Supply Chain Legitimation through CSR Reporting

This conceptual paper explores the legitimating process of corporate social responsibility (CSR) reporting in relation to supply chain management. To date, the literature on CSR reporting, in relating to supply chain management, is based on individual segments within supply chains. This paper introduces a framework for the holistic evaluation of the entire supply chain CSR reporting, including the adoption of social audits as a legitimation tool. The theoretical lens of three perspectives of legitimation (structural-functionalist, social-constructionist and hegemonic) are explored as possible approaches to assess the drivers behind organisations in a supply chain reporting on their CSR performance and management. The main finding of this paper is that the development and implementation of the presented framework for evaluating the CSR reporting of the entire supply chain, including social auditing, is a valuable legitimation tool for organisations in a supply chain, and for the industry within which these organisations operate

Local Government investing: a form of gambling?

Local councils in New South Wales (NSW) have the authority to invest ratepayers’ money that is not currently required for any other purpose by the council. At the end of 2006-07 financial year local councils in New South Wales had invested $590 million dollars in structured financial products such as collateralised debt obligations (CDO). By the end of January 2008, six months later, the market value of these investments dropped$200 million to $390 million. Since then the financial investment market has further significantly reduced with the value of the councils’ investments losing many more millions of dollars. In NSW the state government commissioned a review of the financial exposures of NSW local councils to be undertaken by Michael Cole. The Cole Report published in 2008 found that while acting within the parameters of the Local Government Act (1993), local councils had pursued high return high risk investment strategies. This paper reviews and evaluates how the local councils in NSW, identified by Cole as having a high level of exposure to these forms of investments, have disclosed their financial investments in their 2007-08 financial reports; the type of audit opinion expressed on these reports; and the impact of these investment related losses on the ability of NSW local councils to provide current and future services

Corporate social responsibility reporting of two note-issuing banks in Hong Kong

The environmental performance and management disclosure of organisations came under increased scrutiny over the past decade due to several factors, particularly the impact organisations have on the world’s environment and the rapid change in the world’s climate. These concerns prompted organisations, including financial institutions, to review the level of their environmental performance and management disclosures to demonstrate, amongst other objectives, their level of social responsibility. Due to the nature of their business, financial institutions are not generally seen to contribute directly to the degradation of the environment; however, they do provide the funds for many organisations’ projects which directly affect the environment. This paper reviews the environmental performance and management disclosure developments in China specifically by two note-issuing banks in Hong Kong: the Hongkong and Shanghai Banking Corporation (HSBC) and the Bank of China (Hong Kong) Limited (BOCHK) from 2003 to 2006. The review is conducted with reference to the Equator Principles, a voluntary environmental performance framework developed specifically for financial institutions. The paper also contributes to the literature on legitimation theory, using a social constructionalist perspective of legitimation

The influence of Jeremy Bentham on recent Public Sector Financial Reforms

Jeremy Bentham’s (1748 – 1832) work while vast is generally considered to be based primarily on economics, law, social control, public administration and public interest. His most notable contributions are in the areas of utilitarianism, a moral theory where the correct action is one which produces the greatest amount of happiness or least amount of pain for the greatest number of people, and the use of a system of constant surveillance, panopticon, to internalise the desired behaviour of individuals. Bentham also made significant contributions to public sector financial accountability through his work on the principle of publicity where he outlined the need for “the doors of all public establishments … to be, thrown wide open to the body of the curious at large” (Bentham cited in Bowring 1843, p. 46). The purpose of this paper is to identify and examine the similarities of Bentham’s work and the New Public Management practices currently influencing public sector financial reforms. The theoretical framework of this paper is shaped through a reflection of Bentham’s work on utilitarianism, public administration, bookkeeping and publicity (reporting) and a review of the rationale behind the relatively recent New Public Management ideology which has driven many of the recent public sector financial reforms. The paper argues that many of today’s public sector financial accountability processes and procedures associated with recent public sector financial reforms, which are based on New Public Management, reflect much of Bentham’s work. For example the preparation of publicly available budget reports such as Portfolio Budget Statements, which contain the proposed annual expenditure of government departments and are used to assist in the discharge of public sector organisations’ financial accountability, could be linked to Bentham’s principle of publicity. The key finding of this paper is that research based on Bentham’s work will improve the understanding of the recent New Public Management based public sector financial reforms

NSW Local Council investment exposures

The decline in the sub-prime market in the United State of America in 2007 -2008 andthe corresponding decline in the market values of other financial investments has hada significant financial impact on many of the individuals and organisations whoparticipated in aggressively promoted investment schemes. The New South Wales(NSW) Local Government Councils was one such group of organisations impacted bythe decline in value of these types of investments. At the end of the 2006-2007financial year local councils in New South Wales had invested $590 million dollars instructured financial products such as collateralised debt obligations (CDO). By theend of January 2008, six months later, the market value of these investments dropped$200 million (34%) to $390 million. In response to the decreasing value of the localcouncil investments the NSW State Government commissioned a review of thefinancial exposures of NSW local councils in structured financial products. Thereview found that while acting within the parameters of the Local Government Act(1993), local councils had pursued high return high risk investment strategies. Thispaper reviews and evaluates financial investment exposures of the local councils inNSW and the resulting mix (unqualified/qualified) independent audit opinions issuedon their general purpose financial reports. This paper will contribute to the literatureon the wide spread impact of the 2008 global financial crisis as well as the quality ofLocal Government council financial report audits

An examination of CSR assurance reports of equator principles signatories

Purpose: To undertake a review of the assurance reports, prepared by audit firms and non-audit firms, on the CSR performance and management reporting disclosures of a specific sample of Equator Principles signatory banks. Design/methodology/approach: This paper is based on an initial examination of assurance reports of CSR reporting disclosures of a group of banks who are signatories of the Equator Principles. Rudimentary content analysis has been used to identify the differences in the structure of the titles, number of words and focus of these CSR reporting disclosures assurance reports. Findings: The key finding from this initial review is that there is a degree of difference in the assurance reports, on CSR reporting disclosures, provided by audit firms and by non-audit firms. The main differences are the length of the reports, greater for non-audit firms, and the focus of the assurance reports. Non-audit firms’ assurance reports focus more on the organisations’ governance while audit firm assurance reports have a greater focus on audit qualities and processes. Practical implications: This paper provides an opportunity to identify areas where assurance reports on CSR reporting disclosures could be improved. Originality/value: This study contributes to the limited academic research undertaken on signatories of the Equator Principles, particularly in relation to the assurance reports of these organisations. This paper also presents a relatively simplistic approach, which can be easily replicated, to examine, and identify inconsistencies, in assurance reports on organisations’ CSR reporting disclosures

IPO Pricing Regulation and Audit Fees: A Perspective from Institutional Changes in China

From the perspective of institutional change of IPO regulation, this paper discusses the relationship between IPO pricing regulation and audit fees in China. This paper finds that the audit fees of IPO companies are higher in the stage of pricing regulation in comparison to the stage of pricing marketization. We also find auditors charge higher audit fees for the private companies than state-owned companies during the IPO pricing regulation period. Furthermore in regions with tighten legislation, IPO audit fees are higher in the IPO pricing regulation period

Novel textbook outcomes following emergency laparotomy: Delphi exercise

Background Textbook outcomes are composite outcome measures that reflect the ideal overall experience for patients. There are many of these in the elective surgery literature but no textbook outcomes have been proposed for patients following emergency laparotomy. The aim was to achieve international consensus amongst experts and patients for the best Textbook Outcomes for non-trauma and trauma emergency laparotomy. Methods A modified Delphi exercise was undertaken with three planned rounds to achieve consensus regarding the best Textbook Outcomes based on the category, number and importance (Likert scale of 1–5) of individual outcome measures. There were separate questions for non-trauma and trauma. A patient engagement exercise was undertaken after round 2 to inform the final round. Results A total of 337 participants from 53 countries participated in all three rounds of the exercise. The final Textbook Outcomes were divided into ‘early’ and ‘longer-term’. For non-trauma patients the proposed early Textbook Outcome was ‘Discharged from hospital without serious postoperative complications (Clavien–Dindo ≥ grade III; including intra-abdominal sepsis, organ failure, unplanned re-operation or death). For trauma patients it was ‘Discharged from hospital without unexpected transfusion after haemostasis, and no serious postoperative complications (adapted Clavien–Dindo for trauma ≥ grade III; including intra-abdominal sepsis, organ failure, unplanned re-operation on or death)’. The longer-term Textbook Outcome for both non-trauma and trauma was ‘Achieved the early Textbook Outcome, and restoration of baseline quality of life at 1 year’. Conclusion Early and longer-term Textbook Outcomes have been agreed by an international consensus of experts for non-trauma and trauma emergency laparotomy. These now require clinical validation with patient data

Keeping up appearances: the quest for governance legitimacy

An effective corporate governance structure is as crucial to a public sector organisation as it is to a private sector organisation. This paper reviews the profile of directors on governance boards of government controlled organisations and finds that, while the governance structures are similar with those in the private sector, the real power to set the strategic, financial and operational directions of these organisations is not in the hands of the directors, as it is in the private sector, but in the hands of the responsible ministers. This de-coupling, it is argued, is due to the perception that private sector governance practices are superior to public sector practices and therefore these government organisations, in an attempt to maintain the appearance of good governance and to legitimise their place in society, have adopted on the surface private sector governance structures and practices