IDEAS home Printed from https://ideas.repec.org/a/kap/jmgtgv/v17y2013i4p907-937.html
   My bibliography  Save this article

Corporate governance and management practices: stakeholder involvement, quality and sustainability tools adoption

Author

Listed:
  • Luca Gnan
  • Alessandro Hinna
  • Fabio Monteduro
  • Danila Scarozza

Abstract

Local public services are the field in which New Public Management (NPM) and Public Governance issues are most in evidence. The local public services are characterized by the rethinking of the role played by local government in the provision of services. An evolution has taken place. From a traditional configuration in which local public services were managed by local governments they moved to a configuration where a separation has taken place between the local government role (which continues to be the guarantor of the satisfaction of public needs) and the role of local public utilities (LPUs) (responsible for delivering the services). This transformation implies both the delegation of resources and authority to lower organisational levels within the public sector and the reconfiguration of accountability chains between the state institutions and the society. In recent years, an intense debate has developed regarding the introduction of new tools and control systems. Particular attention has been paid to planning and control systems, human resources management systems, and performance management systems, leaving a few pioneers to develop their analysis on corporate governance mechanisms with regard their relationships with both the external (stakeholders) actors and the internal (management) ones. On one hand, the OECD wrote guidelines in order to ensure good corporate governance practices, focusing on relations with stakeholders. On the other hand, the dialogue between corporate governance and stakeholders has been already tackled by a number of International organizations guidelines or principles, following a debate on corporate governance that has progressively combined a stakeholder perspective with a more classic shareholder-maximizing model of governance. This article contributes to the debate on the stakeholder involvement process. By means of both a theoretical discussion and an empirical research conducted on 37 Italian LPUs, this paper attempts to analyse specific management tools which can be used to improve the quality of corporate governance in LPUs, by extending the stakeholder involvement. Some NPM’s tools, such as quality standards and sustainability tools imply an effort to offer new forms of organizational behaviour in the decision-making processes (i.e. the choice of the performance indicators and the reporting tools) and to create a dialogue between the enterprise and its stakeholders. In particular, in our study we focus on the adoption of quality standards (ISO 9000 and Customer Satisfaction) and sustainability tools (sustainability reports and ISO 14000 standard) as NPM’s tools to facilitate the stakeholder involvement practices. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Luca Gnan & Alessandro Hinna & Fabio Monteduro & Danila Scarozza, 2013. "Corporate governance and management practices: stakeholder involvement, quality and sustainability tools adoption," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 907-937, November.
    • Handle: RePEc:kap:jmgtgv:v:17:y:2013:i:4:p:907-937
    DOI: 10.1007/s10997-011-9201-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10997-011-9201-6
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10997-011-9201-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mike Wright & Igor Filatotchev & Trevor Buck & Kate Bishop, 2003. "Is Stakeholder Corporate Governance Appropriate in Russia?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 7(3), pages 263-290, September.
    2. Joseph Farrell & Garth Saloner, 1985. "Standardization, Compatibility, and Innovation," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 70-83, Spring.
    3. Steve Letza & Xiuping Sun & James Kirkbride, 2004. "Shareholding Versus Stakeholding: a critical review of corporate governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(3), pages 242-262, July.
    4. Gary S. Hansen & Birger Wernerfelt, 1989. "Determinants of firm performance: The relative importance of economic and organizational factors," Strategic Management Journal, Wiley Blackwell, vol. 10(5), pages 399-411, September.
    5. Oates, Wallace E., 1993. "Fiscal Decentralization and Economic Development," National Tax Journal, National Tax Association, vol. 46(2), pages 237-43, June.
    6. David L. Owen & Tracey Swift & Karen Hunt, 2001. "Questioning the Role of Stakeholder Engagement in Social and Ethical Accounting, Auditing and Reporting," Accounting Forum, Taylor & Francis Journals, vol. 25(3), pages 264-282, September.
    7. Wallace E. Oates & Wallace E. Oates, 2004. "Fiscal Decentralization and Economic Development," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 21, pages 377-383, Edward Elgar Publishing.
    8. Sebastian Eckardt, 2007. "Political Accountability, Fiscal Conditions, and Local Government Performance – Cross-Sectional Evidence from Indonesia," Working Papers 02-2007, Institute of Local Public Finance.
    9. James Guthrie & Federica Farneti, 2008. "GRI Sustainability Reporting by Australian Public Sector Organizations," Public Money & Management, Taylor & Francis Journals, vol. 28(6), pages 361-366, December.
    10. Ogden, S. G., 1995. "Transforming frameworks of accountability: The case of water privatization," Accounting, Organizations and Society, Elsevier, vol. 20(2-3), pages 193-218.
    11. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    12. Tirole, Jean, 2001. "Corporate Governance," Econometrica, Econometric Society, vol. 69(1), pages 1-35, January.
    13. J.B. (Hans) Opschoor, 2009. "Sustainability," Chapters, in: Jan Peil & Irene van Staveren (ed.), Handbook of Economics and Ethics, chapter 69, Edward Elgar Publishing.
    14. Andreas Rasche & Daniel Esser, 2006. "From Stakeholder Management to Stakeholder Accountability," Journal of Business Ethics, Springer, vol. 65(3), pages 251-267, May.
    15. Giuseppe Bognetti & Gabriel Obermann, 2008. "Liberalization And Privatization Of Public Utilities: Origins Of The Debate, Current Issues And Challenges For The Future," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(3‐4), pages 461-485, September.
    16. Ayuso, Silvia & Argandoña, Antonio, 2007. "Responsible corporate governance: Towards a stakeholder board of directors?," IESE Research Papers D/701, IESE Business School.
    17. Kenneth M. Amaeshi & Andrew Crane, 2006. "Stakeholder engagement: a mechanism for sustainable aviation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 13(5), pages 245-260, December.
    18. Freeman, R. Edward, 1994. "The Politics of Stakeholder Theory: Some Future Directions1," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 409-421, October.
    19. Raghuram G. Rajan & Luigi Zingales, 1998. "The Governance of the New Enterprise," CRSP working papers 487, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
    20. Venkiteswaran N, 1997. "Ethics, Values and Corporate Governance," IIMA Working Papers WP1997-08-01_01459, Indian Institute of Management Ahmedabad, Research and Publication Department.
    21. George A. Boyne, 2002. "Public and Private Management: What’s the Difference?," Journal of Management Studies, Wiley Blackwell, vol. 39(1), pages 97-122, January.
    22. Gareth Enticott & Richard M. Walker, 2008. "Sustainability, performance and organizational strategy: an empirical analysis of public organizations," Business Strategy and the Environment, Wiley Blackwell, vol. 17(2), pages 79-92, February.
    23. Gordon E. Greenley & Gordon R. Foxall, 1997. "Multiple Stakeholder Orientation in UK Companies and the Implications for Company Performance," Journal of Management Studies, Wiley Blackwell, vol. 34(2), pages 259-284, March.
    24. Venkiteswaran N, 2000. "Corporate Governance for Shareholder Value," IIMA Working Papers WP2000-07-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    25. Blair, Harry, 2000. "Participation and Accountability at the Periphery: Democratic Local Governance in Six Countries," World Development, Elsevier, vol. 28(1), pages 21-39, January.
    26. Boiral, Olivier & Sala, Jean-Marie, 1998. "Environmental management: Should industry adopt ISO 14001?," Business Horizons, Elsevier, vol. 41(1), pages 57-64.
    27. Amy J. Hillman & Gerald D. Keim, 2001. "Shareholder value, stakeholder management, and social issues: what's the bottom line?," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 125-139, February.
    28. Alessandro Hinna & Ernesto De Nito & Gianluigi Mangia, 2010. "Board of directors within public organisations: a literature review," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 5(3), pages 131-156.
    29. Fabio Monteduro & Alessandro Hinna & Roberto Ferrari, 2011. "The Board of Directors and The Adoption of Quality Management Tools," Public Management Review, Taylor & Francis Journals, vol. 13(6), pages 803-824, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mao-Chang Wang, 2017. "The Relationship between Firm Characteristics and the Disclosure of Sustainability Reporting," Sustainability, MDPI, vol. 9(4), pages 1-14, April.
    2. Guillaume Plaisance, 2023. "Governing a union's external stakeholders: A prioritization method based on relationship quality and perceived impact," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(1), pages 75-108, March.
    3. repec:cuf:journl:y:2017:v:18:i:1:moreno-enguix is not listed on IDEAS
    4. Ioana COMSULEA & Cristina A. FLOREA, 2014. "Integrating Business Intelligence In State Administrative Structures For Stimulating Innovative Clusters," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 4, pages 183-192, November.
    5. Pierre Baret & Vincent Helfrich, 2019. "The “trilemma” of non-financial reporting and its pitfalls," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(2), pages 485-511, June.
    6. Aurelio Tommasetti & Riccardo Mussari & Gennaro Maione & Daniela Sorrentino, 2020. "Sustainability Accounting and Reporting in the Public Sector: Towards Public Value Co-Creation?," Sustainability, MDPI, vol. 12(5), pages 1-19, March.
    7. Stefan Schaltegger & Roger Burritt, 2018. "Business Cases and Corporate Engagement with Sustainability: Differentiating Ethical Motivations," Journal of Business Ethics, Springer, vol. 147(2), pages 241-259, January.
    8. Alberto ROMOLINI & Elena GORI & Silvia FISSI, 2015. "Public Corporate Governance and Performance Information in Local Utilities: The Different Perceptions of Politicians and Managers," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2015(25), pages 55-77, Decembre.
    9. Gianpaolo Abatecola, 2021. "Prioritizing Short-Termism in Behavioural Strategy: Lessons from Enron – 20 Years On," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(4), pages 1-60, July.
    10. Maria del Rocio Moreno-Enguix & Ester Gras-Gil & Joaquin Hernandez-Fernandez, 2017. "An Explanation of Management of Local Governments in Spain Based on the Structure of the Internal Control System," Annals of Economics and Finance, Society for AEF, vol. 18(2), pages 393-410, November.
    11. Iman Karam I. M. Ashmawy, 2018. "NGO involvement in zoo management: a myth or reality?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(4), pages 1873-1887, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jo, Hoje & Song, Moon H. & Tsang, Albert, 2016. "Corporate social responsibility and stakeholder governance around the world," Global Finance Journal, Elsevier, vol. 29(C), pages 42-69.
    2. Bhandari, Avishek & Javakhadze, David, 2017. "Corporate social responsibility and capital allocation efficiency," Journal of Corporate Finance, Elsevier, vol. 43(C), pages 354-377.
    3. Goergen, Marc & Manjon, Miguel C. & Renneboog, Luc, 2008. "Recent developments in German corporate governance," International Review of Law and Economics, Elsevier, vol. 28(3), pages 175-193, September.
    4. Ormazabal, Gaizka, 2018. "The Role of Stakeholders in Corporate Governance: A View from Accounting Research," CEPR Discussion Papers 12775, C.E.P.R. Discussion Papers.
    5. Chou, Julia & Ng, Lilian & Wang, Qinghai, 2011. "Are better governed funds better monitors?," Journal of Corporate Finance, Elsevier, vol. 17(5), pages 1254-1271.
    6. Arturo Capasso & Giovanni Dagnino, 2014. "Beyond the “silo view” of strategic management and corporate governance: evidence from Fiat, Telecom Italia and Unicredit," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(4), pages 929-957, November.
    7. Chan, Chia-Chung & Lin, Bing-Huei & Chang, Yung-Ho & Liao, Wei-Chen, 2013. "Does bank relationship matter for corporate risk-taking? Evidence from listed firms in Taiwan," The North American Journal of Economics and Finance, Elsevier, vol. 26(C), pages 323-338.
    8. Muzhar Javed & Muhammad Waheed Akhtar & Mudassir Husnain & Rabnawaz Lodhi & Sonia Emaan, 2020. "A stakeholder‐centric paradigm bids well for the “business case” ‐ An investigation through moderated‐mediation model," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2563-2577, November.
    9. Ayuso, Silvia & Rodriguez, Miguel A. & Garcia, Roberto & Ariño, Miguel A., 2007. "Maximizing stakeholders' interests: An empirical analysis of the stakeholder approach to corporate governance," IESE Research Papers D/670, IESE Business School.
    10. Chen, I-Ju, 2014. "Financial crisis and the dynamics of corporate governance: Evidence from Taiwan's listed firms," International Review of Economics & Finance, Elsevier, vol. 32(C), pages 3-28.
    11. Ding, Rong & Hou, Wenxuan & Kuo, Jing-Ming & Lee, Edward, 2013. "Fund ownership and stock price informativeness of Chinese listed firms," Journal of Multinational Financial Management, Elsevier, vol. 23(3), pages 166-185.
    12. Darine Bakkour, 2013. "Un essai de définition du concept de gouvernance," Studies and Syntheses 13-05, LAMETA, Universtiy of Montpellier, revised Dec 2013.
    13. Giovanna Michelon & Antonio Parbonetti, 2012. "The effect of corporate governance on sustainability disclosure," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 477-509, August.
    14. Aldrighi, Dante Mendes, 2003. "The Mechanisms of Corporate Governance in the United States: an Assessment," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 57(3), July.
    15. Jeffrey Harrison & Joseph Coombs, 2012. "The Moderating Effects from Corporate Governance Characteristics on the Relationship Between Available Slack and Community-Based Firm Performance," Journal of Business Ethics, Springer, vol. 107(4), pages 409-422, June.
    16. Renneboog, L.D.R. & Ter Horst, J.R. & Zhang, C., 2007. "Socially Responsible Investments : Methodology, Risk and Performance," Other publications TiSEM 684d2aba-7b82-4306-b6a0-d, Tilburg University, School of Economics and Management.
    17. Jo, Hoje & Song, Moon H. & Tsang, Albert, 2015. "Corporate social responsibility and stakeholder governance around the world," Global Finance Journal, Elsevier, vol. 27(C), pages 18-45.
    18. Lehmann, Erik, 2018. "Corporate governance," UO Working Papers 01-18, University of Augsburg, Chair of Management and Organization.
    19. Khine Kyaw & Sirimon Treepongkaruna & Pornsit Jiraporn, 2021. "Stakeholder engagement and firms' innovation: Evidence from LGBT‐supportive policies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1285-1298, July.
    20. Mike Burkart & Konrad Raff, 2015. "Performance Pay, CEO Dismissal, and the Dual Role of Takeovers," Review of Finance, European Finance Association, vol. 19(4), pages 1383-1414.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jmgtgv:v:17:y:2013:i:4:p:907-937. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.