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INVESTIGATING THE PRINCIPLES OF CORPORATE GOVERNANCE AND THEIR LINKAGES TO BROADER SUSTAINABLE DEVELOPMENT: CASES OF FINLAND AND ZAMBIA - (PhD Research Project) Abstract Amos Mulenga Mumba University of Vaasa, Finland. 488 The African continent is undoubtedly blessed with numerous rich resources; at the same time it remains the poorest on the planet in all forms of the word. The “paradox of the plenty”, (a situation where a country may rank low in terms of wealth despite being rich in terms of resources) is more evident in Africa than anywhere else. In an effort to solve that pradox, Countries such as Zambia have joined the race to attain the United Nations's Millenium Developmet Goals by the year 2015. Five years before that deadline however, the future of such countries looks as bleak as it looked at the time these MDGs where drawn and adopted. Zambian policy makers often use words such as sustainable development as an end they wish to achieve through MDGs, but amid the generally held view that these goals have been successful in drawing the country's attention to its numerous problems, questions still remain as to which strategies should be adopted and how they should be implemented to especially achieve poverty alleviation, tackle climate change and facilitate the development of a more prosperous society. Public sector driven economic activity is said to be the best way to achieve efficient and sustainable productivity that creates jobs and eventually social economic development. In that line, the Public - Private Partnerships (PPPs) is one of the strategic policies the Zambian Government lauched in 2006 in an efort to encourage pivate and public sector collaboration towards developing a sustainable economy. However, this has yielded little or no tangible success mainly because the Zambian economy is mared by a fragmented political environment, endemic corruption, lack of transparency in both private and public resource management; vices that often times render development efforts useless. In the efforts to find the best strategic approaches to attaining meaningful sustainable development, many questions need to be asked by various economic actors, one such question is: Can Corporate Governance offer some viable alternative policy and strategic approaches to economic development by enshrining its four pillars; Accountability, Transpaprency, Fairness and Reponsibility at the core of the interactions between all economic actors? Keywords: Corporate Governance, Sustainable Development, Corporate Social Responsibility, Zambia Introduction / Aim of the study The aim of this study is to investigate corporate governance (CG), and its linkages to sustainable development (SD). The study will review existing literature on the corporate governance concept in relation to the concept of sustainable development, building from agency and institutional theories.
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AMOS MUMBA TARJA KETOLA (Eds) Respo
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Publisher Date of publication Vaasa
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CONTENTS Abstract in Finnish.......
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PART FIVE: CR MEASURES & STANDARDS
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PART ELEVEN: RESPONSIBLE LEADERSHIP
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PART ONE. COPORATE SUSTAINABILITY M
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Mr. Martin Clarke joined British Pr
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performances, e.g. cement productio
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“…identifying, managing and min
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The above list places emphasis acro
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Discussion: What Could Product Stew
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performance being awarded. Currentl
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CPA. 2007. Delivering sustainabilit
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Lewis. H. 2004. Defining product st
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ICRISAT - FROM A SUSTAINABLE POINT
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sorghum, pearl millet, chickpea, pi
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This action plan seems to produce g
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effects on nutrition and trace elem
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In figure two we can see the expend
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goods, but rather on insubstantial
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pressed to compete with an industri
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References CGIAR (2008). The Origin
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What is a Global Business Organizat
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The majority of the above seven cri
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38 3 Limited statement NAM 75 NAM /
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40 Statement 4 Limited Statement NA
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equirements, but at the same time b
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transition from EMS to SMS can be a
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adequate as an SMS in a GBO. Furthe
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48 Table 2: Detailed Description of
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50 substitution is recognized, but
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52 acted on Improvement Process Usi
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54 Boundary & interface between SMS
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56 System Component #6 - Value Chai
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58 requirements implemented actions
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Global Reporting Initiative (2006).
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van Tulder, R., van den Berghe, D.,
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esponsibilities to stakeholders and
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develop improvement and learning sy
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easonably well now and making them
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Responsible competitiveness The que
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examples? What are the main commitm
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Responsibility to users of products
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of independent research institutes
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development that capture and estima
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Hooghe L, Marks G. (2003). Unraveli
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Waddock, S. and Bodwell C. (2007).
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THE INTEGRATION OF CSR INTO BUSINES
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Theoretical Background Strategic CS
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against specific requirements. The
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industries (energy, utilities, oil
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Different Approaches to CSR The two
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• Electromagnetism and impact on
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Conclusions In the first stage of t
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Appendix A Level of integration of
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99 High Independent BU/Committee de
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101 McAdam, R. & Leonard, D. (2003)
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ECONOMIC DOWNTURN AND THE LANGUAGE
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105 Additionally, for Foucault, and
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Approach 107 The discussion in this
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need for firms to tighten their bel
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esult of economic-market system; th
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Resource Allocation and the Home of
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115 Such divergent views raise ques
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References Accountancy Age (2009) C
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IMAGE DIFFERENCIATION WITH CORPORAT
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121 argues that industries with a c
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123 Since not all stakeholders valu
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Empirical Findings The first propos
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127 The right amount of CR is when
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Environmentally Responsible Image D
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corporate responsibility can be a m
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References Ansoff, H. I. & McDonnel
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Miller, D. (1992). The Generic Stra
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SEED INDUSTRY RESPONSIBILITY TO AGR
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139 intellectual property protectio
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141 Thus, they stress their donatio
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Social Issues 143 Regarding the soc
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145 food system which in their opin
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DuPont (2002). Science, Solutions a
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IgNN (2008c). Brüssel will bessere
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A VALUE CHAIN ANALYSIS OF THE ORGAN
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153 friendly ranges setting a trend
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The Main Factors Affecting The Grow
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157 Governments, particularly in Eu
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Table 4: Value addition at each sta
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organic cotton farms typically achi
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163 Cumulative value loss/ addition
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165
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167 own standards to certify variou
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Price difference in organic and con
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References 171 Alfoeldi, T., Fließ
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173 Fliessbach, A. and Mäder, P. (
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175 Sinden, J. A., Griffith, G. (20
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INSTITUTIONALISING IDEALISM: PATTER
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179 Social considerations include i
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Coercive Adoption 181 The second st
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of non-adopters; the moral content
Page 199 and 200:
References Ackerman, R. (1973). How
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Economist. (2008). The next questio
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Porter, M., & Kramer, M. (2002). Th
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CULTURAL CONTEXT OF CSR: COMPARATIV
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193 power is distributed unequally.
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195 Figure 1: Values Associated wit
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197 answering the questions. Most D
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Culture in Nation-Institutions 199
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201 In line with the collectivistic
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Stakeholders 203 From the field-lev
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Codes & Policies Volunteering Phila
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207 The wealth capacity-building in
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Hannigan, J. A. (2006). Social cons
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211 Thelen, K. & Steinmo, S. (1992)
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213 Historically, Danish companies
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215 survey was carried out by email
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217 role, especially in the 1990s,
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when CSR policies in Denmark were m
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221 The business areas of the Danfo
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223 While looking at the CSR Waves,
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225 marital affairs and on financia
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whether Danfoss is considered good
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229 the making of Danfoss’ Ethics
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have, from participating in interna
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Global Reporting Initiative. G3 Gui
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Negative List for Substances and Ma
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237 and three. In both approaches k
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239 protection/environmental enhanc
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241 sufficiently informed only by b
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Table 3: Traditional versus sophist
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• Dialogue needs to go beyond dis
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and needs of CSR-for-SD as outlined
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• evaluations are externally faci
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251 • Values and cultural factors
Page 267 and 268:
References 253 ACCA The Association
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Freeman, R.E. 1984. Strategic Manag
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257 Pretty, J., Shah, P. 1994. Soil
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PART THREE: CORPORATE RESPONSIBILIT
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261 business houses should follow t
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263 One other problem faced in Indi
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CORPORATE SOCIAL RESPONSIBILITY INI
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267 In spite of the increasing impo
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269 value, while either protecting
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identify the main trends of the CSR
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OIL AND GAS COMPANIES Table 1. CSR
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ENI EXXON PETROBRAS Evaluation of l
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TOTAL Promotion of several initiati
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e. Lack of Human Resources 279 The
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References Bevacqua, S. & Cascinai,
Page 297 and 298:
PART FOUR: CORPORATE RESPONSIBILITY
Page 299 and 300:
285 During the past decades, litera
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287 research involved three Tuscan
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289 • in terms of preferences on
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291 followed by lack of resources a
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293 health and safety of the worker
Page 309 and 310:
References Adler, P. and S.-W. Kwon
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297 Russo A. and Tencati A. 2009, F
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299 by companies in order to contri
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301 economic growth it does not con
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Anttonen (2008) has divided chemica
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305 different types of consultative
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Picture 2. The BASF business model
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309 compounds are used in all indus
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311 Halme, M., Anttonen, M., Kuisma
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DOES OPEN INNOVATION STREGHTHEN COR
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Sustainable Change and CR 315 Due t
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317 OIM are all methods that open t
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319 expressive than an instrumental
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Results 321 It is new to accept and
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on process User mainly need- and kn
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325 interaction enables companies t
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References Alvesson, M. (2005). Und
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329 Hübscher, M. & Müller, M. (20
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Walcher, D. (2007). Der Ideenwettbe
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333 The current context in which or
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335 existence and are able to survi
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337 particular the political and le
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339 local variants emerged in Scand
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341 However, these output oriented
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Regarding the activity S2 ‘Stakeh
Page 359 and 360:
References Achterbergh, J., Vriens,
Page 361 and 362:
Nieuwkamp, B.E.M. (2008). De arbeid
Page 363 and 364:
FINANCIAL VALUE MEASUREMENT OF CORP
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351 responsibility issues (roadmap)
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353 financial valuation measures. T
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Table 1. Features in the various ph
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sustainability data gathering and i
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Table 3. Sustainability-related GRI
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Three Illustrations of Deriving and
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363 where it uses renewable resourc
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References Adams, C. A. (2004). The
Page 381 and 382:
367 Niskala, M., & Schadewitz, H. (
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Huhtamäki (Materials) Kemira (Mate
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OKO (Finance) organization with who
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373 [1] Global Reporting Initiative
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Introduction 375 The concepts relat
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Model Foundations First foundation
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As we can see in the Figure 2, on t
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381 model in subject. Through these
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383 For Schwartz and Bilsky (SCHWAR
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385 • Reaction: The organization
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Figure 7: Tripod of the sustainabil
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389 The second fundament of the mod
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Figure 10: Organizational Social Pe
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Figure 13: Wilber’s Model Source:
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Figure 15: Model of sustainable exc
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Figure 17: Proposal of model evalua
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399 Figure 19: Relationships took i
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Jung, C. F. (2003). Metodologia Cie
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Werre, Marco. & Marcel. Van Marrewi
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THE CASE OF SOCIAL ENTERPRISES: ARE
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407 The present paper aims to revie
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Belgium Law of 13 April 1995 United
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Social Enteprise: Some Definitions
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The Social Entrepreneurship Accordi
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Figure 1 The blurring sectoral boun
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f) An initiative launched by a grou
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References Alter, S.K. (2004) Socia
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A DISCOURSE ANALYSIS OF THE FAIRTRA
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423 constituting the social (Faircl
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425 Once economic behaviour is no l
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427 link to Fairtrade, in which Fai
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France: Producers and Competition 4
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UK: Producers and Competition 431 W
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that for Fairtrade to work it has t
Page 449 and 450: 436 01/01/2007 01/01/2007 01/01/200
Page 451 and 452: 438 01/01/2003 01/01/2003 01/01/200
Page 453 and 454: 440 Jaworski, A. & Coupland, N. (19
Page 455 and 456: PART SEVEN: PUBLIC - PRIVATE PARTNE
Page 457 and 458: 444 It also examines the applicabil
Page 459 and 460: 446 critical resources controlled b
Page 461 and 462: 448 In October 2008, NVPC launched
Page 463 and 464: S$1 policy but perhaps other more i
Page 465 and 466: References Azlan A, Lim LL, Yahya S
Page 467 and 468: PART EIGHT: CORPORATE RESPONSIBILIT
Page 469 and 470: organizations, with different aims
Page 471 and 472: 458 Decentralization and local gove
Page 473 and 474: 460 When multiple actors involved i
Page 475 and 476: 462 Governance, economy, social cap
Page 477 and 478: 464 In this sense, analysing a terr
Page 479 and 480: Partnerships Social Capital 466 - S
Page 481 and 482: 468 The level of civic participatio
Page 483 and 484: Conclusion - Quality of the environ
Page 485 and 486: Garvin, T. et al. (2009). Community
Page 487 and 488: THE EFFECTS OF “DEPENDENCY” ON
Page 489 and 490: how, this dependence inhibits effec
Page 491 and 492: 478 the MNC effectively. This secti
Page 493 and 494: 480 regulation via CSR policy, whic
Page 495 and 496: 482 potential consumer base in each
Page 497 and 498: References 484 An Roinn Gnóthaí P
Page 499: Lambe. A., Directors' Compliance St
Page 503 and 504: 490 economic and institutional deve
Page 505 and 506: 492 and corporate governance. The w
Page 507 and 508: 494 corporate stakeholders, of weal
Page 509 and 510: 496 failures by corporate boards to
Page 511 and 512: 498 fashion", therefore I intend to
Page 513 and 514: ENVIRONMENTAL MANAGEMENT PRACTICES
Page 515 and 516: An Overview of Environmental Manage
Page 517 and 518: Feichtinger and Pregernig, 2005; Gr
Page 519 and 520: Survey Questionnaire 506 The raw da
Page 521 and 522: Table 4. Variables used to compute
Page 523 and 524: inhabitants and workers) and the ex
Page 525 and 526: 512 particular purchase, the incent
Page 527 and 528: 514 which limits the adoption of be
Page 529 and 530: Conclusions 516 The overall profile
Page 531 and 532: Cuthill, M. (2002). Exploratory res
Page 533 and 534: 520 Lundberg, K., Balforsa, B. and
Page 535 and 536: RELATIONAL GOVERNANCE AND THE DEVEL
Page 537 and 538: 524 national-level plans to constru
Page 539 and 540: Relational Governance 526 One of th
Page 541 and 542: Case Studies: Vankorneft and the Ev
Page 543 and 544: The shape of Russian public CSR pol
Page 545 and 546: Report on CSR in the forestry indus
Page 547 and 548: 534 At the Turukhansk district leve
Page 549 and 550: 536 Russian federal legislature vio
Page 551 and 552:
538 The maintenance of the long-ter
Page 553 and 554:
References 540 Albareda, L., Lozano
Page 555 and 556:
542 Moon, J. (2004). Government as
Page 557 and 558:
PART NINE: RENEWABLE ENERGY 544
Page 559 and 560:
546 generating the various form of
Page 561 and 562:
• The lack of basic infrastructur
Page 563 and 564:
550 − A Tool for assessing the ec
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ARTICULATION OF ENVIRONMENTAL AND S
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- Cramer Commission56, - Renewable
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556 conditions + + + + + + + + Prop
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Figure 1 - Impacts of direct and in
Page 573 and 574:
Figure 3 - Impacts of direct and in
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Figure 6 - Impacts of agricultural
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Agricultural practices have also im
Page 579 and 580:
566 Nevertheless, land-use changes
Page 581 and 582:
- Discussion possibilities, - Free
Page 583 and 584:
References ACCS (2007a). AFS Standa
Page 585 and 586:
Renewable Fuels Agency (2008), The
Page 587 and 588:
Abstract SUPPLY CHAIN ISSUES OF BIO
Page 589 and 590:
576 adjusted to the specific condit
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energy and logistics/SCM. Follow-up
Page 593 and 594:
Madlener & Bachhiesl 2007 Perry & R
Page 595 and 596:
Elghali et al. 2007 Madlener & Bach
Page 597 and 598:
584 on the other hand state that a
Page 599 and 600:
586 expeller, olive cake and wood p
Page 601 and 602:
588 torrefaction and pelletisation
Page 603 and 604:
Berglund, M. (2006). Biogas product
Page 605 and 606:
SUSTAINABILITY CYCLE ASSESMENT OF B
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Figure 1. Cradle-to-grave grave app
Page 609 and 610:
Table 1. Environmental, social cult
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Table 2. Environmental, social cult
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600 In summary, while biodiesel is
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602 nature after use: when the soli
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604 the creation, refinement, use a
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Test Results 606 Biogases are envir
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ID=78&articleID=1163 608 WCED (1987
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610 business of sustainability and
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Table 2. The Equator Principles and
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614 Strategic orientation of firms
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616 Natural gas fuels over 99 perce
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618 building a Hydrogen Energy plan
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620 principles that are related to
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Impact on Climate Change Conclusion
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Falck, O. & Heblich, S. Corporate s
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ROBIN HOOD THEOREM: A WAY FOR ENERG
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628 communities have to contend and
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630 to power basic devices like TV
Page 645 and 646:
References Abavana, G. C, (2004). G
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INTRA-INDUSTRY IMITATION IN ENVIRON
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636 The legislation has also contri
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In general, the larger the organisa
Page 653 and 654:
Content Analysis 640 In order to be
Page 655 and 656:
642 One of the key questions in ass
Page 657 and 658:
Table 4. Stakeholder considered by
Page 659 and 660:
646 Table 5. GRI indicators accordi
Page 661 and 662:
Refferences Adams, C.A. (2004). The
Page 663 and 664:
Gray, R. (2006). Does Sustainabilit
Page 665 and 666:
SUPPLY CHAIN CORPORATE RESPONSIBILI
Page 667 and 668:
654 The sample was selected from th
Page 669 and 670:
Table 2 Survey Categories used to E
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y reading the relevant sections. Th
Page 673 and 674:
660 Perhaps not surprisingly compan
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662 Only 3 companies reported the e
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iodiversity (IPES, 2008). The IPES
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usiness level playing field and, wh
Page 681 and 682:
668 EICC. (2006). Electronic Indust
Page 683 and 684:
PART ELEVEN: RESPONSIBLE LEADERSHIP
Page 685 and 686:
Value Basis 672 Finding one’s tru
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674 The lure of quick profits, stat
Page 689 and 690:
676 politics he talked and wrote ab
Page 691 and 692:
The Responsible Leadership Identiti
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villages of Bangladesh. He set up a
Page 695 and 696:
States: Building Blocks of Some Res
Page 697 and 698:
Conclusions Matching Individual, Or
Page 699 and 700:
686 The different characteristics o
Page 701 and 702:
Issue: Corporate Responsibility & D
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690 society at large”. Other defi
Page 705 and 706:
Table 1. Reasons for implementing e
Page 707 and 708:
694 environment and develop a bette
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696 Does this imply that corporate
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and certifying environmental manage
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Perspective from law, economics, an
Page 715 and 716:
702 However neither Japan nor Germa
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704 community pressure, and environ
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706 international competitiveness (
Page 721 and 722:
708 and Alberini 2002). The functio
Page 723 and 724:
Public Politics and Private Politic
Page 725 and 726:
these three actors have been strong
Page 727 and 728:
714 Imura, H. (2005). Japan's Envir
Page 729 and 730:
716 technical aspects of environmen
Page 731 and 732:
718 However, a more in-depth discus
Page 733 and 734:
720 empirically tested in a number
Page 735 and 736:
722 the level of awareness and envi
Page 737 and 738:
724 solutions might even exaggerate
Page 739 and 740:
References Albrecht, D., Bultena, G
Page 741 and 742:
728 Klein, K. J. & Kozlowski, S. W.
Page 743 and 744:
PART TWELVE: SMEs & CORPORATE RESPO
Page 745 and 746:
732 SMEs, Training and Sustainabili
Page 747 and 748:
734 The values of an SME are predom
Page 749 and 750:
SMEs, but these have rarely lived u
Page 751 and 752:
738 believe that this course of act
Page 753 and 754:
(Revell and Rutherfoord, 2003). The
Page 755 and 756:
Diagram 2: Conceptual Framework - F
Page 757 and 758:
Reference 744 Ammenberg, J. and Hje
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746 Hall, G, 1989). Lack of Finance
Page 761 and 762:
748 Sheridan, P., (2001). Directors
Page 763 and 764:
750 theories focus on the transfera
Page 765 and 766:
752 traditional models of managemen
Page 767 and 768:
end of the fifth year of life marks
Page 769 and 770:
Figure 1 The model The Research The
Page 771 and 772:
The Area Selected and the Ccow Buff
Page 773 and 774:
760 The Plan must guarantee the att
Page 775 and 776:
Managerial Implications, Limits of
Page 777 and 778:
Freeman R.E. (1984). Strategic Mana
Page 779 and 780:
CSR-TOOLS FOR SMEs - COMPARATIVE AN
Page 781 and 782:
Features of CSR in SMEs 768 CSR was
Page 783 and 784:
770 mostly provide overviews and in
Page 785 and 786:
772 The CSR Quality Seal is essenti
Page 787 and 788:
774 into its strategic as well as o
Page 789 and 790:
Outcome and Conclusions 776 BLISS w
Page 791 and 792:
References Bhuiyan, N. & Bagehel, A
Page 793 and 794:
780 Honen, P. & Potts, J. (2007). C
Page 795 and 796:
782 SUPPLY - CHAIN ENVIRONMENTAL MA
Page 797 and 798:
784 offers a useful discussion and
Page 799 and 800:
786 22’ noted by Fanshawe (2000)
Page 801 and 802:
788 action) and the sense made of t
Page 803 and 804:
790 The latter provided clear benef
Page 805 and 806:
792 Figure 3 - Describing the Behav
Page 807 and 808:
794 Interestingly though, and despi
Page 809 and 810:
Summary and Comment 796 In the earl
Page 811 and 812:
de Wit, B. and Meyer, R. (1999). St
Page 813 and 814:
Remenyi, D., Williams, B., Money, A
Page 815 and 816:
FACTORS AFFECTING THE ENGAGING IN C
Page 817 and 818:
804 this issue can be examined with
Page 819 and 820:
Table 1 List of factors affecting f
Page 821 and 822:
voluntariness” proposed by Moore
Page 823 and 824:
Table 2: The state of CSR practices
Page 825 and 826:
Table 3 Factor analysis: variables
Page 827 and 828:
814 However, there are also challen
Page 829 and 830:
Grayson, D. (2004). How CSR Contrib
Page 831 and 832:
Spence, L. J. , & Rutherfoord, R. (
Page 833 and 834:
820 This paper draws on both primar
Page 835 and 836:
Case Studies 822 The case studies e
Page 837 and 838:
Rationale and Start up 824 In this
Page 839 and 840:
826 own standards, and those of her
Page 841 and 842:
828 Finally all three of these case
Page 843 and 844:
References Journal Articles 830 Goo
Page 845 and 846:
CORPORATE RESPONSIBILITY: A CRICIAL
Page 847 and 848:
834 The most visible parts of the c
Page 849 and 850:
Accordingly, referring to Basu and
Page 851 and 852:
measures on the other hand show hug
Page 853 and 854:
policies are accompanied by company
Page 855 and 856:
Conclusion 842 The described percep
Page 857 and 858:
Eckert, S. et al. (2007). Nachhalti
Page 859 and 860:
Nielsen, A.E. & Thomsen, C. (2009)
Page 861 and 862:
PART THIRTEEN: CONSUMERS AND ETHICS
Page 863 and 864:
850 (www.fairtrade.net). Different
Page 865 and 866:
852 Organizations International) an
Page 867 and 868:
854 The first step of the research
Page 869 and 870:
Table 1- Knowledge measurement stat
Page 871 and 872:
• Quality aspect: quality of the
Page 873 and 874:
References Blowfield, Mick. (2003).
Page 875 and 876:
GAMBLING, SMOKING AND DRINKING: WHA
Page 877 and 878:
864 assistance was given by license
Page 879 and 880:
261) suggested that they had some i
Page 881 and 882:
868 or banned altogether. Only one
Page 883 and 884:
Lantos, G.P. (1999). ‘Motivating
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