Peter A. Stanwick

The Relationship Between Corporate Social Performance, and Organizational Size, Financial Performance, and Environmental Performance: An Empirical Examination

The purpose of this study is to examine the relationship between the corporate social performance of an organization and three variables: the size of the organization, the financial performance of the organization, and the environmental performance of the organization. By empirically testing data from 1987 to 1992, the results of the study show that a firms corporate social performance is indeed impacted by the size of the firm, the level of profitability of the firm, and the amount of pollution emissions released by the firm.

The relationship between environmental disclosures and financial performance: an empirical study of US firms

The purpose of this study is to examine the current practices of relatively large corporations concerning the relationship between environmental disclosures and financial performance. An examination of 469 firms listed in the 1994 Forbes 500 was conducted. The results showed that firms classified as high financial performers had higher incidences of environmental policies and/or descriptions of environmental commitment than firms classified as low performers. Firms classified as medium financial performers had the highest incidences of firm environmental policies and/or a description of their environmental commitment. Copyright

Mental imagery: An alternative to top management team replacement for declining organizations

The role of managerial cognitive processes has so far been largely neglected within strategy research which examines organizational decline and recovery. Proposes that heuristics used by managers such as: availability, representativeness, adjustment and anchoring may contribute to the declining performance of the organization. Suggests that mental imagery could be used to adjust these heuristics and change the cognitive processes of the existing managers instead of replacing the top management team in declining organizations. This change in cognitive processes could help increase the ability of a declining firm to improve its performance.

CEO and ethical reputation: visionary or mercenary?

This study examines the relationship between ethical reputation, CEO compensation and firm performance for the top corporate citizens as rated by Business Ethics magazine. The results show that there was not a direct relationship between CEO compensation and firm performance, that a high level of CEO compensation combined with a high ethical reputation did not impact the financial performance of the firm, and firms with a high ethical reputation had only average financial results, while firms with low ethical reputations displayed both high and low financial performance. Furthermore, CEOs of unfirms had, on average, higher compensation levels than firms that were profitable. These findings bring useful inputs for CEO on how they can justify high levels of compensation even during periods when the firm is not profitable or has a low level of profitability. An interesting sidelight of the study is that three CEOs in the sample whose firms were profitable did not accept any compensation during 2002, probably because the financial performance was below expectations.

A descriptive analysis of environmental disclosures: A study of the US Chemical Industry

An empirical study was conducted to examine the nature of environmental disclosures of 29 firms in the chemical industry. From the examination of over 3700 disclosures, the results show that the type of disclosures presented across firms and across industries varied based on a number of factors. The disclosures were analyzed based on medium, focus, channel of communication, time span, subject and environmental regulation. The results showed that the majority of the disclosures were found in the press, presented current environmental issues, were non-technical in nature, were qualitative in nature and dealt with pollution and environmental expenditure issues.

Backdated Stock Options and Boards of Directors: An Examination of Committees, Structure, and Process

Manuscript Type: Empirical. Research Question/Issue: In this study, we investigated the effects of several factors related to nominating and compensation committee structure and process on the likelihood of employing backdated stock options. Research Findings/Insights: To test our hypotheses, we selected a sample of US firms that had been investigated for backdating stock options and a control group of similar sized US firms from the same industry that had not been investigated for backdating. Using an agency perspective, we found that when compared to companies within the same industries, firms using backdated stock options did not tend to utilize nominating committees, and structured their compensation committees so that they are smaller, and meet less frequently. We also found that their CEOs are more generously compensated. Consistent with agency theory, these findings indicate that companies using backdated stock option may possess compromised monitoring and incentive alignment mechanisms. Theoretical/Academic Implications: Despite being one of the most dominant management theories in recent history, little empirical evidence supports the validity of agency theory. In contrast to studies producing results calling into question the value of agency theory, we found significant results with regard to understanding the conditions under which agency problems might be promulgated. Also, our study contributes to the understanding of corporate governance by examining a variety of possible antecedents to the practice of backdated stock options and how boards and committees may be constructed to more effectively reduce the agency problem. Practitioner/Policy Implications: Our results provide important evidence concerning factors or situations associated with backdating, which will be instructive in designing remedies to curb such practices in the future. In particular, to reduce the likelihood of dating schemes such as backdated stock options, firms should consider utilizing nominating committees, and constructing committees with more members and requiring frequent meetings so that directors can be better positioned for the effective execution of their monitoring responsibilities of management.

Protecting your company with a comprehensive code of ethics

The SEC and others have begun a crackdown on unethical corporate behavior. To protect your company, its time to think about setting up a comprehensive code of ethics.

Using OSHA's Voluntary Protection Program to improve financial performance

Many companies are reducing costs by adopting OSHAs Voluntary Protection Program (VPP). The authors explain VPP, give examples of benefits to companies, and discuss how to apply for the program.© 1998 John Wiley & Sons, Inc.

How to successfully merge two corporate cultures

Many mergers fail when corporate cultures clash. But how do you integrate two companies with very different traditions?

How wellness programs can boost the bottom line through employee involvement

More and more firms are adopting health promotion programs. They reduce costs, and increase employee productivity. The authors review the types of programs companies are offering, discuss the pros and cons, and note some of the best programs available today. They also offer helpful advice for implementing a wellness program. ©1999 John Wiley & Sons, Inc.