Corporate Practices Research Articles

Female power, ownership and ESG decoupling: evidence from China

PurposeThis study explores the influence of female executives on the misalignment between corporate ESG commitments and practices, a phenomenon known as ESG decoupling. It also enhances the understanding of female power on affecting ESG decoupling under different ownership settings.Design/methodology/approachThis study uses a quantitative research design to explore the impact mechanism of female executives’ proportion on corporate ESG decoupling under different ownership contexts based on a sample of 2,585 firm-year observations from publicly traded Chinese companies between 2011 and 2021.FindingsBased on agency theory, upper echelons theory and gender socialization theory, our findings indicate that (1) female executives are significantly effective in reducing ESG decoupling, and (2) this effect is more pronounced in non-state-owned enterprises (non-SOEs) compared to state-owned enterprises (SOEs).Originality/valueThis study contributes original insights into the ESG decoupling literature by demonstrating the external influences of corporate governance structure, particularly in the context of China’s unique corporate ownership environment. It also provides strong social implications by highlighting the role of gender dynamics in corporate governance, corporate social responsibility (CSR) behaviors and ESG alignment.

Evaluating Corporate Social Responsibility in Achieving Sustainable Development and Social Welfare

This study delves into the conceptualization of Corporate Social Responsibility (CSR) as a crucial factor for fostering sustainable development and enhancing social welfare. It addresses the challenge of comprehensively perceiving the contributions of CSR activities to sustainable and socially responsible corporate practices. Using a bibliometric approach, this research scrutinizes a substantial corpus of literature, extracting 4,276 documents covering from 2009 to 2024 from the Scopus database, centered on the interplay between CSR, sustainable development, and social welfare. The research utilized the R Biblioshiny software for data analysis incorporates descriptive, annual scientific production, most relevant sources, core sources by Bradford’s Law, most relevant affiliations, corresponding author’s countries, network, and trend analyses to chart the progression and influence of CSR within these realms. Findings underscore a marked expansion in CSR-related research, spotlighting its evolution from mere charity to an integral component of strategic business operations. Emerging patterns reveal that businesses increasingly view CSR as a pivotal part of their value proposition rather than an optional extra. Despite the growth of academic interest, the study has identified a lacuna in the empirical understanding of how CSR strategies are effectively implemented. Recommendations call for a more seamless incorporation of CSR into the very fabric of corporate strategy and operations. Furthermore, the study highlights the need for future research to develop precise metrics capable of quantifying CSR’s social and environmental effects. Contributing a nuanced perspective to the discourse on CSR, this research provides a foundational schema for further scholarly investigation, underscoring CSR’s dynamic and essential role in today’s corporate world.

Discovering the Intriguing Dynamics of Transfer Pricing: Tax Burden, Foreign Ownership, and Company Size

ownership, and company size on transfer pricing practices within the mining subsector of manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2022. Through purposive sampling, 35 datasets out of a total population of 40 companies were selected for analysis. Multiple linear regression served as the analytical tool, and hypothesis testing was executed using SPSS version 25 software. The findings underscore that both tax burden and foreign ownership wield significant influence over transfer pricing practices. Notably, companies exhibit a propensity to leverage transfer pricing as a strategic tool for tax burden management, particularly in instances of heightened foreign ownership. Interestingly, however, company size does not exhibit a significant impact on transfer pricing practices, suggesting that entities of varying magnitudes within this subsector tend to adopt analogous approaches to transfer pricing policies. These findings are pivotal for both regulatory bodies and corporate managers, as they provide valuable insights into the factors shaping transfer pricing practices. Moreover, the formulation of tax policies geared towards fostering transparency and equity in business operations. By comprehensively understanding the dynamics at play in transfer pricing, stakeholders can navigate regulatory landscapes more adeptly and devise strategies that promote fairness and compliance within the realm of taxation. This study thus contributes to the broader discourse on tax policy and corporate governance, offering a nuanced understanding of the intricate relationship between tax structures, ownership dynamics, and corporate practices within the mining subsector of Indonesia's manufacturing industry.

Implementation of Effective Supply Chain Management Practice in the National Oil Corporation in Developing Country: An Integrated BWM-AROMAN approach

This study introduces an approach to assess the adoption of an effective supply chain management practice (SCMP) in the petroleum sector, a vital component of any country’s economy. Enhancing the sector’s performance requires an effective implementation of the SCMP to address performance-related issues in a sustainable manner. For that, the best-worst method (BWM) determined the weights of four identified challenges to effective SCMP in the sector, and subsequently, the alternative ranking order method accounting for two-step normalization (AROMAN) evaluated four alternatives to overcome these challenges. To show the applicability of our approach, the national oil corporation in Kenya is considered as a case study. Results show that collaboration between supply chain actors for the provision of transport and distribution is the most appropriate alternative for an effective SCMP for the national oil corporation.

Key Informant Views of the Determinants of Child Labour Maltreatment.

(1) Background: The maltreatment of child labourers is a major public health concern. There is a dearth of research in Bangladesh on the intentional maltreatment of child labourers. This study explored the risk factors for the maltreatment of child labourers in rural Bangladesh based on the knowledge and understanding of experts; (2) Methods: Seventeen interviews were conducted with experts who were sampled using a purposeful approach. A thematic analysis was performed to analyse data using NVivo; (3) Results: Child labourers were exposed to maltreatment due to their demographic, their young age, dropping out of school, health complications, and excessive dependency on employers. Socio-cultural adversities such as corporal punishment practices, social stratification, and family disorganization pose risks of experiencing maltreatment. Economic poverty is also a factor. Child labourers were found to be victimized if they worked in violence prone sectors. Significantly, the unregulated market structure and the lack of monitoring has also led to the exploitation of children in the workplace. Gaps in public policies were also identified as risk factor for the maltreatment of child labourers; (4) Conclusion: There is a need for adequate evidence-based research on the determinants of the maltreatment of child labourers to formulate adequate policy.

Employees’ perceptions of corporate social responsibility in a selected manufacturing enterprise in South Africa

Despite small and medium enterprises (SMEs) being the backbone of any economy, their performance is not satisfactory. Corporate Social Responsibility (CSR) is frequently utilised to improve business sustainability and meet stakeholder responsibilities. However, literature focuses on CSR practices in larger corporations, neglecting the practice in SMEs. On the other hand, CSR research usually overlooks internal stakeholders such as employees. In order to bridge this gap, the researcher investigated internal stakeholders’ perceptions of CSR in a South African medium-sized organization located in the eThekwini municipal area, as this perspective is critical in developing a comprehensive CSR strategy. Data for this research was gathered through interviews and focus group discussions with managers and employees of the selected organization. Thematic content analysis was the primary method utilised for analysing the collected data, which was aided by NVivo 12 software for complete data processing and organization. The findings revealed that employees view CSR as a viable practice that encourages dedication and motivation to improve work performance. CSR implementation within the organization is seen as an effective motivational tool, resulting in greater output, increased staff dedication, decreased absenteeism, and increased employee turnover. The researcher argues that CSR can increase employee performance and emphasizes the necessity for SME managers to incorporate social, environmental and employee-related CSR projects into their business strategy to improve overall performance.

Irresponsible to others but responsible to me: Testing employees' responses to external corporate social irresponsibility and internal corporate social responsibility

AbstractDrawing upon deonance theory and expectancy violation theory, we investigate how employees react when their companies engage in corporate social irresponsibility (CSiR) that harms external stakeholders who are not employees themselves. Furthermore, we introduce the concept of perceived internal corporate social responsibility (CSR), which refers to employees' perceptions of how organizational actions and policies benefit them personally. We developed a conceptual model that illustrates the joint influence of external CSiR and internal CSR on employees' perceptual, relational, and behavioral outcomes. An online survey with 417 full‐time US employees revealed that employees tend to evaluate unethical corporate practices holistically, in the context of other factors, such as the company's moral character and internal CSR, rather than based on external immorality. Our study contributes to a deeper understanding of employee reactions to both CSR and CSiR, emphasizing the importance of organizations evaluating the broader ramifications of their unethical actions.

Aligning Sustainable Development Goals with Human Rights: Policy Integration and Implementation in European Companies

Abstract The study aims to evaluate the integration of Sustainable Development Goals (SDGs) and specific policies related to human rights, within listed European Union companies. The investigation builds upon the existing literature that examines the behavioral patterns of different nations in relation to these objectives and policies that exist to mitigate the problematic areas within the country. The literature employs a variety of indicators, collectively reflecting the specific targets of the SDGs and policies related to human rights. We conducted a quantitative analysis using data extracted from the Refinitiv Eikon database, providing a representative snapshot of the corporate landscape in 2022. Through this dataset, we delve into the dynamics of European Union companies and their implementation of SDGs and policies related to human rights. The study involves a statistical analysis of the applicability of these goals and policies between companies, taking into account not only the industry-specific nuances, but also the country-specific dimensions. The paper represents a valuable contribution to the academic discourse by providing evidence regarding the implementation of SDGs and policies related to human rights in the context of the 2030 Agenda of the United Nations. Furthermore, the study places emphasis on the exemplary initiatives taken by top-contributing companies in nations such as Sweden, aiming to sketch a model for entities that are yet to reach comparable levels of commitment. Beyond its scholarly significance, this analysis serves as a practical benchmark for companies aspiring to fortify their commitment to human rights-related goals. Ultimately, this research aims to propel a paradigm shift in corporate practices, steering them toward a more harmonious alignment with the crucial imperatives of the 2030 Agenda.

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.