada umumnya masih dalam bentuk charity yang bersifat spontan dan ad hoc atau sementara, dan belum sampai tingkat community development. TSP dalam bentuk charity tidak akan banyak membantu pemerintah daerah dalam menangani permasalahan sosial seperti tingginya kemiskinan, pengangguran, dan kerusakan lingkungan.Pendekatan CSR/TSP hendaknya dilakukan secara holistik yaitu pendekatan CSR/TSP yang lebih menekankan pada keberlanjutan pengembangan masyarakat (community development). Dengan community development, masyarakat menjadi berdaya baik secara ekonomi, sosial, dan budaya secara berkelanjutan (sustainability) sehingga perusahaan juga dapat terus berkembang secara berkelanjutan.65Orientasi pengaturan hukum CSR/TSP di daerah sendiri dilakukan dengan maksud memberi kepastian dan perlindungan hukum atas pelaksanaan program tanggungjawab sosial perusahaan bertujuan sebagai berikut:terwujudnya batasan yang jelas tentang tanggung a. jawab sosial dan lingkungan;terpenuhinya penyelenggaraan tanggungjawab sosial b. perusahaan sesuai dengan peraturan perundang-undangan yang berlaku;terwujudnya kepastian dan perlindungan hukum bagi pelaku c. dunia usaha dalam pelaksanaan tanggungjawab sosial perusahaan;melindungi d. perusahaan agar terhindar dari pungutan liar yang dilakukan pihak-pihak yang tidak berwenang;meminimalisir dampak negatif keberadaan e. perusahaan dan mengoptimalkan dampak positif keberadaan perusahaan; danterprogramnya pemberian apresiasi dan penghargaan kepada f. dunia usaha yang telah melakukan TSP.Landasan filosofis pengaturan Tanggung Jawab Sosial Perusahaan di daerah sendiri adalah penerapan nilai-nilai Pancasila khususnya sila kedua, keempat, dan kelima dalam operasi bisnisnya. Dalam sistem ekonomi Pancasila tujuan perusahaan adalah melayani kepentingan ekonomi semua golongan yang tersangkut dalam perusahaan baik yang ada di dalam maupun yang di luar lingkungan perusahaan, baik yang mempengaruhi maupun yang dipengaruhi perusahaan yang disebut dengan stakeholders, yaitu antara lain: pemilik modal, karyawan, langganan, masyarakat dan lingkungan sekitar, serta pemerintah. Nilai- nilai Pancasila dari perusahaan yang melaksanakan TSP tidak hanya sekedar berorien66tasi pada keuntungan semata melainkan berorientasi pada triple bottom line, yaitu profit, people, dan planet. Perusahaan tidak lagi berpijak pada shareholder theory melainkan pada stakeholders theory.Sementara landasan sosiologisnya adalah keberadaan perusahaan ternyata belum memberikan banyak manfaat bagi masyarakat di sekitarnya. Masyarakat justru merasakan dampak negatif yang ditimbulkan oleh perusahaan, baik di bidang sosial maupun lingkungan hidup. Kenyataan inilah yang menjadi faktor utama atau setidak-tidaknya yang memicu terjadinya konflik antar masyarakat, perusahaan dan pemerintah sebagaimana yang sekarang ini banyak terjadi di masyarakat. Oleh karena itu perlu dilakukan penataan program TSP agar keberadaan suatu perusahaan dapat memberikan manfaat tidak saja kepada masyarakat dan stakeholders lainnya tetapi juga pada perusahaan itu sendiri.Pengaturan tentang Tanggung Jawab Sosial Perusahaan dalam peraturan daerah akan memiliki landasan hukum yang kuat untuk menyelenggarakan TSP demi kesejahteraan masyarakat. Melalui Peraturan Daerah diharapkan dapat menjamin kepastian hukum dan rasa keadilan pada seluruh stakeholders.

Does the Concept of Enlightened Shareholder Value Succeed in Bridging the Gap between the Shareholders and Stakeholders Value Theories?

Purpose: The purpose of this article is to explore the main theories as to the corporate governance subject, and focus first on Shareholders and Stakeholders Value theories in order to identify their shortcomings. Next, the advantages and disadvantages of Enlightened Shareholder Value; including future perspectives on Enlightened Shareholder Value in light of the UK company Act 2006.Methodology /approach: This article describes and compares the main theories with regard to the corporate governance subject. The following materials were referenced as part of this article: books, journal articles, cases, reports, legislations.Findings: Based on the outcomes of the article there are advantages and disadvantages to Shareholders and Stakeholders Value theories. The former is considered a very narrow vision because its main aim is to gain profits for shareholders, it ignores stakeholders, there is a possible risk since managers and directors may abuse their delegations, and it costs more to monitor directors. Similarly, this article has been found that there are shortcomings to the Stakeholders Value theory; for example, there is no clear hierarchy of stakeholders’ interests, there is no one goal to achieve; it seems to demand less accountability from directors. Moreover, this article highlighted that the Enlightened Shareholder theory seems a better theory at present. Apparently, the success of this theory will depend on many factors: first, how the directors will apply the discretionary power with regard to section 172 (1) of CA 2006. Secondly, the interpretation of the courts about the duty of directors. Thirdly, the role of scholars improving this theory. Fourthly, how civil society will observe the application of this theory. Finally, recommended that further study should be done according to the recent practice.Originality/value: This article contributes to increase the understanding of the theories of corporate governance and discover the best one for the time being.