FACTORS FACILITATING COMPLIANCE IMPLEMENTATION – CASE STUDY RESULTS FROM MULTINATIONAL ENTERPRISES

Number and complexity of compliance requirements for companies steadily increase. Enterprises focus on the implementation of compliance programs to ensure conformance with rules and regulations. However, it is the employees’ compliant behavior and their understanding of compliance requirements that support realization and ensure conformance. Thus, companies must ask how to integrate employees into compliance programs and how to foster their understanding for compliance necessity. The paper at hand explores how key compliance components are implemented in practice and which factors facilitate the implementation of these components. Based on multiple case studies, two central key findings are identified contributing to the discussion of compliance implementation. First, the tone at the top facilitates compliance by strongly supporting a compliance culture which in turn positively influences the implementation of all four key compliance components. Second, the key component compliance reporting and controlling is not only supported by compliance facilitators but also builds the foundation for one of them. The facilitator incentive systems must be based on comprehensive compliance performance measures to provide a common understanding of compliance goals in a company. Additionally clear measures provide the basis to identify eligibility for incentives or the imposture of sanctions. In this context, the set up of a compliance performance measurement system is discussed, highlighting the necessity of basing it on adequate information system structures

Corporate Social Responsibilities, an Overview of Principles and Practices

[Excerpt] In this paper Dr. Murray, of the University of Melbourne, argues that the public discourse on Corporate Social Responsibility has evolved into a quite stylized debate which tends to focus on one particular facet of multinational economic behaviour. Namely the treatment of workers in manufacturing factories in the developing world producing goods for multinational enterprises with particular attention the manufacture of textiles, clothing and footwear. This has also brought with it renewed interest in the idea of the “sweatshop”, the concept of extreme exploitation of vulnerable workers in terms of living wages and dangerous working conditions. As a consequence more is known about this sector than just about any other, and theoretical work tends to deal with the subject of corporate selfregulation through the lens of the production and consumption of these arguably idiosyncratic goods. She argues that it is important to identify the potential distorting power of this emerging discourse and to broaden the attention to labour markets conditions in general

The influence of the environmental factors on the adoption of the International Accounting System IAS/IFRS : case of Iraq

Purpose: This research aims to study the impact of local environmental factors on the adoption of International Accounting system in Iraq. So the main objective of the research can be the evaluation of the role of local environmental factors in selecting the best method to adopt International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS). Design/methodology/approach: The researchers prepared a questionnaire contains 28 paragraphs which were coded and divided into 7 parts showing the independent variables of the study (the environmental factors) and the dependent variable (the adoption of IAS/IFRS) Findings: The results of the research show that the local environment factors can effect on the choice of the country to adopt the best method of IAS/IFRS adoption, and the statistical analysis results show that there is a very good level of agreement for the participants about the effect of local environment factors on the adoption of IAS/IFRS. Practical implications: The research offers insights to the need to activate national standards and principles that are appropriate to the local environment in order to adapt with the requirements of IAS/IFRS adoption. Originality/value: The research presents significant pragmatic evidence in terms of its meticulous approach towards checking the robustness of results.peer-reviewe

Reflections on the EU objectives in addressing aggressive tax planning and harmful tax practices Final Report. CEPS Report November 2019

This Report analyses the EU’s instruments to tackle aggressive tax planning and harmful tax practices. Based on desk research, interviews with stakeholders and expert assessments, it considers the coherence, relevance, and added value of the EU’s approach. The instruments under analysis are found to be internally coherent and consistent with other EU policies and with the international tax agenda, in particular with the OECD/G20 BEPS framework. The Report also confirms the continued relevance of most of the original needs and problems addressed by the EU’s initiatives in the field of tax avoidance. There is also EU added value in having common EU instruments in the field to bolster coordination and harmonise the implementation of tax measures. One cross-cutting issue identified is the impact of digitalisation on corporate taxation. Against this background, the Report outlines potential improvements to the EU tax strategy such as: making EU tax systems fit for the digital era; leading the international debate on tax avoidance; enabling capacity building in Member States and developing countries; strengthening tax good governance in third countries; ensuring a consistent approach at home and abroad; achieving a level playing field for all companies; and increasing tax certainty and legal certainty

Fundamental Principles and Rights At Work: Value, Viability, Incidence and Importance as Elements For Economic Progress and Social Justice

Working Paper prepared for the ILO by Maria Luz Vega Ruiz and Daniel Martinez, focusing on the rights at work in Latin America and the Caribbean

Promoting fair globalization in textiles and clothing in a post-MFA environment

The working paper reports on the current trade conditions in the textile clothing industry in the post Multifibre Agreement era. Additionally, the paper advocates for a fairer globalization, promoting better work conditions, labor wages and general social equality in producer countries

Corporate Governance, CSR, ESG, and Sustainability: Realigning the Principle-Agent Equilibrium in Multinational Enterprises “MNEs”

openABSTRACT The thesis provides a thorough examination of the interconnections between Environmental, Social, Governance (ESG) principles, Corporate Social Responsibility (CSR), legal frameworks, global value chains, and international agreements that influence the conduct of multinational enterprises (MNEs) in the current business environment. The first step involves the establishment of a fundamental transition towards sustainability and the adoption of responsible business practices. This transition is characterized by the integration of environmental, social, and governance (ESG) considerations and the recognition of the strategic significance of corporate social responsibility (CSR). The thesis subsequently explores the intricate correlation between environmental, social, and governance (ESG) issues and Global Value Chains (GVCs), providing a comprehensive understanding of the escalating significance of ESG concerns in the financial domain and their consequential effects on global investment dynamics. The accompanying discussion explores the domain of international agreements and legal factors that regulate multinational enterprises (MNEs), emphasizing the importance of the OECD Guidelines for Multinational Enterprises in fostering responsible corporate behavior. The ongoing investigation delves into the realms of legislative frameworks, corporate governance, and ESG reporting requirements, highlighting the need of thorough research, industry-specific reporting standards, and voluntary frameworks in bolstering openness and accountability. The present thesis examines the European Commission's ESG Rating Articles in relation to the Sustainable Development Goals (SDGs) established by the United Nations. This analysis uncovers a significant alignment between regulatory efforts and the overarching aims of global sustainability. In summary, this thesis offers a thorough comprehension of the dynamic environment in which multinational enterprises (MNEs) function, emphasizing the imperative of ethical behavior, sustainability, and openness in order to effectively traverse the many intricacies of the contemporary global economy. Keywords: ESG, CSR, MNEs, GVCs, OECD, SDGsABSTRACT The thesis provides a thorough examination of the interconnections between Environmental, Social, Governance (ESG) principles, Corporate Social Responsibility (CSR), legal frameworks, global value chains, and international agreements that influence the conduct of multinational enterprises (MNEs) in the current business environment. The first step involves the establishment of a fundamental transition towards sustainability and the adoption of responsible business practices. This transition is characterized by the integration of environmental, social, and governance (ESG) considerations and the recognition of the strategic significance of corporate social responsibility (CSR). The thesis subsequently explores the intricate correlation between environmental, social, and governance (ESG) issues and Global Value Chains (GVCs), providing a comprehensive understanding of the escalating significance of ESG concerns in the financial domain and their consequential effects on global investment dynamics. The accompanying discussion explores the domain of international agreements and legal factors that regulate multinational enterprises (MNEs), emphasizing the importance of the OECD Guidelines for Multinational Enterprises in fostering responsible corporate behavior. The ongoing investigation delves into the realms of legislative frameworks, corporate governance, and ESG reporting requirements, highlighting the need of thorough research, industry-specific reporting standards, and voluntary frameworks in bolstering openness and accountability. The present thesis examines the European Commission's ESG Rating Articles in relation to the Sustainable Development Goals (SDGs) established by the United Nations. This analysis uncovers a significant alignment between regulatory efforts and the overarching aims of global sustainability. In summary, this thesis offers a thorough comprehension of the dynamic environment in which multinational enterprises (MNEs) function, emphasizing the imperative of ethical behavior, sustainability, and openness in order to effectively traverse the many intricacies of the contemporary global economy. Keywords: ESG, CSR, MNEs, GVCs, OECD, SDG

Transfer Pricing Legislation: Effect on Multinational Enterprises in the United States

Multinational enterprises (MNEs) engage in tax-planning strategies between their related parties that affect their profit and consequently their tax liability. Transfer pricing (TP) legislation addresses these tax planning strategies of MNEs resulting in increased tax revenues. Despite the updated 2006 TP legislation, shifting of profit and taxes is still occurring by MNEs; therefore, the implications of this legislation need to be examined. The purpose of this study was to compare the reporting of profit, before and after change in legislation, as well as to examine the cost of services mediation of the relationship between the status of the legislation and profit reported. The study\u27s theoretical framework was a combination of economic and strategic management theories. This ex-post facto quantitative study addressed two research questions with the first examining the difference in the reporting of operating profit before and after the updated TP legislation. The second assessed how the cost of services mediates the relationship between the status of the TP legislation and the reporting of operating profits. Data collected on a sample of tax returns, representing 32 industry sectors for each of 14 years, from the Internal Revenue Service were used in applying statistical tests for answering these research questions. The results indicated that the updated TP regulations influenced MNEs for reporting greater profit than before the update as well as possibly inconsistent mediation with the proposed mediator of cost of services. These results support having TP legislation since it would increase tax revenues resulting in positive economic and social changes as well as contributing to achieving sustainable development

Rethinking corporate taxation in the European Union : how and where to tax multinational enterprises

In this paper we conduct an empirical analysis to assess the redistributional impact of implementing a Formulary Apportionment approach in the European Union, compared to the current system based on the separate entity approach, aiming to contribute with databased evidence to the ongoing sensitive political debate about the much-needed change in the international (and, specifically, European) corporate tax regime. We update and extend prior research to estimate which Member States will likely gain and lose in terms of corporate tax base and revenues from the implementation of the ‘Business in Europe: Framework for Income Taxation’ (BEFIT) initiative, planned to be soon launched by the European Commission. Using recently published Country-by-Country Reporting data released by the Internal Revenue Service, our findings show that the redistributional impact among Member States would be significant. Results are in line with international tax literature: larger economies with higher tax rates (such as Germany and France) would experience a considerable tax base increase, transferred from smaller countries with lower tax rates (like the Netherlands and Ireland), as multinational enterprises would have more restricted opportunities to engage in artificial profit shifting activities.info:eu-repo/semantics/publishedVersio