Responsible Government Research Articles

Research on ESG performance and financial performance of new energy enterprises

ESG is more about measuring corporate environment, social responsibility, and corporate governance than traditional financial data considerations. For the long-term development of globalization and dual-carbon strategy, based on sustainable development and the realization of global development, many enterprises will consider ESG performance in corporate financial performance evaluation. In the era of advocating green life, new energy enterprises have received much attention, but their industry financial performance is closely related to ESG performance. This paper takes all of China's A-share-listed new energy companies from 2010 to 2021 as the research object and verifies the relationship between ESG performance and financial performance of new energy enterprises through empirical analysis, which is of great significance for better high-quality development of new energy enterprises.

Pengaruh Good Corporate Governance dan Corporate Social Responsibility terhadap Nilai Perusahaan dengan Profitabilitas sebagai Variabel Intervening (Studi Empiris pada Perusahaan Industri Batu Bara yang terdaftar dalam Bursa Efek Indonesia (BEI) Periode 2019-2022)

This study aims to estimate the influence of Good Corporate Governance and Corporate Social Responsibility on Firm Value with Profitability as an intervening variable, by sampling from companies engaged in the coal industry listed on the Indonesia Stock Exchange during 2019-2022 using nonprobability sampling with purposive sampling techniques and data obtained through the official website (BEI) www.idx.co.id. The data analysis method used in this research is path analysis using E-views 10 and the data is confirmed to have passed classical assumptions. The results showed that partially the Independent Board of Commissioners and Corporate Social Responsibility had a positive and significant effect on Earning per Share, but the Audit Committee had no effect on Earning per Share. Then only the Independent Board of Commissioners has a positive and significant effect on Price to Book Value, while the Audit Committee, Corporate Social Responsibility, and Earning per Share do not affect Price to Book Value. And for the mediation results, it is found that Earning per Share fails to mediate the influence of the independent variables (Independent Board of Commissioners, Audit Committee, and Corporate Social Responsibility) on the dependent variable, namely firm value.

Research on the Impact of ESG Performance on Corporate Exports

The development of a green and low-carbon economy has become a crucial topic in global economic advancement. China's export trade faces a complex international landscape characterized by escalating trade frictions, rising trade protectionism, and a sluggish traditional trade environment in the post-pandemic era. This paper primarily explores the relationship between the ESG performance of Chinese A-share listed companies and their export activities. Initially, it conducts a literature analysis on the impact of ESG performance on corporate exports from the perspectives of environment, social responsibility, and corporate governance. This paper conducts empirical analyses using relevant regression models to test the hypotheses. Furthermore, in examining the transmission pathways of the impact of ESG performance on corporate exports, an intermediate variable regression model is established to analyze the specific roles played by corporate innovation as a mediator. In conclusion, the findings are as follows: (1) Overall ESG performance positively influences corporate exports, indicating that better ESG performance is conducive to enhanced export activities. (2) Enterprises with superior ESG performance can promote exports by improving their innovation capabilities.

From ethics to efficiency: Understanding the interconnected dynamics of ESG performance, financial efficiency, and cash holdings in China

This study examines the impact of Environmental, Social, and Governance (ESG) principles on firm efficiency and cash holdings in China's non-financial sector from 2010 to 2022. Through fixed effect and system GMM regression analyses, it finds that higher ESG scores enhance operational efficiency, leading to decreased cash reserves. The research highlights that sustainable practices contribute to ethical standing and financial resilience, encouraging firms to integrate ESG strategies with financial objectives. The corporate firms are encouraged to view sustainable practices not merely as compliance measures but as strategic imperatives that contribute to both ethical standing and financial resilience. By exploring the linkage between sustainable practices and financial strategies, this study enriches the dialogue on sustainable finance and responsible corporate governance, demonstrating the financial benefits of ESG adherence.

The Australian Constitutional Framers and the Languages of Virtue

The historiography of the political concept of virtue has been dominated by examinations of western European and North American sources. This article aims to widen the historical scope for our understanding of the influence of the concept of political virtue by examining how Anglophone conceptions of virtue were employed by the framers of the Australian Constitution during the Federation debates and the impact of those conceptions on the Constitution itself. It examines the strands of thought that provided the backdrop for the colonial adoption of the Victorian‐era British conception of political virtue, subsequently showing how the Australian constitutional framers adopted these languages and concepts in their own writings and speeches. The Australian framers were concerned with the virtue of both the people and their political leaders, applying this concern in their contributions to legal and political discourse in the latter part of the nineteenth century. However, rather than a direct transfer of the more typical languages of republican virtue, the colonial context examined here offers evidence of a shift of emphasis from virtue into the concept of “character”. The framers demonstrated an interest in the question of character as they wrote and deliberated around the constitutional problems of political parties, bicameralism, and responsible government. So, too, they showed an acute concern for the importance of character in their institutional designs for a future federal commonwealth. This article demonstrates that the framers existed within the tradition of thought which held virtue, or character, to be central to the vitality of the polity, and that the framers adapted that language in their deliberations and the institutional design of the Constitution.

Digital Transformation and Enterprise Value -- Based on Empirical Data of Listed Companies in China

Enhancing corporate value is of significant importance for promoting sustainable and high-quality development. In the current era of informatization, digital transformation has become an indispensable path for corporate growth. This study uses financial and related data from Chinese A-share listed companies from 2010 to 2022 as samples to empirically examine the impact of digital transformation on corporate value. Based on the perspectives of environmental performance, social responsibility, and corporate governance, the study explores its operating mechanism. Empirical results indicate that digital transformation can promote the enhancement of corporate value through the pathways of environmental performance, social responsibility, and corporate governance. Furthermore, heterogeneous results suggest that, in terms of regions, the impact of digital transformation on corporate value is more significant in the eastern region. From the perspective of companies, the influence is more pronounced for those in the growth stage and with a proportion of party member executives exceeding 50%. The above results provide empirical evidence for a comprehensive understanding of the value effects of digital transformation and the mediating role of environmental performance, social responsibility, and corporate governance. It also offers valuable insights for enhancing corporate value.

Are ESG scores affected by the quality of non-financial disclosures?

ESG scores are an important indicator of a company's performance in the areas of environmental, social responsibility and corporate governance, and non-financial information as the basis for a company's ESG score has received increasing attention in recent years. Based on the data of A-share listed companies in Shanghai and Shenzhen from 2007 to 2022, the study finds that disclosing non-financial information that is more similar to that of other companies in the same industry reduces a company's ESG score, while the higher the readability and forward-looking content of the disclosure, the higher the ESG score. Mechanism tests suggest that the act of digital transformation causes firms to disclose non-financial information that affects ESG scores. Other analyses show that higher similarity of non-financial information in non-high-tech firms has a greater impact on ESG scores, while firms with different firm sizes and internal control quality respond differently to ESG scores. This study reveals the characteristics of non-financial information disclosure in detail, enriches the related research on the influencing factors of ESG scores, provides theoretical support and practical value for the principles and directions of non-financial information disclosure of listed companies, and provides ideas and directions for the vigorous development and improvement of ESG scores.

RESPONSIBLE BUSINESS PRACTICE BY INSTITUTIONAL INVESTORS AS THE BASIC MEANS OF PREVENTING VIOLATIONS OF PUBLIC INTEREST OF CITIZEN INVESTORS

The article is devoted to the analysis of the concept of "responsible business conduct" from the point of view of public interest. It is noted that responsible corporate governance has its origins in the concept of "corporate social responsibility", which became widespread in the 1970s in the US and the UK as a result of increased public and consumer attention to the overall image of companies. At the international level, many documents have been adopted to regulate corporate social responsibility. However, not enough has been done in Ukraine to introduce this category into economic activity. The purpose of the research is to analyse the legal grounds and theoretical approaches to the formation of the concept of "responsible business conduct" and to present the author's approach to the essence of the concept of "responsible business conduct of institutional investors" from the point of view of the protection of the public interest. According to the purpose of the article, several scientific methods of modern epistemology were used in the scientific research. The methodological basis of the study was the theory of legal cognition developed by prominent experts in the field of investment law. In addition, special research methods were used, in particular: comparative – to compare the rules of international and national law; historical and legal – for retrospective analysis of the concept of social responsibility; special legal – for in-depth analysis of the regulations governing the procedure of investment; systematic approach and logical-legal method – to analyse the impact of some factors on the investment activity of individuals and some elements of the formation of logical and specific theoretical and applied conclusions. In conclusion, the authors define responsible business as a set of generally accepted norms, rules and principles that are voluntarily implemented by companies in order to achieve the goals of sustainable development of society; they are not part of the national legislation of Ukraine, but their observance indicates a certain business reputation of the business entity. For institutional investors, responsible corporate governance includes two main groups of activities of an institutional investor: "responsible attraction" of funds and "responsible investment" of funds of individual investors. The authors proposed to divide the responsible business conduct of an institutional investor to manifest its social responsibility into "responsible attraction" of funds and "responsible investment" of funds.

Environmental and social governance performance and enterprise total factor productivity

AbstractWith the popularity of both green development and sustainable investment concepts, evaluation of environmental performance, social responsibility and corporate governance (ESG) is the way for enterprises to protect the environment and, at the same time, interact with stakeholders. This paper first analyses how ESG influences corporate total factor productivity (TFP), then, using A‐share listed company data from 2009 to 2021, conducts an empirical test proving that ESG greatly boosts TFP. Examination of the intermediate mechanism reveals that ESG can improve TFP by raising R&D investment, enhancing the attention of stakeholders, and increasing internal control capabilities. The heterogeneity study shows that, for state‐owned firms, non‐polluting industries, and small‐scale and low‐market degree enterprises, ESG enhances TFP more. Further analysis indicates that ESG uncertainty and ESG catering behaviour will weaken the fostering impact, but environmental regulation has a beneficial regulatory role.

Beyond ‘responsibility vs. responsiveness’: reconfigurations of EU economic governance in response to crises

ABSTRACT The Covid-19 pandemic led to an important reconfiguration of economic governance in the European Union towards deeper economic integration. This fits uneasily with predictions of an inevitable political ‘lock-in’ stemming from a responsibility–responsiveness dilemma, or an inexorably constraining politicisation. Investigating the evolution in discourses on and policies of economic governance in the EU, the papers in this collection approach the relationship between prevailing notions of responsible and responsive government as socially constructed and critically contingent upon politicisation processes. The special issue explores the reconfiguration of economic governance in the EU through multi-level analysis of politicisation, ranging from citizens’ attitudes to conflicts over central banking mandates, using a variety of methodological toolkits. As the collection shows, the shift towards investment, fiscal sharing, and green transition in the new recovery programme followed the emergence of a form of ‘responsive responsibility’ dating back to the aftermath of the euro crisis and which has led to the incorporation of responsiveness imperatives in prevailing notions of ‘responsible government’.

Data Ownership and Digital Governance: Promoting Enterprise Cooperation and Sustainable Development

In the contemporary data-driven era, the triad of data ownership, digital governance, and government-enterprise cooperation is woven intricately into the fabric of the digital landscape. At the core of this interconnected web lies the imperative to strike a delicate balance between safeguarding data rights, fostering data sharing, and upholding data security, all pillars underpinning the sustainable growth of digital ecosystems. This paper aims to illuminate the profound interplay between data ownership complexities, enterprise management strategies, and the overarching domain of digital governance. Furthermore, it delineates the landscape of pertinent legal frameworks that govern this intricate terrain. By embracing a nuanced, scenario-driven approach to data protection and by nurturing collaborations among diverse stakeholders, this article embarks on a quest to unravel how the implementation of effective cooperation models can serve as catalysts for the sustainable evolution of the digital economy. Simultaneously, these models advocate for responsible data governance, ensuring that the fundamental values of individual privacy and corporate interests remain duly safeguarded.

DETERMINANTS OF ISLAMIC BANKING FINANCIAL PERFORMANCE: ANALYZING THE ROLE OF CSR, ZAKAT, AND GCG IN INDONESIA AND MALAYSIA

Although the Islamic banking sector is expanding rapidly, it still needs to improve its financial performance in order to compete with conventional banking. This study attempts to investigate how corporate social responsibility (CSR), zakat, and good corporate governance (GCG) affect the financial performance of Islamic banking in Indonesia and Malaysia from 2015 to 2021. Using the quantitative method of panel data regression, the study discovered that, simultaneously, CSR, zakat, and GCG have a significant impact on the financial performance of Islamic banking in both countries. Partially, only GCG has a noticeable influence while the other two do not. The results of this study encourage Islamic banks to consistently develop CSR, zakat, and GCG in every aspect of their operations and lead the industry.

Corporate Sustainability and Corporate Value

In recent years, the concept of sustainable development has gradually lodged itself in the public mind, and there is increasing emphasis on companies’ performance in environmental, social, and corporate governance (ESG) aspects. This paper empirically investigates the impact of corporate ESG performance on firm value based on all A-share listed companies in China from the first quarter of 2015 to the fourth quarter of 2020 as the initial research sample. The research results indicate that the better the corporate ESG performance, the higher the firm value. The study provides clear insights: firstly, ESG performance can enhance firm value, revealing that ESG can reduce information asymmetry and reduce financial risks for enterprises. Secondly, ESG performance is an endogenous driving force for companies to promote environmental protection, social responsibility, and corporate governance construction, prompting companies to establish a sound ESG information disclosure system. Thirdly, it provides crucial evidence for ESG investors, compelling corporate managers to pay more attention to the impact of ESG management principles on the company and consider the company's future sustainable development.

Effect of Corporate Governance on Corporate Social Responsibility: A Theoretical Review

The major points are summed up in this. Looking at the causal effects of these two forms of governance on CSR involvement, the goal of this work is to establish the empirical link between "corporate governance (CG) and corporate social responsibility (CSR)". Initially, delayed "Corporate Social Responsibility (CSR)" seems to have minimal effect on "Corporate Governance (CG)". On the other hand, delaying the CG variable favours corporate involvement in CSR projects. This is still the case when one takes into account other aspects unique to the company. We use a sizable and varied American sample. Agency theory and stakeholder theory are examined in connection to CFP and CSR. The purpose is to prioritise these three concepts. Despite endogeneity bias, CSR actions boost corporate CFP. The facts do not support stakeholder conflict-resolution theory or agency CSR overinvestment hypothesis. CFP growth is also driven by company diversification, worker, community, and environment programmes.

Corporate governance and CSR for sustainability in Oil and Gas: Trends, challenges, and best practices: A review

Corporate governance and Corporate Social Responsibility (CSR) are integral components of sustainability in the oil and gas industry, shaping the sector's environmental and social impact. This review explores current trends, challenges, and best practices in corporate governance and CSR for sustainability within the oil and gas sector. The review examines how corporate governance frameworks influence CSR strategies, highlighting the importance of board oversight and stakeholder engagement in driving sustainable practices. It also delves into the evolving role of oil and gas companies in addressing environmental concerns, such as climate change and resource depletion, through CSR initiatives and transparent reporting. Challenges faced by the industry, such as regulatory complexity, stakeholder expectations, and balancing short-term profitability with long-term sustainability, are analyzed. The review underscores the need for robust governance structures and effective CSR programs to navigate these challenges and maintain social license to operate. Best practices in corporate governance and CSR are explored, emphasizing the importance of integrating sustainability into core business strategies. Case studies illustrate successful approaches to CSR implementation, showcasing how companies can create shared value for stakeholders while driving positive environmental and social outcomes. In conclusion, the review calls for a proactive and holistic approach to corporate governance and CSR in the oil and gas industry. It advocates for increased transparency, stakeholder engagement, and alignment of CSR efforts with the Sustainable Development Goals (SDGs) to enhance sustainability and mitigate risks in the sector.

Business responsibility and government complicity in environmental conflicts: a quali-quantitative analysis of global patterns

ABSTRACT Our paper aims at widening political ecology research on business’ responsibility and public governance conditions in cases of violation of Environmental-related Human Rights (ERs), by adopting a quantitative perspective. We focused on a subset of socio-environmental conflicts (SECs) that directly connect with the violations of ERs. We propose a quali-quantitative analysis to explore the country distribution of the incidence of violations of ERs leading to SECs (VERCs) worldwide; the extent to which these can be associated with the involvement of business companies; and the general governance conditions spatially associated with the emergence of VERCs, regardless of the involvement of businesses. Through statistical regression analysis, we showed that the evidence of business’ implication in VERCs and of the lack of adequate public governance conditions suggest the need to complexify our perspective with a more nuanced understanding of the patterns of liability and complicity between diverse actors involved in SECs.

How does digital government affect natural resource sustainability? A global perspective

Digital government is essential for modernizing public administration, enhancing citizen services, boosting government productivity, and encouraging transparency and citizen involvement. It plays a critical role in improving the management of natural resource rents by promoting transparency, accountability, and responsible governance. However, empirical evidence on the impact of digital government on natural resource rents is lacking. To plug this vacuum into the literature, the analysis tries to study the impact of digital government on natural resource rent from 2003 to 2021 by collecting data across many economies and dividing the data into five samples: Global, Asian, American, European, and African. For empirical analysis, the study utilizes the 2SLS and GMM techniques. The analysis's main findings indicate that digital government escalates natural resource rent globally in Asia, America, and Europe. Likewise, human capital and financial development also help to advance natural resource rent. Further, the trade causes the natural resource rent to rise globally in Asia, America, Europe, and the African model, while technology promotes natural resource rent in Global, American, and European models. In contrast, external conflict causes the natural resource rent to fall globally in America and Europe. From these findings, the study infers that policymakers should increase the role of digitalization in governance-related activities, particularly in the natural resource sector.

ESG performance and litigation risk

We focus on the relationship between firms’ environmental, social, and governance (ESG) responsibility performance and litigation risk. This study finds that improving firm ESG responsibility performance is conducive to reducing firm litigation risk. At the same time, internal control plays an intermediary role in the impact of firms’ ESG responsibility performance on firm litigation risk. Improving ESG responsibility performance can increase the firms’ internal control mechanisms to reduce litigation risk.

Green finance and high-pollution corporate compensation - Empirical evidence from green credit guidelines

With the increasing focus on Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR) on a global scale, stakeholders expect businesses to transform and enhance social responsibility. Over time, ESG and CSR have developed into vital performance metrics for businesses. Businesses are actively putting improvement measures into place in response to this new paradigm in order to stay competitive in this changing environment. China's dual commitment to CSR and sustainable development is in line with wider objectives, such as resolving issues of pay inequality. In 2012, the China Banking Regulatory Commission (CBRC) unveiled the “Green Credit Guidelines” (GCG), which take corporate governance's environmental considerations into account. These regulations set standards and specifically target high-pollution corporations. Companies may need to restructure their corporate structures and create efficient governance mechanisms in order to comply with these regulations and reduce carbon emissions. This will have an impact on the compensation packages of executives and regular employees.The most important question is how the “GCG” will affect the wage disparity in highly polluting companies. This study examines the 2012 “GCG” and its potential to reduce internal wage disparities, viewing it as a critical element of green financial policy. The paper uses data from Chinese A-share listed companies from 2007 to 2020. Besides, it uses the Difference-in-Differences method to assess the impact of China's GCG, treating its implementation as a quasi-natural experiment and controlling for concurrent policy effects to precisely identify its net impact on corporate carbon emissions and internal wage disparities.The findings show that “GCG” considerably closed internal wage disparities. Furthermore, the “GCG” has a path of guidance, incentives, and punishments that reduce internal wage disparities and promote a more equitable wage distribution within businesses. According to heterogeneity analysis, policies have a greater impact on the wage gap in businesses that are highly dependent on outside funding and have political connection. In order to achieve a compensation balance and meet the objectives of social responsibility and corporate sustainable development, the government should strengthen the complementary effects of green financial policies.The compensation balance in highly polluting companies has important theoretical and practical ramifications. On the one hand, it represents the convergence of income equality, corporate governance, and environmental responsibility. It helps to expand knowledge of sustainable development, fair compensation, and environmental policies. On the other hand, the widening pay disparity between executives and average employees reflects the exacerbation of income inequality in China, which could potentially impact companies' long-term development. Conversely, a well-balanced pay plan can improve worker productivity and motivation while empowering stakeholders to make wise investment choices.

AI-Driven HR Analytics: Unleashing the Power of HR Data Management

The quickly changing field of human resources (HR) starts by highlighting the importance of HR analytics, its development, and the benefits it provides for making data-driven decisions. The foundation for efficient HR analytics is laid out in this article, which also emphasizes the significance of employee data management, which includes the governance, quality assurance, and collection, storage, and collection of all types of employee data. AI’s revolutionary significance is highlighted, demonstrating how AI improves the processing and analysis of employee data. The AI-driven HR Analytics Workflow breaks down the crucial phases needed, while real-world best practices highlight the potential of this technology. A focus is placed on ethical issues, including bias, data privacy, and responsible AI governance. In addition, the study discusses future trends and how HR professionals will change in an AI-driven HR environment. It encourages organizations to embrace AI-driven HR analytics as a strategic tool for HR excellence, highlighting the importance of responsible data use in shaping the future of HR practices.