Confronted with mounting pressure to ensure accountability vis-à-vis customers, citizens and beneficiaries, organizational leaders need to decide how to choose and implement so-called accountability standards. Yet while looking for an appropriate standard, they often base their decisions on cost-benefit calculations, thus neglecting other important spheres of influence pertaining to more broadly defined stakeholder interests. We argue in this paper that, as a part of the strategic decision for a certain standard, management needs to identify and act according to (...) the needs of all stakeholders. We contend that the creation of a dialogical understanding among affected stakeholders cannot be a mere outcome of applying certain accountability standards, but rather must be a necessary precondition for their use. This requires a stakeholder dialogue prior to making a choice. We outline such a discursive decision framework for accountability standards based on the Habermasian concept of communicative action and, in the final section, apply our conceptual framework to one of the most prominent accountability tools (AA 1000). (shrink)

In a series of joint papers, Teppo Felin and Nicolai J. Foss recently launched a microfoundations project in the field of strategic management. Felin and Foss observe that extant explanations in strategic management are predominantly collectivist or macro. Routines and organizational capabilities, which are supposed to be properties of firms, loom large in the field of strategic management. Routines figure as explanantia in explanations of firm behavior and firm performance, for example. Felin and Foss (...) plead for a replacement of such macro-explanations by micro-explanations. Such a replacement is needed, Felin and Foss argue, because macro-explanations are necessarily incomplete: they miss out on crucial links in the causal chain that connect macro phenomena with each other. I argue that this argument is flawed. It is based on a doubtful if not outright incorrect understanding and use of Coleman’s diagram. In a sense to be explained below, only if Coleman’s diagram is squared it can accurately account for the relations between individual action and interaction, routines and firm behavior and firm performance. Once Coleman’s diagram is squared, one can see why and how macro-explanations need not miss out on any link in the causal chains that connect macro phenomena. Micro-analyses are still needed, not to highlight and specify causal links that macro-explanations miss out on, but to check whether the many properties that are ascribed to routines in macro-explanations of firm behavior are warranted. (shrink)

Strategic Environmental Assessment, as a support to strategic planning, is a starting point in the creation of a sustainable concept of managing waste that is based on the principles of a circular economy. The role of SEA is to guide the planning process towards the goal of securing the best effects in relation to the quality of the living environment and the socio-economic aspects of development. SEA is also an instrument that can be used when making optimal decisions (...) about spatial development, which further contributes to its importance and role in the planning process. The implementation of SEA allows developers to establish the benefits and implications of the proposed spatial changes, taking into account the capacity of the space to sustain the planned development, and to determine the degree of acceptability of the proposed spatial changes. This paper presents a specific method used for impact assessment in SEA for the Agro-Waste Management Plan for Oplenac Vineyard. The specificity of this method is that it combines specific goals, indicators and criteria for assessing the effect of planning solutions formulated in the simulated AWMP for Oplenac Vineyard using a semi-quantitative expert method. The results of the paper indicate the possibility of using GIS tools to increase objectivity in the expert evaluation of planning solutions, particularly in relation to a group of criteria for assessing the spatial dispersion of the impacts. This reduces the subjectivity that is characteristic of all expert methods. The graphical presentation of the results in GIS technology and the use of matrices and graphs to present the results makes them easier to understand and creates a good basis for making optimal decisions on future activities concerning the elimination of waste from wineries and viticulture. The research was carried out within the framework of the NoAW project, which is supported by the European Commission through the Horizon2020 research and innovation program. (shrink)

While ethical and moral issues have been widely considered in the general areas of marketing and sales, similar attention has not been given to the impact of strategic account management (SAM) approaches to handling the relationships between suppliers and very␣large customers. SAM approaches have been widely␣adopted by suppliers as a mechanism for managing␣relationships and partnerships with dominant customers␣– characterized by high levels of buyer–seller inter-dependence and forms of collaborative partnership. Observation suggests that the perceived moral intensity of␣these (...) relationships is commonly low, notwithstanding the underlying principles of benefiting the few (large, strategic customers) at the expense of the many (smaller customers and other stakeholders), and the magnitude of the consequences of concessions made to large customers, even though some such consequences may be unintended. Dilemmas exist also for executives implementing strategic account relationships regarding such issues as information sharing, trust, and hidden incentives for unethical behaviour. We propose the need for greater transparency and senior management questioning of the ethical and moral issues implicit in strategic account management. (shrink)

This paper contributes to a growing body of literature analyzing the social responsibilities of SMEs (Sarbutts, 2003, Journal of Communication Management 7(4), 340-347; Castka et al., 2004, Corporate Social Responsibility and Environmental Management 11, 140-149; Enderle, 2004, Business Ethics: A European Review 14(1), 51-63; Fuller and Tian, 2006, Journal of Business Ethics 67, 287-304; Jenkins, 2006, Journal of Business Ethics 67, 241-256; Lepoutre and Heene, 2006, Journal of Business Ethics 67, 257-273; Roberts, 2003, Journal of Business Ethics 44(2), (...) 159-170; Williamson et al., 2006, Journal of Business Ethics 67, 317-330) by designing a conceptual framework based on the Strategic Management Theory, which links social issues to the creation of sustained competitive advantages for SMEs. Firstly, the paper reviews literature on corporate social responsibility (CSR) and especially on the creation of social capital for SMEs. An exploration of Strategic Management Theory follows, focusing on the Positioning and Competence Based Schools, with the objective to find an answer to the question: how do social and environmental issues fit in the logic of creation of competitive advantage and what role do they play during strategic planning? The contributions of Hart (natural resourced based view) and Porter and Kramer (development of strategic intent in social responsible actions) are then related to the framework of possible growth paths of SMEs (Hong and Jeong, 2006, Journal of Enterprise Information Management 19(3), 292-302) in order to answer this question. Strategies that could trigger or lever these growth paths are then discussed. Following the recommendation Thompson and Smith (1991, Journal of Small Business Management 29(1), 30-44) gave to focus on the "study of CSR behaviors instead of perceptions," a medium-sized Austrian company in the food producing industry has been identified for an exploratory case study analysis to test the applicability of this theoretical framework for the description of the actual responsible business behavior (RBB) of an SME. This company is typical of one of the 250.000 SMEs which account for 99.6% of the Austrian economy. Based on the findings and the discussion, this paper presents a strategic planning tool for SMEs aiming to embed RBB into the corporate strategy. (shrink)

From a corporate governance perspective, one of the most important jobs of a firm's top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in "Strategic Management Journal" over the 10-year period between 1996 and 2005 are (...) reviewed for business ethics focus and content. The results reveal that while business ethics research in "Strategic Management Journal" is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed. (shrink)

Resumen. En el presente artículo se abordan lineamientos para internalizar el pensamiento estratégico en losgerentes basado en la filosofía de los Institutos Autónomos del sector público. Tomando en cuenta, que esfundamental que el pensamiento estratégico de los líderes se ocupe de la filosofía institucional para estarclaros en saber quiénes son, en qué se cree, cuáles son sus preceptos; así como, conocer los compromisos yresponsabilidades. Todo ello, basado en la misión, visión, valores, y estrategia que tienden a ser elementosintuitivos. Por lo (...) tanto, el estudio se ubico en una investigación descriptiva y la información se obtuvo através de un instrumento tipo Likert. Los resultados obtenidos evidencian en el nivel gerencial,que no cuentan en su totalidad con una filosofía de gestión, que constituya una guía para la conducción demanera efectiva de tales instituciones.Palabras Claves. Filosofía, gerencia, institutos autónomos, pensamiento estratégico, sector público.. In this paper guidelines are addressed to internalize strategic thinking in managers based on thephilosophy of autonomous institutions in the public sector. Taking into account, it is essential that thestrategic thinking of leaders to deal with the organizational culture to be clear on who they are, what youthink, what their requirements as well as, meet the commitments and responsibilities. All this is based on themission, vision, values and strategy tend to be intuitive elements. Therefore, the study was located in adescriptive and information was obtained through an instrument Likert. The results show atthe managerial level, have not entirely a management philosophy, which constitutes a guide for the conduct ofsuch institutions effectively.Keywords. Philosophy, management, strategic thinking, public sector, autonomous institutes. (shrink)

Professional institutions are increasingly confronted by fiscal constraints and political pressures to improve and increase their accountability in a competitive consumer-driven market. Accordingly, the need to ensure efficiency and accountability is of strategic importance. This article reports on a qualitative study of medical professionals that assessed the utility of financial incentives and external control methods derived from agency theory to ensure accountability of professionals. The authors argue that approaches derived from stewardship and institutional theories can extend the principal–agent perspective (...) to sustain greater social and ethical accountability. (shrink)

The study aimed to identify the strategic sensitivity and its impact on enhancing the creative behavior of Palestinian NGOs in Gaza Strip, and the study used the descriptive analytical approach and the questionnaire as a main tool for collecting data from employees of associations working in Gaza Strip governorates, and the cluster sample method was used and the sample size reached (343) individuals (298) questionnaires were retrieved, and the following results were reached: The relative weight of strategic sensitivity (...) was 79.22 (%), and the relative weight of creative behavior was 78.99 (%), a statistically significant relationship between all strategic sensitivity and creative behavior, and the presence of a sensitivity effect The strategy’s strategy on creative behavior, there are statistically significant differences in the scale dimensions attributable to the gender variable and the differences were in favor of females, there are no statistically significant differences between the averages of strategic sensitivity due to the age variable, and the educational qualification, and there were no statistically significant differences in creative behavior according to The gender variable, age, educational qualification, specialization, and the study presented a set of recommendations, the most important of which are: the need for civil organizations in Gaza Strip to seek funding from external countries in order to provide self-income for associations to face crises and give them independence Mechanism in order to keep them to carry out their role in society, the need to follow up the strategic plan of civil organizations using e-mails as they pave the way to reach excellence and creativity in the field of work. (shrink)

From a corporate governance perspective, one of the most important jobs of a firm's top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in "Strategic Management Journal" over the 10-year period between 1996 and 2005 are (...) reviewed for business ethics focus and content. The results reveal that while business ethics research in "Strategic Management Journal" is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed. (shrink)

The objective of this article is to analyze the relationships between theories of strategic design and participatory design, in multiple commercial alliances between local entrepreneurs from different sectors and their integrated application in the urban context. Various authors have dealt with these strategic issues in isolation and less frequently have addressed them from the entrepreneurial experience. A review of the specific literature allows us to account for the main concepts involved in this approach. The case being analyzed (...) refers to a fitness-related venture in the city of La Plata, which articulated, together with other local actors, a collaborative strategy that led to the application of a superior business model for its sector. In addition, he capitalized on his role as an influencer on the social network Instagram, as a way to enhance the project’s comprehensiveness. The topics that are addressed synthesize the key concepts that allow us to interpret the praxis relieved. And from them, create a model that can be applied in other markets and territories to promote young local development. And in this way, different actors, complementary products and services serve to jointly promote a co-productive and self-managed culture. (shrink)

Population ageing is one of the key processes affecting the development of European Union countries. The aim of this paper is an indication of the possibility of collective action against this challenge at the regional level. Article describe assumptions and recommendations for strategic management which taking into account the cooperation of entities from public sector (local governments), market sector (business) and social sector (NGOs). Closer analyses will be conducted on two examples of initiatives from European Union: the (...) Regions for All Ages programme and network organization SEN@ER - Silver Economy Network of European Regions. The summary will indicate possible directions of further research. -/- . (shrink)

Electroencephalographic monitoring provides critical diagnostic and management information about patients with epilepsy and seizure mimics. Admission to an epilepsy monitoring unit (EMU) is the gold standard for such monitoring in major medical facilities worldwide. In many countries, access can be challenged by limited resources compared to need. Today, triaging admission to such units is generally approached by unwritten protocols that vary by institution. In the absence of explicit guidance, decisions can be ethically taxing and are easy to challenge. In (...) an effort to address this gap, we propose a two-component approach to EMU triage that takes into account the unique landscape of epilepsy monitoring informed by triage literature from other areas of medicine. Through the strategic component, we focus on the EMU wait list management infrastructure at the institutional level. Through the principled component, we apply a combination of the ethical principles of prioritarianism, utilitarianism and justice to triage; and we use individual case examples to illustrate how they apply. The effective implementation of this approach to specific epilepsy centres will need to be customised to the nuances of different settings, including diverse practice patterns, patient populations and constraints on resource distribution, but the conceptual consolidation of its components can alleviate some of the pressures imposed by the complex decisions involved in EMU triage. (shrink)

It aimed to identify the strategic creativity in Islamic banks in Palestine between reality and implementation. The study adopted the descriptive analytical approach. A questionnaire was designed as a tool for the study. The study community consisted of all employees in Islamic banks from the top and middle management and the study has been applied to the Palestinian Islamic bank and the Arab Islamic Bank. The comprehensive inventory method was used, given the small size of the study sample, (...) as questionnaires were distributed to (175) employees, and a number of (5) categories were chosen from each branch of the bank(general manager, deputy general manager, director Branch, department head, department manager). (164) questionnaires have been used Recovered with a recovery rate of (93.71%). The study showed a number of results, the most important of which is the availability of dimensions of strategic innovation at a high level in Islamic banks in Palestine with a relative weight of (82.22%). In addition, that there are no differences between the averages estimates about the reality of the study variables in Islamic banks due to (gender, age group, educational qualification, number of years of service, job title). The study also presented a set of recommendations, including that the bank should provide the environment and the appropriate climate for employees to invest their intellectual energy, urge them to strategic creativity, and deal fairly with all creative ideas regardless of their source. (shrink)

We analyse the incentives of individuals to misrepresent their truthful judgments when engaged in collective decision-making. Our focus is on scenarios in which individuals reason about the incentives of others before choosing which judgments to report themselves. To this end, we introduce a formal model of strategic behaviour in logic-based judgment aggregation that accounts for such higher-level reasoning as well as the fact that individuals may only have partial information about the truthful judgments and preferences of their peers. We (...) find that every aggregation rule must belong to exactly one of three possible categories: it is either (i) immune to strategic manipulation for every level of reasoning, or (ii) manipulable for every level of reasoning, or (iii) immune to manipulation only for everykth level of reasoning, for some natural number kgreater than 1. (shrink)

This book develops a framework for analysing strategic rationality, a notion central to contemporary game theory, which is the formal study of the interaction of rational agents and which has proved extremely fruitful in economics, political theory and business management. The author argues that a logical paradox lies at the root of a number of persistent puzzles in game theory, in particular those concerning rational agents who seek to establish some kind of reputation. Building on the work of (...) Parsons, Burge, Gaifman and Barwise and Etchemendy, Robert Koons constructs a context-sensitive solution to the whole family of liar-like paradoxes including, for the first time, a detailed account of how the interpretation of paradoxical statements is fixed by context. This analysis provides an understanding of how the rational agent model can account for the emergence of rules, practices and institutions. (shrink)

Strategic alliances are increasingly common, as many organizations look towards various partnering arrangements. This second edition of Strategies of Cooperation extends the first edition's clear and comprehensive survey of strategic alliances. Presenting different disciplinary perspectives and numerous examples from the corporate world. The text has been thoroughly revised and updated, taking account of new theoretical models, and its coverage of case studies has been extended. It will be ideal for business students and managers alike wishing to understand (...) the challenges of managing alliances. (shrink)

The Strategic Choice Approach (SCA) is a method meant to deal with operational decision in a strategic way and to manage different sources of uncertainty in decision-making processes. The paper describes how SCA can deal with the future in the specific realm of urban planning in current cities, which represents a typical example of Wicked Problem, taking into account the three different levels of uncertainties that the method aims to manage (Uncertainties about the working Environment, UE; Uncertainties (...) about Related decisions, UR; Uncertainties about guiding Values, UV). We argue that these three types of uncertainties are referred to the ‘ordinary’ problems of modern and contemporary cities. The project of an architectural/urban transformation has to do with this kind uncertainties and implications – in overcoming a series of approvals of different institutional order – and, with this purpose, takes the form of a contract. Instead, this categorisation doesn’t conceive some new and uncertain challenges of future cities, around climate change, infrastructural disruption, insecurity, pandemics, at local and global scales, that are currently under debate in the cities. In this study we suggest that this character of uniqueness can imply the exploration of a new category of uncertainty in the SCA scheme, the ‘uncertainty about disruptive events (UD)’, a type of catastrophic or just unknown in their effects. First of all, we define the PSMs (Problem Structuring Methods) as methods of structuring the «wicked problems». Secondly, we examine the SCA as «a strategic choice process through time», taking into account the three different levels of uncertainty that the method intends to manage. (shrink)

Early strategy scholars have pointed to the importance of reflecting on moral issues within the scope of strategic management. Although strategy content and context have been discussed in relation to ethical reflection, the third aspect, strategy process, has found only little or no attention with regard to ethics. We argue that by emphasizing the process perspective one can understand the related character of strategic management and ethical reflection. We discuss this relatedness along formal, functional, and procedural (...) similarities. Whereas formal aspects refer to the conditions under which both processes occur, functional aspects look at the role that strategy process and ethical reflection fulfill. Procedural aspects account for similarities in the nature of both processes insofar as the activities that are conducted within each process phase share common characteristics. We claim that ethical reflection can be thought of as an integrative part of strategic management – either explicitly or implicitly. (shrink)

Formulating and translating corporate social responsibility strategy into actual managerial practices and outcome values remain ongoing challenges for many organizations. This paper argues that the human resource management function can potentially play an important role in supporting organizations to address this challenge. We argue that HRM could provide an interesting and dynamic support to CSR strategy design as well as implementation and delivery. Drawing on a systematic review of relevant strategic CSR and HRM literatures, this paper highlights the (...) important interfaces between CSR and HRM and develops a conceptual model, the CSR-HRM co-creation model, which accounts for the potential HRM roles in CSR and identifies a range of outcome values resulting from a more effective integration of the role of HRM within CSR. The paper concludes with relevant theoretical and managerial recommendations that advance our understanding of the potential interfaces between HRM and CSR and how HRM can support a systematic and progressive CSR agenda. (shrink)

This study examines the roles of environmental strategy and accounting in corporate carbon performance, as measured by the Greenhouse Gas (GHG) Protocol. A novel interaction model is developed based on legitimacy theory and natural-resource dependence theory to capture the interaction between environmental strategy and accounting. An international sample of 3322 firms from 73 countries is used in the analysis, based on a panel data design for 17 years (2005–2022). The empirical findings reveal an overall reactive role of these environmental initiatives (...) in relation to carbon performance. The marginal effect analysis shows that environmental accounting favourably moderates the effect of environmental strategic functions on carbon performance, indicating that the former facilitates the translation of the latter into practice. Similarly, environmental strategic initiatives improve the impact of environmental accounting information on carbon performance. The main contribution of this study stems from methodologically demonstrating how the synergy between environmental strategic initiatives and environmental information mechanisms can translate into improved carbon performance. This finding has multiple societal, practical and research implications. The interaction effect evidence can be viewed as consistent with recent trends of integrated approaches to thinking and reporting, where interrelated phenomena are integrated into operational and reporting contexts to improve efficiency. This can be of interest to policymakers, investors, corporate managers and providers of assurance services related to carbon performance. (shrink)

Early strategy scholars have pointed to the importance of reflecting on moral issues within the scope of strategic management. Although strategy content and context have been discussed in relation to ethical reflection, the third aspect, strategy process, has found only little or no attention with regard to ethics. We argue that by emphasizing the process perspective one can understand the related character of strategic management and ethical reflection. We discuss this relatedness along formal, functional, and procedural (...) similarities. Whereas formal aspects refer to the conditions under which both processes occur, functional aspects look at the role that strategy process and ethical reflection fulfill. Procedural aspects account for similarities in the nature of both processes insofar as the activities that are conducted within each process phase share common characteristics. We claim that ethical reflection can be thought of as an integrative part of strategic management – either explicitly or implicitly. (shrink)

The purpose of the study is to present the author's accounting mechanisms in relation to the transaction costs of a manufacturing enterprise in relation to the financial, managerial and strategic aspects of this process. The scientific novelty of the research lies in the fact that the paper systematizes views on the existing accounting and analytical support in relation to transaction costs, offers various options for constructing accounting, management and strategic accounting of transaction costs, depending on the assessment (...) available for reflection. As a result, the recommended accounting approaches using accounting, management and strategic accounting of transaction costs are presented on the example of an industrial company. Since transaction costs occupy a significant share in the cost structure of business units engaged in production, it is necessary to organize their reflection using modern accounting principles. The complexity of the monetary assessment of such costs causes the complexity of the management process associated with their accounting. This publication is devoted to the problems of accounting, management and strategic accounting of transaction costs at a manufacturing enterprise. The use of an integrated approach based on accounting principles makes it possible to ensure control over transaction costs for solving urgent tasks of management and owners. (shrink)

In recent years, issues of childhood obesity, unsafe toys, and child labor have raised the question of corporate responsibilities to children. However, business impacts on children are complex, multi-faceted, and frequently overlooked by senior managers. This article reports on a systematic analysis of the reputational landscape constructed by the media, corporations, and non-government organizations around business responsibilities to children. A content analysis methodology is applied to a sample of more than 350 relevant accounts during a 5-year period. We identify seven (...) core responsibilities that are then used to provide a framework for enabling businesses to map their range of impacts on children. We set out guidelines for how to identify and manage the firm’s strategic responsibilities in this arena, and identify the␣constraints that corporations face in meeting such responsibilities. (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. It focuses on justification according to the contractarian point of view. It begins by providing a definition of CSR as an extended model of corporate governance, based on the fiduciary duties owed to all the firm's stakeholders. Then, by establishing the basic context of incompleteness of contracts and abuse of authority, it analyses how the (...) extended view of corporate governance arises directly from criticism of the contemporary neo-institutional economic theory of the firm. Thereafter, an application of the theory of bargaining games is used to deduce the structure of a multi-stakeholder firm, on the basis of the idea of a constitutional contract, which satisfies basic requirements of impartial justification and accordance with intuitions of social justice. This is a sequential model of constitutional bargaining, whereby a constitution is first chosen, and then a post-constitutional coalition game is played. On the basis of the unique solution given to each step in the bargaining model, the quest for a prescriptive theory of governance and strategic management is accomplished, so that I am able to define an objective-function for the firm consistent with the idea of CSR. Finally, a contractarian potential explanation for the emergence of the multi-fiduciary firm is provided. (shrink)

This paper explores the relationship between accountability, trust and corporate reputation building. Increasing numbers of corporations are mobilising themselves to put more and more information out into the public domain as a way of communicating with stakeholders. Corporate social accounting and stakeholder engagement is happening on an unprecedented scale. Rather than welcoming such initiatives, academics have been quick to pick faults with contemporary social auditing and reporting, claiming that in its current form it is not about demonstrating accountability at all, (...) but rather about building corporate reputation. Academics argue that ‘accountability should hurt’, that if accountability is an enjoyable process, then the organisation isn’t doing it right. For organisations that are currently engaging with stakeholders and ostensibly becoming more transparent about their corporate social performance, this kind of critique is likely to be bewildering. This paper argues that central to the notion of accountability and to contemporary social accounting practice is the concept of trust. Accountability is based upon a distrust of corporate management, whereas corporate reputation building is about strategically seeking to establish trust in stakeholder relationships in order to negate formal accountability requirements. Using a split trust continuum, the paper seeks to explain and synthesise what seem to be two very different paradigms of organisational transparency. (shrink)

Recent years have witnessed an escalation in corporate social reporting (CSR) by UK companies (Gray, Kouhy and Lavers 1995). Whilst some elements of CSR reporting are required by law, much of it represents voluntary reporting. By investigating the non‐mandatory reporting of two aspects of social responsibility, corporate community involvement (CCI) and environmental impact, this paper seeks to explore why companies choose to make such disclosures. It specifically asks whether companies are primarily motivated by the strategic need to manage their (...) reputation and legitimacy rather than by the recognition of their ethical accountability, which is the stated purpose of reports produced by cutting edge companies (Clarke 1998). (shrink)

In this study, we explore the sincerity of the rhetorical tone of 664 annual letters to shareholders (CEO letters). Prior studies adopt Impression Management theory to predict that firms obfuscate failures and emphasize successes to unfairly enhance their image and maintain organizational legitimacy. Yuthas et al. (J Bus Ethics 41:141–157, 2002) challenged such a view, showing that firms reporting earnings surprises engage in ethical discourse with shareholders. We adopt the methodology of Yuthas et al. (J Bus Ethics 41:141–157, 2002) (...) to explore the association between firm performance and the rhetorical features of CEO letters in a large sample of Fortune 500 firms in the wake of the global economic crisis. In contrast to most prior research, we find that optimistic tone is congruent with both past and future performance. We conclude that under tough macroeconomic conditions, incentives to distort public information strategically are low. Rather, firms tend to engage in communicative action aimed at dialoguing with shareholders through sincere disclosure. However, in our conclusions, we warn about the impact of accounting and rhetorical manipulation on the congruence between optimistic tone and financial performance. (shrink)

This paper explores the relationship between accountability, trust and corporate reputation building. Increasing numbers of corporations are mobilising themselves to put more and more information out into the public domain as a way of communicating with stakeholders. Corporate social accounting and stakeholder engagement is happening on an unprecedented scale. Rather than welcoming such initiatives, academics have been quick to pick faults with contemporary social auditing and reporting, claiming that in its current form it is not about demonstrating accountability at all, (...) but rather about building corporate reputation. Academics argue that ‘accountability should hurt’, that if accountability is an enjoyable process, then the organisation isn’t doing it right. For organisations that are currently engaging with stakeholders and ostensibly becoming more transparent about their corporate social performance, this kind of critique is likely to be bewildering. This paper argues that central to the notion of accountability and to contemporary social accounting practice is the concept of trust. Accountability is based upon a distrust of corporate management, whereas corporate reputation building is about strategically seeking to establish trust in stakeholder relationships in order to negate formal accountability requirements. Using a split trust continuum, the paper seeks to explain and synthesise what seem to be two very different paradigms of organisational transparency. (shrink)

The 25th anniversary of R. Edward Freeman’s Strategic Management: A Stakeholder Approach provides an opportunity to consider where stakeholder theory has been, where it is going, and how it might influence the behavior of academics conducting stakeholder-oriented research. We propose that Freeman’s early work on the stakeholder concept supports the normative claim that a stakeholder’s contribution to value creation implies a right to stakeholder voice with regard to how a corporation makes decisions. Failure to account for stakeholder (...) voice (especially for non-shareholder stakeholders) works to the detriment of stakeholders. We further propose that business ethicists and stakeholder scholars have a role to play with regard to supporting the interests — including a right to voice — of non-shareholder stakeholders through advocacy, teaching, and scholarship. We use the example of industrial relations teaching and scholarship as a model for future business ethics teaching and scholarship. (shrink)

The recent proliferation of International Accountability Standards (IAS) has attracted significant academic interest, but the extent of their adoption and integration by global firms remains underinvestigated.Capitalizing on institutional theory and the typology of strategic responses to institutional pressures proposed by Oliver (Acad Manage Rev 16(1): 145-179, 1991), this article uses an interpretive research methodology to analyze a sample of MNC practitioners' views regarding IAS, and derive some insights in relation to expected patterns of strategic responses to these new (...) institutional pressures. The article also presents relevant remarks relating to the usefulness of institutional theory in the context of research relating to IAS. The findings suggest patterns of engagement combining elements of both conformity and resistance, although the answers correspond most closely to a decoupling or symbolic conformity strategic response. The findings are fleshed out and their implications delineated/assessed. (shrink)

Recent years have witnessed an escalation in corporate social reporting (CSR) by UK companies (Gray, Kouhy and Lavers 1995). Whilst some elements of CSR reporting are required by law, much of it represents voluntary reporting. By investigating the non‐mandatory reporting of two aspects of social responsibility, corporate community involvement (CCI) and environmental impact, this paper seeks to explore why companies choose to make such disclosures. It specifically asks whether companies are primarily motivated by the strategic need to manage their (...) reputation and legitimacy rather than by the recognition of their ethical accountability, which is the stated purpose of reports produced by cutting edge companies (Clarke 1998). (shrink)

The 25th anniversary of R. Edward Freeman’s Strategic Management: A Stakeholder Approach provides an opportunity to consider where stakeholder theory has been, where it is going, and how it might influence the behavior of academics conducting stakeholder-oriented research. We propose that Freeman’s early work on the stakeholder concept supports the normative claim that a stakeholder’s contribution to value creation implies a right to stakeholder voice with regard to how a corporation makes decisions. Failure to account for stakeholder (...) voice (especially for non-shareholder stakeholders) works to the detriment of stakeholders. We further propose that business ethicists and stakeholder scholars have a role to play with regard to supporting the interests — including a right to voice — of non-shareholder stakeholders through advocacy, teaching, and scholarship. We use the example of industrial relations teaching and scholarship as a model for future business ethics teaching and scholarship. (shrink)

This paper examines a struggle over the future use of Nordic forests, which took place from 2009 to 2012 within a major research program, Future Forests—Sustainable Strategies under Uncertainty and Risk, organized and funded by Mistra, The Swedish Foundation for Strategic Environmental Research. We explore the role of strategic environmental research in societal constructions of long-term challenges and future risks. Specifically, we draw attention to the role played by environmental research in the creation of future images that become (...) dominant for how societies structure action for the long term. We also show that this process is on several accounts problematic. Research labeled “strategic” or “relevant” is intended to manage long-term risks and challenges in a sustainable way, by taking into account the “open” and “plural” nature of the future. The case of Future Forests suggests, rather, that by contributing to the emergence of dominant future images, environmental research is entangled with a process of gradual consensus creation around what may be highly selective or biased narratives of the long term, which may conceal or postpone key forms of future conflict. (shrink)

This paper develops a typology of moral problems in business. The cross-classification of two fundamental dimensions of ethical conduct: judgment and motivation, is employed to distinguish four types of moral problems: genuine dilemmas, compliance problems, moral laxity, and no-problem problems. Actual cases are brought to illustrate each type of problem, and corresponding coping strategies are presented. The paper highlights the need to design a dynamic strategy that will take into account the relationships among different types of ethical problems. In (...) its capacities as both an analytical tool for identifying and clarifying an ethical problem and a strategic tool for handling it, the typology has direct implications for developing ethical awareness, assigning accountability, and unfolding typical rationalizations in business activity. (shrink)

Curt Verschoor on Ethics is a compilation of the best business ethics columns that will continue for years forward to be of lasting educational value. In a company setting, the columns can function as the basis for discussion on proper business ethics. In academia, the columns can serve as assigned readings over significant ethics events and issues. Some topics that are covered in the columns include: value of a strong ethical culture, studies of ethical and unethical culture, public and (...) class='Hi'>management accounting ethics, ethics of executive compensation, international ethics standards, fraud case studies, small organization fraud studies, regulation and enforcement, whistleblowing, sustainability and integrated reporting, tax avoidance issues, students. (shrink)

The empirical relationship between a firm’s social performance and its financial performance is still not well established in the literature. Despite more than 30 years of research and more than 100 empirical studies on the issue, the results are still mixed. We argue that the heterogeneous results found in previous studies are not due exclusively to problems related with the measurement instruments or the samples used. Instead, we posit that a more fundamental problem related with the endogeneity of social (...) class='Hi'>strategic decisions could be driving most of the empirical findings. We show that, using a panel data of 658 firms from 1991 to 2005, how some of the results found in previous research change, and some are even reversed when endogeneity is properly taken into account. (shrink)

The 25th anniversary of R. Edward Freeman’s Strategic Management: A Stakeholder Approach provides an opportunity to consider where stakeholder theory has been, where it is going, and how it might influence the behavior of academics conducting stakeholder-oriented research. We propose that Freeman’s early work on the stakeholder concept supports the normative claim that a stakeholder’s contribution to value creation implies a right to stakeholder voice with regard to how a corporation makes decisions. Failure to account for stakeholder (...) voice (especially for non-shareholder stakeholders) works to the detriment of stakeholders. We further propose that business ethicists and stakeholder scholars have a role to play with regard to supporting the interests — including a right to voice — of non-shareholder stakeholders through advocacy, teaching, and scholarship. We use the example of industrial relations teaching and scholarship as a model for future business ethics teaching and scholarship. (shrink)

Abstract -/- The Crisis and Disaster Management process (CDMP) is composed of several clearly defined phases. Strategic risk assessment; preparation and planning, effective response and recovery, and post-crisis evaluation. It is essential for those facing such threats to understand, appreciate, and implement the appropriate responses for each phase. Public service organizations, or PSOs, are increasingly charged with additional duties and responsibilities that historically were not part of their original purview. PSOs are currently forced to operate within an environment (...) of increasing political unrest and social chaos. Events of international magnitude now impact the domestic environment. These organizations must deal with negative media, hostile public backlash, increased scrutiny, and calls for greater accountability. Service organizations are currently faced with increasing political and social chaos, with widespread civil unrest, domestic and international threats of terrorism, human trafficking and illegal migration, public health emergencies, natural disasters, and diverse climate-related challenges. These conditions have fostered additional layers of responsibility to already overburdened first responders and their civil support partners. The consequences are significant. These previously mentioned burdens are further compounded by budgetary constraints, greater regulatory compliance, and organizational accountability. In other words, agencies and departments are expected to do more with less, much more with much less. -/- DOI: 10.5772/intechopen.108408. (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. It focuses on justification according to the contractarian point of view (leaving compliance and implementation problems to a related article, [Sacconi 2004b, forthcoming in the Journal of Business Ethics]). It begins by providing a definition of CSR as an extended model of corporate governance, based on the fiduciary duties owed to all the firm’s (...) stakeholders. Then, by establishing the basic context of incompleteness of contracts and abuse of authority, it analyses how the extended view of corporate governance arises directly from criticism of the contemporary neo-institutional economic theory of the firm. Thereafter, an application of the theory of bargaining games is used to deduce the structure of a multi-stakeholder firm, on the basis of the idea of a constitutional contract, which satisfies basic requirements of impartial justification and accordance with intuitions of social justice. This is a sequential model of constitutional bargaining, whereby a constitution is first chosen, and then a post-constitutional coalition game is played. On the basis of the unique solution given to each step in the bargaining model, the quest for a prescriptive theory of governance and strategic management is accomplished, so that I am able to define an objective-function for the firm consistent with the idea of CSR. Finally, a contractarian potential explanation for the emergence of the multi-fiduciary firm is provided. (shrink)

In this paper, I explore the nature of strategic decision making. In particular, I am concerned with the interplay of rational reflection and intuitive insight in strategic contexts. I argue that it is in the very nature of strategic situations that they cannot be exhaustively analysed in terms of the available evidence, and that hence there always is an intuitive element to strategic decision making. I consider a variety of ways to explain the notion of intuition (...) and conclude that intuition and rationality ought not to be conceived as incompatible with one another. It follows, I claim, that the intuitive component of strategic thought allows for at least some degree of public accountability. (shrink)

Prior research suggests that voluntary environmental governance mechanisms operate to enhance a firm’s environmental legitimacy as opposed to being a driver of proactive environmental performance activities. To understand how these mechanisms contribute to the firm’s environmental legitimacy, we investigate whether environmental corporate governance characteristics are associated with voluntary environmental disclosure. We examine an increasingly important attribute of a firm’s disclosure setting, namely the disclosure of greenhouse gas (GHG) information. GHG information represents proprietary non-financial information about the firm’s exposure to environmental (...) concerns and is related to the firm’s operations and future profitability. Thus, we expect governance participants would view such information as a potentially important strategic device for managing stakeholders’ demands for information concerning environmental risks. We find that the presence of an environmental committee and a Chief Sustainability Officer (CSO) is positively associated with the likelihood of GHG disclosure and that CSOs are associated with disclosure transparency. Further analysis reveals that the likelihood of disclosure is associated with committee size, number of committee meetings, expertise of committee members and CSO, and overlap between the environmental committee and audit committee. Only expertise of the environmental committee members and the CSO are associated with GHG disclosure transparency, while larger committees tend to be associated with lower transparency. Our results are particularly important to those with interests in evaluating the potential role that corporate governance mechanisms play in responding to stakeholder concerns about environmental risks. Directors and officers who are considering appointment to similar governance positions, may wish to consider what attributes would make such governance positions more influential. (shrink)

Little literature has looked at the role of universities promoting and supporting grassroots social innovations. This paper addresses this gap by examining how universities contribute to social innovation in Colombia. In seeking to develop a good understanding of how universities can contribute to the development of social innovation niches, we draw upon the Strategic Niche Management theory and the three areas of activity which constitute effective niche-building: social networks, expectations and visions and learning. We explore this phenomenon with (...) the Parque Científico de Innovación Social, founded by Uniminuto University in 2012, using video case study research methodology. Findings suggest the important role played by Uniminuto University influencing the current higher education system regime by enhancing the development of social innovation niches. These results have implications for advancing the debate on the role of higher education institutions in contributing to the development of social innovation processes.Poca literatura ha analizado el papel de las universidades promoviendo y apoyando las innovaciones sociales de base. Este documento aborda esta brecha al examinar cómo las universidades contribuyen a la innovación social en Colombia. Al tratar de desarrollar una buena comprensión de cómo las universidades pueden contribuir al desarrollo de nichos de innovación social, recurrimos a la teoría de Gestión Estratégica de Nichos y las tres áreas de actividad que constituyen la creación efectiva de nichos: redes sociales, expectativas y visiones y aprendizaje. Exploramos este fenómeno con el Parque Científico de Innovación Social, fundado por la Universidad de Uniminuto en 2012, utilizando la metodología de investigación de estudios de casos de video. Los hallazgos sugieren el importante papel desempeñado por la Universidad de Uniminuto que influye en el régimen actual del sistema de educación superior al mejorar el desarrollo de nichos de innovación social. Estos resultados tienen implicaciones para avanzar en el debate sobre el papel de las instituciones de educación superior en la contribución al desarrollo de los procesos de innovación social. (shrink)

This study examines how ambiguity in corporate objectives affects managers’ choice between opposing sustainability and short-term profit goals. We test this question with an experiment in which we vary whether environmental sustainability is included explicitly as a strategic objective that is used for managers’ performance evaluations. Findings show that managers increase biodegradable production and correspondingly decrease short-term profit when environmental sustainability performance is explicitly incorporated within the company’s strategic objectives. Also, managers in the implicit incorporation group are more (...) likely to decrease their biodegradable production when they learn that their counterparts within the firm have chosen to decrease biodegradable production in other product lines. Further, managers in the explicit incorporation group have greater trust in senior management, and that trust mediates the negative relationship between incorporation ambiguity and the level of biodegradable production. The theoretical and practical implications of this study are discussed. (shrink)