Corporate Governance, Ethics and CSR

Contents......Page 5
List of tables......Page 10
Introduction......Page 11
Introduction......Page 13
Is trade free?......Page 14
A wider moral imperative?......Page 16
The history of the company......Page 18
Limited liability......Page 22
Ownership and control......Page 25
Moral hazard......Page 26
Shareholder objectives......Page 27
Institutional investors......Page 30
Institutional investor organizations......Page 31
Fiduciary capitalism......Page 32
Agency theory......Page 34
Agency costs......Page 36
Stakeholder theory......Page 37
The power of modern management......Page 38
The public sector......Page 40
Introduction......Page 46
What is ‘corporate culture’?......Page 48
Visible aspects of culture......Page 49
Sociability versus solidarity......Page 54
Sub-cultures and counter-cultures......Page 56
Organizational climate......Page 57
Corporate morality......Page 58
Tone at the top......Page 61
Ethics in the workplace......Page 62
Corporate culture......Page 65
The public sector......Page 71
Ethics in the public sector......Page 72
Introduction......Page 77
Ethical theories......Page 78
Aspirations and attitudes......Page 80
Individuals in organizations......Page 83
Motivation and the role of corporate culture......Page 85
Socialization......Page 87
Group attractiveness......Page 88
Socialization techniques......Page 91
Groupthink......Page 93
Identifying groupthink......Page 95
Rationalizing unethical behaviour......Page 97
Dysfunctional acts by individuals......Page 100
Preventing unethical behaviour and the role of management......Page 102
Ethics and the HR department......Page 104
Whistleblowing......Page 105
Bribery Act 2010......Page 108
Introduction......Page 113
The link between corporate governance and ethics......Page 114
Definition of corporate governance......Page 115
Reports that have been produced in relation to corporate governance issues......Page 116
Key concepts and principles......Page 118
The relative merits of a framework approach to corporate governance versus \ra regulatory approach......Page 123
The role of the audit function......Page 124
Introduction......Page 129
The responsibilities of directors/senior executives......Page 130
The importance of ethical behaviour for senior management......Page 131
Alternative board structures......Page 132
The role of the chair......Page 134
The role of the CEO......Page 135
The role of non-executive directors and the importance of their independence......Page 136
The need for and structure of \nsub-committees......Page 137
Introduction......Page 142
Assessing the effectiveness of directors......Page 143
Goals and objectives......Page 145
Performance evaluation......Page 147
Corporate governance and directors’ pay......Page 148
Greenbury and the remuneration committee......Page 149
Accounting requirements......Page 151
Non-audited information......Page 152
Audited information......Page 153
Executive pay: revolt of the shareholders......Page 154
Excessive rewards and shareholder rights......Page 156
International pay and reward systems......Page 159
Introduction......Page 163
Auditing theory......Page 164
The development of the auditing profession......Page 169
The role of the external auditor......Page 171
Conflicts of interest......Page 174
Globalization......Page 175
Regulation of the audit profession......Page 177
Contrast rules-based and framework approaches to regulation......Page 178
Professional regulation and ethical codes......Page 180
Is self-regulation good enough?......Page 182
Maxwell Communications Corporation......Page 183
Polly Peck......Page 184
TransTec......Page 185
The future of self-regulation......Page 186
The European Union and regulation......Page 190
The role of internal audit......Page 191
Independence......Page 194
The public sector......Page 195
The audit committee......Page 197
Introduction......Page 202
Definitions of stakeholders......Page 203
Guidance on stakeholder interests......Page 204
Internal corporate governance stakeholders......Page 205
External corporate governance stakeholders......Page 206
Institutional investors and corporate governance......Page 207
The growth in importance of CSR reporting......Page 210
Definitions of Corporate Social Responsibility......Page 212
What is Corporate Social Responsibility and how does it link to corporate governance?......Page 214
Historical perspective of Corporate Social Responsibility......Page 215
The reality of Corporate Social Responsibility......Page 217
Getting to the bottom of the triple bottom line......Page 218
Auditors and Corporate Social Responsibility......Page 219
Social and environmental audits......Page 220
Social matters......Page 221
The European Union Eco-Management and Audit Scheme......Page 222
ICLEI – Local Governments for Sustainability......Page 223
Global Reporting Initiative: Sustainability Reporting Guidelines......Page 224
Ethical Trading Initiative......Page 225
10 Corporate Social Responsibility, its measurement, theories and models......Page 231
Corporate Social Responsibility measurement......Page 232
Corporate Social Responsibility theories......Page 233
Corporate Social Responsibility models......Page 236
Introduction......Page 251
Forms of organization......Page 252
Reporting......Page 256
Family-owned firms......Page 257
Charities and social enterprises......Page 263
The application of corporate governance to charities and small companies......Page 270
Corporate governance and growing businesses......Page 271
Problems with adopting corporate governance principles......Page 272
Institute of Directors’ guidance......Page 273
Family councils and family assemblies......Page 275
The larger family business......Page 276
The relevance of Corporate Social Responsibility to smaller organizations......Page 278
12 Emerging issues......Page 282
Index......Page 285