Posts Tagged ‘governance’
CSR Research Digest – January 2013
This report provides a global benchmark of sustainability priorities, budgets and governance. It is is based on interviews with 250 sustainability decision-makers at firms with revenues over $250 million, across 13 countries and 21 industries.
- Corporate spending on energy, environment and sustainability management in 2013 will grow by less than 10 percent.
- 46 percent of respondents expect their spending to increase by up to 10 percent next year, while 39 percent face flat budgets.
- Only 11 percent of those surveyed anticipate increasing their spending on sustainability by more than 10 percent in 2013 compared to 2012.
- About 32 percent of respondents said they expect budgets for employee engagement on sustainability, sustainability product or service innovation, sustainable supply chain and sustainable reporting to increase between one and nine percent in 2013.
- Sustainability innovation, marketing and employee engagement will receive the biggest boost in budgets in 2013, while consulting and software implementation will rank at the bottom.
- A quarter of firms spend at least 2 percent of revenues on energy, environment and sustainability initiatives.
- More than 90 percent of those surveyed predict that sustainability management will change in some way by 2015, with 43 percent predicting significant changes, 37 percent forecasting minimal changes, and 11 percent saying sustainability management will be transformed.
Author: Jedrzej George Frynas
Publisher: Cambridge University Press
Beyond Corporate Social Responsibility is an in-depth analysis of the potential of CSR in the oil and gas industry. Case studies of twenty extracting companies from developed and emerging economies investigates the potential of CSR in three core areas – environment, development and governance.
The book is based on questions such as why some companies display greater willingness to engage in CSR than others, why the same companies have different CSR policies in different countries and why some companies engage in CSR even if there is little external pressure to do so. Frynas’ main research focus is if CSR is really able to deliver on larger expectations in companies. It is becoming more and more accepted that companies should address issues such as HIV/AIDS, poverty and the environment, but at the same time companies reject the notion that they have a responsibility for such issues, they are only there ‘to do business’.
Frynas finds that the success of CSR is highly dependent on context. He shoots down the universal assumption that social and political conditions for CSR apply in all cases. Further the analysis of the three areas, the environment, development and governance, shows that while CSR has great potential for success in the environmental area – where results can be measured, are tangible and often environmental solutions also leads to lower costs for the company in the long run – CSR largely fails in the areas of development and governance. Good development practise is often incompatible with profit-maximising motives, and such aims for development should be long-term where companies often look short-term and at the measurable outcome. Corporate activity can also help undermining good governance, mainly by not acknowledging the extent to which they interact with the host country. Companies often hold the notion that their policy is non-interference but corporate activity is dependent on the conditions in the country, on which they also can have an influence.
Frynas finds that a variety of issues are yet to be addressed, especially within development and governance before CSR can have a profound effect in these areas, but that the potential of CSR in environmental areas is great and compatible with profit-maximising motives.
The book is an easily-read book with great insight in the oil and gas industry, with massive fieldwork lying as its foundation. Frynas guides the reader through complex issues and makes a fair case for the successes and failures of CSR in each analysis. He brings to light the strengths and shortcomings of current systems and organisations, coming up with recommendations for further actions.
Tine Emilie Skriver, CSR International
Governance Research Digest – July 2012
This publication intends to build a more profound understanding of how governance works in the Baltic States, and to develop suggestions for how to implement world class standards in the Baltic region. It looks at four interlinked aspects of State-owned Enterprises (SOEs) governance: public perceptions; individual SOE rankings; an examination of board structures; and an analysis of the legal and institutional framework.
- There is considerable public dissatisfaction with SOE governance and SOE performance in the Baltic region.
- The issue of SOE governance and SOE performance has the potential to become politically inflammatory if a scandal or financial duress should emerge.
- Governance practices pose both an economic and a political risk.
- One can clearly identify SOEs that are leaders and SOEs that are not.
- The leaders are rapidly approaching world-class standards of governance.
- These SOEs show that modern and professional governance practices are possible in the Baltics. They should serve as models for other SOEs in the region.
- Unfortunately, many SOEs are still far removed from good practice, much less best practice.
- The report identifies both areas of strength and areas of weakness where governance practices could improve.
- All SOEs will benefit from a governance improvement plan and a concerted governance improvement effort.
- The state itself will likely reap significant benefits in terms of the efficiency and effectiveness of its SOE oversight.
- In some cases financial reporting is comparable to world class practice.
- However, in most SOEs the control environment is compromised by the absence of a direct reporting relationship between the internal auditor and independent board members or an independent audit committee.
- Audit committees are either missing, or are constituted only to comply with formal requirements.
- Civil servant board members are stretched beyond what can be reasonably expected of them, leaving the state’s capacity for oversight dangerously weak.
- Many boards are fiefdoms of ministries or political parties leaving SOEs vulnerable to political influence.
Baltic Institute of Corporate Governance