The effect of board capital and CEO power on corporate social responsibility disclosures

This study examines the effect of directors’ human and social capital (i.e. board capital) on the level of corporate social responsibility (CSR) disclosures by drawing on insights from a resource-based view. It also investigates the effect of chief executive officer (CEO) power on this relationship. Data were obtained from annual reports of companies listed on the Dhaka Stock Exchange in Bangladesh from 2005 to 2013. We employ outside directors’ experiences and expertise as a proxy for board capital and measure CEO power using a ‘power index’ that comprises CEO duality, ownership, tenure and family CEO status. Results show that board capital is positively associated with CSR disclosure levels; however, CEO power is negatively associated with CSR disclosures and reduces the effect of board capital on CSR disclosures. Thus, we conclude that although board capital can improve CSR practices, CEO power can also inhibit these practices.

A critical analysis of the independence of the internal audit function : evidence from Australia

Purpose – This study aims to critically analyse the independence of the internal audit function through its relationship with management and the audit committee.

Design/methodology/approach – Results are based on a critical comparison of responses from questionnaires sent out to Australian chief audit executives (CAEs) versus existing literature and best practice guidelines.

Findings – With respect to the internal audit function's relationship with management, threats identified include: using the internal audit function as a stepping stone to other positions; having the chief executive officer (CEO) or chief finance officer (CFO) approve the internal audit function's budget and provide input for the internal audit plan; and considering the internal auditor to be a “partner”, especially when combined with other indirect threats. With respect to the relationship with the audit committee, significant threats identified include CAEs not reporting functionally to the audit committee; the audit committee not having sole responsibility for appointing, dismissing and evaluating the CAE; and not having all audit committee members or at least one member qualified in accounting.

Originality/value – This study introduces independence threat scores, thereby generating analysis of the internal audit function's independence taking into account a combination of threats.

Local gambling preferences and corporate innovative success

This paper examines the role of local attitudes toward gambling on corporate innovative activity. Using a county's Catholics-to-Protestants ratio as a proxy for local gambling preferences, we find that firms located in gambling-prone areas tend to undertake riskier projects, spend more on innovation, and experience greater innovative output. We contrast the local gambling effect with chief executive officer (CEO) overconfidence, another behavioral effect reported to influence innovation. We find that local gambling preferences are a stronger determinant of innovative activity, with CEO overconfidence being more relevant to innovation in areas where gambling attitudes are strong.

Leadership and the deified/demonic : a cultural examination of CEO sanctification

I examine in this paper deification and demonisation – the social attribution of absolute ‘Good’ and ‘Evil’ to individuals or individual entities. Specifically, I unpack ways that evilness and goodness have become personified in the figure of the chief executive officer in contemporary, particularly US, business culture. Showing both the readily accessible and widely used nature of these religious tropes, I nevertheless argue that both deification and demonisation have ethically and politically disempowering effects for organisational members, the wider citizenry, and for critique within the field of business ethics.

Labour productivity in Iranian construction projects perceptions of chief executive officers

Purpose – The purpose of this paper is twofold. First, it aims to highlight the main factors and items affecting the productivity of construction projects, based on the perceptions of CEOs in construction companies in Iran. Second, the study compares the elicited CEOs’ perceptions against the findings of studies based on the views of such as project managers, middle managers and employees in other levels. Design/methodology/approach – The study drew upon literature on construction work to develop a conceptual model. Further, a total of 60 CEOs from road construction companies were surveyed using a five-point Likert scale questionnaire to generate the data. The collated data were categorised and ranked according to the CEOs perceived level of importance using the relative importance index. Findings – The findings highlight the main factors and items affecting labour productivity in construction projects in Iran as perceived by CEOs, which are mainly of human resources management nature and could be attributed to motivation and managerial policy aspects. The study also recognises that factors associated with the working environment particularly safety and health are perceived as insignificant by Iranian CEOs which could be a concern for the Iranian construction industry. The discussions shed some light on the discrepancies between the perceptions of CEOs and previous studies in regards to major determinants of productivity in the construction context. Originality/value – This study is the first study aiming at discussing the perceptions of CEOs of construction companies active in construction projects in Iran. As such, the study highlights the standpoint of the main decision makers in construction companies in regards to labour productivity in the construction sector. Thus, the key contribution of the present study is providing insight into the perceptions of CEOs, who play the most vital role in strategic development of construction companies whereas previous studies have mostly focused on project or middle managers having a lower influence in determining the strategic plans of companies.

Getting below the surface of the principal recruitment 'crisis' in New Zealand primary schools

Since 1989 in New Zealand, the work of the primary school principal has been transformed in official policy texts from that of leading professional to chief executive officer. Surveys document the changing nature of the role and the workload and other pressures that have resulted, particularly for principals with teaching responsibilities in smaller schools. There is a generally accepted crisis of preparation, recruitment, development and retention. Below the surface, however, are deeper-seated, structural difficulties: women comprise the majority of teachers, yet are a minority of principals and their career advancement is largely limited to small schools and those in poorer socioeconomic areas. This article reviews the situation and examines the reasons why dominant images of the primary school principalship may be both partial and counterproductive.

Crafting organization

The recent shift in attention away from organization studies as science has allowed for consideration of new ways of thinking about both organization and organizing and has led to several recent attempts to 'bring down' organizational theorizing. In this paper, we extend calls for organization to be represented as a creative process by considering organization as craft. Organizational craft, we argue, is attractive, accessible, malleable, reproducible, and marketable. It is also a tangible way of considering organization studies with irreverence. We draw on the hierarchy of distinctions among fine art, decorative art, and craft to suggest that understanding the organization of craft assists in complicating our understanding of marginality. We illustrate our argument by drawing on the case of a contemporary Australian craftworks and marketplace known initially as the Meat Market Craft Centre ('MMCC') and then, until its recent closure, as Metro! ‡ Stella Minahan was a board member and then the Chief Executive Officer of the Metro! Craft Centre.

Corporate governance, firm characteristics and risk management committee formation in Australian companies

Purpose – The purpose of this paper is to examine how a risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisation's risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant.

Design/methodology/approach – Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, Chief Executive Officer duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and the existence of a RMC, and the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 Australian Stock Exchange (ASX)-listed companies.

Findings – The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity.

Research limitations/implications – Data limited to top 200 top ASX-listed companies, thus restricting generalisability of the results.

Originality/value – The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.

Recruitment and selection of Vice-Chancellors for Australian universities

This study addresses the gap in our understanding of the processes used to recruit and select Vice-Chancellors for Australian Universities. There are presently 39 recognised Universities in Australia and between them they provide the nation with the academically qualified leaders of the future. As such one would expect that not only would they be the vessels of our knowledge, but also that they would be managed and led in ways that were similar to those in use in the private sector. The changes that have taken place in the higher education system have meant that additional pressures have been placed upon the senior executive of each University. The transition from a binary system to the current unified system, the advent of the global community, increased technology and new management practices have created the need for University management to adopt recognised management and leadership practices. The Federal government has moved to reduce the dependence of the system upon recurrent funding and there has been an increase in managerialism within Universities. One outcome has been the need for the Chief Executive Officer (Vice-Chancellor) to develop additional management and leadership skills in order to cope with the changes occurring and the rate of change. In the United States, the selection criteria used to recruit Vice-Chancellors (or University Presidents) have changed to reflect the desire for candidates to have backgrounds in management and leadership. The role of the Vice-Chancellor is critical to the success of educational institutions that are now being managed as autonomous business units responsible for budget, growth, mergers as well as maintaining academic credibility. A literature review revealed that the work undertaken by David Sloper formed virtually our entire knowledge base of Vice-Chancellors in Australia. Sloper identified democratic and incumbency patterns, social characteristics, the legal basis for the role and what incumbents actually do. Thus we know quite a deal about the role and incumbents. However the same literature review showed that while this data existed, it did not extend to the processes that were used within the Higher Education system, to target, identify and select suitable candidates. Clearly there was also no examination as to the effectiveness of such processes or how they could be improved if necessary. Given the importance of Universities in Australia and their role in Higher Education, this lack of knowledge provided the basis for this study and the systematic review of all available data. The study also identified a paradox in addition to the lack of research on recruitment and selection practices in this unique microcosm. The paradox concerns the fact that many of the successful candidates do not come from a ‘business’ discipline as may be expected for a role considered to be the Chief Executive Officer of the institution. Yet in Australia, previous research indicated that the ‘rules’ for recruiting Vice-Chancellors have changed little and that traditionally candidates have come from the science disciplines (Sloper, 1994). While this in itself does not indicate that incumbents are lacking in fundamental management and leadership knowledge and expertise, an obvious question arises. Why are Australian Vice-Chancellors not drawn from faculties where this expertise resides or why are they not drawn from the business community? In order to further examine the processes in place and to a lesser extent the paradox, all available data was collected regarding the roles of Vice-Chancellors, the paths they have taken to the position as well as selection criteria, position outlines, job adverts and related material. This was thoroughly examined and then a brief questionnaire was forwarded to current incumbents and other involved stakeholders. Interviews were conducted to clarify specific issues and case studies prepared accordingly. Thus this qualitative study thoroughly researches the recruitment and selection practices in use, attempts to determine their effectiveness and addresses the paradox in order to provide a detailed framework that allows these elements to be explained.

Problem sexual behaviour in children: a review of the literature

   Although there is an under-acknowledgement of the issue in Australia there is a large body of international scholarship on juveniles who exhibit sexually violent or coercive behaviours toward other juveniles. Research undertaken in the United States and the United Kingdom emphasises options for clinical treatment, the logistics of coordinating multi agency response, and the causes and correlatives for coercive sexual behaviours in adolescents. Much of this literature has tended to focus on adolescents and there is an urgent need for increased studies on young children engaging in problem sexual behaviour.

   The smaller body of work published in Australia also favours adolescents rather than children with much of this work heavily influenced by international clinical studies. There are, however, a handful of reports based on Australian practitioner data that do focus on young children who engage in problem sexual behaviour. This literature surveys and evaluates the very limited number of existing therapeutic programs in Australia, and provides interview data with practitioners working with children exhibiting problem sexual behaviour. In the main, this research reinforces the findings of the internationa scholarship, both in terms of the contributing factors to problem sexual activity in children, but also in terms of the need for multi-faceted and contextually based cognitive behavioural therapeutic programs in response. More importantly, this burgeoning field of study indicates how far we have to go both in understanding the extent of the problem in Australia and in fashioning appropriate programs for prevention and intervention. Dr Joe Tucci is Chief Executive Officer of the Australian Childhood Foundation (ACF), an organisation that has taken a lead in responding to childhood problem sexual behaviour. Tucci et al., (2006) claim an urgent need for investment in a dedicated research and response agenda (Staiger et al., 2005b). To effectively address this issue researchers and practitioners require comprehensive empirical data on problem sexual behaviour in children across all sectors of Australian society, including Indigenous communities.

The determination of CEO pay

This investigation demonstrates that board determination of CEO pay goes beyond financial performance to consider what is considered legitimate remuneration in the context of an informationally efficient CEO pay packet. These decisions are tested in a multi-layered institutionalised environment maintained by the core agency concept of shareholder primacy.

Roles, responsibilities and futures of chief information officers (CIOs) in the public sector

This paper discusses in its entirety, the CIO (Chief Information Officer) position in the public sector. Governments are increasingly adopting Information Technology for internal processes and for the delivery of service to their citizens. It includes literature on CIO roles and responsibilities which is heavily based on the private sector, due to the recognition of the role in this sector over twenty years. The position is just evolving in the public sector, and due to the context in which the public sector operates there are some similarities as well as vast differences. An evaluation of existing CIO models and theories form the basis for research on CIO roles, responsibilities and future within the public sector.

Identifying and developing executive skills

This study aimed to identify those skills which, individually or in combination, contribute to a high standard of management practice by Chief Executive Officers in Australia. Based on an extensive review of the literature, a skill taxonomy was developed to reflect current research findings. Verification of this taxonomy was sought through field questionnaires and depth interviews with male and female CEOs drawn from large and small organisations in both the public and private sectors. This led to a revised skill taxonomy, with 17 skills reflecting three significant categories; understanding and interpreting the external environment understanding and mobilising the internal environment and understanding and mobilising personal resources’ Eight of the skills were identified as key differentiating skills. They are situational, contingent and interdependent They reflect the broad context in which they are applied and their interrelationships in the wider environment. The research then sought to determine how these skills were acquired or developed. The motivation and capacity for continual learning was a key factor. The most effective learning took place in a randomised, unstructured, incremental and integrative fashion. Experiences associated with breadth, diversity, challenge and with reassessing perspectives and personal paradigms were of particular significance. It was found that an ordered, structured and purposive learning approach — as implied by most existing learning models — does not necessarily enhance the acquisition of the key skills; it may well impede their development. This led to the theoretical conclusion that there are three modes of learning relevant to senior executives; instrumental learning (‘learning to do’), systemic learning (‘learning to be’) and meta-learning (‘learning to learn’). The implications are drawn out, with particular reference to the experiences and facilitative organisational environments needed for the development of systemic and meta-learning; the modes considered of most importance if senior executives are to be able to effectively respond to the organisational and environmental challenges they face.