Corporate need to engage with the stakeholders to develop a valuable Corporate Social Responsibility related actions. Stakeholders that are facing challenges and threats which are more likely with corporations on Corporate Social Responsibility related issues and corporations and stakeholders are most likely to succeed when a long term planning is embraced. Research has proved leadership’s main role in initiating and preparing Corporate Social Responsibility programs and initiatives within and across corporate. Leaders in global business are the first true responsible citizens, who have worldwide experience, capability and responsibility and hence their decisions affect economy and society. The main role of the leader in devolving corporation to sustainable social responsibility is complex, and it requires a different ways of leadership skills and competencies.
The principles highlight many pressing and unresolved problems of corporate governance, and offer much helpful policy guidance. However, an inherent weakness in the approach of the OECD is to attempt simultaneously, in the same policy document, to deal with the critical issues arising out of the post-Enron repercussions in the Anglo-American region and to address the rather different set of fundamental governance issues facing the developing world. The OECD corporate governance principles have had considerable influence on the advance of policy and practice in corporate governance in both developed and the developing world; however the impact may have been more beneficial if the different stages of economic and regulatory development across countries and regions might have been more explicitly
Also technological advances reduce transaction costs and the costs of information research, rendering global capital markets more accessible to investors. This has fueled global competition between capital markets and the evolution of corporate governance around the world. Becht et al. (2002) identify several reasons for this. There are the world-wide wave of privatization of the past two decades, the pension fund reform and the growth of private savings, the takeover wave of the 1980s, the deregulation and integration of capital markets, the 1997 East Asia Crisis, and the series of recent corporate scandals in the U.S. and elsewhere.
The success of a company is not only dependent on its performance, but also, corporate governance. In fact, corporate governance is equally as essential as performance. Companies with effective corporate governance structures achieve higher valuations, by improving the image (goodwill) of the company and thus attracting potential investors to the company and effectively satisfying the current
The findings shows significant positive association between Corporate Governance effectiveness and stock market liquidity. Robust to alternative liquidity measurements, to alternative estimation methods, and to endogeneity bias. Thus, constructs a corporate governance effectiveness measure by combining both internal and external monitoring
Recently, promoting human welfare and increasing positive impacts on society have been accepted as core of business operations by most companies. This kind of corporate activities are included in Corporate Social Responsibility model. In increasingly competitive world organizations and companies face with the demand for profitability and responsibility. Thereby, they use some strategic philanthropic actions for meeting this demand. These actions are gathered under the idea of Corporate Philanthropy which is the foremost part of Corporate Social Responsibility model, created for both the corporation’s benefit and welfare of society.
TABLE OF CONTENTS TITLE PAGE NUMBER Introduction to corporate sustainability reporting Criticism of traditional financial reporting Theories behind corporate sustainability reporting Cost and benefits of CSR Opinion and conclusion Bibliography Corporate sustainability is a business approach that recognises the importance of corporate growth and profitability, but with that the corporation must also pursue societal goals, specifically those relating to sustainable development — environmental protection, social justice and equity, and economic development. It also formulates strategies to build a company that fosters longevity through transparency and proper employee development. Corporate sustainability has become an economic and strategic imperative
To make further step, Fama and Jensen (1983) states that the goal of corporate governance research is the issue of separation between ownership and management rights, where the mainly solution for this is how to reduce agency costs. Shleifer and Vishny (1997) recognized that corporate governance deals with the way whether the company's capital suppliers can ensure their return on their investment. The central issue of corporate governance is to ensure the interests of capital suppliers (both shareholders and creditors). Cochran and Wartick (1998) states the corporate governance addresses many specific issues about what senior managers, shareholders, boards, and companies do with the interaction of stakeholders. 3.
Now the institutional shareholders are focusing more on the long-term relationship with the companies by retaining the ownership of the shares. The paradigm shift of institutional investors towards long term ownership of the shares is having a major influence on corporate governance in the sense that institutional investors require a greater level of accountability and transparency, and have the back-office resources to ensure that they can play an effective role as concerned and active shareholders. In this regard it is very pertinent to the OECD principles of Corporate Governance. An important extract from OECD Principles of Corporate Governance: “Controlling shareholders, which may be individuals, family holdings, bloc alliances, or other corporations acting through a holding company or cross shareholdings, can significantly influence corporate behavior. As owners of equity, institutional investors are Increasingly demanding a voice in corporate governance” This extract from the OECD principle reflect the growing interest of institutional shareholder to participate in the management of the company by having longer term ownership of the shares in the
Figure 1: Concept of sustainable development (from Adams, Eric, Jerome Connor, John Ochsendorf, 2006) Figure 1 above shows the famous three ‘pillars’ concepts of what seems the interconnection between economic, social and environmental in order to achieve sustainable development. The achievement of sustainable development is not only dependent upon the sustainability of the environment and its natural resources, but also on the level of economic