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Stakeholder Model (stakeholder + model)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	75%

Selected Abstracts

Competing Rationales for Corporate Governance in France: Institutional Complementarities between Financial Markets and Innovation Systems

CORPORATE GOVERNANCE, Issue 2 2008
Soo H. Lee
ABSTRACT Manuscript Type: Conceptual Research Question/Issue: This paper identifies the causes and consequences of corporate governance reform with reference to the French case. By disaggregating institutional complementarities into global and domestic dimensions, we analyze the path of institutional change compelled by financial efficiency and cooperative innovation. Research Findings/Results: Our analysis of the French case shows that both converging and diverging forces of institutional change coexist, shaping selective responses to globalization. While the adoption of the shareholder model is necessary for resource acquirement from the global capital markets, resource allocation in the cooperative innovation systems reinforces the stakeholder model. The French case confirms the sustainability of distinctive institutional complementarities, albeit with selective adaptation based on a sense-making social compromise. Theoretical Implications: The French case reminds us of the importance of distinctive institutional traditions and dominant social rationalities to understand the underlying logic of governance reform. The comparative research on corporate governance needs to address not just the cross-country variations in institutional arrangements and practices, but also the clash of competing rationales for reform explicitly in comparative terms within a single country context. Practical Implications: For foreign investors, it is vital to understand the unique institutional environment of state-centred stakeholder economies if they are to negotiate the best terms of return and to avoid unnecessary conflicts. French managers are expected to devise strategic choices responding to the competing rationales of governance. Managerial sense-making is essential for achieving sound long-term performance, upon which the legitimacy and sustainability of the constellation of selective governance rests. [source]

Toward Understanding Islamic Corporate Governance Issues in Islamic Finance

ASIAN POLITICS AND POLICY, Issue 1 2010
Maria Bhatti
This article presents recent developments on legal issues associated with corporate governance in the Islamic finance industry based on a contractual pyramid. It presents the Islamic corporate governance (ICG) model and discusses its viability in a 21st-century corporate structure. The model is based on the institution of Hisba, which demands proper and honest bookkeeping, disclosure, and transparency based on the Shariah principles of Islamic ethics. This article proposes a model of ICG that reconciles the objectives of Shariah law with the stakeholder model of corporate governance. It argues that this may be viable due to the emphasis that Shariah laws place on property and Islamic financial contractual rights. The article also discusses a model of ICG that is consistent with principles outlined by the Organisation for Economic Co-operation and Development as well as Shariah law. Such a model of corporate governance would encourage capital formation, foster strong markets, and encourage judgment and transparency, which are all principles central to Shariah laws. [source]

Ethical investment: whose ethics, which investment?

BUSINESS ETHICS: A EUROPEAN REVIEW, Issue 3 2001
Russell Sparkes
Ethical or socially responsible investment (SRI) is one of the most rapidly growing areas of finance. New government regulations mean that all pension funds are obliged to take such considerations into account. However, this phenomenon has received little critical attention from business ethicists, and a clear conceptual framework is lacking. This paper, by a practitioner in the field, attempts to fill this analytical gap. It considers what difference, if any, lies between the terms ,ethical', ,green', or ,socially responsible'. It also tackles the difficult question of how any public form of investment can be called ,ethical' in an overtly pluralistic society. The paper provides an account of the historical development of ethical investment, and traces the evolution of the varying terms used to describe it. This is followed by a conceptual analysis of these terms, and a description of ethical decision-making in this context. The paper ends by considering the role of shareholder action within ethical investment, and assesses the utility of the stakeholder model as a theoretical justification. [source]

Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?

BUSINESS ETHICS: A EUROPEAN REVIEW, Issue 1 2001
Rob Gray
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. [source]