Responsible Corporate Behavior Research Articles

The EU Corporate Sustainability Due Diligence Directive: Real Change or More of the Same?

The implementation of mandatory corporate due diligence has been a growing trend in recent years. Viewed as having the potential to prevent corporate abuse, mandatory due diligence can be presented as the mechanism to substantially improve responsible corporate behaviour in practice. In 2022, the European Commission proposed a Corporate Sustainability Due Diligence Directive (CSDDD). The proposal presents obligations for companies regarding any actual or potential adverse human rights and environmental impacts, as well as liability for violation of such obligations. It aims to streamline due diligence obligations across Member States and create a level playing field. Since then, the Council of the EU and the European Parliament have agreed their negotiating positions. This paper explores the proposed CSDDD, including amendments, and analyses the challenges and prospects for mandatory due diligence. It explores whether the CSDDD could result in a genuine transformation of corporate practices to prevent corporate harms, or whether developments are similar to the incremental changes already seen over the years. It is argued that while the CSDDD could be another step in the right direction, significantly more needs to be done to prioritise rights holders above corporations and demonstrate a real change in responsible business practices.

The Introduction of Mandatory Corporate Sustainability Reporting in the EU and the Question of Enforcement

The Introduction of Mandatory Corporate Sustainability Reporting in the EU and the Question of Enforcement

The impact of digital inclusive finance on ESG disputes: Evidence from Chinese non-financial listed companies

In the dynamic landscape of corporate sustainability, this study sheds light on the transformative role of digital inclusive finance (DIF) in fostering sustainable practices and responsible corporate behavior. The study employs a unique dataset consisting of Chinese nonfinancial A-share listed firms for the period 2017–2020. The findings demonstrate a significant positive relationship between DIF and the mitigation of environmental, social and governance (ESG) disputes. Moreover, the mechanism analysis reveals that DIF mitigates ESG disputes by reducing financial constraints and improving internal control. The heterogeneity results show that the impact of DIF on corporate ESG disputes is more pronounced for firms located in underdeveloped regions, belongs to sensitive industrial sectors, low industrial competition, and high environmental uncertainty. The research findings provide several implications for policymakers, regulators and managers seeking to navigate the intersection of finance, sustainability and corporate responsibility in digital era.

The Role of Indonesian Business Owners in Aggressive Tax Planning

Objective: The objective of this study is to investigate the impact of firm characteristics, specifically leverage and profitability, on aggressive tax planning in public sector mining companies listed on the Indonesia Stock Exchange for the period of 2012-2016, with family ownership as a moderating variable. Theoretical Framework: This research draws upon established theories in finance and corporate governance to examine the relationship between firm characteristics and aggressive tax planning. Key theories include agency theory, which helps to understand the dynamics between owners and managers in decision-making processes, and the pecking order theory, which sheds light on how firms choose between internal and external financing options Method: The methodology adopted for this research comprises a quantitative approach utilizing data from 12 mining sector public companies over a five-year period, resulting in a sample size of 60. Data was processed using SPSS version 22.0 and Warp Pls 5.0. Leveraging both statistical analysis and structural equation modeling, the study explores the influence of leverage, profitability, and family ownership on aggressive tax planning. Results and Discussion: The findings indicate that leverage positively influences aggressive tax planning, while profitability exhibits a negative association. Furthermore, when moderated by family ownership, leverage demonstrates an amplified positive effect on aggressive tax planning, while profitability displays a strengthened negative impact. These results underscore the significant role of family ownership in shaping tax planning strategies within publicly listed companies. Research Implications: The practical implications of this research extend to corporate governance practices and tax planning strategies within the public sector mining industry. Understanding the interplay between firm characteristics and family ownership can inform policymakers and practitioners in enhancing transparency and accountability in tax-related decision-making processes. Originality/Value: This study contributes to the existing literature by examining the influence of firm characteristics on aggressive tax planning within the context of family ownership, particularly in the Indonesian market. By shedding light on the nuanced relationships between these variables, this research provides valuable insights for scholars, practitioners, and policymakers aiming to mitigate tax-related risks and promote responsible corporate behavior.

State regulation of the use of ESG methodology

The history of banks’ involvement in solving the issues of sustainable development of the society is, on the one hand, short by the standards of economic history, and on the other hand, bright and ambiguous. This is explained by the strategic goal of the banking institution functioning - ensuring a stable turnover of financial resources in the socio-economic system of the country and building up financial capital. It is the latter component that caused the interest of the market and state regulators in the possibility of attracting banks’ capital to finance so-called “green projects” aimed at solving local or global environmental problems of mankind. Today, the strategic agenda of more and more banks includes various elements of ESG-methodology of responsible corporate behavior, implemented in the form of corporate social policy (mainly focused on the bank’s staff and its clients) and a portfolio of “green investments” - a group of projects that are mainly socially-oriented or infrastructural in nature. The purpose of such responsible investment is both to solve specific socially or environmentally important tasks and to strengthen the market position of the bank-investor itself, which forms a positive image in the eyes of its key stakeholders.

The Behavioural Finance Revolution: Bridging the Gap between Numbers and Corporate Performance

This conceptual paper investigates the interplay between cognitive biases, financial decision-making, and corporate governance within the framework of behavioral finance. By examining a range of cognitive biases, including overconfidence bias, confirmation bias, anchoring bias, disclosure bias, and framing bias, the paper explores the complexities of human behavior and its impact on financial outcomes, especially in developing countries. The paper aims to suggest an approach for researchers by proposing an overall framework that intricately connects the subjectivity of cognitive biases with empirical research. The integration of theoretical frameworks, such as prospect theory, bounded rationality theory, agency theory, framing theory, availability heuristic, and the endowment effect, provides a comprehensive understanding of deviations from rational expectations in financial decision-making. Furthermore, the paper highlights the relevance of cognitive biases in understanding corporate scandals and their implications for shareholder value creation and long-term sustainable growth. The findings contribute to both academic research and practical implications, offering insights for practitioners, policymakers, and researchers in their endeavors to enhance transparency, improve decision-making processes, and cultivate responsible corporate behavior within organizations.

The frontstage-backstage of organizational identity and management control system: the tale of British Petroleum’s embarrassment in DWH

PurposeThis study aims to investigate the dynamic interplay between the management control system (MCS) and organizational identity (OI) in the Deepwater Horizon incident involving British Petroleum (BP). It examines how the MCS manages challenges, particularly those addressing the embarrassment stemming from identity disparities between external portrayal (frontstage) and internal operations (backstage), with a focus on the often-underestimated influence of the media.Design/methodology/approachThis study builds upon the frameworks developed by Ravasi and Schultz (2006) and Malmi and Brown (2008) to construct a theoretical framework that profoundly investigates the relationship between MCS and OI. The framework developed guided the research design and incorporated a qualitative approach complemented by an illustrative case study. The research data was rigorously gathered from diverse sources, including official BP documents and influential media outlets, with a particular focus on well-established American and British newspapers.FindingsBP’s MCS plays a dual role: it exposes discrepancies in safety, leadership and values, causing embarrassment and identity damage, yet catalyses a sense-making process leading to organizational transformation and shifts in the OI. This transformation influences sense-giving and prompts changes in MCS. The study reveals an intricate interplay in identity management between frontstage audiences (e.g. influential media) and backstage actors (e.g. BP’s senior management). It highlights interdependencies both within and between MCS and OI, emphasizing their roles in interacting within identity management. The longitudinal recovery is intricately tied to mutual political interests between BP and the USA, which are significantly facilitated by the media’s role.Research limitations/implicationsThis study acknowledges limitations that point future research opportunities. Interviews could provide a more dynamic understanding of MCS changes and organizational transformations. Investigating the role of leadership, particularly the new chief executive office, and the influence of political versus organizational factors in shaping identity claims is essential. Additionally, the effectiveness and historical context of interdependencies should be quantitatively assessed. Theoretical limitations in the OI and MCS frameworks suggest the need for context-specific categorisations. This research serves as a foundation for further exploration of the intricate dynamics between MCS, OI and organizational responses to crises.Practical implicationsThis study offers valuable insights with practical implications for organizations facing identity challenges in the wake of significant incidents. Organizations can better navigate crises by recognizing the multifaceted role of MCS in identity damage and restoration. It underscores the importance of addressing both frontstage and backstage aspects of OI while managing identity discrepancies, thereby enhancing transparency and credibility. Additionally, understanding the intricate interdependencies within OI and MCS can guide organizations in implementing more effective identity restoration strategies. Furthermore, the study highlights the significance of media influence and the need to engage with it strategically during crisis management.Social implicationsThis study’s findings have significant social implications for organizations and the broader public. By recognizing the multifaceted role of MCS in shaping identity, organizations can enhance transparency and credibility, rebuilding trust with the public. Additionally, the study highlights the critical role of media in influencing perceptions and decision-making during crises, emphasizing the importance of responsible and ethical reporting. Understanding the intricate interplay between MCS and OI can inform better crisis management strategies and improve how organizations respond to and recover from incidents, ultimately benefiting society by promoting more accountable and responsible corporate behaviour.Originality/valueThis study’s distinctness lies in its innovative exploration of MCS, which transcends traditional methodologies that focus narrowly on front or backstage aspects of OI and often adhere to predetermined MCS practices. It underscores the importance of concurrently addressing both the front- and backstage audiences in managing the embarrassment caused by identity discrepancies and restoration. The research uncovers multifaceted interdependencies within MCS and OI, and these extend beyond simplistic relationships and emphasize the complex nature of identity restoration management.

Tortious Liability of Companies

Tortious liability of companies, in simpler terms, is about holding big businesses accountable when they do something wrong. Just like individuals can be responsible for their actions, companies can too. The concept of tortious liability of companies refers to the legal responsibility that corporations can bear for their wrongful acts or negligence, resulting in harm to others. Companies can be liable for torts committed by their employees, agents, or representatives acting within the scope of their employment. In today’s business world, understanding this concept is paramount. It serves as a vital cornerstone for maintaining ethical and responsible corporate behavior, safeguarding the rights and well-being of consumers and stakeholders, and ensuring a fair and just business environment. This understanding not only protects individuals and the environment from corporate harm but also shapes the principles of corporate social responsibility and accountability that define modern business practices. In a world where corporations wield immense influence, comprehending tortious liability is essential for upholding legal and ethical standards in the corporate landscape.

Corporate Governance and Corporate Social Responsibility: Good Practices and Prospects

Corporate governance and corporate social responsibility (CSR) are two critical elements of modern business practices that have gained significant attention in recent years. The relationship between these two concepts has become increasingly important as organizations face growing pressure from stakeholders to not only perform economically but also to act in a socially responsible manner. The purpose of this research topic is to explore the good practices and prospects of corporate governance and CSR. The study examined the various approaches and methods used by organizations to ensure effective corporate governance and implement meaningful CSR programs. It also considered the challenges faced by organizations in balancing these two objectives and the role of stakeholders in promoting responsible corporate behavior. The findings of this research provide valuable insights into the current state of corporate governance and CSR and offer recommendations for future improvements and developments in these areas. Keywords: Corporate Governance, Corporate Social Responsibility (CSR), and Good Practices and Prospect.

Corporate Sustainability Due Diligence and the New Boundaries of the Firms in the European Union

To support the policies provided by the Action Plan on Financing Sustainable Growth and the European Green Deal, an intense activity of revising and updating European rules applicable to the business sector has been undertaken. EU Institutions tried to achieve the shift toward an inclusive and sustainable economy mainly indirectly, through soft law or reporting requirements and regulation of financial markets. In 2020 the Commission launched complementary initiatives in the field of company law to tackle the problem from an ex-ante perspective and in February 2022, a proposal for a directive on Corporate Sustainability Due Diligence has been published. The core of the proposal is to foster sustainable and responsible corporate behavior throughout global value chain by providing a general due diligence duty for companies and directors, but it also includes other provisions linked to a broader sustainable corporate governance project. It provides obligations related to climate change targets and tries to harmonise some aspects of directors’ fiduciary duties in European companies. After an analysis of the content of the proposal, this study stresses the emergence of a policy shift from self-regulation to statutes in the field of private procurement and the impact of sustainability on the boundaries of the firm.

Academic Literature on Compliance Programs, ESG, Corporate Governance, Fraud Prevention, Human Rights, Corruption, Data Protection, and SDGs

This academic summary provides an overview of key themes in recent open-access articles pertaining to compliance programs, environmental, social, and governance (ESG) practices, corporate governance, fraud prevention, human rights, corruption, data protection, and Sustainable Development Goals (SDGs) as set forth by the United Nations. Scholars have extensively explored the significance of compliance programs in organizations, evaluating their role in ensuring ethical practices, legal adherence, and risk mitigation. Additionally, research has focused on the adoption and impact of ESG strategies, addressing their influence on corporate decision-making, sustainability, and stakeholder engagement. Corporate governance remains a vital area of investigation, investigating board structures, executive compensation, and the effectiveness of governance mechanisms in enhancing firm performance and accountability. Simultaneously, efforts to combat fraud and corruption have led to analyses of fraud detection techniques, whistleblowing systems, and anti-corruption measures. The literature also highlights the evolving landscape of data protection, emphasizing regulatory developments, privacy frameworks, and organizational responsibilities in safeguarding data. Furthermore, there is a growing emphasis on the integration of human rights principles into business practices, exploring the implications of human rights violations and strategies for promoting responsible corporate behavior. Lastly, articles have explored the alignment of corporate practices with the SDGs, examining businesses' contributions to global sustainability goals.

A Strategy for Sustainable Administration policies: Analysis and Evaluation

As businesses expand their global footprint in an era marked by growing environmental and ethical concerns, the administration of international operations has become a focal point for fostering sustainability and responsible corporate behavior. This paper delves into the intricate realm of sustainable administration in international business, with a particular focus on strategies employed by organizations to align their practices with environmental, social, and ethical considerations. Leveraging advanced data analytical methods, including k-means clustering, and guided by the insights of the Elbow Method, our research provides a comprehensive analysis of sustainable administration strategies. Drawing from Prudential Life Insurance as a case study, we explore how multinational corporations navigate the complexities of sustainability, particularly in the face of global challenges. Through rigorous examination and empirical findings, our study offers actionable insights for businesses aiming to strike a balance between competitiveness and responsible global citizenship. In an increasingly interconnected world, this research contributes to the ongoing dialogue on sustainable business practices, underlining the significance of sustainable administration in shaping a more resilient and equitable global economy.

Green crowdfunding and its place in the development of the ESG institute in Russia

The history of banks' involvement in solving the issues of sustainable development of the society is, on the one hand, short by the standards of economic history, and on the other hand, bright and ambiguous. This is explained by the strategic goal of the banking institution functioning - ensuring a stable turnover of financial resources in the socio-economic system of the country and building up financial capital. It is the latter component that caused the interest of the market and state regulators in the possibility of attracting banks' capital to finance so-called "green projects" aimed at solving local or global environmental problems of mankind. Today, the strategic agenda of more and more banks includes various elements of ESG-methodology of responsible corporate behavior, implemented in the form of corporate social policy (mainly focused on the bank's staff and its clients) and a portfolio of "green investments" - a group of projects that are mainly socially-oriented or infrastructural in nature. The purpose of such responsible investment is both to solve specific socially or environmentally important tasks and to strengthen the market position of the bank-investor itself, which forms a positive image in the eyes of its key stakeholders and improves the rating position of investment attractiveness both domestically and in international rankings compiled by reputable analytical agencies, such as S&P, Moody's Investors, and Fitch Ratings.

Climate bonds and their role in the development of ESG-finance banking practice: Global and Russian experiences

The history of banks' involvement in solving the issues of sustainable development of the society is, on the one hand, short by the standards of economic history, and on the other hand, bright and ambiguous. This is explained by the strategic goal of the banking institution functioning - ensuring a stable turnover of financial resources in the socio-economic system of the country and building up financial capital. It is the latter component that caused the interest of the market and state regulators in the possibility of attracting banks' capital to finance so-called "green projects" aimed at solving local or global environmental problems of mankind. Today, the strategic agenda of more and more banks includes various elements of ESG-methodology of responsible corporate behavior, implemented in the form of corporate social policy (mainly focused on the bank's staff and its clients) and a portfolio of "green investments" - a group of projects that are mainly socially-oriented or infrastructural in nature. The purpose of such responsible investment is both to solve specific socially or environmentally important tasks and to strengthen the market position of the bank-investor itself, which forms a positive image in the eyes of its key stakeholders and improves the rating position of investment attractiveness both domestically and in international rankings compiled by reputable analytical agencies, such as S&P, Moody's Investors, and Fitch Ratings.

Academic Literature on Compliance Programs, ESG, Corporate Governance, Fraud Prevention, Human Rights, Corruption, Data Protection, and SDGs

This academic summary provides an overview of key themes in recent open-access articles pertaining to compliance programs, environmental, social, and governance (ESG) practices, corporate governance, fraud prevention, human rights, corruption, data protection, and Sustainable Development Goals (SDGs) as set forth by the United Nations. Scholars have extensively explored the significance of compliance programs in organizations, evaluating their role in ensuring ethical practices, legal adherence, and risk mitigation. Additionally, research has focused on the adoption and impact of ESG strategies, addressing their influence on corporate decision-making, sustainability, and stakeholder engagement. Corporate governance remains a vital area of investigation, investigating board structures, executive compensation, and the effectiveness of governance mechanisms in enhancing firm performance and accountability. Simultaneously, efforts to combat fraud and corruption have led to analyses of fraud detection techniques, whistleblowing systems, and anti-corruption measures. The literature also highlights the evolving landscape of data protection, emphasizing regulatory developments, privacy frameworks, and organizational responsibilities in safeguarding data. Furthermore, there is a growing emphasis on the integration of human rights principles into business practices, exploring the implications of human rights violations and strategies for promoting responsible corporate behavior. Lastly, articles have explored the alignment of corporate practices with the SDGs, examining businesses' contributions to global sustainability goals.

Academic Literature on Compliance Programs, ESG, Corporate Governance, Fraud Prevention, Human Rights, Corruption, Data Protection, and SDGs

This academic summary provides an overview of key themes in recent open-access articles pertaining to compliance programs, environmental, social, and governance (ESG) practices, corporate governance, fraud prevention, human rights, corruption, data protection, and Sustainable Development Goals (SDGs) as set forth by the United Nations. Scholars have extensively explored the significance of compliance programs in organizations, evaluating their role in ensuring ethical practices, legal adherence, and risk mitigation. Additionally, research has focused on the adoption and impact of ESG strategies, addressing their influence on corporate decision-making, sustainability, and stakeholder engagement. Corporate governance remains a vital area of investigation, investigating board structures, executive compensation, and the effectiveness of governance mechanisms in enhancing firm performance and accountability. Simultaneously, efforts to combat fraud and corruption have led to analyses of fraud detection techniques, whistleblowing systems, and anti-corruption measures. The literature also highlights the evolving landscape of data protection, emphasizing regulatory developments, privacy frameworks, and organizational responsibilities in safeguarding data. Furthermore, there is a growing emphasis on the integration of human rights principles into business practices, exploring the implications of human rights violations and strategies for promoting responsible corporate behavior. Lastly, articles have explored the alignment of corporate practices with the SDGs, examining businesses' contributions to global sustainability goals.

Academic Literature on Compliance Programs, ESG, Corporate Governance, Fraud Prevention, Human Rights, Corruption, Data Protection, and SDGs

This academic summary provides an overview of key themes in recent open-access articles pertaining to compliance programs, environmental, social, and governance (ESG) practices, corporate governance, fraud prevention, human rights, corruption, data protection, and Sustainable Development Goals (SDGs) as set forth by the United Nations. Scholars have extensively explored the significance of compliance programs in organizations, evaluating their role in ensuring ethical practices, legal adherence, and risk mitigation. Additionally, research has focused on the adoption and impact of ESG strategies, addressing their influence on corporate decision-making, sustainability, and stakeholder engagement. Corporate governance remains a vital area of investigation, investigating board structures, executive compensation, and the effectiveness of governance mechanisms in enhancing firm performance and accountability. Simultaneously, efforts to combat fraud and corruption have led to analyses of fraud detection techniques, whistleblowing systems, and anti-corruption measures. The literature also highlights the evolving landscape of data protection, emphasizing regulatory developments, privacy frameworks, and organizational responsibilities in safeguarding data. Furthermore, there is a growing emphasis on the integration of human rights principles into business practices, exploring the implications of human rights violations and strategies for promoting responsible corporate behavior. Lastly, articles have explored the alignment of corporate practices with the SDGs, examining businesses' contributions to global sustainability goals.

Academic Literature on Compliance Programs, ESG, Corporate Governance, Fraud Prevention, Human Rights, Corruption, Data Protection, and SDGs

This academic summary provides an overview of key themes in recent open-access articles pertaining to compliance programs, environmental, social, and governance (ESG) practices, corporate governance, fraud prevention, human rights, corruption, data protection, and Sustainable Development Goals (SDGs) as set forth by the United Nations. Scholars have extensively explored the significance of compliance programs in organizations, evaluating their role in ensuring ethical practices, legal adherence, and risk mitigation. Additionally, research has focused on the adoption and impact of ESG strategies, addressing their influence on corporate decision-making, sustainability, and stakeholder engagement. Corporate governance remains a vital area of investigation, investigating board structures, executive compensation, and the effectiveness of governance mechanisms in enhancing firm performance and accountability. Simultaneously, efforts to combat fraud and corruption have led to analyses of fraud detection techniques, whistleblowing systems, and anti-corruption measures. The literature also highlights the evolving landscape of data protection, emphasizing regulatory developments, privacy frameworks, and organizational responsibilities in safeguarding data. Furthermore, there is a growing emphasis on the integration of human rights principles into business practices, exploring the implications of human rights violations and strategies for promoting responsible corporate behavior. Lastly, articles have explored the alignment of corporate practices with the SDGs, examining businesses' contributions to global sustainability goals.

Academic Literature on Compliance Programs, ESG, Corporate Governance, Fraud Prevention, Human Rights, Corruption, Data Protection, and SDGs

This academic summary provides an overview of key themes in recent open-access articles pertaining to compliance programs, environmental, social, and governance (ESG) practices, corporate governance, fraud prevention, human rights, corruption, data protection, and Sustainable Development Goals (SDGs) as set forth by the United Nations. Scholars have extensively explored the significance of compliance programs in organizations, evaluating their role in ensuring ethical practices, legal adherence, and risk mitigation. Additionally, research has focused on the adoption and impact of ESG strategies, addressing their influence on corporate decision-making, sustainability, and stakeholder engagement. Corporate governance remains a vital area of investigation, investigating board structures, executive compensation, and the effectiveness of governance mechanisms in enhancing firm performance and accountability. Simultaneously, efforts to combat fraud and corruption have led to analyses of fraud detection techniques, whistleblowing systems, and anti-corruption measures. The literature also highlights the evolving landscape of data protection, emphasizing regulatory developments, privacy frameworks, and organizational responsibilities in safeguarding data. Furthermore, there is a growing emphasis on the integration of human rights principles into business practices, exploring the implications of human rights violations and strategies for promoting responsible corporate behavior. Lastly, articles have explored the alignment of corporate practices with the SDGs, examining businesses' contributions to global sustainability goals.

Responsible innovation and ethical corporate behavior in the Asian fashion industry: A systematic literature review and avenues ahead

Fashion firms have transferred their manufacturing processes to Asia, seeking minimum labor costs, supported by the academic literature’s proposals for alternative supply chain configurations to maximize profits. Fashion industry has undergone public analysis, facing demands for greater transparency about environmental and social sustainability. The growing public awareness of sustainability issues has led firms to declare their commitment to sustainable resources, but few changes have been registered. United Nations Economic Commission for Europe listed technological innovation as a key tool for making the fashion industry transparent and traceable regarding sustainability and circularity. The research and responsible innovation framework indicate appropriate ways to manage innovation from a responsible and ethical perspective, according to ethical corporate behaviour (ECB), particularly in the industries characterized by productive phases processed in more countries, such as the fashion industry. However, the linkages between responsible innovation, ECB towards innovative and sustainable business models, and their conceptualization, are still unclear in the fashion industry, achieving the goals included in the UN 2030 Agenda. This study draws on bibliometric analysis and systematic review of the literature on 114 articles published between 1990 and 2021 allows to identify the above issues in the research domains, and outline the evolutionary trajectories, as well as to explore the literary corpus about responsible innovation (RI) in the ethical corporate behaviour (ECB) of the fashion industry and its Asian suppliers. The results highlight that fashion brands strive to develop RI and ECB along their supply chain. Still, the misalignment of corporate ethics and cultural values represents a significant obstacle to the adoption of business models, especially to achieve the goals of UN 2030 Agenda. To the best of our knowledge, this is the first study that discusses RI as enabling driver in the ECB for fashion companies also defining a future research agenda including RI, ECB, iSBMs towards SDGs.