Does Corporate Social Responsibility Benefit Society?

In short, it depends on the ownership type. We construct an event-based outcome measure of firm-level environmental, social, and governance (ESG) impact for public and private firms globally from 2007 to 2015 using data from RepRisk. Then, we measure the societal impact of corporate social responsibility (CSR) engagements using participation in the United Nations Global Compact as a proxy. We demonstrate a striking difference between public and private firms: while private firms significantly reduce their negative ESG incident levels after CSR engagements, public firms fail to do so. We attribute this difference to the conflicts of interest between shareholders and stakeholders, which are more pronounced in public firms than private firms. We empirically validate this interpretation through examination of scenarios with varying levels of conflict intensity. We find that for issues types with higher conflict intensity such as collective bargaining, supply-chain-related issues, and controversial products and services, the performance gap between public and private firms is even more severe. For issue types with lower conflict intensity such as tax evasion, executive compensation, and overuse and wasting of resources, the performance gap is smaller and even public companies may do better post-commitment. Moreover, the performance gap is also wider for upstream firms than for downstream firms in supply chains. We also rule out a host of alternative interpretations related to time trends and endogeneity issues. Our results show that existing CSR engagements may not necessarily lead to better societal outcomes, and that policy interventions aimed at aligning the interests of different parties can potentially improve the overall outcome.http://deepblue.lib.umich.edu/bitstream/2027.42/136092/1/1335_Li.pd

Trust in “Trust-free” Digital Networks: How Inter-firm Algorithmic Relationships Embed the Cardinal Principles of Value Co-creation

In this exploratory research, I develop new knowledge on trust in inter-firm cooperation that leverages recent technologies such as blockchain and the Internet of things in a digital platform ecosystem. In a digital network, advanced algorithms govern and shape inter-firm business processes. While such algorithms introduce efficiency in inter-firm business processes, their limitations, especially their apparent lack of transparency, may affect the key trust dimensions (i.e., reliability, fairness, and goodwill) in the relationships among the participating firms. I introduce algorithmic relationship, a label that embeds the concepts of smart contracts in inter-firm cooperation. Algorithmic relationships involve autonomous and semi-autonomous implementations of smart contracts in all lifecycle stages of inter-firm cooperation. By analyzing extant literature on trust, inter-firm cooperation, business model innovation, and digital platforms, I demonstrate how various factors influence whether firms adopt smart contracts: perceptions about other participants’ trustworthiness, participants’ own propensity to trust, participants’ shared goals and resource embeddedness in the network, perceived risks in inter-firm interactions, and complexity and time criticality of inter-firm interactions. Taking a temporal perspective, I also recognize the present lacunae with smart contracts from various perspectives (algorithm development, algorithm implementation, algorithm governance, and the availability of appropriate legal resources in the event that disputes occur) and demonstrate how these drawbacks impede shared value creation

Climate change adaptation in the boardroom

Abstract Climate adaptation is recognised by many of the world’s largest businesses as a global risk and one that requires critical attention. The World Economic Forum’s 2013 Global Risks Perception Survey, identified the ‘failure of climate change adaptation and rising greenhouse gas emissions as among those global risks considered to be the most likely to materialize within a decade’ (p.16). Yet despite action by many transnationals and international firms, it seems evident that most Australian companies appear to be struggling to move forward in responding to climate change impacts, apparently paralysed by short-term profit-first thinking, uncertain political risks and a corporate culture unused to volatility and disruption. Research approach This project set out to communicate adaptation to climate change to the “big end of town” and to gather soft data, acquire information and present issues back to the National Climate Change Adaptation Research Facility (NCCARF), the funder of this research. Our approach to the research challenge differed from a traditional technical, analytical or academic method. We used action-learning principles to engage a community in which we, as advisors to corporate Australia and as co-researchers, have social capital and standing. Through trusted information sharing networks, private closed-door meetings and one on one conversation with executives and senior management from over 100 companies we shared ideas, gathered, researched and refined information and tested our findings. Findings Our findings from the boardroom engagement include the following:   The Australian Government expects the private sector to adapt, yet little or no incentives exist to promote this behaviour. Autonomous adaptation as practiced may only benefit the lead actor while creating disbenefit for others (including other corporations, society and the environment). Market practices on current paradigms cannot be expected to meet greater societal adaptation needs. Further adaptation research is required in some areas to help guide shape and monitor adaptation for the private sector. A multiplicity of policy reform may be necessary, but crafting and implementing it is likely to remain beyond the capability of the Australian Public Service (APS) or individual Governments. Highly sophisticated mining, gas and some Asian owned technology companies are leading the way with many opportunities missed by Australian companies. Adaptation for the corporate sector is a key strategic issue, unlike mitigation and corporate social responsibility (CSR), as it benefits the corporate primarily. Insurance dependency may only be a short-term risk transfer mechanism as, in its current paradigm, it can mask risk, create a false sense of security and may impede adaptation.   Conclusion We hope that this report is of benefit to Australian organisations, policy makers, regulators and to researchers in adaptation science. This project shows that, on a whole, the Australian private sector is giving little consideration about the impacts climate change. This project has identified that considerable research gaps exist, but has also provided direction for organisations and researchers. Individual corporations and private sector peak bodies urgently need to explore the risks and opportunities that climate change and associated responses bring. This is especially so for the ICT, aviation, energy, insurance and finance sectors. Please cite this report as: Johnston, GS, Burton, DL, Baker-Jones, M, 2013 Climate Change Adaptation in the Boardroom National Climate Change Adaptation Research Facility, Gold Coast. pp. 81

The future of internal auditing: how technology is shaping the profession

openThis thesis explores the integration of technology into internal auditing methods to enhance effectiveness and efficiency. The first chapter provides an overview of internal auditing, including its origins, objectives, and theoretical frameworks. Emphasis is placed on maintaining independence, corporate governance, and risk management. The second chapter focuses on planning and daily operations, detailing the steps involved in the audit process and generating reports for improvement. The core of the thesis lies in the third chapter, which highlights the impact of technology, such as Data Analytics, Automation, Process Mining, and Artificial Intelligence. These technologies aim to simplify tasks and enable continuous auditing and monitoring. A vertical passage will be made in the fourth chapter with reference to current regulations in technological issues

An ethnographic study of the enactment of service level agreements in complex IT-intensive business-to-business services.

Service level agreements (SLAs) for complex IT-intensive business-to-business (CITI-B2B) services are high-level representations of services to be enacted, with predominantly quantifiable performance targets. Inevitably, there is a gap between this representation and the nuanced practices of enactment adapting to emergent conditions over time. Overarching terms in the master agreement anticipate this gap; however, the nature of the practices that manage that gap is not well understood. This study aims to develop a deeper understanding of these everyday practices to identify potential areas for improving value realisation in SLA enactment. We conducted a long-term ethnographic study of the enactment of an SLA by a global IT provider and global financial services company, framed by relational theory of contract. Our analysis showed the gap was bridged by a cycle of enactment in which emergent conditions triggered relational interactions among participants, culminating in decisions to adapt the terms of the SLA in pursuit of value realisation. Further, our analysis showed that this cycle is enabled by informal mechanisms of learning, negotiating, and adapting that we conceptualise as relational capability, which is amenable to representation, refinement, innovation, and capability development. Exploiting this capability and as well as the information produced during the cycle of enactment could inform SLA design and enable the transformation of SLAs as evolving learning instruments

Public–Private Partnership: countries' attractiveness and the risk of project failure

The primary objective of this thesis is to analyse the public private partnership (PPP) framework for infrastructure development in developing countries across the six regions of the world. The thesis utilises the World Bank's private participation in infrastructure (PPI) dataset for the period 1980–2014, and examines three thematic areas. The first comprises of an exploratory analysis of the PPI dataset. The second research area focuses on the relationship between countries' attractiveness for PPPs and the characteristics of the countries, including: macroeconomic and market; fiscal constraints; regulatory and governance; and experience in PPPs, by utilising the Zero-Inflated Negative Binomial and Cragg's Double Hurdle models in an attempt to model private investors' decision to engage in PPPs as separate participation and consumption decisions. The third research area employs the methodology of survival analysis to investigate the risk of failure of PPP projects based on the allocation of residual facility ownership between the partners. The thesis's primary contributions include the utilisation of a wider and more informative range of econometric methodologies which have not been previously applied to the PPI dataset, and for the first time also, provides a framework to select an appropriate structure for PPPs that will enhance project survival. A key finding of the thesis is that private investors prioritise macroeconomic and market variables, such as price stability over regulatory and governance variables, such as corruption, in their determination as to which country to engage in PPPs. Contrary to previous research, corruption was found to be of no consequence to private investors who wish to engage in PPPs even for developing countries. Another key finding is that PPP projects which confer residual ownership on the public sector have lower risk of failure than those for which such ownership is conferred on the private sector. Evidence also suggests that the size of the project and the participation of multilateral institutions in PPPs also affect the risk of project failure

FinBook: literary content as digital commodity

This short essay explains the significance of the FinBook intervention, and invites the reader to participate. We have associated each chapter within this book with a financial robot (FinBot), and created a market whereby book content will be traded with financial securities. As human labour increasingly consists of unstable and uncertain work practices and as algorithms replace people on the virtual trading floors of the worlds markets, we see members of society taking advantage of FinBots to invest and make extra funds. Bots of all kinds are making financial decisions for us, searching online on our behalf to help us invest, to consume products and services. Our contribution to this compilation is to turn the collection of chapters in this book into a dynamic investment portfolio, and thereby play out what might happen to the process of buying and consuming literature in the not-so-distant future. By attaching identities (through QR codes) to each chapter, we create a market in which the chapter can ‘perform’. Our FinBots will trade based on features extracted from the authors’ words in this book: the political, ethical and cultural values embedded in the work, and the extent to which the FinBots share authors’ concerns; and the performance of chapters amongst those human and non-human actors that make up the market, and readership. In short, the FinBook model turns our work and the work of our co-authors into an investment portfolio, mediated by the market and the attention of readers. By creating a digital economy specifically around the content of online texts, our chapter and the FinBook platform aims to challenge the reader to consider how their personal values align them with individual articles, and how these become contested as they perform different value judgements about the financial performance of each chapter and the book as a whole. At the same time, by introducing ‘autonomous’ trading bots, we also explore the different ‘network’ affordances that differ between paper based books that’s scarcity is developed through analogue form, and digital forms of books whose uniqueness is reached through encryption. We thereby speak to wider questions about the conditions of an aggressive market in which algorithms subject cultural and intellectual items – books – to economic parameters, and the increasing ubiquity of data bots as actors in our social, political, economic and cultural lives. We understand that our marketization of literature may be an uncomfortable juxtaposition against the conventionally-imagined way a book is created, enjoyed and shared: it is intended to be