Corporate accountability towards species extinction protection:insights from ecologically forward-thinking companies

This paper contributes to biodiversity and species extinction literature by examining the relationship between corporate accountability in terms of species protection and factors affecting such accountability from forward-thinking companies. We use triangulation of theories, namely deep ecology, legitimacy, and we introduce a new perspective to the stakeholder theory that considers species as a ‘stakeholder’. Using Poisson pseudo-maximum likelihood (PPML) regression, we examine a sample of 200 Fortune Global companies over three years. Our results indicate significant positive relations between ecologically conscious companies that are accountable for the protection of biodiversity and species extinction and external assurance, environmental performance, partnerships with socially responsible organizations and awards for sustainable activities. Our empirical results appear to be robust in controlling for possible endogeneities. Our findings contribute to the discussion on the concern of species loss and habitat destruction in the context of corporate accountability, especially in responding to the sixth mass extinction event and COVID-19 crisis. Our results can also guide the policymakers and stakeholders of the financial market in better decision making

Exploration of small and medium entities' actions on sustainability practices and their implications for a greener economy

Purpose We explore the behaviour and perspectives of SMEs’ owners towards a greener economy and its implications for the net zero carbon emissions target. Design/methodology/approach We draw on the mirroring concept and 26 semi-structured interviews with SMEs’ owners and managers to provide insights and explore the misalignment between SMEs’ actions and perceptions, and the technical architecture (and requirements) of achieving net zero carbon emissions in the UK. Findings We find that SMEs lack trust and are sceptical about the government’s net zero emissions agenda. We also find that lack of understanding and perceived benefits, and supply chain complexities (end-to-end emissions) are the key factors hindering SMEs interests in engaging with better carbon emissions management and environmental management system (EMS). Moreover, the pressure from external stakeholders, particularly banks and customers are identified as a strong driver to draw SMEs more effectively with sustainability and environmental impact disclosure. Research limitations/implications The sample is limited to 26 SMEs’ owners operating in seven industries. Future research could explore the result in other industries. Further research could also investigate how the sustainability reports produced by SMEs are useful for different user groups’ decision-making. This study reinforces the social constructionist approach to advance our understanding of SMEs’ actions towards carbon emission management and EMS. Practical implications This study shows how government policies and SMEs’ interests can be aligned for the benefit of achieving the net zero carbon emissions target. Original/value This is the first study to examine the perceptions and behaviour of SMEs towards the ongoing pursuit of a greener economy in the UK, including the key factors driving their actions and reasoning

B Corps in India : a sustainable business model

Copyright © The Author(s) 2023. After countries recognized the profound significance of assessing social and environmental performance as a prerequisite for sustainable business existence, various nongovernmental organizations as well as regulatory bodies developed measurement scales to gauge this performance. In this paper, we refer to one such assessment tool, B Impact Assessment (BIA), proposed by B Corps to benchmark the reporting framework of Indian companies for their social and environmental performance. The listed Indian companies were required to publish business responsibility reporting (BRR) which lacks generalization with other international standards. In this study, we consider BRR and propose a revised Business Responsibility and Sustainability Report (BRSR) framework to make it comparable and compatible with BIA, which is acceptable worldwide. Also, we introduce measurement scores of the BRR at a granular level—taking 109 items of the existing scale and 13 items identified after benchmarking with BIA, together aggregating to maximum score of 200. In addition, to support the Indian Institute of Corporate Affairs (IICA) to analyze the completeness, accuracy, and clarity of BRR, we apply scoring mechanism to develop sections A and B of the BRSR. The universal applicability of scale and benchmarking with internationally acceptable BIA will encourage more Indian companies to adopt social responsibilities and will make the assurance of annual report simple. Moreover, the proposed scale can also be used to identify companies that are eligible for the proposed Social Security Exchange in India. We expect that the findings will contribute to the literature on social responsibility and corporate sustainability and in practice accelerate the “CSR movement” in India

Editorial : Entrepreneurial finance for green innovative SMEs

The route to net zero requires green finance for small and medium-sized enterprises (SMEs) to be at the top of the agenda for governments globally! This view was defended by Owen et al. [31] in response to the Conference of the Parties of the United Nations Framework Convention on Climate Change (COP21) Paris 2015 call for a net zero carbon and greenhouse gas emissions approach to tackling climate change. Subsequently, Dasgupta's [11] towering report that centers all business activity within an environmental context has helped to broaden the debate to include a nature positive approach to business finance to help manage the Earth's biosphere. This is proposed by the Taskforce for Nature-related Financial Disclosures and many of the World's Central Bankers (Network of Central Bankers and Supervisors for Greening the Financial System [28] in response to the United Nations [46] call for the protection of 30% of land and water by 2030 (the so-called “30 by 30” goal)

Accrual-based and real earnings management and political connections

This study examines whether the trade-off between real and accrual-based management strategies differs between firms with and without political connections. We argue that politically connected firms are more likely to substitute real earnings management for accrual-based earnings management than non-connected firms. Although real earnings management is more costly, we expect that politically connected firms prefer this strategy because of its higher secrecy and potential to mask political favors. Using a unique panel data set of 5493 publicly traded firms in 30 countries, our results show that politically connected firms are more likely to substitute real earnings management strategies for accrual-based earnings management strategies than non-connected firms. We also find that when public monitoring and, therefore, the risk of detection increases, politically connected firms are more likely to resort to less detectable real earnings management strategies. Our finding that political connections play a significant role in the choice between accrual-based and real earnings management strategies suggests that focusing only on accrual-based measurements underestimates the total earnings management activities of politically connected firms

THE PERFORMANCE OF BANKS IN THE MENA REGION DURING THE GLOBAL FINANCIAL CRISIS

This paper examines the impact of the global financial crisis on the banking sector in the Middle East and North Africa (MENA) region, as well as the main determinants of the profitability of both domestic and foreign banks. The empirical findings suggest that during the crisis the former outperformed the latter in that region. As for the determinants of profitability, size does not appear to play a role, whilst the liquidity ratio and net interest revenues seem to have a negative and positive effect respectively; GDP has a positive effect in the case of domestic banks