Accounting for Human Rights Violations Risk: Conflict Minerals Mandatory Disclosures under the Dodd Frank Act

This paper examines the equity market response to firms’ disclosure of human rights violation risk with regard to conflict mineral usage as required by Section 1502 of the Dodd-Frank Act (the Act). This paper assesses the aggregate equity market response to regulatory events leading to the passage of the Act, the equity market reaction to voluntary early disclosures and mandatory disclosures of conflict mineral information in Form SD, as well as the determinants of the equity market response. Using a sample of 4,399 US registrants from January 1, 2008 to September 30, 2014, we document a significant negative stock market reaction to the passage of the Act and to conflict minerals disclosures on Form SD. The equity market reaction is more negative and limited to companies that source their minerals from conflict zones, companies with human rights violations, and companies with ambiguous disclosures. Taken together, the results of this study provide an economic justification for companies with poor conflict minerals practices to improve in order to avoid high costs that will arise if firms are forced to disclose human rights abuses. This paper also provides preliminary evidence that Form SD is successful in reducing the governance gap that exposes investors to unnecessary sanction, litigation and reputation risk from firms’ activities in conflict minerals usage.

Le drame social du travail d'escorte indépendante à Montréal

Ce mémoire vise à retracer les carrières des escortes indépendantes montréalaises et les tensions qui les traversent, afin de rendre compte de la complexité du « drame social » que constitue cette activité. Nos résultats montrent que cette profession présente de nombreuses similarités avec d’autres professions, en même temps que sa position particulière dans une matrice sociale stigmatisante et dans une relation de service intime lui confère toute sa singularité. Partie de la question « Comment commence-t-on et poursuit-on dans l’activité d’escorte, alors que celle-ci est stigmatisée ? », nous avons réalisé une enquête de terrain auprès d’escortes indépendantes, composée essentiellement de sept entrevues approfondies et de l’observation de leur environnement professionnel informatisé. Nous avons décidé de nous écarter du débat actuel, tant scientifique que militant, qui divise sur le sujet du travail du sexe. Notre cadre conceptuel est, dans un perspective interactionniste, à la croisée des sociologies des professions, de la déviance et du stigmate. Nous rendons compte de nos résultats sous la forme de quatre actes, afin de poursuivre la métaphore théâtrale engagée par Hughes, qui suivent les étapes d’une carrière d’escorte et qui mettent l’accent sur leur complexité intrinsèque. Ces étapes sont ancrées dans une ambivalence entre un effort de professionnalisation de leur pratique et une tentative de rester dans la norme en se distanciant de cette activité. Cette ambivalence, causée par la matrice sociale dans laquelle évoluent ces escortes et à l’intimité des relations de service, contribue à la pérennité de la stigmatisation de cette activité.

Descripción de la estructura organizacional del área de responsabilidad social de BELCORP

El presente estudio hace referencia al área de Responsabilidad Social Empresarial de una empresa del sector de belleza. En primera instancia se realiza un análisis bibliográfico de la Responsabilidad Social y sus ejes; de esta manera se puede analizar a profundidad cuáles son las condiciones para cumplir con esta importante gestión y cómo realizarla. La estructura organizacional, se define en el presente trabajo para reiterar que la responsabilidad social debe estar inmersa en los objetivos estratégicos de la compañía. Este concepto se establece dentro de la matriz metodológica que permitió avanzar en la investigación; en dicha Matriz se evaluaron cuatro variables: evolución del área, plataforma estratégica de la empresa, división y coordinación del trabajo del área. Después del análisis se evidencia la importancia del involucramiento de todas las áreas de la compañía para lograr ser una empresa socialmente responsable. Este aspecto es fundamental pues integra los grupos de interés generando un beneficio tanto para éstos como para la empresa.

Diseño de la aplicación de la norma ISO 26000:2010 (responsabilidad social), en los principios de direccionamiento estratégico en la Fundación Hospital San Carlos

Este documento contiene el Diseño de Aplicación de la Norma internacional ISO 26000:2010 Modelo de Gestión de Responsabilidad Social en la Fundación Hospital San Carlos, Bogotá - Colombia, en el que se incluye la herramienta que se diseñó para el desarrollo del estudio con base en los requisitos aplicables de la norma que orientan a un comportamiento socialmente responsable; así como el diagnóstico inicial que se realizó en la organización objeto de estudio desde una perspectiva cualicuantitativa, frente a los lineamientos que la norma presenta como elementos esenciales: Principios y Materias Fundamentales. De igual manera y acorde a la metodología que se definió para el estudio que fue observacional de corte descriptivo cualitativo interpretativo, se muestra la matriz DOFA de la institución según el diagnóstico, con el respectivo análisis e interpretación derivados de los hallazgos evidenciados en el proceso de evaluación; en el cual se identificó que la Fundación Hospital San Carlos cumple con un 47,97% de los requerimientos de responsabilidad social según la norma ISO 26000:2010, con el logro de 71 criterios de los 148 evaluados y aplicables a la organización, observándose especial fragilidad en los componentes Fortalecimiento de la Comunidad, Prácticas Laborales, y Transparencia, con un cumplimiento que estuvo por debajo del 50%. Por otra parte y como propósito fundamental del estudio se presenta el diseño propuesto para la aplicación de la norma ISO 26000:2010 en la IPS Fundación Hospital San Carlos, en el cual se registran estrategias y mecanismos que los autores sugieren y recomiendan se deben trabajar para que la implementación de este modelo internacional de Responsabilidad Social, se haga de una manera pragmática y sencilla, que lo conviertan además en un diseño de aplicación de la norma que pueda ser referenciado por organizaciones del sector salud o no, interesadas en trabajar en responsabilidad social empresarial. Para la estructura del diseño de aplicación de la norma y conforme el estudio realizado, se plantean 7 pasos que deben seguir las organizaciones de manera sistemática, metódica y ordenada: comprender la responsabilidad social; reconocer su Responsabilidad Social; levantar una matriz DOFA con base en un diagnóstico institucional; planificar; estructurar y definir de la Responsabilidad Social dentro de la organización; sensibilizar, divulgar y capacitar los estándares de la Norma ISO 26000:2010; documentar el Modelo de Responsabilidad Social; Implementar el modelo de Responsabilidad Social; y monitorear el modelo mediante un mecanismo que integre un sistema de auditoría integral y la revisión de gerencia.

Diagnóstico de las prácticas de responsabilidad social de los contratistas que tienen potenciales impactos en asuntos pertinentes de la Norma ISO26000 para Equion energía

Partiendo de la importancia que ha adquirido la Responsabilidad Social (RS) a nivel mundial y bajo el entendimiento que la cadena de suministro es de importancia para la efectiva ejecución de una política de RS de cualquier organización, en el presente trabajo se pretende realizar un diagnóstico de la RS de los contratistas que tienen potenciales impactos en los asuntos considerados pertinentes por Equión Energía según los lineamientos de la norma ISO 26000. El proceso se centra en Equión Energía, organización petrolera radicada en Colombia con operación de proyectos de exploración y explotación de hidrocarburos en el departamento de Casanare. Para el desarrollo de las actividades la empresa, Equión cuenta con aproximadamente 150 organizaciones contratistas a nivel internacional y nacional. Mediante la realización del diagnóstico a una muestra representativa del grupo de contratistas, el estudio servirá como insumo para definir una ruta de ajuste gradual para promover la RS en la cadena de suministro de Equión. El fin último del ajuste es mejorar la gestión de la RS en los procesos de compras y contratación, contribuyendo así, con el cumplimiento de la misión y visión de la compañía donde se espera que la organización contribuya con el desarrollo sostenible de la región donde opera y del país.

Estructura organizacional del área de responsabilidad social de Pacific E&P

Este artículo tiene como objetivo describir la estructura del área de Responsabilidad Social de Pacific E&P, mediante un proceso que explique el funcionamiento y desarrollo de la estructura de RSE. Este trabajo se desarrolla bajo una matriz estratégica la cual incluye variables como: evolución del área (historia), plataforma estratégica (plan de acción que desarrolla una ventaja competitiva de la empresa), división del trabajo (Fragmentación de trabajo y especialización entre sus fuerzas laborales) y por último la coordinación del trabajo (sincronización de fuerzas laborales). Los resultados que se obtienen de este estudio mostrarán las distintas unidades de trabajo de la organización y la forma de trabajar de la misma, bajo el marco de la Responsabilidad Social Corporativa.

A matrix iteration for dynamic network summaries

We propose a new algorithm for summarizing properties of large-scale time-evolving networks. This type of data, recording connections that come and go over time, is being generated in many modern applications, including telecommunications and on-line human social behavior. The algorithm computes a dynamic measure of how well pairs of nodes can communicate by taking account of routes through the network that respect the arrow of time. We take the conventional approach of downweighting for length (messages become corrupted as they are passed along) and add the novel feature of downweighting for age (messages go out of date). This allows us to generalize widely used Katz-style centrality measures that have proved popular in network science to the case of dynamic networks sampled at non-uniform points in time. We illustrate the new approach on synthetic and real data.

Social and environmental report assurance: some interview evidence

The steady growth of social and environmental reporting (SER) is being accompanied by an increase in social and environmental reporting assurance (SERA). The existing literature on SERA suggests that it is necessary to build credibility and trust among corporate stakeholders. Prior work has also found evidence of managerial and professional capture of SERA. In this paper, we present empirical evidence from interviews with corporate social responsibility representatives from 20 UK listed companies on whether they consider SERA to be necessary. We believe this to be the first research into SERA that uses an interview method. Our interviews revealed mixed feelings. Half of the respondents believed that external SERA would enhance credibility and trust which confirmed the prior literature. However, the other half believed that external SERA was not necessary, believing that internal assurance was sufficient. This was because they saw SERA as predominantly a managerial tool, useful for checking the efficiency of internal management control systems, rather than as a mechanism for enhancing corporate accountability to stakeholders and building credibility and trust. The potential for SERA to be a mechanism whereby greater dialogue is created between companies and their stakeholders on social and environmental issues is not being harnessed. This paper thus demonstrates a fundamental difference between the external prior normative literature and the managerial motivation in the SERA area.

Stakeholder inclusivity in social and environmental report assurance

Purpose – The purpose of the research was to discover the process of social and environmental report assurance (SERA) and thereby evaluate the benefits, extent of stakeholder inclusivity and/or managerial capture of SERA processes and the dynamics of SERA as it matures. Design/methodology/approach – This paper used semi-structured interviews with 20 accountant and consultant assurors to derive data, which were then coded and analysed, resulting in the identification of four themes. Findings – This paper provides interview evidence on the process of SERA, suggesting that, although there is still managerial capture of SERA, stakeholders are being increasingly included in the process as it matures. SERA is beginning to provide dual-pronged benefits, adding value to management and stakeholders simultaneously. Through the lens of Freirian dialogic theory, it is found that SERA is starting to display some characteristics of a dialogical process, being stakeholder inclusive, demythologising and transformative, with assurors perceiving themselves as a “voice” for stakeholders. Consequently, SERA is becoming an important mechanism for driving forward more stakeholder-inclusive SER, with the SERA process beginning to transform attitudes of management towards their stakeholders through more stakeholder-led SER. However, there remain significant obstacles to dialogic SERA. The paper suggests these could be removed through educative and transformative processes driven by assurors. Originality/value – Previous work on SERA has involved predominantly content-based analysis on assurance statements. However, this paper investigates the details of the SERA process, for the first time using qualitative interview data.

Satanic Mills? An illustration of Victorian external environmental accounting

The paper evaluates a Victorian environmental account of the pollution of the River Wandle. This account was produced during a period of social and environmental crisis, when there were no significant industrial environmental regulations. This problematising external environmental account provides valuable insights into the historical development of social and environmental accounting. Our analysis located this account within an institutional reform programme to create systems of governance to mitigate the damage arising from unfettered industrial growth. We argue that problematising external environmental accounting has a longer tradition than previously recognised in the literature and predates corporate social and environmental reporting.

Impression management, myth creation and fabrication in private social and environmental reporting: insights from Erving Goffman

This paper explores the nature of private social and environmental reporting (SER). From interviews with UK institutional investors, we show that both investors and investees employ Goffmanesque, staged impression management as a means of creating and disseminating a dual myth of social and environmental accountability. The interviewees’ utterances unveil private meetings imbued with theatrical verbal and physical impression management. Most of the time, the investors’ shared awareness of reality belongs to a Goffmanesque frame whereby they accept no intentionality, misrepresentation or fabrication, believing instead that the ‘performers’ (investees) are not intending to deceive them. A shared perception that social and environmental considerations are subordinated to financial issues renders private SER an empty encounter characterised as a relationship-building exercise with seldom any impact on investment decision-making. Investors spoke of occasional instances of fabrication but these were insufficient to break the frame of dual myth creation. They only identified a handful of instances where intentional misrepresentation had been significant enough to alter their reality and behaviour. Only in the most extreme cases of fabrication and lying did the staged meeting break frame and become a genuine occasion of accountability, where investors demanded greater transparency, further meetings and at the extreme, divested shares. We conclude that the frontstage, ritualistic impression management in private SER is inconsistent with backstage activities within financial institutions where private financial reporting is prioritised. The investors appeared to be in a double bind whereby they devoted resources to private SER but were simultaneously aware that these efforts may be at best subordinated, at worst ignored, rendering private SER a predominantly cosmetic, theatrical and empty exercise.

Rhetoric in international standard setting process: constructing accounting reality

The paper seeks to explore in depth the ways in which rhetorical strategies are employed in the international accounting standard setting process. The study proposes that rather than simply detailing new accounting requirements, the texts and drafts of accounting standards are artefacts, i.e. deliberately and carefully crafted products, that construct, persuade and encourage certain beliefs and behaviours. The persuasive and constructive strategies are also employed by the constituents submitting comment letters on the regulatory proposals. Consequently, the international accounting standard setting process is an ‘interactive process of meaning making’ (Fairclough, 1989). The study regards accounting as a social construct based on intersubjectivity (Searle, 1995; Davidson, 1990, 1994) and posits language as a constitutive factor in the process (Saussure, 1916; Peirce, 1931-58). This approach to the use of language and the role of rhetoric as a persuasive tool to convince others to our perception of ‘accounting reality’ is supported by the sociological work of Bourdieu (1990, 1991). Bourdieu has drawn our attention to how language becomes used, controlled, reformed and reconstituted by the social agents for the purposes of establishing their dominance. In our study we explore in particular the joint IASB and FASB proposals and subsequent regulations on the scope of consolidation and relevant disclosures that address issues of off-balance sheet financing, a subject that is very timely and of great topical importance. The analysis has revealed sophisticated rhetorical devices used by both the Boards and by the lobbyists. These reflect Aristotelian ethos, pathos and logos. The research demonstrates that those using accounting standards as well as those reading comment letters on the proposals for new standards should be aware of the normative nature of these documents and the subjectivity inherent in the nature of the text.

Impression management, fabrication and myth creation in private social and environmental reporting: insights from Erving Goffman

This paper explores the nature of private social and environmental reporting (SER). From interviews with UK institutional investors, we show that both investors and investees employ Goffmanesque, staged impression management as a means of creating and disseminating a dual myth of social and environmental accountability. The interviewees’ utterances unveil private meetings imbued with theatrical verbal and physical impression management. Most of the time, the investors’ shared awareness of reality belongs to a Goffmanesque frame whereby they accept no intentionality, misrepresentation or fabrication, believing instead that the ‘performers’ (investees) are not intending to deceive them. A shared perception that social and environmental considerations are subordinated to financial issues renders private SER an empty encounter characterised as a relationship-building exercise with seldom any impact on investment decision-making. Investors spoke of occasional instances of fabrication but these were insufficient to break the frame of dual myth creation. They only identified a handful of instances where intentional misrepresentation had been significant enough to alter their reality and behaviour. Only in the most extreme cases of fabrication and lying did the staged meeting break frame and become a genuine occasion of accountability, where investors demanded greater transparency, further meetings and at the extreme, divested shares. We conclude that the frontstage, ritualistic impression management in private SER is inconsistent with backstage activities within financial institutions where private financial reporting is prioritised. The investors appeared to be in a double bind whereby they devoted resources to private SER but were simultaneously aware that these efforts may be at best subordinated, at worst ignored, rendering private SER a predominantly cosmetic, theatrical and empty exercise.