Maria Aluchna

Does good corporate governance matter? Best practice in Poland

Purpose – The purpose of this paper is to investigate the relationship between compliance with corporate governance best practice and corporate performance within Poland.Design/methodology/approach – The analysis is based on the regression of corporate governance compliance rating and corporate performance on a sample of Polish public listed companies for years 2004‐2006.Findings – The research indicates that complying with corporate governance best practice in Poland is associated with lower return on investment (the whole sample). However, the tendency changes into negative but statistically insignificant for the second and third years, and positive but statistically insignificant when only rated companies are included in the research sample. The relationship between proxy of Tobins q and corporate governance rating remains statistically insignificant and is negative for the whole sample and positive for first and third year as well as for rating companies.Research limitations/ implications – The next ...

Corporate social responsibility of the top ten: examples taken from the Warsaw Stock Exchange

Purpose - The paper aims to attempt to track the corporate social responsibility (CSR) practice of the ten largest Polish listed companies. The CSR activity of the top ten companies may not only help to solve or ease several social problems, but it could also increase the awareness among Poles and contribute to the rebuilding of a civic society. Design/methodology/approach - The paper analyzes CSR policies in Poland using the case of the ten largest (in terms of market capitalization) companies listed on the Warsaw Stock Exchange. The analysis covered the CSR (programs), reporting (web site) and the business strategy with reference to CSR. Findings - The collected evidence suggests that the ten largest Polish companies present a passive approach to CSR activities. The majority of these companies are involved in charities and provide money for a given group of people. A more proactive approach of delivering solutions to social problems is definitely less common. The widely defined sponsoring, targeting different areas and groups remain the most popular CSR activity. Research limitations/implications - The analysis covers only the ten largest Polish listed companies. Further research should also refer to other listed companies as well as small and medium companies. Originality/value - The paper discusses the CSR activities of the largest listed Polish companies and refers these initiatives to the main social challenges resulting from the transition process, the implementation of a liberal economic policy and state withdrawal in the case of a weak and inefficient state and institutions and the lack of a civic society.

Is Corporate Social Responsibility Sustainable? A Critical Approach

Corporate social responsibility remains one of the most researched theme in management literature. Addressing the changing role of the company in society and economy the numerous studies refer both to the development of the theoretical framework as well as the empirical analyses. The CSR literature reflects the responsibilities, accountability and dialogues between company and different of empowered stakeholders. Undoubtedly, the concept has been intensively elaborated in the recent years resulting in the emergence of the business case for CSR, practical implementation and further development of the concept. Yet both dimensions of theory and practice face significant limitations raising as the a series of questions on the sustainability of the concept and reflects on the companies’ selective address to the scope and size of CSR activities. This chapter attempts to identify the gaps in the theoretical conceptualization and methodological regime of CSR pointing at some limitations or contradictions in the management literature. It also confronts the existing theory with the practice discussing the main shortcomings in the process of the concept implementations.

Transition in Poland: Economic Success and Social Failure?

Purpose - The paper seeks to focus on the results of Polands transition from central planning to market economy and from communist regime to democracy. It attempts to answer the question of fulfilling the transitions aims and expectations, identifying main successes and failures observed in Poland today. Design/methodology/approach - The paper is based on the literature review of the socialistic states and transition processs main characteristics and a set of data and research provided by institutions and centres illustrating the current stage of economic and social development in Poland. The analysis uses statistical data comparing the pre-transition period with the economic and social indices for 2006. Findings - The evidence collected during 18 years of transition process and data on the current situation provide a unique opportunity to test whether the formulated goals were achieved. The analysis reveals substantial improvement in all economic indicators referring to macroeconomic stability, inflation and growth rates and private sector activity, while the social conditions related to unemployment and recent emigration to Western Europe, income distribution, homelessness and poverty ratios remain disappointing. Research limitations/implications - The paper presents the current stage of Polish society and economy, not discussing the problems of other CEEC countries that underwent a transition process in 1989 (Czech Republic, Slovakia, Hungary). Moreover, the economic and social development remains highly dynamic, particularly due to substantial EU funds currently invested in Poland. Since the analysis is based on data 1989-2006 one may expect changes in Polands society and economy in the very near future. Practical implications - The paper points up the difficulty of formulating the agenda of the transition process which would assure balancing of the economic as well as social goals. Moreover, it suggests that institutions and systems building seems to be easier, while transition sets significant challenges for society and its ability to adjust to new conditions. Originality/value - The analysis sheds light on the discussion of the states orientation towards social responsibility on a macro scale, since the impact and strategies of state formulate patterns and a regulatory framework for the corporate legal environment (e.g. working conditions), rules of behaviour and business practice.

The Bermuda Triangle: The Interdependence of Social, Governance and Environmental Challenges to Sustainable Development

Companies operating on the stock market face many challenges which may hamper their growth and development. They need to take into account the impact of the globalization and internationalization processes which provide as many opportunities (access to labor, customers and resources) as well as threats (hyper competition, quest for innovation and lower costs). The business environment is characterized by the unprecedented scope and frequency of changes rooted in technology (ICT), the specific market structure (consolidations, severe competition), the changing sociology and demographics as well as current inefficiencies related to the financial crisis. Besides, these problems companies also need to incorporate other areas of constrains for their daily operations as well as strategic development which result from the extensive use of natural resources, industry impact on the environment, plundering consumption, inefficient waste management and risks of energy, clean water and clean air shortage as well as devastation of fauna and flora. Recent years have brought about significant adverse impacts on the natural environment to such an extent that they have resulted in a reduction in quantity and quality of natural resources which has severe impacts in the companies’ operations.

Employee Volunteering as an Element of Corporate Social Responsibility: The Evidence from Polish Listed Companies

The concept of CSR is implemented into business practice with the use of different operational and strategic schemes such as environmental protection actions, education and information initiatives, social dialogue programs. The interest in CSR and employees’ engagement in management pictures the shift in the role of companies in society and economy. It also represents significant changes in perception of companies’ dedication to their social performance, stakeholder policy and social dialogue. Employee volunteering is an essential important component of CSR and an important theme in management studies as well as in corporate activities. The paper delivers the review of the literature on employee volunteering and discusses its programs in companies as a component of CSR pointing out standards and recommendations for their implementation. The paper also provides results of the qualitative research on employee volunteering activities undertaken by the 30 largest public listed companies in Poland addressing the issues of employee participation in management and governance. It discusses the employee volunteering policy and programs adopted by listed companies referring them to the post-socialist and post transition reality of Poland.

Corporate Social Responsibility in Poland: From the Perspective of Listed Companies

Corporate social responsibility is defined as a concept “whereby companies integrate social and environmental concerns on their business operations and in their interaction with their stakeholders on a voluntary basis” (European Commission Green Paper. Promoting a European framework for Corporate Social Responsibility, COM 366, final, http://eur-lex.europa.eu/LexUriServ/site/en/com/2001/com2001_0366en01.pdf, 2001; Neal Comparative Labor Law and Policy Journal 29:459–474, 2008) to achieve long term sustainable growth and development. Its practical dimensions range from the regulatory framework and stakeholders activity to corporate programs and initiatives. As the CSR fundamental assumptions are addressing the practice of companies, the response of the business appears to be crucial for the successful implementation and effectiveness of this concept. The paper presents the results of the qualitative research on the CSR practice implemented in Polish companies listed on the Warsaw Stock Exchange. The analysis is based on the case studies of policies and programs adopted by companies included the CSR rating known as RESPECT Index and compared to their peers operating in the same industries not covered by the benchmark. The goals of the research are to identify main differences in the two sample groups of companies (if there are any) with respect to CSR initiatives, reporting and stakeholder dialogue as well as to trace the changes in the CSR policies observed within the 5 years of 2007–2011. The paper presenting the Polish experience attempts to address the issues of CSR in emerging/transition economy where the state is weaker and its interventions appear to be rare suppressed by the corporate activities.

Sustainable Business Models: The Case of the Collaborative Economy

The growing power of stakeholders and the awareness of social and environmental issues in economic activity change the way business is done. Facing social and regulatory pressure companies incorporate stakeholder expectations in their strategic thinking and business operation. The need to combine financial, social and environmental performance leads to the transition of traditional business towards sustainable, resource-efficient and low-carbon economy. Such changes are also the impulse for organizational and business innovation and in line with the new developments in the institutional environment result in the emergence of new business models . We would like to add to this literature delivering an analysis of the business models of companies which adopt the logic of sustainability and collaborative economy. We propose that the sustainable business model follows the framework of: building stakeholder capital through inclusiveness, fostering innovation to address social or environmental challenges and focusing on at least 1 of 17 UN sustainable development goals (SDGs). Additionally, the sustainable company adopts ethical infrastructure to assure high integrity while improving social, environmental and financial performance. In this chapter we analyze selected companies operating in four different sectors addressing these five dimensions identifying key components of sustainable business models. We also address the issues of balancing these requirements and indicate the potential conflicts between social, environmental and financial goals.

Institutional isomorphism and corporate social responsibility: towards a conceptual model

Purpose: The paper proposes the conceptual framework for understanding the impact of corporate social responsibility (CSR) on companies viewed as the source of institutional pressure. According to the neo-institutional approach the response to institutional change leads to the organizational isomorphism, which means that companies adopt new rules and design and in result become similar following the same managerial practice. The adoption of new designs and practice represents the case of the diffusion and institutionalization of change in formal organization structure. Methodology/approach: The study is of theoretical character. It adopts the contribution proposed by the neo-institutional theory and CSR literature. Findings: The paper ties diffusion process of different CSR modes – defensive, charitable, promotional, strategic, systemic – and strategies with three isomorphism mechanisms - mimetic, coercive and normative. Further the study outlines future research opportunities. Practical implications: We argue that the most mature CSR practice represented by systemic mode is institutionalized from within organization through normative isomorphic pressures rather than as a result of coercive power or mimetic efforts.

Corporate Governance Best Practice: Tasks and Shortcomings

The shortcomings and inefficiencies of corporate governance are intended to be mitigated by the implementation of codes of best practice. While internationally the codes cover similar set of recommendations on board work, transparency, investor protection and empowerment as well as cooperation with various stakeholders, the adoption and factual compliance with these guidelines remains an issue. The instrumental treatment of the recommendations and the superficial explanations for non-compliance limit the impact of this form of self-regulation.