Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports

In recent decades, the fast fashion industry has been characterized by widespread operations across both developing and developed countries. Due to the economic, social and environmental problems in developing countries, companies increasingly focus on sustainability and try to ensure the same quality and standards in working and production conditions throughout their supply chains. Although the tension in the exchange of resources between developing and developed countries lies at the heart of current sustainability activities, what these companies are actually doing to manage their supply chain has not yet been explored in depth in the literature. Drawing on the theoretical framework of Seuring and Müller (2008), the current study attempts to fill this void by conceptually mapping the current situation of sustainable supply chain management (SSCM) in the fast fashion industry by analysing reports from 9 companies that use the same reporting guidelines. The results of the study reveal that these companies focus significantly on supplier compliance with their code of conduct, employing further monitoring and auditing activities to prevent production problems in developing countries, improve overall supply chain performance and set sustainability criteria for their suppliers.     

Online Corporate Environmental Reporting: Improvements and Innovation to Enhance Stakeholder Value

Corporate environmental/sustainability reporting is a growing trend among top global companies. In many cases, these reports have been made available online. Although the internet has provided reporting companies with a new channel to convey environmental information to the public, effective use of this media requires careful thought.Usability is a primary consideration that is not being addressed in many online corporate environmental/sustainability reports (CER). Often, these reports are difficult for users to locate from the corporate homepage, the search option does not render the correct page, some are only available in PDF format, and navigation within the report can be difficult. Current online reporting can also be ineffective if the technology is not oriented towards a framework of maximizing stakeholder value.If approached properly, internet technology allows for interactivity between a company and its stakeholders, provision of real-time updates of information and specialized information retrieval depending on the needs of users. This paper focuses on the current state of online CER reporting and suggests methods and practices for enhancing stakeholder value.     

The impact of organisational alignment on the effectiveness of firms’ sustainability strategic performance measurement systems: an empirical analysis

Sustainability is becoming a mainstream issue for many organisations. A limited number of studies exist, however, on integrating sustainability into daily practices. Indeed, most of the research to date addresses only the definition and motivation for companies’ interest in environmental and social concerns. This paper contributes to the research on integrating sustainability into companies’ daily activities both directly and indirectly. It analyses the extent to which top management’s commitment to sustainability directly affects structural and social alignment and the effectiveness of measurement systems that monitor sustainability strategic performance and indirectly impacts firms’ social and environmental performance. Based on a quantitative analysis of survey responses from 405 large European companies, this paper documents the limited impact of social alignment to firms’ social and environmental performance. More specifically, the results challenge the diffuse belief that the alignment and commitment of middle managers to sustainability strategies as defined by the upper echelons have a relevant impact on the company’s social and environmental performance.     

Improving innovation performance through environmental practices in the fashion industry: the moderating effect of internationalisation and the influence of collaboration

In recent years, the scientific literature on supply chain management has increasingly debated on environmental sustainability as well as collaboration, presenting these issues as an important source of innovation along the supply chain. By combining literature streams on environmental sustainability, supply chain collaboration and innovation at the supply chain level, this paper aims to analyse whether the adoption of environmental sustainability practices and collaboration along the supply chain implies better innovation performance, in terms of differentiation from the competitors for higher quality, product or process. The paper also investigates whether the internationalisation, in terms of both production and distribution activities, negatively moderates this relationship. The study focuses on the fashion industry, and a survey of major Italian fashion companies was conducted. The main results of the research clearly show the positive impact of these practices on innovation performance. The paper also proves the existence of a moderating effect exerted by internationalisation on the relationship between environmental sustainability and innovation performance.     

Fertility and Employment in Italy,France, and the UK

Abstract. According to the agenda for employment set by the European Union in 2000 for the following 10 years, the target for female employment was set at 60 per cent for the year 2010. Although Northern and most Continental countries have achieved this quantitative target, the Mediterranean countries are lagging behind. Labor market policies should be aimed to encourage women's participation and reduce the cost of working. However, the persistence of a negative relationship between participation and fertility in these countries implies that it is important to take fertility into account. We analyse a model of labor supply and fertility, using data from the European Community Household Panel (ECHP) for the period 1994–2000, merged with regional data describing the available labor market opportunities in the households’ environment.     

Corporate sustainability and risk

This study analyses the relationship between corporate sustainability and corporate risk. Different grades of sustainability are constructed from the inclusion of companies into sustainability indices and the number of years included. The grades are measured against variables of expected and unexpected risk and drivers of a sustainable company’s risk (sustainability risk). Based on the assumption that the level of sustainability impacts upon the dimension of risk, a sample of 167 European companies and different subsamples are assessed on available accounting data. However, the findings do not provide any clear evidence, suggesting that companies, once rated as sustainable, display similar patterns of risk and that a high degree of sustainability may be achieved without adverse impacts on risk and risk-adjusted return.     

The effect of corporate governance on sustainability disclosure

Drawing on stakeholder theory, this paper examines the relationship of board composition, leadership and structure on sustainability disclosure. We discuss that good corporate governance and sustainability disclosure can be seen as complementary mechanisms of legitimacy that companies may use to dialogue with stakeholders. Specifically we claim that, as disclosure policies emanate from the board of directors, sustainability disclosure may be a function of the board attributes: we investigate the relationship between different characteristics of the board and sustainability disclosures among US and European companies. Our results show that in order to explain the effect of board composition on sustainability disclosure we need to go beyond the narrow and traditional distinction between insider and independent directors, focusing on the specific characteristics of each director.     

It’s all about culture! Institutional context and ownership concentration across Europe

It is widely recognised that the formal institutional context affects firm ownership concentration. However, the impact of the informal institutional context has received less research attention. Drawing from institutional theory, we tested our hypothesis that both the formal and informal (cultural) institutional contexts simultaneously influence firm ownership concentration. Based on a firm-level database of the largest 600 listed companies in 19 European countries for the period 2009–2015, we found that both formal and informal institutional contexts, considered independently from each other, affect the level of firm ownership concentration. However, when these institutional contexts are considered together, the significance of the formal institutional context's effect on ownership concentration disappears while the informal (cultural) institutional context remains significant. Specifically, our findings indicate that high power distance, collectivism, uncertainty avoidance, restraint, and short-term orientation favour firm ownership concentration. Overall, our findings demonstrate that the diversity in European cultures explains firms' different levels of ownership concentration across European firms, signalling that the European Union's efforts towards a common regulatory frame may not necessarily lead to a convergence of European firms' ownership structures and, consequently, of corporate governance practices.     

Reference model for collaborative management in the automotive industry

Changes in the competitive environment require corporate restructuring, strengthening the relationship between the participants in a supply chain, implementing inter-organisational collaborative actions. Different strategies for collaborative actions render the subject relevant to researchers and managers. Integration, cooperation and partnership are essential to the success of this restructuring; the practices in this subject will be treated as Collaborative Management. The main objective is to analyse and synthesise the requirements of Collaborative Management in the automotive industry. The multicase study begins with an exploratory study to identify the theoretical elements that involve collaborative activity between companies, followed by a multiple case study in order to analyse the collaborative strategies used by companies. With the data collected a reference model will be produced using the Enterprise Knowledge Development methodology under a collaborative management approach. The data will enable the systematic and consistent representation of the collaboration between companies, helping to clarify the Collaborative role, and the integration relationship with the inter-organisational managing strategies.     

South African MNCs' HRM Systems and Practices at the Subsidiary Level: Insights From Subsidiaries in Ghana

Despite the extensive literature on the human resource management (HRM) systems and practices of multinational companies (MNCs) from developed countries, there are serious gaps in our understanding of emerging countries multinationals HRM practices and systems at both home and host countries. This study empirically examines the similarities and differences of South African (SA) MNCs' HRM systems and practices at both the headquarters in SA and at the subsidiaries operating in Ghana. The study reveals that with the exception of compensation and industrial relation practices which are localised, EMNCs HR systems and practices are mainly transferred to subsidiaries with minimal adaptation to contextual realities. Further research and practical implications are discussed.     

Assessing the efficiency of HRD practices in knowledge-intensive firms

The article presents the results of a comparative study of human resource development (HRD) in two groups of knowledge-intensive firms: those working in the information technology (IT) field and in advertising/public relations (PR) field. One hundred Russian medium-sized enterprises participated in the study. The questionnaire was developed on the basis of the European quality standard ‘Investors in People’. The study findings suggested that the differences in HR practices aimed at personnel development between two groups of companies were statistically significant. Thus, in the advertising/PR companies, HRD practices were used more actively and effectively, with particular emphasis on providing timely feedback and involving employees in the decision-making process. In IT companies, formal assessment tools were used more often, while in advertising/PR companies, more informal and individualized approaches were more prevalent.     

Strategic approaches to sustainability in fashion supply chain management

Today, the sustainability challenge has become a relevant issue in the fashion industry. However, given that the request for sustainability is relatively new in this industry, empirical research that could guide companies towards supply chain sustainability is lacking. This study aims to deepen the understanding of the main strategic approaches to sustainability used in fashion supply chain management (SCM). Ten case studies were examined in terms of the practices that characterise these approaches. Moreover, contextual factors, drivers and barriers that support or hinder different approaches were identified. To accomplish this goal, both environmental sustainability and social sustainability were investigated, and all the areas of fashion SCM (i.e. new product development, source, make, deliver, retail, return, governance) were considered simultaneously to offer a wide overview of this industry’s sustainability issue.     

Internal trade barriers are coming down in the EEC

There are many current examples of countries and companies infringing the free movement of goods within the European Economic Community. The rules governing this are clearly set out in Articles 30 to 36 of the Treaty of Rome and are rigorously applied by the Court of Justice of the European Communities.Noel Byrne gives examples from trade in erotica, water pipes, liqueurs, English language teaching materials and publicity leaflets to illustrate how transgressors can be dealt with. Intellectual property is an especially important field where protection can be used unjustifiably, and European Commission Directives are being introduced to liberalize public procurement.     

On the relationship between compliance with recommendations on the audit committee of codes of good practices and financial reporting quality

Codes of good practices provide a soft alternative to the hard legislation approach to corporate governance. These codes include a set of recommendations that companies are expected to follow in order to enhance governance structures and practices. Some of these recommendations specifically aim to improve the effectiveness of the audit committee. We investigate the relationship between the level of compliance with recommendations on the audit committee of the Spanish Unified Code and financial reporting quality, as measured by discretionary accruals and by the opinion of the audit report. We use a sample of companies listed in the Spanish stock market for the years between 2007 and 2013. Results show a strong and positive relationship between the level of compliance with recommendations and the quality of financial reporting. We also report significant results for some specific recommendations. These results are robust to various checks. Therefore, the level of compliance with recommendations on the audit committee might provide a feasible and reliable indicator of the quality of financial reports released by the company.     

Intra-firm Adoption Decisions:: Role of Inter-firm and Intra-firm Variables

The subject of this paper is intra-firm adoption decisions, a relatively unexplored research area in the marketing literature. We develop a conceptual model in which two sets of independent variables are hypothesized to influence the intra-firm adoption decisions, i.e. (1) variables known from the inter-firm diffusion literature, (2) variables specifically relevant for intra-firm analyses of innovation acceptance. Hypotheses are developed and tested in an application in the domain of finance: the intra-firm adoption decisions regarding the common European currency by the treasury, purchasing and sales departments of European companies. Data were obtained from treasury, purchasing and sales managers (441 respondents in total) from companies located in five different European countries. The results of logistic regression show that the proposed intra-firm variables are indeed important explanatory variables that should be included in intra-firm analyses. Moreover, for the inter-firm variables we found differences in the effects between departments, which demonstrates the very need for an intra-firm analysis.     

The effect of accounting standards on Big Bath behavior

This paper investigates the influence of accounting standards on systematic earnings understatement. To isolate the effect of reporting regulations from those of other institutional drivers of earnings management, Holthausen (2003) proposes analyzing reporting practices in a country undergoing a transition in accounting standards. We respond to this call by analyzing earnings management practices of large German-listed companies before and after their transitions from German GAAP to IFRS. Specifically, we focus on Big Bath behavior following Chief Financial Officer turnovers between 1999 and 2006. Our findings provide evidence of the effect of accounting standards on the existence of this particular earnings understatement pattern. However, while we detect Big Bath behavior for our sample of German GAAP firms, we find no such indication for those firms reporting under IFRS. Controlling for alternative explanations such as self-selection bias does not change our findings. We conclude that accounting standards seem to have a considerable influence on earnings management behavior, independent of managers’ and auditors’ incentives.     

The impact of corporate sustainability performance on information asymmetry: the role of institutional differences

This paper empirically investigates whether corporate sustainability performance (CSP) affects information asymmetry (IA) for European firms listed in the STOXX Europe 600 from 2002 to 2013. We find a significantly negative effect of CSP on IA. By exploiting institutional differences between the European countries, we determine that the negative effect of CSP on IA is more pronounced in liberal market economies compared to coordinated market economies, thus pointing to a substitutive effect of CSP and economic coordination. Further, the impact is greater in countries with stricter disclosure requirements. In such countries, there is generally a greater appetite for company-specific information. However, disclosure requirements fulfil this need only partially because they concentrate on the corporate governance dimension of corporate sustainability. Hence, information on the social pillar especially matters to investors in a complementary manner and drives the overall effect. Our study contributes to the literature on the positive capital market effects of CSP by showing the proposed effect in European capital markets and the institutional determinants of its strength.     

German,French and British manufacturing strategies compared: A growth towards each other

Manufacturing has gained over the last years in attention as a tool to create competitive advantage. For fou years now a survey has been carried out by a research team at Insead to build a database on the manufacturing strategies as they are defined and implemented by large European companies. In this paper some of the 1987 data are presented, and a comparison of manufacturing strategies of large companies in the three most important European countries is made. Though the most important conclusion is that there are only slight differences between the three countries, one can see some difference in emphasis. The French companies seem to invest heavily to catch up with respect to quality, the German manufacturers invest heavily in technology, and the British seem to pay more attention to the improvement of the labour/management relations. The data on the manufacturing strategies of these groups of companies is also analysed in function of an increased need for flexibility, as it was perceived in previous surveys.     

Analysing critical success factors to implement sustainable supply chain practices in Indian automobile industry: a case study

The aim of this article is to analyse the critical success factors (CSFs) behind the successful implementation of sustainable supply chain practices in Indian automobile industry. Supply chain sustainability is a critical and timely topic for the developing country like India that captures increasing concerns over sustainability, whether driven by current legislation, public interest or competitive opportunity. Identification of CSFs responsible for sustainable supply chain practices and evaluating their contextual relationships has the potential to affect future government policy, current production operations and identify new business models. In response to this, this paper intends to identify CSFs based on organisational theory and model them to implement sustainable supply chain practices in Indian automobile industry. Twenty-five CSFs to implement sustainable supply chain practices based on organisational theory are recognised by means of the literature review and in discussions with experts in one case study organisation. A solution methodology based on the interpretive structural modelling (ISM) technique is used to propose a structural model, which not only helps in understanding the contextual relationship among these CSFs, but also in determining their interdependence to implement sustainable supply chain practices. Further, the importance of CSFs has been determined based on their driving and dependence power using MICMAC analysis. Our overarching thesis is that the insights gained are useful for Indian automobile industry and would help practitioners, regulators and academicians to focus their efforts towards implementation of sustainable supply chain practices.     

Best Practices and Policy Transfer in Spatial Planning

Abstract

Numerous European programs and initiatives have been instrumental in identifying a large and increasing number of examples of best practice (or good practice) in the field of spatial planning. In fact, there is now a profligacy of best practice, which means that many researchers and policy-makers are often confronted with too much information when trying to identify examples of policy and practice in other places. The identification and dissemination of best practices has become a growing industry in many areas of European policy, including spatial planning and urban environmental issues. In many cases, an underlying assumption of best practices is that they are equally applicable and effective in another setting, and that the development and dissemination of best practice will help to lead to improvements in policy and practice in other countries, regions or cities. However, the reality is that best practices have a more limited role in policy-making processes: other influences are frequently more important. The value of exchanging European best practices is limited since there are huge differences in the economic, political or social situation between countries in the European Union. This is particularly true when considering the transfer of best practices between ‘new’ and ‘old’ member states, where the social and economic situation, as well as the institutional frameworks, are often very different in ‘borrowing’ and ‘lending’ countries.