This book covers key discussions involving major US and European multinational companies (MNCs) that source products from suppliers in developing countries. Due to the transfer of production from developed to developing nations, there is an urgent need to establish social compliance as a new form of Corporate Social Responsibility (CSR) and a means by which MNCs can meet expected social standards. The cases described are internationally relevant and can be seen to reflect or represent the behavior (...) of many MNCs and their suppliers in developing nations. The discussion offers essential insights into how different levels of social compliance risk and pressure (including broader stakeholder concerns) move managers to adopt or embrace particular social compliance accounting, reporting and auditing strategies. The book will help readers to understand the major concerns, challenges and dilemmas faced by management in the supply chains of MNCs, and proposes measures that can be taken to resolve those dilemmas. Most importantly, it develops a systematic method of assessing the social compliance performance of suppliers to MNCs. This includes highly detailed accounts of the social compliance performance of suppliers within the clothing industry (in a developing nation) that supply goods to the extensive US and European markets. The book offers a valuable guide, not only for corporate managers but also for practitioners, researchers, academics, and undergraduate and postgraduate business students. (shrink)

Randomization is an integral part of well-designed statistical trials, and is also a required procedure in legal systems. Implementation of honest, unbiased, understandable, secure, traceable, auditable and collusion resistant randomization procedures is a mater of great legal, social and political importance. Given the juridical and social importance of randomization, it is important to develop procedures in full compliance with the following desiderata: (a) Statistical soundness and computational efficiency; (b) Procedural, cryptographical and computational security; (c) Complete auditability and (...) traceability; (d) Any attempt by participating parties or coalitions to spuriously influence the procedure should be either unsuccessful or be detected; (e) Open-source programming; (f) Multiple hardware platform and operating system implementation; (g) User friendliness and transparency; (h) Flexibility and adaptability for the needs and requirements of multiple application areas (like, for example, clinical trials, selection of jury or judges in legal proceedings, and draft lotteries). This paper presents a simple and easy to implement randomization protocol that assures, in a formal mathematical setting, full compliance to the aforementioned desiderata for randomization procedures. (shrink)

Textile is one of the largest export and source of foreign exchange in Pakistan. For the last two decades, Textile sector is serving as the backbone for Pakistan economy. Several foreign retailers including Target, Jessie Penny, Wal-Mart, and Kohl’s are outsourcing textile and garments from Pakistan. Along with the quality, these retailers are highly concerned with the ethical and social issues of their suppliers, including child labor, forced labor, compensation, working hours and environment health, and safety. My current study (...) is an applied research, based on the problem, regarding the working hours and its proper management in textile factories, mismanagement of which lead to serious issues during social and ethical standard audits. Repetition of which may consequent in termination of business with suppliers and factories. The research hypothesis is that working off the clock will lead to overtime premium not paid and double book record keeping. As far as ethical and social compliance is concerned both overtime premiums not paid and double book records are critical issues during SC audit. A sample of 40 suppliers of Pakistan was randomly selected working with foreign buyers. Secondary data were used to verify the findings based on Audits finding conducted by different third party during a period of 2 years, i.e. Feb., 2010 to Jan., 2012. The results and research findings reflect that during the last 2 years out of 40 factories audit reports 25 factories were found having working off the clock that also lead to overtime premium not paid. However, double book records were not witnessed in all 40 factories SC audit reports as parallel records were not maintained by any factories. The above findings will help the suppliers, factories, and buyers to develop a proactive approach and proper production planning to avoid critical issues and smooth business activities. (shrink)

Artificial intelligence (AI) governance and auditing promise to bridge the gap between AI ethics principles and the responsible use of AI systems, but they require assessment mechanisms and metrics. Effective AI governance is not only about legal compliance; organizations can strive to go beyond legal requirements by proactively considering the risks inherent in their AI systems. In the past decade, investors have become increasingly active in advancing corporate social responsibility and sustainability practices. Including nonfinancial information related to environmental, (...) social, and governance (ESG) issues in investment analyses has become mainstream practice among investors. However, the AI auditing literature is mostly silent on the role of investors. The current study addresses two research questions: (1) how companies’ responsible use of AI is included in ESG investment analyses and (2) what connections can be found between principles of responsible AI and ESG ranking criteria. We conducted a series of expert interviews and analyzed the data using thematic analysis. Awareness of AI issues, measuring AI impacts, and governing AI processes emerged as the three main themes in the analysis. The findings indicate that AI is still a relatively unknown topic for investors, and taking the responsible use of AI into account in ESG analyses is not an established practice. However, AI is recognized as a potentially material issue for various industries and companies, indicating that its incorporation into ESG evaluations may be justified. There is a need for standardized metrics for AI responsibility, while critical bottlenecks and asymmetrical knowledge relations must be tackled. (shrink)

This study used a laboratory experiment with monetary incentives to test the impact of three personal factors (moral reasoning, value orientation and risk preference), and three situational factors (the presence/absence of audits, tax inequity, and peer reporting behavior), while controlling for the impact of other demographic characteristics, on tax compliance. Analysis of Covariance (ANCOVA) reveals that all the main effects analyzed are statistically significant and robustly influence tax compliance behavior. These results highlight the importance of obtaining a (...) proper understanding of these factors for developing effective policies for increasing the level of compliance, and indicate that standard enforcement polices based on punishment alone should be supplemented by an information system that would acquaint tax payers with the compliance level of other tax payers; reinforce the concept of fairness of the tax system among tax payers; and develop programs that enhance and appeal to a taxpayer's moral conscience and reinforce social cohesion. (shrink)

Human risk (the risk of people doing things they shouldn't, or not doing things they should') is the largest single risk facing all organisations -- when things go wrong, there's always a human component, either causing the problem or making it worse. Collectively, companies spend billions trying to manage human risk via functions like Compliance, InfoSec, Risk, Audit, Legal, Human Resources and Internal Comms -- it is people in these functions, as well as those tasked with managing people, that (...) is the target audience for the book. Technology exacerbates the problem by providing each of us with weapons of mass destruction' from a human risk perspective -- even the most junior employee can cause huge damage via their keyboard, either in the work environment or via their personal social media account -- and by taking over basic, repetitive tasks, which mean people are spending more time in human risk sensitive' activities. Traditional approaches to mitigating human risk rely heavily on the idealised presumption that because people are employed, they can simply be told what to do -- this works well in safety-critical environments, where the black & white' parameters of desired outcomes are easy to predict, but is much harder when it comes to grey', less codifiable, areas like ethics which are often difficult to monitor until it's too late and rely on employees being positively engaged. If we want to mitigate the risks posed by human decision-making, then we need to base our approach on an understanding of how humans actually make decisions, which is where Behavioural Science -- a discipline based on academic research and field-tested on real' humans by advertisers, governments and transport authorities -- can help achieve better outcomes. This book is designed to help all those involved in managing human risk to achieve compliance' with a small -- in other words, getting their desired outcome -- and explores how organisations can get the best out of their people by designing frameworks that work with, rather than against, the grain of human thinking. Readers will learn to challenge their existing presumptions about managing human risk and discover practical techniques and examples they can deploy in their work environment. (shrink)

This research examines the possibility of developing a new corporate social responsibility (CSR) auditing system based on the analysis of current CSR literature and interviews conducted with a number of interested and knowledgeable stakeholders. This work attempts to create a framework for social responsibility auditing compatible with an existing commercially successful environmental audit system. The project is unusual in that it tackles the complex issue of CSR auditing with a scientific approach using Grounded Theory. On the evidence discovered (...) to date in the literature review and the interviews, CSR seems to be perceived by many as the social strand of sustainable development. However, there is far less agreement regarding its measurement. Both the literature review and the interview analysis indicate that developing an applied CSR auditing procedure will be a challenging task. This is principally due to the lack of formal study of this complex subject, which, despite the widespread debate it has engendered, still lacks a single and broadly accepted definition. The concepts developed from the findings of this research, together with the key factors identified in a literature review of CSR, were developed into a prospective CSR audit protocol. (shrink)

In this paper a corporate social responsibility audit is developed following the underlying methodology of the quality award/excellence models. Firstly the extent to which the quality awards already incorporate the development of social responsibility is examined by looking at the Malcolm Baldrige National Quality Award and the European Quality Award. It will be shown that the quality awards do not yet include ethical aspects in relation to social responsibility. Both a clear definition of social responsibility and (...) an improved audit instrument are required. A definition and an audit instrument are developed which stimulate movement in that direction and help organisations to reflect on their position in relation to social responsibility. (shrink)

Cooperation for the public good is vulnerable to exploitation by free-riders because it always pays individuals to exploit the social contract for their own benefit. This problem can be resolved if free-riders are punished, but punishment is itself a public good subject to free-riding. The fear of supernatural punishment hypothesis (FSPH) proposes that belief in supernatural punishment might offer a solution to this problem by deflecting the cost of punishment onto supernatural forces and thereby incentivizing cooperation. FSPH is supported (...) empirically by ethnographic data, but this work has so far focused on (1) institutional cooperative traits which may not reflect individual choices on how to behave in everyday social interactions and (2) threat of punishment from all-powerful moralizing high gods rather than other agents capable of supernatural punishment. Here, we consider the FSPH using variables which are linked to individual interaction and expand the number of variables measuring belief in different forms of supernatural punishment. Our findings do not fit these more general FSPH predictions. We suggest there may be something special about the link between moralizing high gods and institutional enforcement of cooperation that is not captured by these other variables. (shrink)

In this paper the social indicators research is linked with accountability at corporate and national level. The case for auditing social measurements is advanced and a possible scheme is proposed. An analytical survey of all the related developments in social accounting is presented and certain conclusions are drawn. Finally, an interdisciplinary approach to accounting for the quality of life is critically examined in the framework of a mixed economy that today prevails in the western world.

Learn how to make ethical decisions on a daily basis. Industry professionals share with you the dilemmas they've faced in their careers around issues like factory conditions, fair wages, fast fashions, designer knock-offs, shoplifting, and controversial advertising, to help you do the right thing. The book covers corporate social responsibility, social media, social compliance audits, diversity, and human rights, among many other topics. Case Studies, Profiles, and other box features highlight current events and notable industry (...) professionals. (shrink)

The European Commission has recently proposed the introduction of legally binding quotas for women on corporate boards of European companies. This proposal has put the spotlight on the question of whether increasing female representation on the board brings economic benefits to the firm. In order to shed light on the issue, this study investigates the direct and indirect effects of women on the board on firm value. We use a simultaneous equation model to estimate the effects of women on the (...) board on firm value, financial performance, and compliance with ethical and social principles adopted by the firm. We find no evidence that a higher female representation on the board directly affects firm’s value. However, we find indirect effects. Women on the board are positively related with financial performance (measured in terms of return on assets and return on sales) and with ethical and social compliance, which in turn are positively related with firm value. The findings in this study suggest that greater female representation on corporate boards of large European firms can increase firm value indirectly. Further, part of the indirect effect comes from stronger compliance with ethical principles, something that is not captured by accounting-based financial performance. (shrink)

While cross-sectoral partnerships are frequently presented as a way to achieve sustainable development, some corporations that first tried using the strategy are now changing direction. Growing tired of what are, in their eyes, inefficient and unproductive cross-sectoral partnerships, firms are starting to form post-cross-sectoral partnerships (‚post-partnerships’) open exclusively to corporations. This paper examines one such post-partnership project, the Business Social Compliance Initiative (BSCI), to analyse the possibility of post-partnerships establishing stable definitions of ‚corporate responsibility’. We do this by (...) creating a theoretical framework based on actor-network theory (ANT) and institutional theory. Using this framework, we show that post-partnerships suffer from the paradox of striving to marginalise those stakeholders whose support they need␣for establishing stable definitions of ‚corporate responsibility’. We conclude by discussing whether or not post-partnership strategies, despite this paradox, can be expected to establish stable definitions of ‚corporate responsibility’. (shrink)

The compliance-based approach and the integrity approach have been the mainstream responses to corporate scandals. This paper proposes that, despite each approach comprising necessary elements, neither offers a comprehensive solution. Compliance and integrity, far from being mutually exclusive, reinforce each other. Working together, in a correct relationship, they build a harmonized system that yields positive synergies and which also advocates prudence. It enables the generation of a culture of compliance that tends to minimize the technical and ethical (...) errors in decision making. In order to explore an applied harmonized approach, we analyze the audit committee, a specific and broadly accepted regulatory instrument. Formed by non-executive members, regulation requires these members to be dedicated, qualified, and independent as a guarantee of efficiency. We show how the compound of those elements produces positive effects in a context of solid governance. We conclude that it is the strong relationship between efficiency and prudence, in the creation of a culture of compliance, which enables the minimization of errors. (shrink)

Tax compliance is a concern to governments around the world. Prior research (Alm, J. and I. Sanchez: 1995, KYKLOS 48, 3–19) has attributed unexplained inter-country differences in compliance rates to differences in social norms. Economics researchers studying tax compliance in the United States (U.S.) (see for example J. Andreoni et al.: 1998, Journal of Economic Literature 36, 818–860) have called for more attention to social (as opposed to economic) influences on tax compliance. In this (...) study, we extend this prior research by explicitly examining the role of social norms [Cialdini, R. and M. Trost: 1998, The Handbook of Social Psychology (Oxford University Press, New York)] on tax compliance in three different countries. We test our research hypotheses using a hypothetical compliance scenario, which was administered in Australia, Singapore, and the U.S. There were differences in compliance rates and social norms among the three countries. Factor analysis of the social norm questions identified three distinct social norm constructs. Two of these factors were significant in explaining tax compliance behavior. The first and most influential factor was taxpayers’ own personal moral beliefs, along with the beliefs of those close to them (e.g., friends and important others). The second significant factor represented societal views of proper behavior. We conclude that social norms help to explain tax compliance intentions and why tax compliance rates are higher than would be predicted by strictly economic models. (shrink)

How should we understand the claim that people comply with social norms because they possess the right kinds of beliefs and preferences? I answer this question by considering two approaches to what it is to believe (and prefer), namely: representationalism and dispositionalism. I argue for a variety of representationalism, viz. neural representationalism. Neural representationalism is the conjunction of two claims. First, what it is essential to have beliefs and preferences is to have certain neural representations. Second, neural representations are (...) often necessary to adequately explain behaviour. After having canvassed one promising way to understand what neural representations could be, I argue that the appeal to beliefs and preferences in explanations of paradigmatic cases of norm compliance should be understood as an appeal to neural representations. (shrink)

We assert that audit quality can be improved to the extent that social norms for honesty and responsibility are activated in the auditor. To test this assertion, we use an experimental audit market setting found in the literature and manipulate factors expected to activate honesty and responsibility norms in the auditor. We find that auditor misreporting is reduced when the investor is another participant in the experiment rather than computer simulated, and thus, the interests of third-party investors are salient (...) to the auditor. We also find that auditor misreporting is reduced when the auditor is required to sign-off on the audit report, but only when the investor is another participant in the experiment. Consistent with our underlying theory, we find that pre-experimental measures of sensitivity to honesty and responsibility norms help explain the effects of our manipulated variables. Finally, we find that these measures of social norm sensitivity are associated with the moral judgment that auditor misreporting is unethical. Our study helps explain previous anomalous findings in the literature and answers the call in Blay et al. for empirical researchers to use social norm theory to develop stronger tests of moral reasoning in the market for auditing services. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility, meant as an extended model of corporate governance of the firm. Whereas, justificatory issues have been discussed in a related paper, in this essay I focus on the implementation of and compliance with this normative model. The theory of reputation games, with reference to the basic game of trust, is introduced in order to make sense of self-regulation as a way to implement the (...) social contract on the multi-fiduciary model of corporate governance. This affords understanding of why self-regulation, meant as mere recourse to a long-run strategy in a repeated trust game, fails. Two basic problems for the functioning of the reputation mechanism are examined: the cognitive fragility problem, and the motivational problem. As regards the cognitive fragilities of reputation, the paper develops the logic and the structure that self-regulatory norms must satisfy if they are to serve as gap-filling tools with which to remedy cognitive limitations in the reputation mechanism. The motivation problem then arises from the possibility of sophisticated abuse by the firm. Developed in this case is an entirely new application of the theory of conformism-and-reciprocity-based preferences, the result of which is that the stakeholders refuse to acquiesce to sophisticated abuse on the part of the firm. (shrink)

Political authorities claim to be able to impose moral duties on citizens by the mere expedient of legislating. This claim is problematic -- in fact, among theorists, it is widely denied that political authorities have such powers. I argue that the legitimacy of political authority is not contingent upon the truth of its claim to be able to impose moral duties by mere legislation. Such claims are better seen as exercises of semiotic techniques to alter social meanings. These alterations (...) serve to facilitate desirable social change that may not have been antecedently obligatory because of the nonfulfillment of a compliance condition, which normally attaches to any "fair-play" duty. Where political authority uses the semiotic technique of announcing a legal -- and by implication moral -- duty, thereby altering social meaning as a means of bringing about the satisfaction of a compliance condition, it makes a claim whose literal falsehood does not derogate from the authority's legitimacy. (shrink)

A recent concern in the debate on corporate social responsibility (CSR) in developing countries relates to the tension between demands for CSR compliance found in many global value chains (GVCs) and the search for locally appropriate responses to these pressures. In this context, an emerging and relatively understudied area of interest relates to small firm industrial clusters. Local clusters offer the potential for local joint action, and thus a basis for improving local compliance on CSR through collective (...) monitoring and local governance. This article explores the interrelationship between global governance, exercised through GVC ties, and local governance, via cluster institutions, in ensuring compliance with CSR pressures. It undertakes a comparative analysis of two leading export-oriented football manufacturing clusters in South Asia that have both faced common challenges on child labour. The article shows that both forms vertical and horizontal governance have played a part in shaping the response of the two clusters on child labour. Moreover, these two distinct forms of governance have also led to quite differentiated outcomes in terms of forms of work organization and child labour monitoring. This raises broader questions on how global CSR demands can locally be better embedded and the conditions under which football stitchers labour in these new work forms. (shrink)

We assert that audit quality can be improved to the extent that social norms for honesty and responsibility are activated in the auditor. To test this assertion, we use an experimental audit market setting found in the literature and manipulate factors expected to activate honesty and responsibility norms in the auditor. We find that auditor misreporting is reduced when the investor is another participant in the experiment rather than computer simulated, and thus, the interests of third-party investors are salient (...) to the auditor. We also find that auditor misreporting is reduced when the auditor is required to sign-off on the audit report, but only when the investor is another participant in the experiment. Consistent with our underlying theory, we find that pre-experimental measures of sensitivity to honesty and responsibility norms help explain the effects of our manipulated variables. Finally, we find that these measures of social norm sensitivity are associated with the moral judgment that auditor misreporting is unethical. Our study helps explain previous anomalous findings in the literature and answers the call in Blay et al. (J Bus Ethics 2017. doi:10.1007/s10551-016-3286-4) for empirical researchers to use social norm theory to develop stronger tests of moral reasoning in the market for auditing services. (shrink)

This book takes the concept of social audit and lifts it beyond the role of functioning largely as a management tool. The book proposes a system in which social audit is regulated so as to provide a mechanism for effectively promoting corporate accountability in society. Taking this as its theme, this book provides both a conceptual explanation of the developmental perspectives of social audit regulation and empirical evidence of the impact of social audit practice from different (...) parts of the world. It is the first book to explore the issues and challenges related to the development of effective social audit regulation. (shrink)

Abnormal behavior detection of social security funds is a method to analyze large-scale data and find abnormal behavior. Although many methods based on spectral clustering have achieved many good results in the practical application of clustering, the research on the spectral clustering algorithm is still in the early stage of development. Many existing algorithms are very sensitive to clustering parameters, especially scale parameters, and need to manually input the number of clustering. Therefore, a density-sensitive similarity measure is introduced in (...) this paper, which is obtained by introducing new parameters to transform the Gaussian function. Under this metric, the distance between data points belonging to different classes will be effectively amplified, while the distance between data points belonging to the same class will be reduced, and finally, the distribution of data will be effectively clustered. At the same time, the idea of Eigen gap is introduced into the spectral clustering algorithm, and the verified gap sequence is constructed on the basis of Laplace matrix, so as to solve the problem of the number of initial clustering. The strong global search ability of artificial bee colony algorithm is used to make up for the shortcoming of spectral clustering algorithm that is easy to fall into local optimal. The experimental results show that the adaptive spectral clustering algorithm can better identify the initial clustering center, perform more effective clustering, and detect abnormal behavior more accurately. (shrink)

This study is the first to examine the relationships among Machiavellianism, social norms and taxpayer intentions to fraudulently overstate their deductions. We theorize and empirically document that high Machiavellian taxpayers report significantly less ethical social norms, suggesting that reported social norms are influenced by cognitive biases such as social projection and Machiavellian cynicism; reported social norms are, in general, significantly associated with tax evasion intentions; social norms partially mediate the relationship between Machiavellianism and evasion (...) intentions. Our findings imply that experimental research that controls for key personality traits such as Machiavellianism will be necessary to test the effectiveness of potential interventions designed to enhance social norms and tax compliance. Our findings also raise questions regarding the validity of certain social norm measures used in recent studies, particularly in the case of high Machiavellians. In contrast to much prior research, gender was not associated with the likelihood of committing tax fraud in our multivariate models, suggesting that the higher levels of tax compliance often associated with females may be eroding. (shrink)

BackgroundIn this study, we analyze the association of social isolation in the first phase of the pandemic with perceived stress among residents of Poland and Italy with a look at how these populations adjust to and comply with implemented regulations, guidelines, and restrictions.Materials and MethodsInternet survey with Perceived Stress Scale (PSS-10) and questions regarding mobility patterns, attitude, and propensity to adjust toward the implemented measures and current health condition was made among Polish and Italian residents (Cronbach’s alpha 0.86 and (...) 0.79, respectively). The sample size was 7,108 (6,169 completed questionnaires in Poland and 939 in Italy).ResultsThe Polish group had a higher stress level than the Italian group (mean PSS-10 total score 22,14 vs 17,01, respectively;p< 0.01). There was a greater prevalence of chronic diseases among Polish respondents. Italian subjects expressed more concern about their health, as well as about their future employment. Italian subjects did not comply with suggested restrictions as much as Polish subjects and were less eager to restrain from their usual activities (social, physical, and religious), which were more often perceived as “most needed matters” in Italian than in Polish residents.ConclusionHigher activity level was found to be correlated with lower perceived stress, but the causality is unclear. Difference in adherence to restrictions between Polish and Italian residents suggests that introducing similar lockdown policies worldwide may not be as beneficial as expected. However, due to the applied method of convenience sampling and uneven study groups, one should be careful with generalizing these results. (shrink)

The purpose of this study is to explore with more rigor and detail the role of social norms in tax compliance. This study draws on Cialdini and Trost’s (The Handbook of Social Psychology: Oxford University Press, Boston, MA, 1998) taxonomy of social norms to investigate with more specificity this potentially decisive (Alm and McKee, Managerial and Decision Economics, 19:259–275, 1998) influence on tax compliance. We test our research hypotheses regarding the direct and indirect influences of (...) social norms using a hypothetical compliance scenario with 174 experienced taxpayers as participants. Factor analysis of the social norm questions successfully identified four distinct social norm constructs, in line with Cialdini and Trost (1998). Results of the path analysis show that individuals’ standards for behavior/ethical beliefs (personal norms) as well as the expectations of close others (subjective norms) directly influence tax compliance decisions, whereas general societal expectations (injunctive norms) and other individuals’ actual behavior (descriptive norms) have an indirect influence. This shows that social norms have important direct as well as indirect influences on tax compliance behavior. We also investigate a number of attitudinal variables that may be related to social norms and taxpayer compliance. The results of this study further clarify the important role that social norms have with regard to taxpayers’ compliance behavior. (shrink)

‘Social auditing’ is everywhere. An increasing number of companies – and also public and voluntary sector organisations – are trying to assess their social performance systematically. Shell, BP and General Motors are among them. How are they doing it? What impact do NGOs and civil society organisations have on this process? Do they have a privileged place in social audits? This article looks at these questions, and sets out a framework for understanding social audits (...) and civil society. Examples are drawn particularly from the recent Camelot social audit . Camelot plc is the operator of the UK national lottery. (shrink)

‘Social auditing’ is everywhere. An increasing number of companies – and also public and voluntary sector organisations – are trying to assess their social performance systematically. Shell, BP and General Motors are among them. How are they doing it? What impact do NGOs and civil society organisations have on this process? Do they have a privileged place in social audits? This article looks at these questions, and sets out a framework for understanding social audits (...) and civil society. Examples are drawn particularly from the recent Camelot social audit (‘Camelot and Social Responsibility’, Social Report 1999). Camelot plc is the operator of the UK national lottery. (shrink)

This study examines the impact of the Chief Executive Officer ’s interlocking, created through serving on other companies’ audit committees and/or boards, on corporate social responsibility performance of the focal company and that of its linked companies. We find that CEO interlocking positively affects CSR performance of both the focal company and its linked companies. Further analysis shows that interlocks created by the CEO enhance CSR performance and in turn the financial performance of both the focal company and its (...) linked companies. Our findings are robust to a battery of analyses, including Heckman’s selection bias correction, propensity score matching, alternative measures of CSR performance, and CEO interlocks. These findings are important to regulators, company management teams, and other stakeholders with an interest in how the social ties of CEOs influence companies’ CSR performance and in the CSR–financial performance nexus. (shrink)

With the increased use of Artificial Intelligence (AI) in wildlife conservation, issues around whether AI-based monitoring tools in wildlife conservation comply with standards regarding AI Ethics are on the rise. This review aims to summarise current debates and identify gaps as well as suggest future research by investigating (1) current AI Ethics and AI Ethics issues in wildlife conservation, (2) Initiatives Stakeholders in AI for wildlife conservation should consider integrating AI Ethics in wildlife conservation. We find that the existing literature (...) weakly focuses on AI Ethics and AI Ethics in wildlife conservation while at the same time ignores AI Ethics integration in AI systems for wildlife conservation. This paper formulates an ethically aligned AI system framework and discusses pre-eminent on-demand AI systems in wildlife conservation. The proposed framework uses agile software life cycle methodology to implement guidelines towards the ethical upgrade of any existing AI system or the development of any new ethically aligned AI system. The guidelines enforce, among others, the minimisation of intentional harm and bias, diversity in data collection, design compliance, auditing of all activities in the framework and ease of code inspection. This framework will inform AI developers, users, conservationists, and policymakers on what to consider when integrating AI Ethics into AI-based systems for wildlife conservation. (shrink)

The Hutchins Commission's notion of media responsibility is being re-invigorated by the Corporate Social Responsibility/sustainability movement among U.S. and European corporations, though media companies tend to lag behind in adopting these programs. One exception is Britain's Guardian News that is, that the concept is too vague and poorly elaborated.

In an increasingly complex world with increasingly powerful organisations it seems inevitable that society – or groups in society – would become anxious about whether these organisations could be encouraged to match that power with an appropriate responsibility. This is the function of accountability – to require individuals and organisations to present an account of those actions for which society holds them – or would wish to hold them – responsible. And the history of social accounting, at its most (...) fundamental, is a history of attempts to develop this accountability. It seems to me that the widespread and systematic practice of social and environmental accounting is a deeply essential element in any well‐functioning, complex democracy. The corollary is that the absence of such mechanisms raises fundamental questions about the nature of modern democracies. This article briefly outlines what I believe to be the three strands of social accounting. It then identifies a few of the lessons that we may be able to learn from current experience and, in particular, how social accounting is related to accountability, democracy and sustainability. The central issue of the tension between accountability and control is touched upon: I then illustrate how the stakeholder model can be used to help define the social account, and conclude with a few words on attestation. (shrink)

Capitalizing on a unique setting in China where auditors disclose their prosocial activities, we examine the role that auditor social responsibility plays in shaping their performance. In one direction, behavior consistency theory implies that individual auditors exhibiting more social commitment in their off-the-job activities behave similarly during engagements, enhancing the quality of their audits. In the other direction, accounting firms’ internal structures along with external disciplinary forces mute the impact of heterogeneous auditor characteristics on their performance. In (...) a staggered difference-in-differences design, we report a significant fall in the magnitude of companies’ discretionary accruals and the incidence of financial reporting irregularities after their auditors begin contributing to social welfare, relative to companies whose auditors refrain from contributing during the same timeframe. Additional evidence implies that the higher audit quality stems from auditors better protecting their independence and improving their competence in the post-contribution period. Collectively, our results provide insights into the importance of auditors’ prosocial attitudes to their external monitoring. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility (CSR), meant as an extended model of corporate governance of the firm. Whereas, justificatory issues have been discussed in a related paper (Sacconi, L.: 2006b, this journal), in this essay I focus on the implementation of and compliance with this normative model. The theory of reputation games, with reference to the basic game of trust, is introduced in order to make sense of self-regulation (...) as a way to implement the social contract on the multi-fiduciary model of corporate governance. This affords understanding of why self-regulation, meant as mere recourse to a long-run strategy in a repeated trust game, fails. Two basic problems for the functioning of the reputation mechanism are examined: the cognitive fragility problem, and the motivational problem. As regards the cognitive fragilities of reputation (which result from the impact of unforeseen contingencies and from bounded rationality), the paper develops the logic and the structure that self-regulatory norms must satisfy if they are to serve as gap-filling tools with which to remedy cognitive limitations in the reputation mechanism. The motivation problem then arises from the possibility of sophisticated abuse by the firm. Developed in this case is an entirely new application of the theory of conformism-and-reciprocity-based preferences, the result of which is that the stakeholders refuse to acquiesce to sophisticated abuse on the part of the firm. (shrink)

Guided by the theories of system theory, synergetic theory, and other disciplines and based on fuzzy data mining algorithm, this article constructs a three-tier social security fund cloud audit platform. Firstly, the article systematically expounds the current situation of social security fund and social security fund audit, such as the technical basis of cloud computing and data mining. Combined with the actual work, the necessity and feasibility of building a cloud audit platform for social security funds (...) are analyzed. This article focuses on the construction of the cloud audit platform for social security funds. The general idea of using fuzzy data mining algorithm to build the social security fund audit cloud platform is to compress the knowledge contained in a large number of data into the weights between nodes and optimize the weights through the learning of the neural network system. Through the optimization function, the information contained in the neural network is stored in a few weights as far as possible. The main information is further highlighted by network clipping and removing weights that have little impact on the output. (shrink)

If cultures are always in the making, this book catches one kind of culture on the make. Academics will be familiar with audit in the form of research and teaching assessments - they may not be aware how pervasive practices of 'accountability' are or of the diversity of political regimes under which they flourish. Twelve social anthropologists from across Europe and the Commonwealth chart an influential and controversial cultural phenomenon.

This paper examines what social auditing has to offer Oxfam and similar organisations involved in the collection of charitable donations for international development and relief operations in terms of improving the quality of their work, increasing their accountability to stakeholders, and their capacity to achieve impact in terms of their institutional goals. In looking at the particular case of Oxfam, it discusses issues in relation to the establishment of social auditing with relevance for similar organisations.The paper points out (...) that since Oxfam is not a profit-making organisation, but one based on a humanitarian impulse, there are many ways in which it already lives up to the ideals of social audit. The paper lists areas of governance and systems where Oxfam is currently responding to the major principles of social audit, and some of the issues encountered in doing so. These principles have been defined by Zadek (1997) as follows. (shrink)

This paper examines the relationship between loan guarantees and audit fees as well as the moderating effect of corporate social responsibility. We find that guaranteeing another entity’s debt significantly increases firms’ own audit fees. However, the disclosure of CSR information attenuates the fee-increasing effects of loan guarantees. A closer examination reveals that the role of CSR is attributable to the information effect rather than the signal effect. Our results are robust to the use of a quasi-natural experiment, a propensity (...) score matching analysis, a Heckman two-stage treatment effect model and alternative proxies. This work makes new contributions to the current understanding of the consequences of loan guarantees, determinants of audit fees and value of CSR disclosure. (shrink)

This paper reports on a preliminary investigation of the pedagogical uses and possibilities of interactive ethics audit simulations. We want to foster experience-based learning in business ethics and examine how simulated social audits of corporations can be useful supplements to traditional textbook-oriented pedagogy. We argue that social audit simulations may offer many benefits for business ethics instruction, especially when it comes to developing ethical literacy for institutionally complex and morally complicated multi-stakeholder scenarios. We conclude that ethics education (...) based on broadly accepted standards of social accountability should be advanced through audit-simulation technology. Thus certain decision-making problems, which students might encounter in the real world, can be studied in the classroom. Our research contributes to the field in several ways. It describes a new avenue for self-directed learning that encourages critical thinking about ethical issues and complex stakeholder scenarios in an enjoyable, interesting and safe way. Moreover, it emphasizes “soft” skill development, and empowers students to advance their skills through exploration, practice, and learning from their mistakes. By advancing the pedagogical toolkit of educators, this new interactive technology can improve awareness of how codes of business ethics should work in the real world and inspire further scholarly debate and research. (shrink)

This paper reports on a preliminary investigation of the pedagogical uses and possibilities of interactive ethics audit simulations. We want to foster experience-based learning in business ethics and examine how simulated social audits of corporations can be useful supplements to traditional textbook-oriented pedagogy. We argue that social audit simulations may offer many benefits for business ethics instruction, especially when it comes to developing ethical literacy for institutionally complex and morally complicated multi-stakeholder scenarios. We conclude that ethics education (...) based on broadly accepted standards of social accountability (SA8000, GRI, ISO 26000, SOX 404) should be advanced through audit-simulation technology. Thus certain decision-making problems, which students might encounter in the real world, can be studied in the classroom. Our research contributes to the field in several ways. It describes a new avenue for self-directed learning that encourages critical thinking about ethical issues and complex stakeholder scenarios in an enjoyable, interesting and safe way. Moreover, it emphasizes “soft” skill development, and empowers students to advance their skills through exploration, practice, and learning from their mistakes. By advancing the pedagogical toolkit of educators, this new interactive technology can improve awareness of how codes of business ethics should work in the real world and inspire further scholarly debate and research. (shrink)

Those who wish to abolish or restrict the use of non-human animals in so-called factory farming and/or experimentation often argue that these animal use practices are incommensurate with animals’ moral status. If sound, these arguments would establish that, as a matter of ethics or justice, we should voluntarily abstain from the immoral animal use practices in question. But these arguments can’t and shouldn’t be taken to establish a related conclusion: that the moral status of animals justifies political intervention to disallow (...) or significantly diminish factory farming and animal experimentation. In this paper, we set out to do two things: First, we argue that while the arguments mentioned above may establish the moral impermissibility or injustice of the practices they condemn, they are not sufficient to justify political interventions or social policies to abolish or restrict such practices. It is one thing to argue that some moral imperative or imperative of justice exists, and quite another thing to call for the use of political power to induce compliance with that imperative. Our second task is to assess the prospects for developing an argument that is sufficient to justify political interventions to restrict or abolish the use of non-human animals in factory farming or experimentation. Beyond establishing the immorality or injustice of animal consumption or experimentation, one must show that the interventions in question constitute legitimate use of political power. Would prohibiting or discouraging animal use be legitimate? We attempt to answer this question within the context of fundamental liberal constraints on the legitimate use of coercive political power. (shrink)

This article presents a theorized and conceptually informed method for the undertaking of an ethics audit organization. At an operational level, the overall integrity of an organization, it is argued, may be evaluated through the application of a conceptual frame-work that embraces the inter-related themes of individual responsibility, social equity and political responsibility. Finally, a method is presented for ethics audit which was developed in the auditing of a national public sector sports organization: sportscotland. This emphasizes the significance of (...) key personnel (individuals and in groups) in producing and reproducing the organizational ethos, whilst recognizing the importance of anonymity and confidentiality throughout the process. The theoretical terrain of the ethics audit is articulated through a consideration of ethics as applied moral philosophy, equity as social justice and corporate governance as the moral health (or otherwise) of a public sector sports organization. (shrink)

The coronavirus COVID-19 pandemic is an unprecedented health crisis. Many governments around the world have responded by implementing lockdown measures of various degrees of intensity. To be effective, these measures must rely on citizens’ cooperation. In the present study, we drew samples from the United States (N= 597), Italy (N= 606), and South Korea (N= 693) and examined predictors of compliance with social distancing and intentions to report the infection to both authorities and acquaintances. Data were collected between (...) April 6th and 8th 2020. We investigated the role of cultural orientations of horizontal and vertical individualism and collectivism, self-conscious emotions of shame and guilt related to the infection and trust in the government’s action. Across all countries, vertical collectivism (VC) predicted stronger shame, whereas horizontal collectivism predicted stronger trust in the government. Only in the United States, VC was associated with stronger trust. Stronger feelings of shame predicted lower compliance and intentions to report the infection to both authorities and acquaintances. In contrast, guilt was associated with stronger intentions to report the infection to the authorities. Finally, trust was associated with stronger compliance and intentions to report the infection to the authorities. Unlike Italy and South Korea, the association between trust on compliance was not statistically significant in the United States, implications of the findings, and directions for future research are discussed. (shrink)