Corporate Business Activities Research Articles

The main mechanisms for the implementation of codes of corporate ethics in the activities of multinational corporations

The corporate code of ethics of a transnational corporation establishes a global standard for business ethics, serving as a corporation’s “calling card” and a self-regulatory mechanism that enhances the corporate identity. The reputational aspect of corporate codes of ethics aims to demonstrate the transparency of the corporation in the relevant industry market, thereby fostering a certain level of trust from of external stakeholders. This article addresses fundamental issues concerning the legal nature of corporate codes ethics. It analyses the main mechanisms and methods of implementing these codes in the daily business activities of corporations. Specifically, the following issues are examined: the position and role of codes within the framework of local regulatory acts, employees’ adherence to codes within the scope of labor discipline, incentivizing counterparties to adhere not only to contract terms but also to the code norms and incorporation of corporate codes of ethic into the compliance system. Throughout the exploration of these topics, the authors address the key challenges and trends in the adoption, application and adherence to corporate codes of ethics by corporations. The paper provides critical analysis of the role of corporate codes of ethics in regulating labor and contractual relations involving corporations, as well as within the compliance system. The research methodology is based on formal logic, comparative legal, dialectical, and system-structural methods.

Research on Innovation Creation Methods for Sustainable Development of Business and Society

In recent years, there has been a widespread recognition that the business activities of corporations are the source of social, environmental, and economic problems, and many corporations have begun to think deeply about the sustainability of society. So far, many companies have worked to implement CSR as a corporate activity that contributes to sustainable development. However, the concept and application of CSR (Corporate Social Responsibility) have not brought direct benefits. However, by engaging in CSV (Creating Shared Value), companies can make a sustainable contribution to the sustainability of society. Therefore, it is necessary to consider effective approaches to this strategy. This study conducts with the objective of promoting the implementation of CSV by companies. First, this study reviews knowledge creation methods in organizations in recent studies from the perspective of CSV, focusing on Knowledge Creation Theory and Experiential Learning theory. Next, this study constructs an effective CSV approach based on the SECI model. Finally, the effectiveness of the developed methods for the sustainable development of business and society is discussed. The CSV is a strategy for creating shared value of social and economic value created by solving social problems through the core business. Its characteristics include placing value on economic and social benefits compared to costs, being endogenous, and being indispensable for maximizing profits (Porter & Kramer, 2011). Keywords: CSV, Experiential Learning, Knowledge, Sustainable development

Artificial Intelligence in Corporate Business and Financial Management: A Performance Analysis from Pakistan

This paper attempts to explore many signs of progress enabled by Artificial Intelligence (AI) in financial and corporate business management. It also amid to identify the benefits and cons of AI applications in social life. A systematic content analysis approach has been used to demonstrate the developmental phases of AI. Four distinct organizational maturity clusters i.e. Pioneers, Investigators, Experimenters, and Passives have been developed on basis of dataset. Data collections was carried through emails, customizable chatbots, live chat softwares and automated helpers of top ten online companies and various banking and financial institutions located in Lahore and Karachi cities for making behavioral analysis. The data results revealed that all aspects of financial managements and corporate business activities have been highly influenced by the application of AI. The study demonstrated that 80% senior business executives were of view that AI boost productivity and creates new business avenues. The results also demonstrated that 88% Pioneer organizations have understand and adopted AI techniques according to organization requirements, 82% Investigator organizations are not using it beyond the pilot stage whereas 24% Experimental organizations were adopting AI without understanding it. These results seem to reflect that AI has profound effects on financial industry to streamline its credit decisions from quantitative trading to financial risk management and fraud detection. This study also discovered that the widespread use of AI have raised a number of ethical, moral and legal challenges that are yet to be addressed. Although AI is gaining popularity day by day and it is believed that AI will improve work performance beyond human standards but it could not replace human resources fully.

Artificial Intelligence in Corporate Business and Financial Management: A Performance Analysis from Pakistan

This paper attempts to explore many signs of progress enabled by Artificial Intelligence (AI) in financial and corporate business management. It also amid to identify the benefits and cons of AI applications in social life. A systematic content analysis approach has been used to demonstrate the developmental phases of AI. Four distinct organizational maturity clusters i.e. Pioneers, Investigators, Experimenters, and Passives have been developed on basis of dataset. Data collections was carried through emails, customizable chatbots, live chat softwares and automated helpers of top ten online companies and various banking and financial institutions located in Lahore and Karachi cities for making behavioral analysis. The data results revealed that all aspects of financial managements and corporate business activities have been highly influenced by the application of AI. The study demonstrated that 80% senior business executives were of view that AI boost productivity and creates new business avenues. The results also demonstrated that 88% Pioneer organizations have understand and adopted AI techniques according to organization requirements, 82% Investigator organizations are not using it beyond the pilot stage whereas 24% Experimental organizations were adopting AI without understanding it. These results seem to reflect that AI has profound effects on financial industry to streamline its credit decisions from quantitative trading to financial risk management and fraud detection. This study also discovered that the widespread use of AI have raised a number of ethical, moral and legal challenges that are yet to be addressed. Although AI is gaining popularity day by day and it is believed that AI will improve work performance beyond human standards but it could not replace human resources fully.

USE OF DATA ANALYTICS TOOLS FOR INCREASED EFFICIENCY IN THE INTERNAL AUDIT PROJECT PORTFOLIO

The constant evolution and dependence of technologies on corporate business activities and processes brought an increase in electronic transactions in company processes and, consequently, a need for transformation in the project portfolio of the Internal Audit area. Based on these needs, technological tools such as Data Analytics appear as technical support options for audit project managers to extract, model, improve and optimize the analysis and scope of the data. The purpose of this report was to present how the implementation of technological Data Analytics tools contribute positively to increasing the efficiency of the internal audit project portfolios. The results showed that the implementation of this type of technology during internal audit projects and processes could reduce the intensity of the work, expand its reach in the results and increase the efficiency of production in time and cover the cycles of audited processes. The use of Data Analytics has positive advantages for the AI ​​project portfolio and for the future of the area, such as better project planning, greater resource management, more comprehensive scope definition, agility in the execution of audit work, traceability and record of analyzes performed and performance increase.

Influence of digitalization upon formation of corporate strategy and new business models of modern organizations

This paper asserts that the issue of change of power in a corporate management configuration is quite urgent; it emphasizes that corporate management should identify the right combination of social interests and corporate business interests within the context of social, economic, and political processes currently taking place in Russia. The pandemic and digitalization exert a profound influence upon those processes; the paper states the fact that the Russian practice of corporate management – how decisions are made and how their execution is controlled – is characterized with a low quality, owing to the practice of “manual management” that prevails at all the hierarchical levels. The main idea of this article is that Russian managers should gradually substitute the traditional hierarchy with a “natural” one, when one’s authority depends not on their official position, but on their contribution to work, when special emphasis is placed on self- control, on establishment of a horizontal control system based on the Agile approach. Managers ought to realize that they should adopt new business models by integrating cutting-edge technologies (digitalization and other forms of work) in all the aspects of their corporate business activities.

Komparativna analiza tradicionalnog i savremenog pristupa merenja efikasnosti u preduzećima

Nowadays, corporation efficiency measurement is a modern and important trend in various disciplines, such as accounting, finance and especially marketing. The main purpose of this research is to find out whether and to what extent does a systematic approach to financial performance measurement, analysis and evaluation, as well as other non-financial types of performance caused by them and related to them contribute to higher corporate efficiency. The traditional efficiency measurement model is based on the traditional financial statements and financial performance criteria. The accounting criteria have been largely implemented in corporate financial analyses, and it can be significant for business portfolio management, i.e. capital allocation and reallocation, disinvestment, credit rating assessment and analysis, key area identification in strategic decision making, etc. However, successful business operations and effective strategic decision making demand a complex approach to modelling a measurement system for the usage of resources. Therefore, an efficient measurement system demands multidisciplinary theoretical and methodological knowledge for the choice and construction of the most appropriate analytical model. This is why factor approach is necessary in addition to the integral approach for the indicator measurement of corporate resources usage. Only a carefully conceptualized and implemented system of efficiency measurement, focusing on the analysis of relevant factors, can be an important instrument triggering strategic changes in corporate business activities.

Global context of disparities in earnings management among enterprises: Evidence from Slovakia

Earnings management is the use of accounting techniques to produce financial reports that present an overly positive view of corporate business activities and financial position. In the context of globalization and internationalisation, the phenomenon of earnings management and legal earnings shifting is an increasingly important issue, particularly in the field of taxation and financial accounting. Earnings management helps to achieve specific targets involving the manipulation of accruals through the discretionary choices of accrual accounting, Thus, the emphasis is given to accrual earnings management, which does not influence the corporate underlying economics but involves the change in the accounting presentation of these economics. The paper depicts the basic concepts of earnings management, reviews the mainstream studies and portrays the genesis of earnings models development. The main aim of the paper is to assess the ability of selected earnings models applied in the national environment of Slovakia, where the issue of earnings manipulation is still unexplored, to detect the problems with earnings manipulation considering individual industry sectors of the national economy. The comparative analysis of the results achieved helps portray the disparities in earnings management among Slovak business entities.

The State Duty to Protect Against Human Rights Violations Through Transnational Business Activities

Transnational corporations are currently not formally bound by international human rights obligations. Instead, states have a duty to protect individuals against human rights abuses by third parties, including corporations. While it is undisputed that this obligation extends to all individuals living on the territory of the respective state, the extraterritorial scope of the duty to protect remains contested. This is especially the case for human rights violations through transnational business activities. The state on whose territory the violation occurs has a duty to protect human rights by adopting and implementing labour and environmental laws applicable in that state. However, it is less clear if and to what extent the state of the main seat of the mother company or the global ordering company — the ‘home state’ — also has a human rights duty to regulate transnational business activity. This article argues that such a duty can be based on existing human rights doctrine and standards of general international law such as the ‘no harm’ rule and the due diligence principle. It argues that states have a duty to regulate transnational business activities of corporations over which they exercise jurisdiction if human rights violations caused by such activities are predictable and preventable. In its final part, the article assesses various approaches in state practice which could be seen as instruments in the fulfillment of the duty to regulate transnational business activities.

The State Duty to Protect against Human Rights Violations through Transnational Business Activities

Transnational corporations are currently not formally bound by international human rights obligations. Instead, states have a duty to protect individuals against human rights abuses by third parties, including corporations. While it is undisputed that this obligation extends to all individuals living on the territory of the respective state, the extraterritorial scope of the duty to protect remains contested. This is especially the case for human rights violations through transnational business activities. The state on whose territory the violation occurs has a duty to protect human rights by adopting and implementing labour and environmental laws applicable in that state. However, it is less clear if and to what extent the state of the main seat of the mother company or the global ordering company — the ‘home state’ — also has a human rights duty to regulate transnational business activity. This article argues that such a duty can be based on existing human rights doctrine and standards of general international law such as the ‘no harm’ rule and the due diligence principle. It argues that states have a duty to regulate transnational business activities of corporations over which they exercise jurisdiction if human rights violations caused by such activities are predictable and preventable. In its final part, the article assesses various approaches in state practice which could be seen as instruments in the fulfilment of the duty to regulate transnational business activities.

Tax Consulting as a Tool to Support Business Activities of Organizations

The subject of the research is tax consulting aimed at ensuring the proper business activity of organizations. The purpose of the research was is to substantiate the need for the tax consulting as a special tool for supporting corporate business activities. The paper deals with the current specifics of the tax consulting as a separate area of the service economy within the framework of the service-dominant logic concept that reflects the degree of involvement of all participants of financial relations in the tax consulting processes. From the standpoint of institutionalism, the tax consulting institution is regarded as a financial intermediary performing mediation or auxiliary functions to ensure interactions between basic agents of the economic system, in particular, communications between the state and business entities. Based on the research findings, it is concluded that a developed tax consulting institution as an integrated attribute of the tax system determines the levels of corporate business activities and business development. The research findings are intended for participants of the tax consulting and auditing market.

Corporate Environmental Initiatives in Small and Medium Sized Enterprises and Their Outcomes: A Longitudinal Study

AbstractThe impact from corporate business activities on the natural environment and society at large has been in focus for quite some time. The focus has often been on corporate environmental sustainability initiatives reflecting industry's response to concerns expressed by key stakeholders as well as the potential influence on the bottom line and the competitive situation. Much less investigated is the extent to which management itself perceives that corporate environmental initiatives actually lead to positive results. This is the very focus of this research, which is based on data collected by identical surveys of industrial companies in Denmark over a number of years. The results indicate a slightly increasing involvement over time, but also that the level of results achieved is lower than the level of initiatives taken. That is, the reactive attitude reported previously still seems to be prevailing. The results also seem to indicate that the size of the company may have a negative influence in some situations, since smaller companies seems to be better at achieving results compared with medium sized companies. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

Who Should Decide Whether the Apple is Rotten? Tax Disclosure and Corporate Political Agency

Enron-type corporate financial accounting scandals in the beginning of the millennium have given rise to a renewed interest in corporate tax disclosure. Anecdotal evidence suggesting a connection between corporate fraud and aggressive tax planning has motivated academics and policymakers to reconsider tax disclosure as a way to monitor corporate governance and limit tax avoidance. This article offers a different perspective on tax disclosure, tying it to the broader question of how policymakers should monitor the political impact of corporate business activities. The article claims that policymakers should view corporations’ tax planning strategies as part of a broader corporate political impact on social issues. This impact results from the genuine difficulty of bifurcating corporate business decisions from their political ones. This difficulty is a result of many judgment calls required in such decisions, which relate to individuals’ moral and political preferences. Tax planning is one of these mixed business-political decisions, and the article advances the notion that policymakers should analyze tax planning not only as a law enforcement issue, but also through corporate governance lenses. To establish this inquiry, the article explains why the investor-shareholder relationship gives rise to political agency problems, which neither traditional nor critical corporate law literatures recognize. It then demonstrates how the costs associated with this type of agency relationship could be reduced via disclosure of information about the impact of corporate activities on issues of political concern. The article uses insights from financial markets theory to explain how disclosure of non-financial information would help to better align corporate actions with the political preferences of shareholders, despite shareholder rational passivity and apathy. It is then illustrated, through the Apple case, how policymakers can use the theoretical conclusions reached through this analysis to formulate a real world policy proposal with respect to corporation tax planning. Through its use of a wide range of interdisciplinary resources, this article aims to reformulate the multi-layered inquiry over the benefits and costs associated with corporate tax disclosure.

Multinational risk and performance outcomes: Effects of knowledge intensity and industry context

A multinational presence can diversify corporate business activities and provide access to diverse overseas resources. This can enhance operational flexibility and create new business propositions that increase responsiveness to global market changes. Establishing an international corporate structure may also require irreversible investments and impose maintenance and processing costs that contravene the implied resilience and agility benefits. We distinguish between downside risk and upside potential as the relevant outcome measures to assess the implied advantages of multinationality. Consistent with the rationales of the OLI paradigm, we argue that multinational reach particularly in knowledge-based industries can reduce downside risk and enhance upside potential. These results introduce more nuances to the ongoing debate about multinational risk and performance effects. Based on a large cross-sectional dataset, we find that flexibility and responsiveness thrives on a multinational presence among firms operating in information-driven knowledge businesses. In contrast, internationalizing firms in capital-based network services display adverse risk effects.

문화마케팅 활동이 기업브랜드 자산에 미치는 영향

본 연구는 최근 들어 부각되고 있는 문화마케팅이 기업윤리와 사회적 책임의 조절효과를 중심으로 기업이미지와 브랜드자산형성에 어떤 영향을 미치고, 문화마케팅이 기업이미지와 브랜드자산을 형성하는 각 유형들 중 어느 부분에 더 밀접한 영향을 주는지에 대한 연구이다. 연구 결과는 다음과 갈다. 첫째, 문화 마케팅활동은 기업브랜드 자산에 간접적인 영향을 미쳤다. 둘째, 문화 마케팅은 기업브랜드 이미지에 직접적인 영향을 미쳤다. 셋째, 문화마케팅은 브랜드연상 이미지에 긍정적인 영향을 미쳤다. 넷째, 사회적 책임과 기업윤리는 브랜드 충성도에 간접적인 영향을 미쳤다. 다섯째, 기업의 사회적 책임과 기업윤리는 브랜드 이미지에 긍정적인 영향을 미쳤다. 여섯째, 기업의 사회적 책임 중 지역사회 활동은 조절변수 역할을 했다. 일곱째, 응답자의 일반적 특성에 따라 기업의 마케팅, 사회적 책임 및 윤리의식, 브랜드 자산에 대한 인식의 차이를 보였다. 위의 결과를 요약해보면 문화마케팅은 기업이미지라는 매개체를 통하여 기업의 브랜드자산 형성에 간접적인 영향을 미치고 있음을 규명할 수 있었다. 이 연구결과는 기업들이 문화마케팅이 가지고 있는 특성과 매체와의 적절한 조화, 지속적이고 장기적인 계획, 브랜드자산 유형과의 연계성을 감안한 전략적 마케팅계획수립의 중요성을 암시해 주고 있다. 또한 상품과 서비스의 생산 및 제공이라는 기업의 경제적 활동이 경제적 결과만을 가져오지 않고 부의 편재, 정경유착 문제, 소비자 안전문제, 공해문제 등의 부정적인 사회적 결과를 가져온다고 인식됨에 따라 경제적 기능으로 한정되는 기업의 역할에 대한 반성을 일게 했다. 이러한 반성으로부터 나타난 것이 기업의 사회적 역할, 즉 기업의 사회적 책임이며, 기업윤리의 실천을 동시에 조화롭게 추구하도록 요청받게 된 것을 확인할 수 있었다. This paper is about what is the effect of cultural marketing - which is affecting business ethics and social responsibility - on corporate image and formation of brand asset, and about which is getting more influence by cultural marketing among factors that is forming corporate image and brand asset. The results are like below. First, cultural marketing activities had an indirect influence on the corporate brand asset. Second, cultural marketing had an direct influence on the corporate brand image. Third, cultural marketing had a positive impact on reminding of the brand image. Fourth, social responsibility and business ethics had an indirect influence on the brand loyalty. Fifth, corporate social responsibility and business ethics had a positive impact on the brand image. Sixth, among the corporate social responsibility, community activities played a control variables. Seventh, regarding the characteristics of the respondents it showed that there's perception gaps among marketing, responsibility and ethics as well as brand assets. All in all, cultural marketing had an indirect effect on formulating corporate brand asset by the means of corporate image. The result is pointing out the importance of establishing a strategic marketing plan that is taking harmony between the character of cultural marketing and media, continuous and long-term plan, connection with the type of the brand asset into account. Moreover, as people realized that corporate business activities are brining not only economic consequences, such as providing goods and services but also social consequences, such as uneven distribution of wealth, dirty links between business and politics, consumers' security, pollution, and etc., companies are reconsidering its own role in society. This reconsideration is called corporate social responsibility and this pushed the company to keep business ethics together with their business.

A keynote: triple bottom line investing

Triple Bottom Line Investing (TBL) and Corporate Sustainability (CS) have become the buzzwords of discussion amongst the business community. The phase we are in today is still exploratory, research-based with community acceptance of reputation and perhaps financial risk. A shift in corporate business activities towards full sustainability is not yet occurring – but it will. Practising TBL is the most significant progression to impact upon contemporary business. What are the concepts of TBL or CS? There are countless definitions, but three popular ones, which meet both societal and business requirements, are: people plus planet plus profit (Social Equity) (Environmental Quality) (Economic Prosperity). CS adds both social and/or environmental value to external stakeholders, whilst increasing value to shareholders, and CS or TBL relates to the following question: While maintaining profitability, do your products or services worsen social and environmental balance, maintain social and environmental balance, or improve social and environmental balance?