The Internal Effects of Corporate Social Responsibility on Firm Performance

The purpose of this thesis is to identify the internal effects of corporate social responsibility on firm performance. It also examines the definition of corporate social responsibility and two varying theories about the topic. This thesis explores the human resource, quality and financial aspects of firm performance and how those aspects of a company are affected by adopting significant corporate social responsibility programs. This research seeks to answer the claim that corporate social responsibility programs do not have a positive effect on the actual performance of an organization. It will examine the effect of CSR on employee attitudes, moral and overall satisfaction, seeking to determine if it affects employees in such a way that would affect their performance. This thesis will also examine the effect of implementing CSR programs on the quality of the company’s service or products. Finally, it will investigate the financial effects of implementing CSR programs on an organization

Examination of Regional Transit Service Under Contracting: A Case Study in the Greater New Orleans Region, Research Report 10-09

Many local governments and transit agencies in the United States face financial difficulties in providing adequate public transit service in individual systems, and in providing sufficient regional coordination to accommodate transit trips involving at least one transfer between systems. These difficulties can be attributed to the recent economic downturn, continuing withdrawal of the state and federal funds that help support local transit service, a decline in local funding for transit service in inner cities due to ongoing suburbanization, and a distribution of resources that responds to geographic equity without addressing service needs. This study examines two main research questions: (1) the effect of a “delegated management” contract on efficiency and effectiveness within a single transit system, and (2) the effects of a single private firm—contracted separately by more than one agency in the same region—on regional coordination, exploring the case in Greater New Orleans. The current situation in New Orleans exhibits two unique transit service conditions. First, New Orleans Regional Transit Authority (RTA) executed a “delegated management” contract with a multinational private firm, outsourcing more functions (e.g., management, planning, funding) to the contractor than has been typical in the U.S. Second, as the same contractor has also been contracted by another transit agency in an adjacent jurisdiction—Jefferson Transit (JeT), this firm may potentially have economic incentives to improve regional coordination, in order to increase the productivity and effectiveness of its own transit service provision. Although the limited amount of available operation and financial data has prevented us from drawing more definitive conclusions, the findings of this multifaceted study should provide valuable information on a transit service contracting approach new to the U.S.: delegated management. This study also identified a coherent set of indices with which to evaluate the regional coordination of transit service, the present status of coordination among U.S. transit agencies, and barriers that need to be resolved for regional transit coordination to be successful

Causes and Consequences of Collective Turnover: A Meta-Analytic Review

Given growing interest in collective turnover (i.e., employee turnover at unit and organizational levels), the authors propose an organizing framework for its antecedents and consequences and test it using meta-analysis. Based on analysis of 694 effect sizes drawn from 82 studies, results generally support expected relationships across the 6 categories of collective turnover antecedents, with somewhat stronger and more consistent results for 2 categories: human resource management inducements/investments and job embeddedness signals. Turnover was negatively related to numerous performance outcomes, more strongly so for proximal rather than distal outcomes. Several theoretically grounded moderators help to explain average effect-size heterogeneity for both antecedents and consequences of turnover. Relationships generally did not vary according to turnover type (e.g., total or voluntary), although the relative absence of collective-level involuntary turnover studies is noted and remains an important avenue for future research

Does IT standardization help to boost cost and profit efficiency? Empirical evidence from German savings banks

This paper investigates the impact of IT standardization on bank performance based on a panel of 457 German savings banks over the period from 1996 to 2006. We measure IT standardization as the fraction of IT expenses for centralized services over banks' total IT expenses. Bank efficiency, in turn, is measured by traditional accounting performance indicators as well as by cost and profit efficiencies that are estimated by a stochastic frontier approach. Our results suggest that IT standardization is conducive to cost efficiency. The relation is positive and robust for small and medium-sized banks but vanishes for very large banks. Furthermore, our study confirms the often cited computer paradox by showing that total IT expenditures negatively impact cost efficiency and have no influence on bank profits. To the best of our knowledge, this paper is first to empirically explore whether IT standardization enhances efficiency by employing genuine data of banks' IT expenditures. JEL Classification: C23, G21 Keywords: IT standardization, cost and profit efficiency, savings bank

Governance Structures, Voluntary Disclosures and Public Accountability: The Case of UK Higher Education Institutions

Purpose: We investigate the extent of voluntary disclosures in UK higher education institutions’ (HEIs) annual reports and examine whether internal governance structures influence disclosure in the period following major reform and funding constraints. Design/methodology/approach: We adopt a modified version of Coy and Dixon’s (2004) public accountability index, referred to in this paper as a public accountability and transparency index (PATI), to measure the extent of voluntary disclosures in 130 UK HEIs’ annual reports. Informed by a multi-theoretical framework drawn from public accountability, legitimacy, resource dependence and stakeholder perspectives, we propose that the characteristics of governing and executive structures in UK universities influence the extent of their voluntary disclosures. Findings: We find a large degree of variability in the level of voluntary disclosures by universities and an overall relatively low level of PATI (44%), particularly with regards to the disclosure of teaching/research outcomes. We also find that audit committee quality, governing board diversity, governor independence, and the presence of a governance committee are associated with the level of disclosure. Finally, we find that the interaction between executive team characteristics and governance variables enhances the level of voluntary disclosures, thereby providing support for the continued relevance of a ‘shared’ leadership in the HEIs’ sector towards enhancing accountability and transparency in HEIs. Research limitations/implications: In spite of significant funding cuts, regulatory reforms and competitive challenges, the level of voluntary disclosure by UK HEIs remains low. Whilst the role of selected governance mechanisms and ‘shared leadership’ in improving disclosure, is asserted, the varying level and selective basis of the disclosures across the surveyed HEIs suggest that the public accountability motive is weaker relative to the other motives underpinned by stakeholder, legitimacy and resource dependence perspectives. Originality/value: This is the first study which explores the association between HEI governance structures, managerial characteristics and the level of disclosure in UK HEIs

Shared Modes of Compensation and Firm Performance: UK Evidence.

This paper examines the use and consequences of shared compensation plans (profit sharing, profit related pay, SAYE schemes and company stock option plans) in a sample of UK workplaces and firms in the 1990s. The use of these plans has increased over time, in part in response to government programs. The evidence shows that companies and workplaces adopting shared compensation practices have had higher productivity than other firms, but the effects vary among programs, suggesting that the particulars matter a lot in aligning shared compensation and work place activities. Consistent with incentive theory, the evidence also shows that firms and workplaces with shared compensation practices have a higher incidence of shared decision-making/information sharing practices.

International Differences in the Size and Roles of Corporate Headquarters: An Empirical Examination

This paper examines differences in the size and roles of corporate headquarters around the world. Based on a survey of over 600 multibusiness corporations in seven countries (France, Germany, Holland, UK, Japan, US, and Chile) the paper describes the differences among countries, and then applies a model of the factors determining the size of corporate headquarters (Young, Collis, and Goold, 2003) to systematically examine those differences. The data shows that there are significant differences among countries in the size and role of corporate headquarters, and strongly suggests the existence of a developing country model, a European model, a US model, and a Japanese model of corporate headquarters. Contrary to popular expectations, corporate headquarters in the US are about twice the size of European counterparts. Headquarters there exert a higher level of functional influence and have larger staffs in certain key areas, such as IT and R&D. US managers are generally more satisfied than their European counterparts with their larger more powerful headquarters which suggests that, at least in the US context, large corporate headquarters can create value. Japanese headquarters, as might have been expected, are substantially larger than elsewhere – a factor of four times larger than in Europe. However, those headquarters are becoming smaller because of dissatisfaction with their performance. It is clear that having headquarters the size of the Japanese firms in the survey is not conducive to value creation. More specifically, the evidence cannot refute a hypothesis that the slope of the relationship between firm size and the size of corporate headquarters is the same across all countries, but that there are significant differences in the intercept for Chile, the US, Japan, and the European countries. What the data indicates is that at a firm employing 20,000, a European corporate headquarters would on average employ 124 individuals, a US headquarters would have 255 employees, and Japan 467 employees. The paper also examines differences between countries in the extent to which they perform the two key corporate tasks of control and coordination. The US and Chile chose to be somewhat more interventionist in the traditional tools and processes used to monitor and control business units – setting strategy, budgets, and administering capital budgets. However, there was a significant difference in the degree of influence in operational affairs between countries. The US and Japan exerted far more influence than the other countries over every activity from IT and purchasing, to marketing, R&D and HR issues. The US was also found to have significantly larger legal, tax, and treasury functions than the common European model, perhaps reflecting a more legalistic institutional structure. Japan also has significantly larger tax, treasury, and corporate management functions, but overall was not that much larger than the common European model. While the causes of these observed differences cannot be directly determined from the research, suggestions are made that the institutional infrastructure, the size and homogeneity of the domestic market, and cultural factors within countries are important underlying drivers.

Knowledge Creation and Sharing in Organisational Contexts: A Motivation-Based Perspective

This paper develops a motivation-based perspective to explore how organisations resolve the social dilemma of knowledge sharing, and the ways in which different motivational mechanisms interact to foster knowledge sharing and creation in different organisational contexts. The core assumption is that the willingness of organisational members to engage in knowledge sharing can be viewed on a continuum from purely opportunistic behaviour regulated by extrinsic incentives to an apparently altruistic stance fostered by social norms and group identity. The analysis builds on a three-category taxonomy of motivation: adding ‘hedonic’ motivation to the traditional dichotomy of extrinsic and intrinsic motivation. Based on an analysis of empirical case studies in the literature, we argue that the interaction and mix of the three different motivators play a key role in regulating and translating potential into actual behaviour, and they underline the complex dynamics of knowledge sharing and creation in different organisational contexts