Found 15 article(s) for author 'CSR'

Why is Corporate Virtue in the Eye of The Beholder? The Case of ESG Ratings

Why is Corporate Virtue in the Eye of The Beholder? The Case of ESG Ratings. George Serafeim, Anywhere Sikochi, November 2019, Paper, “Despite the rising use of environmental, social, and governance (ESG) ratings in financial markets, there is substantial disagreement across rating agencies regarding what rating to give to individual firms. As what drives this disagreement is unclear, we examine the extent to which a firm’s ESG disclosure and average ESG rating explain this disagreement. Contrary to conventional wisdom that greater disclosure helps reduce disagreement, our findings suggest that greater ESG disclosure leads to greater disagreement across ESG rating agencies. These findings hold using firm fixed effects, changes models, and using a difference-in-differences design with staggered mandatory ESG disclosure shocks. We also find that rating disagreement is greater when firms have high or low average ESG ratings, relative to firms with medium average ESG ratings. Overall, our findings highlight the difficulty that firms face in resolving ESG rating disagreement and the need for developing rules and norms for evaluating ESG information.Link

Tags: , , , , , , , , , ,

Can Capitalism Be Made Better By Corporate Social Responsibility?

Can Capitalism Be Made Better By Corporate Social Responsibility? Nancy Koehn, August 23, 2019, Audio, “This week, nearly 200 CEOs pledged to discard a foundational tenet of business: that corporations exist only to serve their shareholders.  Chief executives from the Business Roundtable — including leaders of Apple, JP Morgan Chase, and Amazon, argued this week that the purpose of a corporation is to promote “an economy that serves all Americans.” Nancy Koehn, historian at Harvard Business School, said this declaration is a direct response to the public’s growing voice in holding corporations accountable.Link

Tags: , , , , , , ,

Pathways to Materiality: How Sustainability Issues Become Financially Material to Corporations and Their Investors

Pathways to Materiality: How Sustainability Issues Become Financially Material to Corporations and Their Investors. George Serafeim, 2019, Paper, “As sustainability issues, also labelled environmental, social and governance (ESG) issues, become financially material, companies, investors and regulators are designing strategies and policies to improve sustainability disclosure and performance. In this paper, we outline a framework of how sustainability issues become financially material arguing that materiality is not a “state of being” but a “process of becoming.” Our framework could assist companies and investors to make resource allocation decisions based on expectations about future materiality, social entrepreneurs and NGOs to develop their theories of social change, and policy makers to design disclosure regulations. Moreover, our framework generates predictions about the conditions under which sustainability issues become financially material that could be empirically tested in the future.Link

Tags: , , , , , ,

Health as a Way of Doing Business

Health as a Way of Doing Business. Amy Edmondson, December 6, 2018, Paper, “For too long, the worlds of business and health have been mired in a checkered, sometimes contentious, history. Millions of deaths worldwide can be attributed to risk factors including tobacco use, alcohol and drug misuse, and suboptimal dietary intake linked to commercial products. Media (including social media) coverage about the safety and cost of many consumer goods, both medical (drugs, devices) and nonmedical, reflect profound public concerns. Longstanding societal scrutiny about the role of business in environmental pollution has only increased in the era of global warming.Link

Tags: , , , , ,

Uber Prepares to Go Public, and China’s Social Credit System

Uber Prepares to Go Public, and China’s Social Credit System. Youngme Moon, Mihir Desai, Felix Oberholzer-Gee, November 14, 2018, Audio, “Youngme Moon, Mihir Desai, and Felix Oberholzer-Gee discuss how much Uber is worth as it prepares to go public, before debating China’s controversial Social Credit system. They also share their After Hours picks for the week.Link

Tags: , , , , ,

The social purpose of corporations

The social purpose of corporations. Nien-he Hsieh, November 13, 2018, Paper, “To think about the purpose of corporations is to think about what corporations are for. In the article, argue that the concept of a purpose has an important role in thinking about the moral evaluation of corporations. We make three contributions. First, we distinguish different uses of the concepts of social and corporate purpose. Social purpose concerns the contribution that the corporation makes to realising societal goals. Corporate purpose concerns the goals the corporation should actively pursue. Second, we investigate whether corporations ought to serve a social purpose and whether corporations ought to actively pursue their corporate purpose. Third, we explore critically what roles the concepts of social and corporate purpose can fulfil in moral reflection on and of corporations. In particular, we distinguish the constructive, the communicative, and the critical role of social and corporate purpose.Link

Tags: , , , ,

Revisiting the uneasy case for corporate taxation in an uneasy world

Revisiting the uneasy case for corporate taxation in an uneasy world. Mihir Desai, October 31, 2018, Paper, “Just as the public increasingly wants corporate taxation to serve as a mechanism for ensuring that business contributes to society, the sustainability of corporate taxation is increasingly under challenge by a changing global landscape. This tension between the heightened demands placed on the corporate tax system and its reduced capacity prompts the question: How can an increasingly tenuous fiscal instrument be modified to accommodate rising expectations? In this paper, we address this question by reviewing the empirical evidence on, and conceptual underpinnings of, the corporate tax. We place the taxation of corporations in a wider context that links it to ongoing debates on corporate law and governance and on corporate social responsibility.Link

Tags: , , , , , , ,

Political, Social, and Environmental Shareholder Resolutions:

Political, Social, and Environmental Shareholder Resolutions. Joseph Kalt, June 2018, Paper, “The increased use of politically-charged shareholder resolutions has garnered considerable attention in recent years, as shareholder meetings have become venues for discussion and debate regarding corporate positions and actions on issues of the day. Recent proxy seasons have seen corporate management being asked to address issues as diverse as deforestation, corporate clean energy goals, climate change, the uses of antibiotics and pesticides, political contributions, human rights risks through the supply chain, indigenous rights and human trafficking, cybersecurity, the development and reporting of sustainability metrics, and tax fairness.Link

Tags: , , , , , ,

CSR Needs CPR: Corporate Sustainability and Politics

CSR Needs CPR: Corporate Sustainability and Politics. Michael Toffel, June 6, 2018, Paper, “Corporate sustainability has gone mainstream, and many companies have taken meaningful steps to improve their own environmental performance. But while corporate political actions such as lobbying can have a greater impact on environmental quality, they are ignored in most current sustainability metrics. It is time for these metrics to be expanded to critically assess firms based on the sustainability impacts of their public policy positions. To enable such assessments, firms must become as transparent about their corporate political responsibility (CPR) as their corporate social responsibility (CSR). For their part, rating systems must demand such information from firms and include evaluations of corporate political activity in their assessments of corporate environmental responsibility.Link

Tags: , , , , , ,

The Right Way for Companies to Publicize Their Social Responsibility Efforts

The Right Way for Companies to Publicize Their Social Responsibility Efforts. Michael Kremer, April 2, 2018, Opinion, ““Why don’t we get credit for all the good things we do?” the CEO of a major global corporation asked me recently. After all, the company has innovative and impactful programs to ensure safe working conditions; training programs to help low-wage workers in its supply chain increase their earnings; numerous environmental initiatives to reduce its use of water, energy, and raw materials; diversity and volunteering programs for employees; and a foundation that makes generous contributions both locally and globally. Yet no one seems to notice.Link

Tags: , , , , ,