Corporate Leaders Research Articles

CPR News

The annual CPR Corporate Leadership Award dinner returns this month to the Ziegfeld Ballroom in New York City to honor Visa Inc. and two of its executives for outstanding dispute prevention and conflict resolution work.

Can mixed-ownership reform boost the digital transformation of state-owned enterprises?

Under the background of the mixed-ownership reform of state-owned enterprises (SOEs), we investigate the involvement of non-SOEs shareholders in fostering the digital transformation of SOEs. We find that the active engagement of non-SOEs shareholders plays a pivotal role in expediting the digital transformation process of SOEs. Specifically, we identify two potential ways through which the reform promotes digital transformation in SOEs: the reduction of agency costs and the enhancement of executives’ risk-taking propensities. Our empirical findings substantiate the notion that mixed-ownership reform serves as a catalyst for digital transformation, which is a crucial driver of long-term sustainability and growth for SOEs. Our heterogeneity testing indicates that mixed-ownership reform has a more profound impact on advancing the digital transformation of local SOEs and those operating in competitive industries. Overall, we provide novel insights into the integration advantages of mixed-ownership reform by examining the determinants of digital transformation in SOEs from the perspective of ownership structure. These findings offer valuable guidance to policymakers and corporate leaders aiming to facilitate digital transformation in SOEs.

Goya Foods’ CEO: “A war [is] coming”

Research methodology In writing this case, the research team used secondary resources such as academic journals, trade magazines and websites to inform and verify the information. Case overview/synopsis January 7, 2021, was not a good day for Goya Foods CEO Robert Bob Unanue, who has been at the helm of Goya since 2004. On that day, the nine-member board of directors of Goya censured Unanue for publicly questioning the legitimacy of the 2021 United States Presidential election. A day before, on January 6, a mob “trapped lawmakers and vandalized the home of Congress in the worst desecration of the complex since British forces burned it in 1814” (Hockstein, 2021). Unanue was considered a follower of former president Trump and has expressed that “the country was […] blessed to have a leader like President Trump, who is a builder” (Hawkins, 2020). In January 2021, Unanue appeared on Fox News and said a “ war was coming,” as Joe Biden’s election was “unverified.” These, among other words, motivated the censured by the board of Goya Foods, Inc. (Santana and Isidore, 2021). Students are asked the following questions for discussion: Did the board of directors of Goya Foods carry its role too far by openly censuring Unanue? Did Unanue go too far by openly expressing subjective opinions and thus influencing how people view the election results? Should he have remained as CEO of Goya Foods after his words on Joe Biden’s election? Complexity academic level One of the authors has taught the case in the Strategic Management course for MBA students. In addition, graduate students of corporate governance, business ethics, social responsibility and leadership, among other classes, will be the target segments for the case. Learning objectives 1. Recognize the effects on brand image and sales when CEOs participate in political arenas and publicly discuss social issues. 2. Understand the dynamics behind ethnic family businesses, such as their governance and conflict resolution approach. 3. Assess the value of the corporate board’s management of corporations. Subject code CCS11: Strategy

Remembering Herbert Gutman's Work, Culture, and Society Fifty Years On

Remembering Herbert Gutman's <i>Work, Culture, and Society</i> Fifty Years On

The Whiteboard: Decoupling of ethnic and gender diversity reporting and practice in corporate Australia

Diversity of company leadership is an important governance issue for corporations globally, yet the uneven treatment of diversity priorities remains a major challenge. We explore the extent and change over time of both gender and ethnic diversity in leadership and disclosure for Australia’s largest firms from 2005 to 2021. Using institutional theory, we compare the isomorphisms driving change, and examine the extent to which there is rhetorical decoupling between diversity disclosure and practice. Our analysis reveals a significant improvement in gender diversity over time but very little progress in the ethnic diversity of corporate leaders. We find a connection between diversity reporting and the appointment of female corporate leaders. However, there is a disconnection between public commitment to diversity and the appointment of non-white corporate leaders. A lack of regulation for diversity reporting contributes to this imbalance with different outcomes for gender and ethnic diversity as the result of different institutional isomorphisms. Our findings can inform policymakers and corporations, highlighting the importance of a range of institutional pressures that encourage the disclosure and practice of ethnic diversity in corporate leadership. JEL Classification: M14

Compensation-Related Metrics and Marketing Myopia

Abstract Compensation packages including incentives tied to a company’s stock price can be powerful motivators for corporate leaders. But the authors’ study also showed that these motivations can produce some serious unintended consequences. Equity incentives can tempt CMOs to engage in short-sighted marketing management such as cutting R&amp;D and advertising spending in an effort to inflate current earnings and enhance the company’s stock price. This myopic management boosts their personal earnings at the expense of their company’s long-term performance. Our findings highlight the pitfalls and limitations of overreliance on equity in managerial compensation packages. Companies could continue to pay their C-level executives based on stock price performance but defer the payout to the future until the long-term consequences of their decisions become apparent. This would reduce the temptation to act on short-term impulses to boost equity compensation.

THE EFFECTIVENESS OF WOMEN ON BOARDS IN AFFECTING ISLAMIC SOCIAL REPORTING DISCLOSURE

This study investigates the potential impact of gender diversity on the Islamic social reporting disclosure of Indonesian sharia-approved firms. These firms operate in accordance with Islamic principles and have been approved by regulators. The study uses quantitative analysis and regression models to analyze data from a sample of firms listed in the Jakarta Islamic Index between 2016-2018. The findings suggest that having women on the board of directors and commissioners has a detrimental effect on ISR disclosure, possibly due to the lack of adequate representation of women on boards. This study contributes to the ongoing discourse about the relationship between gender diversity in corporate leadership and social responsibility in Islamic businesses.

The IDEA Model: A best practice for data-driven strategic risk and crisis communication

The IDEA Model: A best practice for data-driven strategic risk and crisis communication Professors of Strategic Communication Dr. Deanna D. Sellnow and Dr. Timothy L. Sellnow explore strategic risk and crisis communication using the IDEA Model, a theoretically grounded tool for effective communication. Nearly four decades have gone by since Beck (1986) proclaimed the world as a “global risk society” comprised of multiple ever-present and interacting risks (e.g., ecological, financial, military, terrorist, biochemical, informational). Helsloot and colleagues (2012) argued further that these ever-heightening global risks have created “a new class of adversity” they describe as “mega-crises” that “defy boundaries, limits, neat demarcations, patterned connections and linear consequences” (p. 5). Ultimately, the reality of mega-risks and mega-crises “challenge traditional assumptions and working methods of public authorities, corporate leaders and the public at large” (p. 5), necessitating a need for enhanced risk and crisis communication.

Corporate Leadership and Inherited Beliefs About Gender Roles

AbstractSome U.S. firms have women directors and executives, while many do not. We seek to explain this heterogeneity. Using U.S. Census data from 1900, we find that U.S. counties with populations originating from countries with stronger gender-egalitarian beliefs have more women in the labor market and in STEM occupations, and lower gender-pay gaps. Firms headquartered in such counties have more women executives and directors. When firms move to more gender-egalitarian counties, the representation of women on board increases. Our findings are consistent with the idea that inherited beliefs about gender roles impact the labor market and corporate leadership.

Corporate citizen internal audit model: evidence from environmental functions Iran

Purpose In recent years, Corporate Citizenship has continued to grow in importance and significance. It has been the subject of considerable debate and commentary among researchers, corporate leaders and public institutions like NGOs and even capital market companies. The development of this concept in internal audit functions can improve the level of responsibility of companies. The purpose of this study is to design an internal audit model of a corporate citizen in Iranian capital market companies. Design/methodology/approach This research is methodologically in the category of developmental and combined research. In this study, two meta-synthesis and Delphi analyzes in the qualitative part and systematic representation analysis were used to determine the systematic relationships of the Internal Audit Corporate Citizen Components to strengthen environmental sustainability. Because of the mix of the data collection method in both qualitative and quantitative parts, the research participants in the qualitative part were 13 university experts in the field of accounting and 19 internal auditors of Iranian capital market companies who had specialized experience participated in the quantitative part. Findings The results in the qualitative section indicate the existence of 14 confirmed studies and the determination of 8 main components of the internal audit of the corporate citizen, during two stages of Delphi analysis, the level of reliability of the components was confirmed with the concept of internal audit of the corporate citizen. Based on the results of system representation model in quantitative part, it was determined that Environmental training to human resources is the primary stimulus for the system’s internal audit system representation to monitor the financial performance of the company to achieve environmental sustainability. Originality/value To the best of the authors’ knowledge, this is the first study to exemplify environmental sustainability by focusing on the concept of corporate citizen internal auditing. An area that, although of research importance in terms of developing theoretical literature and practical basis in reducing the financial reporting gap with an independent auditor, However, less research has been done on this issue and conducting this research and expanding it to the level of internal auditing profession can enhance the institutional and educational capacities on it at the international level and help to integrate the development of theoretical literature.

The corporate executive leadership team and its diversity: impact on innovativeness and sustainability of the bioeconomy

Senior executives have a major role in leading corporations both strategically and operationally. In large corporations, the executive team is leading through their respective organizations, ensuring that corporate strategy is executed efficiently and effectively. In addition, executive management plays the key role in shaping the culture and the values of the corporation. There exists a wealth of research conducted on executive management team dynamics and the success factors related to their performance. This study examines how diversity in executive management impacts the perceived innovativeness of companies. We compare the most innovative companies and the largest players in the bioeconomy. Currently, the bioeconomy has received a lot of attention as it is considered one of the industries associated with solving global societal and environmental challenges. However, it is not perceived as highly innovative and is considered to be lacking in diversity among senior executive teams. This study adds to the body of knowledge connecting innovation, diversity, and corporate leadership and highlights similarities and differences from diversity perspective related to the companies investigated.

Where the Glass Ceiling Cracks: Features of Organizations Where Women Rise to the Top

Tracking a subset of firms with 20 percent or greater representation of women in top executive roles in the year 2000, we report that these firms continue to have a higher than average percentage of women in top executive roles in 2015. Gaps in the pipeline, even at these best practice firms, suggest more needs to be done to ensure a steady flow of future women leaders. Executives at these best practice firms report that sponsorship from top leadership has been key to their high levels of women in senior roles. We discuss the implications of these findings for the progress of women in the pipeline and argue that firm-level commitments to diversity by top corporate leaders are essential for further progress.&#x0D;

Female corporate leadership, institutions and financing constraints around the world

PurposeThis study aims to analyze the effect of female top management and female dominant owner on whether firms experience obstacles to obtaining external finance in 136 medium- and low-income countries during 2006–2019. The analysis controls for the role of corporate governance and other firm-specific characteristics, as well as for the impact of national institutions.Design/methodology/approachThe analysis elucidates the economic and non-economic factors driving female corporate leadership. Further, in order to capture the causal effect, the analysis uses univariate tests, multivariate regression analysis, disaggregation testing, sensitivity and endogeneity analysis to confirm the quality of the estimates. The analysis controls for various additional country-level factors.FindingsThe results show that female top management and female ownership are broadly significant determinants of firms' access to external finance, especially in relatively larger and more developed countries. The role of controlling shareholders is significant and mediates the gender effect. The latter appears more pronounced in smaller and medium-size firms, operating in the manufacturing and services sectors as well as in the countries with higher levels of development. This also varies with the countries' macroeconomic conditions and institutions governing gender development and equality as well as institutional governance effectiveness.Practical implicationsThe results suggest that firms wishing to improve the firms' access to external finance should consider the role of gender in both top management and corporate ownership coupled with the effect of the specific characteristics of firms and the conditioning role of national institutions.Originality/valueThe study examines the gender effects of top management and dominant ownership for the external financing decisions of firms in low- and middle-income countries, which are underresearched. These gender effects are mitigated in various ways by the specific characteristics of firms and especially on national institutions.

How does information technology capabilities affect business sustainability? The roles of ambidextrous innovation and data‐driven culture

This research investigates explicitly how Information technology capability (ITC) can be tailored to achieve business sustainability via ambidextrous innovation in a turbulent environment. Moreover, the moderating factor of a data‐driven culture (DDC) is also being investigated. The research model was built on the theoretical foundations of the resource‐based view (RBV), dynamic capabilities view and existing IT capabilities literature. Through a close‐ended survey questionnaire from approximately 254 IT personnel in managerial positions working in the manufacturing industry, partial least squares‐structural equation modelling‐artificial neural network (PLS‐SEM‐ANN) is applied. Notably, the result indicated that ITC positively influences IT‐enabled dynamic capabilities (ITDC), which positively impacts ambidextrous innovations and helps manufacturing firms achieve business sustainability. Meanwhile, the moderating role of DDC between ITDC and exploitative innovation was also found. The results showed that ANN models A, B, C and D are consistent for both analysis. This study provides several novel additions to the literature on operations management and information systems (IS) researchers. IS researchers should focus on leveraging ITC to enable and support organisational capabilities rather than the direct effects of IT expenditures. Additionally, the importance of a DDC has seldom been explored together previously. Thus, this study fills gaps in existing knowledge, along with significant insights, specifically for future IT implementation. As for practical implications, this study provides corporate leaders and executives with insights about how to leverage their resources and customise their ITC in an unpredictable and volatile business environment.

The Moderating Effect of a Golden Parachute on the Association between CSR and Firm Value: Does Gender-Driven Innovation Matter?

We revisit the debate on whether a firm’s corporate social responsibility (CSR) activities enhance firm value. Research on related topics has produced mixed results suggesting a need to further investigate factors that directly or indirectly impact the CSR–firm value association. To this end, we examine if a firm’s adoption of a golden parachute (GP) moderates the relationship between CSR and firm value. We also investigate if diversity-based innovation as it pertains to the gender of executives reveals any difference in the CSR–firm value relation. Using a sample of 11,065 firm-year observations of publicly traded US firms from 2007 to 2016, we find that CSR activities are significantly and positively associated with firm value. More importantly, our study shows that for US firms that issue GPs, this severance pay strengthens this positive relationship, suggesting that CEOs with a GP engage in more value-enhancing innovative CSR projects than their counterparts without it. This finding supports the conflict resolution theory and the resource-based view of the firm. A test to examine if the gender of the corporate executives alters their behavior towards CSR when the GP protects them shows an inverse relationship between female executives and CSR–firm value association. This interesting finding lends credence to related theories suggesting that women in male-dominated fields may feel pressured to conform to the stereotype of women as less competent than men and may adopt traditionally masculine behaviors to counteract this stereotype. As they climb the corporate leadership ladder endowed with a GP, the stereotype threat may still prevail, adversely affecting the CSR–firm value outcomes. These results remain robust after a series of sensitivity tests.

Higher education leadership development in selected ASEAN countries: an exploratory study of challenges and prospects in public higher education institutions

ABSTRACT Leadership has been considered as an essential foundation for universities to flourish, more so in the context of emerging higher education systems. Using an exploratory qualitative approach, this paper reviews the challenges and prospects in the development of higher education leaders in selected countries of the Association of Southeast Asian Nations (ASEAN). While variations were reported by the respondents, the challenges were somewhat similar: lack of leadership development policy and training centres, the non-availability and questionable quality of programmes, the irrelevance of western and corporate leadership theories, and the lack of systematic talent management programmes. For the lower income countries’ respondents, contextual issues seemed to affect leadership development. Since there seems to be inadequate leadership development systems in most ASEAN countries, we propose a synergistic approach among stakeholders with tracked records in intra- and inter-regional level capacity building to design and monitor programme implementation.

Influence-Seeking in U.S. Corporate Elites' Campaign Contribution Behavior

Abstract I show that U.S. corporate elites use contributions to political campaigns as a tool of political influence by leveraging a new panel on the contributions to members of U.S. Congress (MCs) from 401,557 corporate leaders of 14,807 U.S. corporations over 1999-2018. Donations increase by 11% when a politician is assigned to a committee dealing with policy issues relevant to a corporate leader's company. The effect is driven by donations to MCs with the greatest power in the committees. I estimate that, absent an influence motive, donations from corporate leaders during this period would have been lower by $20 million.

Determinants of improving the relationship between corporate culture and work performance: Illusion or reality of serial mediation of leadership and work engagement in a crisis period?

The disease COVID-19 has had an impact on the lives of all people in the world. It also had a great impact on the world economies themselves. There are several scientific publications on the impact of the COVID-19 disease on the work performance of employees, while researchers have focused on less traditional factors such as corporate culture, leadership, or work engagement as well. Corporate culture influences the shared values or behavior of employees at the workplace and creates an environment in which employees work. Through leadership, managers should be able to motivate their employees and thereby ensure their better work performance. It can be assumed that if employees are more engaged, their work performance will be higher. The main goal of the paper is to examine whether corporate culture has an impact on the work performance of employees through the mediators of leadership and work engagement. The data necessary for the goal set in this way were obtained through a questionnaire survey, which was attended by 489 respondents during the year 2022. After the data reliability analysis, by using serial mediation with two mediators, the influence of corporate culture on work performance was verified independently, but also through the mediators of leadership and work engagement. Based on the results, it can be claimed that individual factors have a significant impact on work performance, while the influence of corporate culture mediated by leadership and work engagement was also confirmed. The influence of corporate culture, mediated only by leadership, and the independent influence of corporate culture through work engagement on work performance were also confirmed.

Women’s empowerment conditions, institutions and firm performance in the MENA region

ABSTRACT Women in corporate leadership roles are gaining recognition in business strategy decision-making. However, the impact of women’s business leadership roles in the Middle East and North Africa (MENA) region has only recently gained attention due to the considerable gender equality reforms. This study explores the extent to which gender-empowerment institutions affect the performance of firms operating in the different countries of the MENA region. Using firm-level panel data, the study deploys a country-level measure of the women’s empowerment conditions in eleven MENA countries and explores its impact on both the market-driven and accounting-driven measures of corporate performance. The results show that the institutional conditions promoting gender empowerment are a significant and positive predictor of corporate performance. The effect materialises directly and indirectly through board diversity. It is weaker with respect to the accounting-driven measures of performance and stronger with respect to the market-driven measures of performance. Institutions and culture mitigate the effect. Policymakers and private agents should coordinate their efforts to empower women’s position in the whole MENA region with tangible benefits on corporate performance.

How coaching training transforms nurses' behaviour: The effectiveness of coaching training according to objective measures.

To evaluate the transition of behavioural changes of participants before and after the training using a scale that can objectively evaluate coaching training for nurses. After a cross-sectional study, a quasi-experimental study was conducted. We examined the reliability and validity of the Coaching Skill Assessment plus (CSAplus), which was developed to measure the effectiveness of coaching training for corporate leaders. Next, a repeated measures analysis of variance was conducted on two types of coaching training for nurses conducted at a university hospital, with the CSAplus scores of participants before, 1 month and 6 months after the training as the dependent variable. The CSAplus is a three-factor instrument with good reliability and validity. Participants' CSAplus scores improved after training, but there were differences in the magnitude and persistence of the training effects. Hospital staff, professional coaches and their clients were involved in data collection.