Why Former Soldiers Could Make More Trustworthy CEOs
Damaging cases of financial fraud often directly involve company CEOs. Are CEOs with a past in the military less likely to commit fraud? Or are they just better at not getting caught red-handed? New research by Georg Wernicke (HEC Paris) and Irmela Fritzi Koch-Bayram (University of Mannheim) sheds light on that question.
Auditors Offering Both CSR Assurance and Financial Auditing to their Clients Could be Best Option for Firms
With shareholders and stakeholders becoming more and more concerned with firms’ corporate social responsibility (CSR), audit firms now provide CSR assurance services for sustainability reports. As such, firms wonder whether it is more beneficial to use a financial audit firm that also provides CSR assurance, or to hire a different CSR assurance provider than the financial auditor. Researchers explain why the first option is the best option for firms.
The Rise of Rankings in Global Governance: How Can They Change the Regulation of Large Corporations?
Ratings and rankings have become powerful tools in global governance, frequently used to motivate companies to be good corporate citizens. A wide range of environmental and social matters such as access to medicine, climate change, obesity and working conditions increasingly transcend national borders and escape the reach of national regulators. For such issues, who should set the rules about the responsibilities of corporations? How can corporations that are by definition designed to generate profit, be guided towards making decisions that benefit society as a whole? Afshin Mehrpouya and Rita Samiolo explore the process behind the production of these rankings.
Sustainability Indices: Do Investors Actually Care?
In the face of social, environmental, and financial disruptions, more attention is being paid to corporate social responsibility (CSR) policies, and sustainability benchmarks have multiplied. But does a firm's listing in a CSR index really matter to investors? HEC researchers investigated how important inclusion in the leading global CSR benchmark, the Dow Jones Sustainability Index (DJSI) World, is to investors.
Why "doing well by doing good" is not as simple as they say
“Socially responsible behavior leads to increased financial performance over time”, or at least this is the mantra that has come to dominate business doctrine. Studies into whether this claim is true in practice have had mixed results, and, in their new research, Professors Afshin Mehrpouya and Imran Chowdhury explore why.
How Storytelling Can Increase Support for Whistleblowers
Whistleblowers are often condemned by society, but they can be key to uncovering scandal. Hervé Stolowy, Luc Paugam and co-researchers Yves Gendron and Jodie Moll uncover how whistleblowers can tell their stories to better promote the positive aspects of their role for society and increase their legitimacy.
How To Fix the Regulation of 'Too Big To Fail' Banks
Some banks are too big to fail, meaning they'll likely be bailed out by the government if facing bankruptcy. To avoid such banks behaving recklessly at the expense of the taxpayer, banking regulators have imposed safety nets, based on risk calculation. A trio of researchers uncovers flaws in the risk-scoring system and proposes simple improvements – but will they be heard?
Thinking Through Cannabis Markets
The relationship between cannabis and society is a long and deeply contested one. Throughout history, cannabis has been associated with everything from health, leisure, and pop culture to criminal and immoral behavior. But beyond the simple debate about whether cannabis is good or bad, the study of cannabis markets needs interdisciplinarity, to know what is required to construct an effective and fair contested market.