An Analysis of the Methodologies adopted by CSR Rating Agencies

Purpose: This paper analyses the similarities and differences in the methodologies adopted by CSR (corporate social responsibility) rating agencies. Design/methodology: We gather secondary and primary evidence of practices from selected agencies on the methodologies and criteria they rely upon to assess a firm's CSR performance. Findings: We find evidence of similarities in the methodologies adopted by the CSR rating agencies (e.g. the use of environment, social and governance themes, exclusion criteria, adoption of positive criteria, client/'customised' input, quantification), but also several elements of differences emerge, namely in terms of the thresholds for exclusion, transparent vs. confidential approach, industry-specific ratings, and weights for each dimension. Drawing from Sandberg et al.’s (2009) conceptualisations, we tentatively argue that this mixed picture may reflect competing organisational pressures to adopt a differentiation approach at the strategic and practical levels whilst recognising, and incorporating, the ‘globalising’ tendencies of the CSR business at the terminological levels. Implications: Although our data is based on a relatively small number of agencies, our findings and analysis convey some implications for users of CSR ratings and policy-makers; particularly in light of the recent Paris 2016 Agreement on Climate Change and the increased emphasis on the monitoring of social, environmental and governance performance. Originality: We contribute to the literature by highlighting how key intermediate rating organisations operationalise notions of CSR

Adoption of International Standards on Auditing (ISA): Do Institutional Factors Matter?

Informed by the neo-institutional perspective, this study seeks for the first time to investigate empirically the determinants of ISA adoption and commitment to harmonisation on a cross-national basis (89 countries). The findings show that the protection of minority interests, regulatory enforcement, lenders/borrowers rights, foreign aid, prevalence of foreign ownership, educational attainment and particular forms of political system (level of democracy) prevailing in a country, are observed to be significant predictors of the extent of commitment to the adoption and harmonisation of ISAs. Our statistical analysis therefore suggests that coercive, mimetic and normative pressure have a significant impact on ISA adoption relative to economic (efficiency-led) factors. Our findings imply that current efforts by the International Federation of Accountants (IFAC) and other international agencies to implement ISAs need to recognise that a broad set of institutional factors, rather than narrow economic ones, are of relevance in the development of audit policymaking, practice and regulation worldwide

Exploring the Oversight of Risk Management in UK Higher Education Institutions: The Case of Audit Committees

We explore how audit committees (ACs) oversee risk management in UK Higher Education Institutions (HEIs), using semi-structured interviews, attendance at AC meetings and documentary analysis. We find that the AC’s oversight seems constrained by a fixation on the process of risk management, an over-reliance on risk registers, and varying levels of emphasis on operational risks. Theoretically, the AC’s oversight reflects different shades of symbolic and substantive activities designed to maintain the HEI’s legitimacy and that of its governing board, hence providing a symbolic representation. We raise concerns as to the AC’s ability to monitor effectively the HEIs’ risk management practices

A study of the evolution of community disclosures in a developing country

This paper adopts a multi-method approach to analyze the evolution of, and motivations for, community disclosures in a developing economy (Mauritius). We first study the word counts of 82 listed and non-listed companies and carry out a quantitative analysis of the data. Community disclosure narratives are then examined in depth and triangulated with interview data from a sample of company directors. Whilst the analysis of the word counts might, on its own, lead us to conclude that companies disclose community disclosures primarily as a legitimation strategy, we uncover - from the narrative and interview data - a different set of motivations for community involvement and disclosure, centered on one hand on (i) the pursuit of the business case and on the other hand, (ii) on the existence of altruistic attitudes influenced by the country\'s social, economic and political context.<br/

Do corporate governance codes matter in Africa?

Africa is often depicted in the literature as the 'patron late to the party' on account of her low uptake of corporate governance codes. Notwithstanding, countries that have an existing corporate governance code continue to exhibit weak corporate accountability and governance practices. This prompted a critical analysis based on a detailed review of published articles and existing codes in the African multiple-contexts. Our findings reveal that the efficacy of many codes remains very limited in terms of pragmatic outcomes whilst firms in countries that have adopted codes continue to face uneven performance and poor accountability. We conclude by urging for an understanding of the reasons underlying such results. We recommend an African-led re-think (independence, ownership, board processes) of existing codes to make them more aligned with the governance needs of African firms and their complex sociocultural background. We call for further research to illuminate Africa's actual governance experiences and necessities