Discussion of corporate social responsibility is typically framed within the either-or debate on the purpose of a corporation pitting those who believe the purpose of a corporation is to increase shareholder value against those who believe the purpose of a corporation must incorporate the interests of all stakeholders. The concept of Enlightened Shareholder Value (ESV) […]
Read More… from Enlightened Shareholder Value: Linking CSR and Long-Term Shareholder Value
A significantly increasing number of companies—from 3% in 2010 to more than 30% in 2021—are incorporating environmental, social, and governance (ESG) metrics, in their executive compensation plans. The number of global companies incorporating environmental, social, and governance (ESG) metrics—e.g., lower carbon emissions, greater diversity, or a positive, effective company culture—in their executive compensation plans have […]
Read More… from Reward Executives for Environmental and Social Success
Companies once viewed themselves as isolated entities engaged in win-lose battles with opponents for the same set of customers. The technology-driven evolution of business has re-ordered the universe. Today, companies operate as participants in business ecosystems in which they engage with a broad and diverse set of partners in a range of different types of […]
A new study of employee misconduct in the financial services field reveals that supervisors have the most significant impact—negative or positive—on employee misconduct in their firms. Based on 10 years of data from broker-dealer investment firms, the study by Zachary Kowaleski of University of Notre Dame’s Mendoza College of Business, Andrew Sutherland of the MIT Sloan School […]
Read More… from Why Supervisors Are the Keys to Preventing Employee Misconduct
More than ever before, employees are asking the companies they work for to take a stand and become actively involved in supporting environmental and social causes. The increasingly visible activism and social engagement of employees is in large part due to changes in technology and culture. On the technology front, internal messaging boards and personal […]
Read More… from Respond to Employee Activists With Clarity and Consistency
In 2019, 181 CEOs signed a Business Roundtable Statement on the Purpose of a Corporation. The statement reflected a growing sentiment in corporate governance attitudes that the purpose of a corporation extends beyond maximizing shareholder value to maximizing the value for the benefit of all stakeholders—which according to the Statement include “customers, employees, suppliers, communities […]
Read More… from Stakeholder Value: Best for Everyone or Just Poor Performers?
The world of business, and society at large, accepts the need for greater diversity at the highest levels of business, government and other domains. This general consensus, however, has not translated into full-scale change. Research into the influence of descriptive social norms on the behaviour of corporate decision makers offers some new understanding into why […]
Read More… from How Diversity Social Norms Let Companies Off the Hook
Shareholders can submit complaints to publicly-traded companies on a broad range of topics, including poor financial performance, poor governance, dissatisfaction with the firm strategy, or a controversial change in leadership, to name but a few. These complaints are then discussed at the next meeting. Complaints from shareholders are likely to have a negative impact on […]
Read More… from Advertising Bolsters Firm Value after Shareholder Complaints
In the language of psychology, individuals who are more afraid of missing opportunities than taking risks are considered promotion-focused. Their counterparts are individuals who are more afraid of taking risks than missing opportunities; these are prevention-focused individuals. A study of U.S CEOs and CFOs (the latter considered the second most influential executive in strategic decisions) […]
Read More… from Promotion-Focus CEOs and CFOs Drive Strategic Growth
From its founding, Amazon has been a socially liberal company, notable for its active involvement in LGBTQ issues. Its Seattle, Washington headquarters is embedded in the Northwest, a socially liberal part of the country. Embeddedness refers to an employee’s ties and connections to a company (on-the-job embeddedness) or to a community in which the company […]
Read More… from What If Amazon Had Chosen Atlanta? Implications on Community and Corporate Identity
