Embedding corporate governance and corporate social responsibility in emerging countries

Uzma, Shigufta Hena

doi:10.1108/ijlma-04-2015-0015

Cited by 15 publications

(11 citation statements)

References 71 publications

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“…The result illustrates that in more dispersed ownerships, minority shareholders are not interested in corporate philanthropic activities including CSR. It might be due to the fact that they perceive social activities as a waste of resources and against profitability, which is in line with the findings of Uzma (2016), Haniffa and Cooke (2002) and Huafang and Jianguo (2007). Additionally, as Wang and Coffey (1992) stated, when the percentage of stock ownership increases, firms invest more in CSR.…”

Section: Regression Findingssupporting

confidence: 69%

“…For example, while Gul and Leung (2004) and Dias et al (2017) reported no direct link between the two variables, some researchers favor the negative relationship of ownership concentration to CSR (Reverte, 2009;Khan et al, 2013;Muttakin and Khan, 2014). Contrary to these arguments, Uzma (2016) and Wang and Coffey (1992) showed that minority shareholders perceive CSR as a waste of resources; hence, they are not interested in philanthropic activities, leading to less CSR disclosure, which is in line with the findings of Haniffa and Cooke (2002) and Huafang and Jianguo (2007):…”

Section: Ownership Concentrationsupporting

confidence: 51%

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Corporate governance effects on corporate social responsibility disclosure: empirical evidence from heavy-pollution industries in Iran

Fallah

Mojarrad

2019

SRJ

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Purpose This paper aims to investigate the relationship between corporate governance (CG) and corporate social responsibility (CSR) disclosure in a sample of 64 companies listed on the Tehran Stock Exchange. Design/methodology/approach This study opts for a descriptive-correlational method. To measure the extent of CSR disclosure and CG variables, companies’ annual reports and websites during 2014-2015 are content analyzed by applying a 64-item checklist. Boards’ size, age, tenure and independence, CEO duality, audit committee (AC) composition and ownership concentration are considered as CG variables. To ascertain the CG–CSR disclosure relationship, multivariate linear regression analysis is incorporated. Findings Based on the results, audit committee composition, board tenure and ownership concentration positively influence CSR disclosure level with ownership concentration as the most influential variable, that is, in companies with majority shareholders ownership, managers tend to disclose more CSR information. Research limitations/implications Only annual reports and company websites are analyzed. Researchers are encouraged to apply other methods such as interview and to consider other variables, such as board diversity, proportion of female members and the extent of shareholders activities, to measure CG. Practical implications This paper provides implications at the policy level to identify governance mechanisms to increase CSR awareness of heavy-pollution industries in developing countries. Originality/value Studies rarely examined CSR reporting in Iran, particularly among heavy-pollution companies. Besides, the paper highlights the role of majority shareholders and non-executive AC members in CSR disclosure.

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Section: Regression Findingssupporting

confidence: 69%

Section: Ownership Concentrationsupporting

confidence: 51%

Corporate governance effects on corporate social responsibility disclosure: empirical evidence from heavy-pollution industries in Iran

Fallah

Mojarrad

2019

SRJ

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“…Future research can focus on both the demand and supply side of the BC operation. For instance, the understanding of different stakeholder's perceptions about the status of financial inclusion can be a potential avenue for research from the governance perspective (Behera, Pratihari, & Mohapatra, 2013;Uzma, 2016); and macromarketing perspective for the well-being of the society as a whole (Aiyar & Venugopal, 2019). Besides, banks can engage and utilize the local network and resources of the channel members with different value co-creation activities such as the implementation of different corporate social responsibilities (CSR) initiatives in the target markets (Perez, Rodriguez, & Bosque, 2014;Perez & Bosque, 2015;Pratihari & Uzma, 2018).…”

Section: Resultsmentioning

confidence: 99%

Financial Modelling for Business Sustainability: A Study of Business Correspondent Model of Financial Inclusion in India

Uzma

Pratihari

2019

Vikalpa: The Journal for Decision Makers

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Executive Summary The study highlights the need for measures to accelerate the pace of the business correspondent (BC) model for financial inclusion in India. The financial analysis of the existing BCs with the existing products and services in practice shows a very diffusive break-even (more than 7 years). The occurrence of such a long-term break-even point can be a potential threat to the sustainability of new and struggling entrepreneurs like a Customer Service Point (CSP). A CSP agent runs a kiosk of a certain bank in a rural context, functioning like a BC between the bank and the beneficiaries. The primary investigation found that high cost and low volume of transaction at the CSP points are two major causes of the long break-even. In this context, the study revisited the constructs related to cost structure, market outreach, market potential and commission structure for channellizing respective banking and non-banking products. The major categories of products include (a) banking operation, (b) loan and over-draft, and (c) social security schemes. In search of a solution, the study adopts a non-random stratified sampling technique with a semi-structured interview process to collect the data from different stakeholders in the BC operation. To develop an economically viable BC model, the researchers use a standard financial modelling technique. In contrast to the existing kiosk model of CSP operation, the study found that while applying the new model a CSP agent takes three years to break-even under the same condition as that of the existing model. The study can also be applied in the domain of bottom of the pyramid (BOP) marketing by treating to create value among the low-income customers and business partners like CSPs. This research can further be extended to investigate the viability of the BC model from the banks’ return on investment perspective.

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“…First, the ownership structure of the company in the context of emerging economies may be influenced by external finance (Sarkar and Sarkar, 2000;Sarkar and Sarkar, 2008;Aras, 2015;Uzma, 2016b); in emerging countries, ownership structure may be family-owned, state-owned enterprises or listed companies (Claessens and Yurtoglu, 2013). Second, assess the impact of the adoption of OECD principles with domestic CG regulations can influence the diversity in governance practices (Clarke, 2015).…”

Section: Discussionmentioning

confidence: 99%

“…RPT under Section 188 of the Act specifies that the transactions of a company with its related parties which are not in the ordinary course of business and which are not arm's length would require the consent of the board of directors of the company. Social and environmental policies, under Section 135 of the Act 2013 states that at least two per cent of the average net profit of the company in the immediately three preceding years (Uzma, 2016b).…”

Section: Gender Diversitymentioning

confidence: 99%

Corporate governance practices: global convergence and Indian perspective

Uzma

2018

QRFM

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Purpose This paper aims to study from three perspectives: the developed countries corporate governance (CG) practices, the role of OECD in the global convergence of CG standards and India as an emerging country. Design/methodology/approach The paper reviews the various CG codes and regulations enacted in the Indian paradigm with special reference to the Indian Companies Act 2013 (cited as Act 2013). Findings The Act 2013 endeavours to provide a governance landscape in India with reforms. The new CG codes comprehensively introduce more accountability, transparency and stringent disclosure requirements. However, these changes are affected by the ownership structure, the level of enforcement and regulatory compliance of CG disclosure practices imposed on companies. Research limitations/implications Further research can be carried out in three domains in emerging countries: ownership structure, the effect of legal and regulatory environment and impact of mandatory compliance. Practical implications Legal and regulatory environment are notable extent that can effectively govern the CG codes. An increase in the board size, investor protection and gender diversity, with strong governance structure, can enhance the transparency of companies. Originality/value The paper examines the prominence of CG norms with the ratification of the Indian Companies Act 2013, which is analogous with global CG policies and regulations.

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Embedding corporate governance and corporate social responsibility in emerging countries

Cited by 15 publications

References 71 publications

Corporate governance effects on corporate social responsibility disclosure: empirical evidence from heavy-pollution industries in Iran

Corporate governance effects on corporate social responsibility disclosure: empirical evidence from heavy-pollution industries in Iran

Financial Modelling for Business Sustainability: A Study of Business Correspondent Model of Financial Inclusion in India

Corporate governance practices: global convergence and Indian perspective

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