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Convergence
of Corporate Governance Practices: The Case of China
--S Shanmugasundaram
People's Republic
of China is fast becoming a global economic power and its
business firms growing global. But the Chinese economy was
traditionally dominated by the State-Owned Enterprises (SOEs)
and western concepts like financial markets were introduced
only in the past 20 years. Hence, it becomes interesting testing
point to explore the question of convergence of corporate
governance practices. The researchers today are sharply divided
over the issue of convergence of corporate governance practices
globally. This paper studies the existing literature in this
regard and finds mixed evidences of convergence in the corporate
governance practices in China both conceptually and empirically.
©
2008 IUP . All Rights Reserved.
Board
of Directors, Strategic Control and Corporate Financial Performance
of Malaysian Listed Construction and Technology Companies:
An Empirical Analysis
--Razali Haron,
Khairunisah Ibrahim and Nordin Muhamad
This study investigates
the often claimed linkage between board of directors' attributes
and corporate performance in the construction and technology
sectors during the financial year 2000-2001. More specifically,
this study examines the impact of board composition and control
function on firm performance. The study also explores the
differences in board diversity ratio and category of auditing
firms within each sector with regards to company financial
performance by employing Multivariate Analysis of Variance
(MANOVA). Paired sample t-test is employed to test the mean
differences of variables between the two sectors. In conclusion,
it can be stated that there are certain aspects of board attributes
and control functions that differ between the two sectors,
and these significantly influence firm performance. This study
thus confirms that there are differences in the business nature
and environment between the two sectors.
©
2008 IUP . All Rights Reserved.
Values
and Indian Organizations: A Case Study on Ongc Ltd.
--Bani
Kochar and G N Pandey
With oil prices shooting
through the roof, the values of upstream oil firms are also
going up. But the past was a mixed bag for those firms. There
were times, as recent as 1999, when the oil prices were oscillating
around US$10 per barrel. In such tough environment, only the
firms with better value system can win the confidence of the
market. This paper analyzes one such Indian firm, Oil and
Natural Gas Corporation Limited (ONGC), with deep routed value
system. This study maps the value system of the public sector
company using a descriptive case analysis method.
©
2008 IUP . All Rights Reserved.
Case
Study
Coca-Cola in India:
A Responsible Corporate Citizen?
--R Harish and Bharathi S Gopality 20
The Coca-Cola Company is the largest non-alcoholic beverage
company in the world, selling over a billion bottles/cans
per day in more than 200 countries across the world. It is
one of the world's most loved and most valued brands. At the
same time, it has its share of controversies, both regarding
the health-related aspects pertaining to its products and
also its business practices. In this case study, we look at
Coca-Cola's operations in India, and how the company is trying
to keep up a `clean' image in the face of several difficulties.
While pesticide residues in the colas marred the image of
the company some years ago, it was soon followed by a series
of allegations about excessive water extraction, and water
and soil pollution at several of its bottling units. While
refuting and defending itself against these allegations, the
company has taken up several environmental and community-based
corporate social investment projects across the country, particularly
those related to water conservation, rainwater harvesting,
etc. However, critics argue that all these initiatives of
the company are just a `greenwash' to cover-up its wrongdoings
and project a good image of itself. 0
©
2008 IUP . All Rights Reserved.
Research
Summary
Directors' Dilemma:
Social Responsibility or Shareholder Value?
--Summarized by Romina Mathew
Research summary of
the paper "Corporate Directors and Social Responsibility:
Ethics versus Shareholder Value" by Jacob M Rose,
earlier published in Journal of Business Ethics, August
2007, Vol. 73, pp. 319-331.
While several researchers
have suggested ethics training as a key to improving corporate
ethics and social responsibility, the study presents arguments
to the contrary. Based on an experimental research on corporate
directors, the study finds that though directors recognize
the ethical and social implications of their decisions, they
choose to ignore them and focus on maximizing shareholder
value. The directors' decision is based on the perception
that current corporate law favors shareholders over other
stakeholders. Thus, the author suggests that changes in corporate
law rather than ethics training might be the answer to improved
standards in corporate ethics and social responsibility.
©
2008 IUP holds the copyright for the
summary.
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