Knowledge Transfer between For‐Profit Corporations and Their Corporate Foundations

This article investigates the impact of knowledge transfer (Goh 2002) from founder firms to the corporate foundations (CFs) on the CFs’ effectiveness. Starting from a typology of CFs’ effectiveness (Ostrower 2006a), we conducted a survey addressed to a sample of Italian CFs to address the impact of different knowledge transfer methods (KTMs) on three dimensions of CFs’ orientation to effectiveness: proactive orientation, social advocacy, and capacity building. The research identified four different KTMs and, using a linear regression, pointed out that the methods adopted by founder firms have a significant influence on proactivity, competences, and on social advocacy of CFs.     

Social Media Management

Do foundations effectively use social media to engage stakeholders? Do usage and engagement vary by foundation type? This article has been written to stimulate discussion and research about social media use and user engagement by foundations beyond measuring social media presence. We analyzed Facebook usage and stakeholder engagement for three types of foundations: community, corporate, and independent grant‐making foundations. We found that although community foundations are more likely to have a social media presence, corporate and independent foundations are more likely to use Facebook and to effectively engage stakeholders. Findings illuminate the need to understand social media usage and engagement in addition to presence. We discuss potential benefits of social media use and provide practical communication management recommendations for nonprofit practitioners.     

The role of non-profit corporate foundations in Korea: Positive and negative perspectives

There are two opposing views on the role of private foundations, especially the corporate foundations. Korean people seem to think that corporate foundations have been used as a device to transfer the wealth of rich families with favourable tax treatment. Considering the curret status and past performance of corporate foundations, the evidence seems to lend support to this negative view at the moment. The corporate foundations have performed within a very limited range of activities and have not made many efforts to develop non-profit activities to meet the expectations of Korean society. The negative view does not imply that corporate foundations have not contributed to Korean society. But the negative view can be regarded as a criticism of the past performance of corporate foundations and the way they have been managed. Prepared for presentation at the Third International Conference of Research on Voluntary and Non-Profit Organizations, sponsored by Indiana University Centre on Philanthropy, March 1992.     

The complexity of diversity and importance for equitable philanthropy

The current U.S. climate of racial and social injustice has prompted a renewed call for diverse and equitable ways to rethink community philanthropy. Community foundations are vehicles for community philanthropy which offer vast benefits for social improvement and community development. The board of directors ensures these organizations fulfill their mission, making decisions on funding priorities and holding the organization functionally and fiscally responsible. Drawing on constructs of diversity and representative bureaucracy and a case study of Florida community foundations, we suggest that diversity is understood in different ways and the presence of diverse board members may be linked to advancing the interests of diverse communities and in achieving outcomes that assist in the needs of certain social groups. Increased understanding of diversity can improve foundation and philanthropic effectiveness and bring broader social change by promoting equity and social justice among community‐based philanthropic organizations.     

Baoren Baoguo: Zhongguo Xinwenshi De Lingyizhong Dufa [To Serve the Nation: Journalists as Prisms of Chinese Press History] edited by CHIN-CHUAN LEE

Social networking sites (SNS) have become an important vehicle for corporate communication. However, there has been little research on how East Asian firms use international SNSs to communicate with global stakeholders. This study compares the communication strategies of Chinese and Japanese companies on Facebook and Twitter and analyzes the public responses and complaints on these corporate SNSs. The results revealed that in addition to the traditional strategies of corporate ability (CA) and corporate social responsibility (CSR), Chinese and Japanese firms adopted the human interest (HI) strategy. The results showed that the Chinese companies in the study sample had a stronger preference for the CSR and interactive strategies, and they responded faster to online complaints compared with the Japanese firms, which were more likely to adopt the strategy of transferring in handling complaints. Moreover, “inviting participation into events” and “seeking specific feedback” were two types of interactive messages that received the highest numbers of responses from the public on Facebook, whereas “promoting sales” showed the highest engagement on Twitter. This study is the first to compare the effectiveness of different corporate response strategies for specific complaint topics on social media. Thus, it contributes to the literature on stakeholder–company interactions.     

Privatisation in Developing Countries: Performance and Ownership Effects

Over the last twenty years, privatisation, defined as the transfer of public assets (firms) from the government to private investors, has been on the reform agenda of more than 120 developing countries. The switch of ownership induces major changes in the corporate governance of firms, and in their incentives to restructure and improve efficiency and performance. This article evaluates this experience, focusing on its impact on corporate performance and governance, identifying several issues yet to be resolved.     

Corporate fraud,systematic risk,and shareholder enrichment

The impact of the disclosure of alleged illegal corporate activities together with the possible motives for their use increasingly has become the subject of research by financial scholars. These studies primarily analyze the disclosure’s effect on the market returns of the firm’s equity. The consensus of these studies is that the initial disclosure of alleged illegal corporate activities results in significant negative abnormal returns to the existing shareholders. The size of these abnormal returns generally exceeds the actual fines, fees and penalties that the firms eventually experience. The impact of these disclosures on systematic risk and their possible implications for managerial behavior and corporate policy have suffered from relative neglect. The present research seeks to establish what, if any, impact the disclosure of alleged corporate fraud has on systematic risk. Using the data set provided by Karpoff and Lott (1993, The reputational penalty firms bear from committing corporate fraud. J Law Econ, 34, 757–802), this research tests whether securities experience any significant beta shifts upon the initial disclosure of alleged corporate fraud. Empirical tests find evidence consistent with the theory that agents engage in illegal activity in an attempt to enhance share price. The empirical results also provide additional insight into the question of why corporations engage in criminal activity.     

Social Entrepreneurship in Communities

The United States ranks low on many measures of population health. In addressing this societal problem, nonprofit health conversion foundations are emerging as important, local social entrepreneurs. We investigated the processes by which these organizations create and implement locally situated innovative approaches to promote health and wellness. Using an inductive, qualitative approach, we identified central themes by which conversion foundations, as social entrepreneurs, developed collaborative solutions to health. We found that they defined the social problem, generated social capital in the community, and educated potential partners. These mechanisms helped build a groundwork for collaboration among community actors. Conversion foundations then convened partners with complementary competencies to develop creative solutions. This research contributes to the literature on social entrepreneurship and nonprofits by expanding understanding of how foundations can foster community collaborations to develop innovative solutions to social problems. Further, this study sheds light on the activities and processes of nonprofit health conversion foundations as actors with the potential to improve population health.     

Effective tax rates and firm size in Ethiopia

The literature on Effective Tax Rates (ETRs) focuses on high‐ and middle‐income countries, but there is very little evidence on low‐income countries. This article addresses this gap with new evidence from Ethiopia. We investigate corporate ETRs in Ethiopia and whether the distributional effects they have in practice are in line with the corporate tax policy design. We calculate ETRs in line with the literature in this field, using profit tax at the numerator and gross profit at the denominator. We then analyse ETRs not only using panel data, focusing particularly on their relation to firm size, but also including other explanatory variables. Our main result is that, despite a proportional tax rate, small firms face a higher effective tax burden than larger firms, while middle‐sized firms face the lowest burden of all. We highlight that tax systems can have practical implications that differ largely from their policy design, due to compliance costs and imperfect enforcement. Measures to reduce compliance costs for small firms are particularly recommended.     

Assessing values and value change in Thai organizations

Abstract

The development of coherent culture is important for corporations to develop goals that can be shared, understood and commonly pursued by the member of an organization. A lack of cultural coherence needs to be addressed since it can impact on corporate effectiveness affecting, for instance, communication, performance and adaptation. Under the crises caused by the complexification of societies and the development of increasing political uncertainty, corporate cultural coherence becomes more important. Such corporation change situations tend to be influenced by a new emerging value system, and it is useful to identify the impact of this on corporate coherence. while the evaluation of cultural coherence can be explored through cultural mapping models, there are few adequate approaches to this. One approach that does offer such adequacy will be explored within the context of Thai culture, where the ‘core value coherence’ in three corporate environments across different levels of management and between employees will be examined.     

The end of the world as we know it: Popular music's cultural mobility

Abstract

Popular music has moved to the centre of economic life, suggesting a shift in the political economy of advanced societies. The transition has been marked by a concomitant shift in the centrality of popular music in social life, assisted by new technologies. More importantly, the changes have been brought about by the reorganization of record company ownership and activity since the 1980s. This paper suggests that cultural studies could apply aspects of the research and analysis methods developed in institutional economics, to a study of the relationship between cultural and economic formations. Institutional economics, especially as proposed by Thorstein Veblen, provides a pragmatic critique for cultural industries in an era of globalization and rising corporate power. In this paper I have used institutional economics to illustrate how the shift in the organization of popular music has taken place within the corporate economy. The use of popular music as a feature of the corporate economy has involved the expansion of all forms of entertainment into the information economy. This convergence of activities and interests located in and around popular music is described by the term ‘cultural mobility’.     

Corporate Restructuring, Downsizing, and the Middle Class: The Process and Meaning of Worker Displacement in the “New” Economy

This article conceptualizes, describes, and analyzes the phenomenon of corporate downsizing and the experience of worker displacement as a process of work and employment change that occurs within the context of structural changes in the economy, large firms and labor markets. The research is based on a case study of displaced IBM computer and Link aerospace workers in Binghamton, New York. Research participants encountered a process of displacement that began before job loss, as the firms abandoned longstanding paternalistic work relations and altered their internal labor market structures. Following job loss, displaced workers negotiated a job search in a declining Binghamton economy and a competitive local labor market. In subsequent employment, the majority of those in the study experienced significant work and employment change associated with downward mobility. The findings suggest that in the new economy, the concept of worker displacement should be thought of in more expansive terms than the more narrow and conventional definition that is often associated with it. Workers' experiences of downsizing, displacement and employment change were not simply, or even primarily, associated with job loss, but were characterized by significant departure from objective conditions and subjective meanings of work and of being workers.     

Evidence of a transnational capitalist class‐for‐itself: the determinants of PAC activity among foreign firms in the Global Fortune 500, 2000–2006

Transnational capitalist class (TCC) theory is rooted in the claim that the globalization of the economy has led to a globalization of economic interests and of class formation. However, systematic evidence linking the indicators of transnational class formation with political behaviour is largely missing. In this article, I combine data on board of director interlocks among the 500 largest business firms in the world between 2000 and 2006 with data on the political donations to US elections of foreign corporations via the corporate political action committees (PACs) of their subsidiaries, divisions or affiliates. Controlling for the various interests of individual firms, I find that foreign firms that are highly central in the transnational intercorporate network contribute more money to US elections than do the less central foreign firms. Given prior research on board of director interlocks, this finding suggests that a segment of the transnational business community has emerged as a class‐for‐itself.     

Organizational Identity and Philanthropic Institutions

This article proposes a framework for viewing the behavior of philanthropic institutions through the lens of organizational identity via semi‐structured interviews with twenty‐seven grantmakers representing seventeen foundations, along with content analyses of these foundations’ public documents. This empirical investigation revealed three identity profiles: agenda setter, supporter, and community builder, which capture distinct patterns in foundation strategy, operational structure, and grantmaking practices. For theory, these findings provide an alternative to the conventional view of foundation behavior along an active to passive continuum to one that suggests a role for organizational identity. For practitioners (grantmakers and grantseekers), this perspective demonstrates that there are multiple pathways through which foundations create social value, not just one definition of “best practices.” Understanding these different perspectives on social value creation can help grantmakers identify internal inconsistencies in their strategies and operations and can help grantseekers identify foundations most likely to fund their work. The article concludes with suggestions for further research to explore the extent to which this framework can advance understanding of institutional philanthropy as the field moves to challenge traditional boundaries between nonprofit foundations and private social change initiatives.     

State-Corporate Relationships in an Era of Shifting Regime: The Case of Corporate Law Reform in Israel

Different aspects of the relationship between state and economy have traditionally been examined, yet corporate governance and specifically corporate law have received less attention. This article focuses on the legislation of the new corporate law in Israel at the end of the 1990s, which took place during regime transformation from an interventionist state to a regulatory state. The article makes specific reference to three disputes: the lifting of the corporate veil, the separation of the positions of chairman of the board and chief executive officer, and the obligation of private firms to disclose financial reports. This article suggests that despite the transformation of the regime, state actors have continuously been involved via corporate law in the governance of corporations and their relationship with the environment. However, corporate law enables corporations to constrain state power and the state's influence on property rights.     

New insights in reproducing transnational corporate elites: the labour market intermediation of executive search in the pursuit of global talent in Singapore

In this article, I provide new theoretical and empirical insights into the reproduction of transnational corporate elites through the process of people moving between firms’ internal labour markets rather than from expatriation. Theoretically, the article advances understandings of the reproduction of transnational corporate elites by drawing on a pioneering engagement with global talent, transnational elites and labour market intermediary discourses. I generate these new theoretical insights through an original case study of how global executive search firms in Singapore create pipelines for the recruitment of transnational corporate elites between firms’ internal labour markets. The findings also highlight the vital role of Singapore's neoliberal labour market practices, as well as its foreign talent programme to ‘win the war for talent'. By situating this research on the agency of executive search in reproducing Singapore's transnational corporate elite, the article's key contribution is to decentre North American and Western perspectives on the reproduction of knowledge on transnational corporate elites.     

Engaging publics in the mobile era: A study of Chinese charitable foundations’ use of WeChat

WeChat, the most widely used social mobile application nowadays in China, marks the advent of a mobile communication age that has reshaped Chinese people’s lifestyles. Understanding Chinese nonprofits’ communication performance on WeChat is a nascent field of study that calls for public relations scholars’ attention and investigation. By observing the most transparent Chinese charitable foundations, this study conducted a quantitative content analysis to examine their use of WeChat for dialogic communication with publics. Particularly, this study examined the dialogic features employed on the official WeChat accounts of these foundations as well as the public engagement functions fulfilled by their WeChat posts. The findings indicate that the dialogic potential of WeChat has not been fully utilized by the Chinese foundations. The official accounts have been relatively successful in fulfilling the provision of useful information toward interested publics, but most of them still have not created a dialogic loop with their audience. The WeChat posts primarily act as information sources but also perform the salient function of calling upon actions. In addition, certain communication strategies were identified in the posts to attract audience attention and to promote organizational activities, such as the incorporation of multimedia content and popular online events.     

Corporate Quotas and Symbolic Politics in Advanced Democracies

ABSTRACT

This article identifies trends in the adoption and implementation of quotas for corporate boards, an underresearched topic in political science. Corporate quotas—like legislative quotas—constitute the “fast track” to gender equality but appear more commonly in advanced democracies. These corporate quotas fall into three categories: laws covering all companies; laws covering state-owned companies only; and nonbinding (voluntary) measures in corporate governance codes. Despite on-paper differences, these corporate quotas are largely toothless. First generation corporate quotas, like first generation legislative quotas, operate symbolically. By raising the specter of stringent legislation in the long run, corporate quotas induce firms into voluntary compliance in the short run.     

Foundations and innovation in the nonprofit sector

Using a sample of 17 foundations that are at the forefront of encouraging innovation this study explored foundations' motivations behind funding innovation, their perceived ability to impact the levels of innovation in nonprofit organizations, and strategies that foundations are using or can use to encourage innovation in nonprofit organizations. The results showed that among the major motives behind funding innovation were leveraging the capital, honoring the foundations' core identity (mission and values), and desiring to encourage innovation in nonprofit organizations. Five strategies/mechanisms that foundations are using/can use to encourage innovation in nonprofit organizations were identified: (a) offering innovation awards/grants as catalysts for innovation, (b) providing risk capital and supporting early stage idea development, (c) educating other foundations on the value of innovation and serving in a convener role, (d) serving as thought leaders, and (e) increasing nonprofit organizations' capacity for innovation. Implications for practice are discussed along with recommendations for future research.