Although board expertise has been identified as an important determinant of board performance, some surveys are still reporting that the overall level of board expertise is…
Abstract
Purpose
Although board expertise has been identified as an important determinant of board performance, some surveys are still reporting that the overall level of board expertise is insufficient to carry out current and emerging roles. Consequently, companies must ensure that board members have the required skills and knowledge. This study aims to examine three board processes aimed at developing and improving board expertise.
Design/methodology/approach
Based on disclosures in the corporate governance guidelines of 100 leading US companies, the study focuses on three board processes, i.e. director nominations, orientation and education programs, and board performance evaluations.
Findings
Based on the initial findings, it is found that most companies in the sample were in compliance with stock exchange requirements and provided information on director nominations, orientation and education programs and board performance evaluations. All too often, however, the companies disclosed generic, non‐specific information; this provides little reassurance that the proper processes are in place to promote companies' long‐term interests.
Research limitations/implications
By examining these key board processes, the paper contributes to the governance literature by providing empirical evidence on this important topic and offering guidance to companies examining board processes aimed at improving directors' overall expertise.
Originality/value
By focusing on disclosures in corporate governance guidelines, the authors also gain insight into decisions made by companies under increased pressure from securities regulators and other stakeholders to provide increased transparency on governance issues.
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Amid ongoing criticism that corporate boards do not receive adequate information to help them fulfill their current and emerging roles, the purpose of this paper is to focus on…
Abstract
Purpose
Amid ongoing criticism that corporate boards do not receive adequate information to help them fulfill their current and emerging roles, the purpose of this paper is to focus on the type of information directors receive. Specifically, to examine whether greater board independence and greater board expertise were associated with receiving more information, in five specific categories.
Design/methodology/approach
Hypotheses about the relationships between the composition of corporate boards and the various types of information they receive were tested by means of a survey of 161 Canadian companies listed on the Toronto Stock Exchange.
Findings
The authors findings indicate a strong association between board expertise and each type of information received and suggest a weaker relationship between board independence and information received. Specifically, the results demonstrate that more independent boards do not receive larger amounts of information that is more forward‐looking in nature.
Research limitations/implications
These findings contribute to the literature on governance by providing relevant empirical evidence, based on primary data on board information issues. However, these results must be interpreted within the context of the use of various perceptual measures.
Practical implications
Now that the composition of corporate boards has changed considerably, the findings of this study underline the need to re‐examine the supporting information processes. Hence, this study should help provide guidance to organizations examining the content of their current information strategy.
Originality/value
An important contribution of this study is its detailed characterization of the information provided to corporate boards, including financial and non‐financial information and reflecting the five traditional stages of the strategic management process.
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Marie‐Josée Roy, Olivier Boiral and Pascal Paillé
The aim of this study is to focus on manufacturing small to medium‐sized enterprises (SMEs) that are simultaneously pursuing quality and environmental objectives. Specifically…
Abstract
Purpose
The aim of this study is to focus on manufacturing small to medium‐sized enterprises (SMEs) that are simultaneously pursuing quality and environmental objectives. Specifically, the paper examines: the specific motivations and resources of SMEs that have chosen to pursue both priorities, the types of initiatives these SMEs have implemented, and whether pursuing both priorities is correlated with various facets of organizational performance.
Design/methodology/approach
This study gathered data from a sample of 254 ISO 9000 and ISO 14000 certified Canadian SMEs. Data collection was based on a survey questionnaire sent to a random sample of 1,514 companies.
Findings
The results highlighted significant differences between the SMEs holding both the ISO 9000 and 14000 certifications and those holding only the 9000 ISO certification. Each group was shown to have distinct motivations and resources and to have implemented different types of initiatives to address environmental concerns. Each group was positively correlated with different facets of organizational performance.
Research limitations/implications
This study's findings contribute to the environmental and SME literature on this very complex topic by providing relevant empirical evidence based on primary data.
Practical implications
The results should provide guidance to manufacturing SMEs currently examining how to address environmental issues. SMEs need to address these issues carefully and understand the potential trade‐offs and consequences associated with their decisions.
Originality/value
An important contribution of this study is its detailed characterization of environmental initiatives, drawing on insights derived from the environmental, accounting and management literature. By using the analytical framework of organizational citizenship behaviours, the characterization also included informal and behavioural aspects often neglected in environmental management studies.
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Marc J. Epstein and Marie‐Josée Roy
Concerns for improving governance have focused attention on the role of boards of directors in evaluating the performance of the CEOs. There have been numerous discussions about…
Abstract
Purpose
Concerns for improving governance have focused attention on the role of boards of directors in evaluating the performance of the CEOs. There have been numerous discussions about how performance and strategic management systems aid in the evaluation and implementation of strategy and improve corporate performance. However, the value of those systems to boards of directors has not been extensively discussed. The purpose of this article is to describe the use of non‐financial metrics for CEO performance evaluations and offer specific guidance as to how boards of directors can design a performance measurement system that provides a sound basis for evaluating CEO performance.
Design/methodology/approach
The sample for this study was drawn from Fortune magazine's America's Most Admired Companies industry list. Compensation committee reports found in 59 proxy statements were examined.
Findings
Although there are a growing number of companies using non‐financial metrics, results confirm that CEOs are primarily evaluated on financial criteria, indicating a narrow definition of corporate performance. Few attempts are made to ascertain and disclose the appropriateness of the performance measures and to demonstrate how these measures are consistent with the company's vision, mission, and strategies for long‐term performance success.
Originality/value
While some surveys have investigated the growing trend of using non‐financial criteria, in this survey, these criteria are examined in the context of a multidimensional performance evaluation system. Also, a framework for improving the measurement and performance of CEOs is presented. This is an important part of an overall program that should be in place to improve overall corporate governance.
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Purpose – As corporations and capital markets become more global, it is increasingly important to understand the differences in corporate governance practices.Approach – This…
Abstract
Purpose – As corporations and capital markets become more global, it is increasingly important to understand the differences in corporate governance practices.
Approach – This chapter provides a framework for the implementation of corporate governance that can be used globally for study and adaptation. It also describes three corporate governance systems (Anglo-American, Communitarian, and Emerging Markets) and provides an analysis and comparison of how the framework for corporate governance is applied differently, and how success should be evaluated differently, in these three systems. Lastly, it considers the possibility of convergence toward a global system of corporate governance.
Practical implications – There is significant heterogeneity in corporate governance worldwide but there are universal aspects, such as roles, responsibilities, inputs, and processes, which result in effective corporate governance. Understanding the similarities and differences enables researchers and managers to work with multiple systems in different countries where corporations and stakeholders have varying objectives, structures, and internal and external determinants.
Value of chapter – This chapter presents a comparison of the three systems that is critical for further study of global practices. Additionally, the internal and external determinants that impact the varying corporate governance systems are analyzed to more carefully consider the performance measures that account for differences in objectives, motivations, and performance.
Olivier Boiral and Marie‐Josée Roy
The purpose of this paper is to present the results of an empirical study of the impact of motivational factors underlying ISO 9000 certification on several aspects of…
Abstract
Purpose
The purpose of this paper is to present the results of an empirical study of the impact of motivational factors underlying ISO 9000 certification on several aspects of organizational performance.
Design/methodology/approach
An extension of a typology based on motivational factors is proposed and four integration rationales (quality enthusiasts, ISO integrators, ritual integrators, and dissidents) are exposed. The paper then evaluates how each of these four rationales related to potential organizational problems and benefits. Various statistical analyses were conducted on data obtained from a sample of 872 certified Canadian firms. A factor analysis was completed to develop an instrument allowing to develop a typology distinguishing between the four integration rationales.
Findings
The results demonstrate that the nature and intensity of motivations behind a decision to adopt the ISO 9000 standard play a key role in the success of the implementation process and the emergence of organizational problems arising from certification.
Research limitations/implications
The main contribution of the study was to develop a typology of certified organizations based on a theoretical framework explaining some paradoxes and pervasive effects of ISO 9000 adoption.
Practical implications
The typology helps characterize certified firms and anticipate potential consequences ancillary to the certification process; it can assist firms in evaluating whether they should go forward with the certification process.
Originality/value
Contrary to many studies focusing on traditional performance criteria only, this study sheds light on organizational problems and the possible ineffectiveness of ISO 9000 certification depending on their integration rationale. This approach led to a more comprehensive and tempered vision of ISO 9000 impacts.
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Elena Laroche and Marie-Josée Patoine
Research findings stress the importance of adapting prevention mechanisms to the contexts experienced in the workplace. This paper presents the development and implementation of a…
Abstract
Purpose
Research findings stress the importance of adapting prevention mechanisms to the contexts experienced in the workplace. This paper presents the development and implementation of a knowledge portal that includes a range of Internet-based resources to support the prevention measures implemented by occupational health and safety (OHS) union delegates. It describes the process used to develop a knowledge portal that takes into account the needs of communities and unions as well as the constraints expressed.
Design/methodology/approach
The approach chosen for this project was action research, in which data collection results in various readjustment loops that allow for reflection and situational assessment. Data were collected from documentation, meetings, questionnaires and focus groups. The readjustment loops led to the implementation of a solution based on sustainability.
Findings
After studying the context, needs and constraints, the results suggest that for a knowledge portal to stand out, it must be consistent with classroom training, include a pedagogical approach that facilitates the transfer of knowledge, be interesting to all workers, be able to adapt to the characteristics of users and use technologies that reach across time, space and connection tools.
Originality/value
This knowledge portal is the result of interactions and collaborations between the university and the community, an interesting way to develop a solution. It sheds light on the fact that the action research process needs to be documented throughout the process and creation cycles in order to facilitate the sharing of the results obtained.