Corporate Practices Research Articles

The Role of Accounting and Audit in Sustainable Development

Abstract The involvement of accountants and auditors in sustainable development has become more and more present in the literature specialised forums. Sustainability accounting works in the same direction with corporate practices and the evolution of best practices for financial standards. Accountants and auditors contribute to the standardization of uniform procedures for all the nations. Our study will present the responsibilities and work area of accountants and auditors in the economic sector for sustainability. The traditional role of accountants and auditors is evolving towards a more comprehensive spectrum that also includes a sustainability role. We considered the analysis of specialized literature to identify the involvement of sustainability in different fields, sustainability being a subject of interdisciplinary interest.. The current role of accountants and auditors in promoting sustainable development by examining actions set by accounting regulatory authorities and representatives of the accounting profession through a qualitative analysis. Our research aims to enrich the specialized literature in academic financial research. The actual case study will present the involvement of accountants and auditors in the area of sustainable development that desire to achieve the standards proposed by the UN. The importance of work performed by accountants and auditors for international businesses for sustainable development will be also presented. Although it is really important to keep in mind that the actual paper has boundaries that could provide new interesting opportunities for research areas.

The Feasibility of Full Sustainability in the Fashion Industry

The fashion industry exerts substantial environmental impact with its significant carbon footprint, extensive water pollution, and microplastic contamination. This study investigates the feasibility of sustainable fashion and analyzes the main roadblocks to achieving it, including greenwashing, consumer overconsumption, and waste during production and recycling. A survey study was done to garner information regarding the public sentiment toward sustainable fashion, which showed an overwhelming response of uncertainty towards the prospect of sustainability. The results of this study may be used to advise the practice of major fashion corporations in improving their business models and seeking more sustainable alternatives for profit.

The Practice and Future Development of Chinese Multinational Corporations in Relation to the Responsibility to Protect Human Rights

With the growing number of Chinese multinational corporations(MNCs) investing in foreign countries,fulfilling MNCs responsibility to protect human rights outside of China has become an urgent issue that needs to be addressed. Focusing on Chinese MNCs and analyzing their practices in human rights protection,discussing how Chinese MNCs can respect and safeguard local human rights while also considering their corporate interests and domestic regulations when investing overseas. Exploring ways to improve MNCs awareness and capacity for human rights protection,and offering suggestions for future development. Chinese MNCs must actively fulfill their responsibility to human rights during the process of overseas investment, and strive for common development between enterprises and local communities by enhancing internal management systems, strengthening cooperation with international organizations, and raising awareness of human rights protection. Moreover, analyzing the practices of Chinese MNCs from an empirical perspective, identifying existing problems and suggesting corresponding improvement. By examining relevant cases, it delves into the human rights protection responsibilities of Chinese MNCs in overseas investment and provides valuable insights for Chinese MNCs' cross-border investments.

State-corporate legal symbiosis and social harm: the case of the steel factory ‘Ilva’ in Taranto, Italy

AbstractFor more than a decade, epidemiological surveys have shown that Taranto, Italy, has a critical health situation. In particular, two epidemiological reports have established a causal link between mortality and morbidity in Taranto and the industrial production of Ilva, one of Europe’s largest steel mills. Despite its negative impact on local health, Ilva has been allowed to produce thanks to a favorable legal framework. In particular, this article focuses on seven years central to the recent history of Ilva (2011–2017), in which the state has engaged in frenetic and compulsive lawmaking aimed to establish a favorable legal environment for Ilva to continue producing. It shows how the law has become an avenue for the Italian state and Ilva to establish a symbiotic relationship that has created the conditions to produce and reproduce harmful corporate practices. These laws are presented in juxtaposition with academic research and epidemiological surveys on Taranto’s public health, thus showing how the Italian state has responded to the increasing amount of evidence of corporate harm done in Taranto. The article contributes to the criminological scholarship on state-corporate crime and social harm by discussing the role of state law in the production and reproduction of harmful corporate practice. It also advances the literature on the Ilva case with a novel socio-legal reading of the socioenvironmental conflict ongoing in Taranto.

How sustainable finance creates impact: transmission mechanisms to the real economy

AbstractWhen and how does sustainable finance tangibly contribute to creating a better world? In this paper, we outline mechanisms through which impact on sustainability outcomes is transmitted from financial systems to the real economy. We argue that, to have a positive impact on sustainability outcomes, financial institutions must make a clear contribution to: (1) reducing (increasing) the cost of capital for firms’ (un)sustainable activities; (2) increasing (reducing) their access to liquidity; and (3) encouraging or enabling sustainable corporate practices. We assess the potential for impact in each category across several asset classes. We analyse how financial institutions can integrate the development of “impact budgets” into strategic asset allocation. Finally, we consider ways in which future research could consider the implications for impact-oriented portfolio construction in more detail and develop empirical methods for further testing and quantifying the impact of the different transmission mechanisms we discuss.

Effect of Green Supply Chain Management and Corporate Social Responsibility Practices on Small and Medium Enterprises

This article examines the impact of green supply chain management and corporate social responsibility on small and medium-sized enterprises. It emphasizes the importance of sustainability, environmental protection, and social responsibility in achieving economic benefits. Green supply chain management helps establish an environmental image, increase product value, and attract more consumers and investors, enhancing corporate competitiveness. As environmental regulations strengthen, small and medium-sized enterprises face increasing environmental pressure. Green supply chain management reduces resource consumption, environmental impact, and risks, promoting long-term stable development. Corporate social responsibility practices improve a company's social image, visibility, and partnerships with stakeholders, creating favorable conditions for long-term growth. These practices also require continuous innovation and management progress, fostering trust relationships with suppliers, customers, and investors. By implementing these practices, small and medium-sized enterprises can provide a better working environment, improve employee satisfaction, and reduce talent loss. The research results have significant theoretical and practical implications for promoting sustainable development in these enterprises.

‘If you don’t rush, you don’t finish’: Accelerating work and production of a vector body in Spanish hotel room attendants

The growth of the hotel industry in Spain in recent decades has meant, among other things, the acceleration of the hotel room attendants’ labour. An overload of physical activity, illnesses, and physical and mental exhaustion are the most visible consequences. Based on a qualitative study carried out with hotel room attendants working in Spanish hotels, the article analyses the effects of work intensification on room attendants’ representation of their bodies. The results show that rather than the typical description of their body as a machine that must withstand high pressure, hotel room attendants define it as a vector body constructed through multiple flows and demands, which has to speed up its pace, being constantly overwhelmed and self-managed in the process. We discuss how the acceleration of work in hotels is the result of a series of organizational and individual practices, impacting the representation and corporal practice of the hotel room attendants.

Board gender diversity and corporate social irresponsibility in a dominant owner context

AbstractThe growing prominence of women directors has increased interest in their role in firms' social performance. However, knowledge of what impact female directors might have on corporate social irresponsibility (CSI) remains virtually non‐existent. This study aims to fill this gap. Using a sample of 107 Spanish listed non‐financial companies from the OSIRIS database (Bureau Van Dijk) for the period 2014–2022, together with alternative regression methods to account for endogeneity (2SLS, propensity scoring matching and generalised method of moments), our results show an inverted U‐shaped relationship between female directors and CSI. This supports arguments that dominant owners might appoint a small number of female directors symbolically to create a ‘halo effect’ or to enhance their public image and thus reinforce their entrenchment and divert attention away from CSI episodes. However, the appointment of a critical mass of female directors does evidence dominant owner commitment to move away from irresponsible corporate practices, since the presence of a larger number of female directors encourages the firm's ethical behaviour and increases the costs of penalising CSI episodes in the face of the firm's hypocritical behaviour. This study contributes to the emerging literature on CSI by complementing the knowledge gained from studies on ethical behaviour in a concentrated ownership setting. However, the study is not without limitations, especially in terms of the difficulty of measuring CSI episodes since, despite the work of the media, some socially irresponsible practices may remain hidden.

Green thinking: impact of smart technologies on supply chain management

Purpose The purpose of this research is to determine how supply chain management (SCM) might be less affected by COVID-19 by using innovative technologies such as the Internet of Things (IoT), eco-friendly corporate practices and other digital advancements. It strongly emphasizes the use of technology to improve supply networks’ and Omani firms’ performance. Design/methodology/approach Using a mixed-methods research strategy, this study integrates both qualitative and quantitative approaches. It involves a survey and interviews with supply chain and IT managers from various industries in Oman to gather data and evaluate the impact of technology on SCM. Findings This study finds that IoT capabilities, smart technologies (STs) and green practices significantly mitigate COVID-19 impacts on SCM. The performance of the supply chain and the business are both improved by these technologies’ positive effects on integrating various supply chain elements, such as suppliers, internal processes and customer relations. Research limitations/implications The main constraint of this study is its concentration on businesses in Oman, potentially restricting the applicability of its findings to broader contexts. Future studies could investigate similar frameworks across various geographic and industry settings. Practical implications The findings suggest that incorporating STs into SCM is crucial for enhancing operational efficiency and resilience against disruptions such as COVID-19. This offers valuable insights for managers and policymakers in adopting technology-driven strategies for SCM. Social implications This study highlights the significant role of technology in sustaining supply chains during pandemics, thereby supporting economic stability and societal well-being. It underscores the importance of technological advancements in maintaining supply chain continuity in challenging times. Originality/value By empirically examining the effect of emerging technologies on enhancing SCM in the context of the COVID-19 pandemic, specifically in the Oman market, this research makes a unique contribution to the body of knowledge.

Discovering the sustainable development role of fintech credit and the pilot low carbon project on greenwashing in China

AbstractLow-carbon development is important to reduce global warming, allow people to live in normal temperatures and climates, and limit the loss of labor productivity by avoiding air pollution. However, greenwashing prevents low-carbon development by making companies appear more eco-friendly than they are. Therefore, this study examines the influence of financial technology (FinTech) credit and the implementation of the Pilot Low Carbon Project on corporate greenwashing in China from 2015 to 2021. The study uses the method of moment quantile regression (MMQR) to determine that FinTech credit and low- carbon projects prevent greenwashing behavior and promote environmentally sustainable corporate practices in China. Fintech plays a crucial role in monitoring the environmental impact of urban development, especially in the context of the Low Carbon City Initiative. The influence of Fintech Credit on greenwashing experiences a notable reduction in the higher quantiles, especially between the 75th and 95th culminating in a significant decrease to approximately − 0.07. Companies outside the low carbon city areas consistently experience a negative impact of Fintech Credit on greenwashing. This investigation contributes significantly to the discourse on the interplay between greenwashing, FinTech and sustainable urban development. It also provides valuable insights for the development of strategies aimed at mitigating misleading environmental claims made by companies.

Legal gaps in the peruvian corporate network: Negative practices in boards of directors

Introduction: The networks generated among firms’ boards through their shared directors can cause conflicts of interests, generating potential negative business practices. Objective: This paper identifies the risks of negative managerial practices driven by theabsence of proper regulations to control the formation and behavior of interlocking directorates in Peru. Methodology: It discusses the interlocking directorates’ literature, and reviews current Peruvian regulation. Results: In addition to the identified risks, itemphasizes in the expectations of a proper behavior of directors as a decision of their own, due to the nature of their role. Conclusions: This interdisciplinary study between management and law evidences gaps in Peruvian regulation for the operation of interlocking directorates and suggests the development of future empirical research in Latin America towards the prevention of these negative corporate practices.

Greening the Workplace: Exploring the Influence of Corporate Sustainability Governance on Corporate Labour Rights in the Case of Indian Listed Companies for the Period of 2010 to 2021

Amidst today’s globalized economy, embedding sustainable practices into corporate governance frameworks has become important. This era underscores a heightened focus on CSR and sustainability, drawing considerable scholarly and practical interest to the nexus of corporate governance, sustainability initiatives, and corporate labour rights (CLRs). Hence, this study investigates the relationship between corporate sustainability governance initiatives (CSGIs) and CLR practices in India. Despite regulatory efforts, issues such as modern slavery and low wages persist in the country. Drawing on legitimacy, agency, stakeholder, and resource dependency theories, this study examines how CSGIs influence CLR practices. Data from 1212 observations of top Indian listed companies between 2010 and 2021 indicate positive correlations between CSGI dimensions and CLR practices across industries and board CSR orientations. This research underscores the importance of CSGIs in promoting sustainable corporate practices and improving CLRs in emerging economies. It also aligns with the United Nations sustainable development goals (SDGs), particularly SDG 3, SDG 5, SDG 8, and SDG 10. By combining theoretical rigour with practical relevance, this study provides insights for businesses, policymakers, workers, investors, and CSR scholars, contributing to efforts to enhance CLRs in India and beyond. For instance, the study offers actionable guidance for businesses and policymakers aiming to improve CLR practices. It highlights the positive correlation between specific attributes of CSGIs and CLR practices, providing insights for corporate decision-making and emphasizing the importance of aligning operations with the UN’s sustainable development goals. The findings serve as critical decision-making tools for investors concerned with corporate sustainability governance and CLRs to identify ethically responsible companies and mitigate investment risks.

Research on Corporate Environmental Responsibility Practices of Multinational Corporations in Developing Countries—The Case of U.S. Multinational Corporations

The practice of environmental responsibility of multinational corporations (MNCs) in developing countries is of great significance for sustainable development. This study aims to explore the practice path of MNCs in fulfilling their corporate environmental responsibility in developing countries, and to analyze the challenges they face and the achievements they have made. Through field research and case study analysis, a series of feasible suggestions are put forward to promote the practice of environmental responsibility of multinational corporations in developing countries by combining relevant theories and practical experiences.

Public Financial Reporting Practices, Regulations and Accountability of State-Owned Corporations in Kenya

Public Financial Reporting Practices, Regulations and Accountability of State-Owned Corporations in Kenya

UK practitioners' motivations and experiences of farm animal internship programmes

Background: Recruitment and retention of practicing farm animal veterinary surgeons is of growing importance in the UK. Farm animal internships are one route for early career veterinarians to pursue, and can be offered by both universities and corporate practices. Aims: This survey established the motivations, experiences and drivers for farm animal veterinary surgeons undertaking internships. Methods: An online questionnaire consisting of 14 questions of both free text and multiple-choice questions was used to evaluate the opinions of veterinarians who have undertaken farm animal internships in the UK. Findings: The main motivation for carrying out an internship was the desire for support, which was stated by 63.3% of participants. Interns who received weekly or fortnightly contact with a mentor were significantly more likely to regard this as sufficient (P<0.05) compared to interns whose support was less frequent. Conclusions: The results of this questionnaire suggest that internship programmes are well received by those undertaking them.

Challenges of the integrative product and production system development

AbstractShorter product lifecycles and a shift from mechatronic to cyber-physical systems are leading to greater product complexity. This complexity can be addressed by more intensive cooperation between product and production system development. Despite intensive development in recent years, these process models have not been able to establish themselves in corporate practice. Therefore, this paper analyses the existing integrative product and production methods to identify the reasons for their lack of use in practice. The analysis has shown that there are nine barriers.

The influence of corporate social responsibility, investment opportunities, and profitability on tax avoidance

The analysis conducted on the relationship between Corporate Social Responsibility (CSR), Investment Opportunity, Profitability, and Tax Avoidance in Energy Sector Companies listed on the Indonesia Stock Exchange between 2017 and 2021 has yielded significant insights. While the influence of CSR on Tax Avoidance was found to be insignificant, both Investment Opportunity and Profitability demonstrated notable effects, with the latter displaying a negative influence. Furthermore, the combined impact of CSR, Investment Opportunity, and Profitability on Tax Avoidance was found to be substantial, explaining 63% of the observed variance. These findings underscore the intricate relationship between corporate practices, financial performance, and tax management strategies, offering valuable implications for various stakeholders. In light of these conclusions, several recommendations can be drawn. Firstly, collaboration between tax authorities and relevant stakeholders is essential to refine tax policies, integrating sustainability considerations and ensuring transparency in corporate tax practices. Secondly, investors should adopt a comprehensive approach when assessing investment opportunities, taking into account factors beyond financial performance, including corporate social responsibility and tax management strategies. Additionally, companies are encouraged to enhance their disclosure practices concerning CSR activities, thereby promoting greater transparency and accountability. Finally, future research efforts should focus on expanding the scope of analysis across different sectors and incorporating additional variables to deepen our understanding of tax avoidance dynamics in the Indonesian context. By implementing these recommendations, policymakers, tax authorities, investors, and corporate entities can collectively contribute to fostering a more responsible and sustainable business environment.

Pengaruh ESG terhadap Kinerja Perusahaan: Moderasi Board Gender Diversity

Company performance is a metric in assessing the level of success of a company in a certain period. to maintain good company performance, companies need to manage core business, namely building good relationships with stakeholders. For investors as stakeholders, the availability of information presented by the company is very important to decide on the right capital allocation and avoid the risks that occur. With the encouragement from the government and investors as stakeholders, more and more companies want to provide a clear picture of corporate practices and responsibilities, one of which is by disclosing environmental, social and corporate governance (ESG) aspects. The purpose of this study to provide empirical evidence regarding the influence of ESG on company performance, provide empirical evidence regarding the role of board gender diversity on the influence of ESG on the performance of companies listed on the Stock Exchange in Indonesia and Germany in 2018-2022. The sampling technique in this study was purposive sampling. Data was taken from Thomsonreuters and this study used panel data regression analysis with STATA 17. The results of this study found that ESG has no effect on company performance in Indonesia. The results of further research found that ESG has a negative effect on company performance in Germany. This study found that board gender diversity plays a role in encouraging ESG activities to improve firm performance in Germany.

The Impact Of The Diversity Of The Board Of Directors In The Adoption Of Risk Management And Control Practices

The objective of this study is to analyze the incidence of board diversity in the adoption of management practices and risk control of 236 Chilean public limited companies in the period 2015- 2019. For this, a descriptive-correlational study was carried out, considering the diversity of gender, nationality, and age of the board of directors, and the degree of adoption of risk management and control practices proposed by the local regulator. Through a regression analysis between the study variables, it was shown that diversity of gender and nationality has a positive and significant impact on the adoption of risk management and control practices, but not age diversity, which does not have a significant impact on the adoption of risk management and control practices. It was concluded that the boards do not present a tendency towards heterogeneity in their conformation, being composed chiefly of male directors of Chilean nationality and in an age range between 50 and 70 years, leaving evidence of stagnation in the diversity rates of this decision-making body, as well as the low adoption of corporate practices related to risk control and management in companies in the Chilean stock market.

A Comparative Study of Private Sector Banks Listed In BSE with Reference to Corporate Governance

A Comparative Study of Private Sector Banks Listed In BSE with Reference to Corporate Governance