Corporate Governance

Despite growing interest in workplace democracy, the question whether nonworker stakeholders, like suppliers and local communities, warrant inclusion in the governance of democratic companies, as workers do, has been largely neglected. We inspect this question by leaning on the boundary problem in democratic theory. We first argue that the question of who warrants inclusion in democratic workplaces is best addressed by examining why workplace democracy is warranted in the first place, and offer a twofold normative benchmark—addressing objectionable corporate power and (...) upholding efficiency—to assess the principles of democratic inclusion on offer. Against this benchmark, we next argue that the All-Affected Principle is unfit due to its over- and underinclusive extensional results, and that the All-Subjected Principle, whose variants we examine alongside their extensional results, holds more promise when coupled with independent considerations of justice or a constrained variant of the All-Affected Principle. These combinations need not entirely preclude, but speak against, nonworker stakeholder inclusion. (shrink)

Shortened and mildly revised version of an essay that initially appeared in Murove (ed.) African Ethics (2009). This chapter is a work of applied ethics that aims to provide a convincing comprehensive account of how a government official in a post-independence sub-Saharan country should make decisions about how to allocate goods such as civil service jobs and contracts with private firms. Should such a person refrain from considering any particulars about potential recipients, or might it be appropriate to consider, for (...) example, family membership, party affiliation, race, or revolutionary stature as reasons to benefit certain individuals at some cost to the public? Which of these factors should be considered an unjust or corrupt basis on which to allocate state goods and which should not? Drawing on an African ethic, this chapter answers these questions with what it calls a “moderate partialism,” according to which a government agent may rightly favor at some cost to the public veterans and victims of state injustices, but not those in her family or party. This chapter seeks to provide a new, unified explanation of why characteristically sub-Saharan values permit some forms of partiality, such as the preferential hiring of those who suffered from or struggled against colonialism, but forbid other, nepotist or prebendalist forms of partiality. (shrink)

In this article, we identify three key design dimensions along which cryptocurrencies differ -- privacy, censorship-resistance, and consensus procedure. Each raises important normative issues. Our discussion uncovers new ways to approach the question of whether Bitcoin or other cryptocurrencies should be used as money, and new avenues for developing a positive answer to that question. A guiding theme is that progress here requires a mixed approach that integrates philosophical tools with the purely technical results of disciplines like computer science and (...) economics. Note: this article is the second entry within a two-part sequence on the Philosophy, Politics, and Economics of Cryptocurrency. (shrink)

This paper discusses the legal aspects of the activities of transnational corporations. The relevance of the subject matter is determined by the significant impact exerted by transnational corporations on the world economy in general and on the economic situation of the country in which such corporations are registered as a subject of legal form of ownership in particular. Quality functioning of transnational corporations is an effective factor for the formation of sustainable development. This study reveals and determines the relationship between (...) the scale of activity of transnational corporations and their legal status within the framework of both single countries and entire economic communities, the individual subjects of law of which are transnational corporations. The practical significance of this study lies in the possibility of identifying and stating key aspects that play a significant role in assessing the practical activities of transnational corporations in the context of existing legal law with the ability to use the identified patterns in specific legal practice. The results of this study can be of significant practical importance for employees in the field of legal support for the activities of transnational-scale corporations, who are faced with the need to deeply analyse the legal aspects of the activities of these organisations and provide management of such structures with timely, highquality legal recommendations regarding the correction of the activities of these organisations in the context of the existing legal field. (shrink)

This case examines the rise and fall of WeWork—a company that experienced one of the most dramatic changes of fortune in technology company history. For several years, WeWork was a Silicon Valley darling, growing at breakneck speed with visionary Adam Neumann at the helm. By some estimates, Neumann’s company was worth $47 billion in January of 2019. But when the company filed paperwork in preparation for going public later that year, investors balked at the details revealed in the documents: billions (...) of dollars in losses and lots of questionable behavior on the part of Neumann (including numerous conflicts of interest involving his personal business dealings). The IPO was postponed and later withdrawn; Neumann was forced to step down as CEO; and by May of 2020 the company’s valuation had dropped to $3 billion. Exploring this recent history will provide an opportunity to ask what lessons can be drawn from the rise and fall of WeWork, and from the economic and social context that enabled its growth. (shrink)

The paper deals with the basic concepts and key problems of creating financial stability, as well as the role of central banks in its provision. The role of central banks in providing financial stability is extremely important and has a double manifestation - is the maintenance of the stability of the national currency and the responsibility for the stability of commercial banks and the banking system. The central element of any financial system is always banks, so the emergence of systemic (...) instability in the banking sector always has a negative impact on financial stability in general and has extremely negative socio - economic implications for the country as a whole. The present study provides a thorough analysis of the essence of financial stability, the main challenges faced by central banks in monitoring financial sector and examines the global experience of central banks of different countries to ensure financial stability and their role in these processes. This paper highlights the common and distinctive features of the activities of the central banks of the most developed and developing countries towards the achievement of financial stability. Our paper focuses on the activities of the National Bank of Ukraine. In particular, its role in ensuring financial stability of the country is described and directions of its consolidation are indicated. The major task of the National Bank of Ukraine on the way to financial stability in the post -crisis period selected, the maximum possible mitigation Ukrainian banks consequences of the global financial crisis; increase of financial stability of banking institutions; strengthening of public confidence in banks and the banking system. As a result of the conducted, the key factors of achievement of the set tasks, as well as the main directions of application of monetary instruments of the National Bank of Ukraine in the activities aimed at increasing the stability of banks and ensuring financial stability, were determined. (shrink)

he Handbook constitutes a global resource for the fast growing interdisciplinary research and policy communities addressing the challenge of driving innovation towards socially desirable outcomes. This book brings together well-known authors from the US, Europe, Asia and South-Africa who develop conceptual, ethical and regional perspectives on responsible innovation as well as exploring the prospects for further implementation of responsible innovation in emerging technological practices ranging from agriculture and medicine, to nanotechnology and robotics. The emphasis is on the socio-economic and normative (...) dimensions of innovation including issues of social risk and sustainability. (shrink)

The paper is devoted to the study of determinants determined the level of financial security of economic systems. It is shown that the financial security of an economic system implies the achievement of a level of financial stability that will contribute to simultaneously maintaining financial equilibrium and ensuring targeted growth in line with the development strategy. The level of financial security of rail transport in Ukraine was analyzed and it was determined that the decline in its security was the result (...) of a complex interaction of external and internal factors, the main of which were tight government regulation, shifting the financial burden of social responsibilities to Ukrzaliznytsya, PJSC, lack of competition in the transportation of the main nomenclature of cargo and the unsatisfactory state of non-current assets. Based on the Argenti’s method, it is shown that the consequence of the inefficient financial management of Ukrzaliznytsia, PJSC are the reduction of its insolvency. Three main determinants of the financial security of rail enterprises were identified: a reduction in traffic volumes, an unstable capital structure and the impossibility of timely repayment of current liabilities. An additive model for assessing the impact of selected determinants on the level of financial security of Ukrzaliznytsia, PJSC is proposed. The analysis of the model parameters showed that the greatest impact has the index of industrial production, which is due to the predominant formation of its own financial resources of rail transport due to income from freight traffic. A complex of measures designed to improve the financial condition of rail enterprises was proposed. It is substantiated that in order to equalize existing threats, it is necessary to take political decisions aimed at improving the financial condition of Ukrzaliznytsia, PJSC by reducing the intensity of leaching of its financial resources, as well as implementing an anti-crisis financial strategy aimed at optimizing the capital structure and financial rehabilitation of rail enterprises. (shrink)

I argue that epistemic failings are a significant and underappreciated moral hazard in the financial services industry. I argue further that an analysis of these epistemic failings and their means of redress is best developed by identifying policies and procedures that are likely to facilitate good judgment. These policies and procedures are “best epistemic practices.” I explain how best epistemic practices support good reasoning, thereby facilitating accurate judgments about risk and reward. Failures to promote and adhere to best epistemic practices (...) contributed to the 2008 financial crisis. I identify and discuss some of the ways in which best epistemic practices were violated in the events that led to the crisis, with a focus on the role of the credit rating agencies. I go on to discuss some of the ways in which these failings have been redressed. I conclude by observing how proactive regulation for best epistemic practices might help us to anticipate and avoid future crises. (shrink)

We reflect on the nature of corporate codes of conduct is this article. Based on John Austin’s speech act theory, four characteristics of a performative concept of corporate codes will be introduced: 1) the existential self-performative of the firm identity, 2) which is demanded by and responsive to their stakeholders; 3) Because corporate codes are structurally threatened by the possibility of failure, 4) embracing the code not only consists in actual corporate responsible behaviour in light of the code, but in (...) the incessant recapturing of the code in the struggle of firms against the possible incongruence between their ethical principles and their actual responsible behaviour. A performative concept of corporate codes helps to bridge classical dichotomies like individualist versus collectivist approaches of moral agency and restrictive versus empowering ethics, and opens a new perspective on the interaction between individual ethical behaviour and the corporate institutionalisation of codes. (shrink)

BACKGROUND: In today’s world of increased awareness regarding the concepts of corporate social responsibility (CSR) and corporate governance (CG), many firms in the developed countries consider noncompliance with CSR and CG standards as an important source of risk to their reputations with stakeholders. OBJECTIVE: The aim of this study is to investigate the relationship between the corporate social responsibility disclosure (CSRD) index and corporate factors, namely, board size, board independence, board meetings, CEO duality, a firm’s size, leverage, profitability and age. (...) This is the first known study in the case of Saudi Arabia to use the GRI 4th edition indicators to construct the CSRD index and evaluate Saudi listed firms. Results: The results show that profitability and size factor have positive and significant association with CSR disclosure in listed Saudi firms. While CG characteristics have no impact on CSR disclosure except board independence which has a negative impact. Conclusion: The average of CSRD index among Saudi firms is too low, it is about 11% that means Saudi firms disclose 11% of the information that they have to provide for stockholders according to GRI guidelines. Furthermore, the study concludes that the most polluted sectors “Ener. (shrink)

This paper seeks to determine the extent of anti-corruption information disclosure in the sustainability reports originating from Gulf countries. Focus primarily on the fight against corruption, this study utilizes a deeply-rooted content analysis technique of corporate sustainability reporting, covering 66 Gulf Cooperation Council (GCC) firms during 2014. Strengthened by the application of institutional theory, insight into the results points to a state of limited maturity regarding the disclosure of anti-corruption procedures in the region. More specifically, the results highlight the compliance (...) in the reporting of conduct code, while reporting information on whistle-blowing was significantly less in comparison. Firms in Qatar and UAE ultimately release better informed reports; inclusive of detailed information on internal anti-corruption practices. (shrink)

Given the myriad ways in which managerialism in higher education, and especially research undertaken there, is undesirable, is there a moral theory that plausibly explains why they all are and prescribes some realistic alternatives? In this contribution, I answer ‘yes’ to this overarching question. Specifically, I argue that the various respects in which managerialism is unjustified, particularly with regard to knowledge production, are well captured by an ethical philosophy grounded on salient ideas about communal relationship associated with the southern African (...) ethic of ubuntu. Furthermore, I bring out how my moral-theoretic interpretation of ubuntu provides concrete guidance about how university research, amongst other things, ought instead to be conducted. I conclude that in light of the promise of the sub-Saharan ethic, in future work it merits being weighed up against more characteristically Western criticisms of managerialism. (shrink)

An analysis of the nature of good governance as it figures into the Royal Government of Bhutan's policy of Gross National Happiness.

Treating groups as agents is not at all difficult; teenagers and social scientists do it all the time with great success. Reading Group Agency, though, makes it look like rocket science. According to List and Pettit, groups can be real, and such real groups can cause, as well as bear ethical responsibility for, events. Apparently, not just any collective qualifies as an agent, so a lot turns on how the attitudes and actions of individual members are aggregated. Although I am (...) unsure who will read this book, I can envisage four relatively distinct population segments: philosophers, decision theorists, activists, and social scientists. Philosophers who take questions of ontology seriously will likely find this book evasive. Decision theorists who enjoy axiomatic model building for its own sake will find much to keep them occupied. Activists who have taken it upon themselves to “raise group consciousness” (193) will probably skip ahead to the third part and feel emboldened by the thought that the model builders are busy with the first two. However, since the normative questions (about responsibility and so on) are answerable to prior metaphysical questions for which Group Agency supplies vacillating answers at best, a transition to advocacy would seem hasty. As for social scientists, either they will glance at the book’s dust jacket and (wrongly) assume that philosophers have now “proven” the existence of the groups they study, or they will engage with List and Pettit’s model only to discover that, unless they happen to specialize in commercial corporations, the model’s many stipulations impede rather than facilitate/elucidate their usual group intentional ascriptions. (shrink)

The objective of this study is to Analyze the Financial Position and Performance of the Axis and Kotak Mahindra Bank in India based on their financial characteristics. We have chosen the CAMEL model and t-test which measures the performance of bank from each of the important parameter like capital adequacy, asset quality, management efficiency, earning quality, liquidity and Sensitivity. The present study is conducted analyze the consistency of the profitability of the Axis and Kotak Mahindra bank’s. It is analyses that (...) the ratio of credit deposit is maximum of Kotak Mahindra Bank Ltd and it shows efficient management of the bank. The ratio of earning per share is maximum for Axis Bank Ltd i.e. 50.28 and the ratio of return on Assets is minimum for Axis Bank Ltd. The CAMELS’ analysis and t-test concludes that there is no significance difference between the Axis and Kotak Mahindra bank’s financial performance but the Kotak Mahindra bank performance is slightly less compared with Axis Bank. (shrink)

This paper argues that attempts to apply Alasdair MacIntyre’s positive moral theory to business ethics are problematic, due to the cognitive closure of MacIntyre’s concept of a practice. I begin by outlining the notion of a practice, before turning to Moore’s attempt to provide a MacIntyrean account of corporate governance. I argue that Moore’s attempt is mismatched with MacIntyre’s account of moral education. Because the notion of practices resists general application I go on to argue that a negative application, which (...) focuses on regulation, is more plausible. Large-scale regulation, usually thought antithetical to MacIntyre’s advocacy of small-scale politics, has the potential to facilitate practice-based work and reveals that MacIntyre’s own work can be used against his pessimism about the modern order. Furthermore, the conception of regulation I defend can show us how management is more amenable to ethical understanding than MacIntyre’s work is often taken to imply. (shrink)

Suppose a person lives in a sub-Saharan country that has won its independence from colonial powers in the last 50 years or so. Suppose also that that person has become a high-ranking government official who makes decisions on how to allocate goods, such as civil service jobs and contracts with private firms. Should such a person refrain from considering any particulars about potential recipients or might it be appropriate to consider, for example, family membership, party affiliation, race or revolutionary stature (...) as reasons to benefit certain individuals at some cost to the general public? Which of these factors should be considered unjust, or even corrupt, as a basis on which to allocate state goods and which should not? This chapter outlines an attractive moral theory with African content that forbids both impartialism and a strong form of partialism that would permit government officials to favour members of their families or political parties. Between these two extremes, a moderate partialism is prescribed. This permits government agents to occasionally favour veterans and victims of state injustices at some cost to the general public. This chapter seeks to provide a new, unified explanation of why sub-Saharan values permit some forms of partiality, such as the preferential hiring of those who struggled against colonialism, but prohibit other nepotistic forms of partiality. (shrink)

In this article we compare the experiences of women members of the board of directors of U.S. and Norwegian corporations. Based on the personal stories of two women directors from each country, we discuss similarities and differences in the role and characteristics of women corporate directors and the processes and behaviours they are involved in as directors within and outside the boardroom. We also investigate the role of gender-related dynamics in these two countries, focusing on board roles and processes, and (...) the visible and invisible board structures with which women corporate directors contend. (shrink)

Responds to the article by Brad Brown and Susan Perry in the August 1995 issue of `Business & Society' periodical on the measure of corporate social responsibility (CSP).

Philosophical evaluation can enrich researchers' research skills and ensure they use the proper methodology. With philosophical evaluation, researchers can open their minds to other possibilities that might enrich their research. Our purpose is to inspire the researchers in such a practice to overcome the obstacles when they begin their research. This article helps researchers with a practical example using a hypothetical research model to help them choose the right approach that should be used in research. For clarity, the research is (...) conducted systematically and guided by philosophical underpinnings. Because there are differences in philosophical views with different implications for the research and the researcher, at the same time, the research should not be directed systematically. Still, the methodological choice should result from the researcher's philosophical underpinnings and the investigated phenomenon. This is true because the researcher's philosophical perspective will influence how they view the world and how they think information can be gathered. Differences in philosophy can have a significant impact on the research methodology. A researcher who subscribes to the positivist school of thought, for instance, will believe that knowledge can be attained through objective observation and measurement. Most likely, this researcher would use quantitative methods like surveys and experiments. A researcher who follows an interpretivist ideology, on the other hand, will believe that knowledge can be attained through personal interpretation and understanding. This researcher favors focus groups and interviews as qualitative research methods. These different philosophical perspectives lead to various methodological options. There may also be an impact based on the type of phenomenon being studied. (shrink)

In this paper I argue that Christopher Kutz misapplies his theory of joint action when he attributes shareowners responsibilities on the basis of their intentional participation in the corporations in which they invest. Instead I propose that his theory of joint action should be used to attribute shareowners responsibilities on the basis of their intentional participation in the stock market. If shareholders’ accountability is grounded in their intentional participation in the stock market, then shareholders cannot take responsibility for corporation’s individual (...) actions. Instead they are solely responsible for the benefits they gain from holding shares if these are a result of moral wrongdoing and for this they should be held accountable. (shrink)