The Community Structure of the European Network of Interlocking Directorates 2005–2010

The boards of directors at large European companies overlap with each other to a sizable extent both within and across national borders. This could have important economic, political and management consequences. In this work we study in detail the topological structure of the networks that arise from this phenomenon. Using a comprehensive information database, we reconstruct the implicit networks of shared directorates among the top 300 European firms in 2005 and 2010, and suggest a number of novel ways to explore the trans-nationality of such business elite networks. Powerful community detection heuristics indicate that geography still plays an important role: there exist clear communities and they have a distinct national character. Nonetheless, from 2005 to 2010 we observe a densification of the boards interlocks network and a larger transnational orientation in its communities. Together with central actors and assortativity analyses, we provide statistical evidence that, at the level of corporate governance, Europe is getting closer.     

Regulatory Influences on Environmental Protection: Why Shipping Companies Comply and When They Don't

This article reports the findings of an empirical study on the regulation of ship-source pollution at one United Kingdom-based global ship management company. In examining the corporate response of the case-study company, particular attention is given to the regulatory influences promoting such compliance as expressed in the views of company executives. The findings show that both legal regulatory pressures and customer demands are important factors in encouraging the company to comply with environmental requirements. However, the study also revealed that compliance with environmental requirements ultimately depends on the way in which individual companies adapt to different national regulatory and enforcement regimes.     

“Efforts to Reprioritise the Agenda” in China: British American Tobacco's Efforts to Influence Public Policy on Secondhand Smoke in China

Background

Each year, 540 million Chinese are exposed to secondhand smoke (SHS), resulting in more than 100,000 deaths. Smoke-free policies have been demonstrated to decrease overall cigarette consumption, encourage smokers to quit, and protect the health of nonsmokers. However, restrictions on smoking in China remain limited and ineffective. Internal tobacco industry documents show that transnational tobacco companies (TTCs) have pursued a multifaceted strategy for undermining the adoption of restrictions on smoking in many countries.

Methods and Findings

To understand company activities in China related to SHS, we analyzed British American Tobacco''s (BAT''s) internal corporate documents produced in response to litigation against the major cigarette manufacturers to understand company activities in China related to SHS. BAT has carried out an extensive strategy to undermine the health policy agenda on SHS in China by attempting to divert public attention from SHS issues towards liver disease prevention, pushing the so-called “resocialisation of smoking” accommodation principles, and providing “training” for industry, public officials, and the media based on BAT''s corporate agenda that SHS is an insignificant contributor to the larger issue of air pollution.

Conclusions

The public health community in China should be aware of the tactics previously used by TTCs, including efforts by the tobacco industry to co-opt prominent Chinese benevolent organizations, when seeking to enact stronger restrictions on smoking in public places.     

Beyond make-or-buy: cross-company short-term capacity backup in semiconductor industry ecosystem

Since the uncertainty involved in demand forecast is increasingly amplified with the forecast lead-time, high-tech companies often suffer the risks of oversupply and shortage of capacity that will affect the profitability and growth. High-tech industries including semiconductor and TFT-LCD industries are capital-intensive, in which the capacity plan and corresponding capital investment decisions are critical due to demand fluctuation. Once the capacity is planned, the company may suffer the risks of either low capital-effectiveness due to low capacity utilization and capacity oversupply, or poor customer satisfaction caused by the capacity shortage. Most of the existing studies focused on solving the long-term capacity shortage issue through optimizing the capacity investment plan, or medium-term capacity plan to allocate demands among the wafer fabrication facilities (fabs) to balance the loading and product mix. Focusing on a real setting, this study proposed a systematic decision method to analyze short-term solutions of cross-company capacity backup between the companies in the semiconductor industry ecosystem. In particular, a game theory and decision tree analysis model was developed to support this decision. A case study was conducted with real data of semiconductor manufacturing companies in Taiwan for validation. The results have demonstrated practical viability of this approach. The approach suggested has been implemented in this company.     

From mass customization to mass personalization: a strategic transformation

Business and operations strategists have long sought to formulate strategies that would serve profitably for a market of one. Two decades after its conception, there is growing evidence that mass customization strategy is transforming into a mass personalization strategy, making the market of one a reality, at least in select industries. The degree of transformation of a company depends on the extent to which its product is soft, i.e., can be produced electronically. Thus, at the lower end of the personalization spectrum are manufacturing companies engaged in producing hard, configurable products, while on the high end of the spectrum are service companies whose product can be totally configured and delivered electronically. The underlying factors that are enabling this transformation, in our view, are: (1) development of information technologies such as peer to peer (P2P), business to consumer (B2C), and Web 2.0, (2) near-universal availability of the Internet, (3) customer willingness and preparedness to be integrated into the process of product co-design and co-creation, (4) modern manufacturing systems, such as flexible manufacturing and, of course, (5) mass customization tools such as modularity and delayed differentiation, which help reduce manufacturing cost and cycle times and (6) deployment of customer-satisfaction-specific software called customer relationship management (CRM) to engender customer retention. Due to the importance and strategic success of affordable personalization, this issue is dedicated to that theme. The articles included in this issue would, I believe, serve as significant decision support mechanisms for companies pursuing a mass customization and personalization strategy. In addition to providing a brief perspective on articles included in this issue, we also summarize the state of the art of mass customization research.     

A Framework for Social Life Cycle Impact Assessment (10 pp)

Goal, Scope and Background To enhance the use of life cycle assessment (LCA) as a tool in business decision-making, a methodology for Social life cycle impact assessment (LCIA) is being developed. Social LCA aims at facilitating companies to conduct business in a socially responsible manner by providing information about the potential social impacts on people caused by the activities in the life cycle of their product. The development of the methodology has been guided by a business perspective accepting that companies, on the one hand, have responsibility for the people affected by their business activities, but, on the other hand, must also be able to compete and make profit in order to survive in the marketplace. Methods A combined, bottom-up and top-down approach has been taken in the development of the Social LCIA. Universal consensus documents regarding social issues as well as consideration for the specific business context of companies has guided the determination of damage categories, impact categories and category indicators. Results Discussion, and Conclusion. The main results are the following: (1) Impacts on people are naturally related to the conduct of the companies engaged in the life cycle rather than to the individual industrial processes, as is the case in Environmental LCA. Inventory analysis is therefore focused on the conduct of the companies engaged in the life cycle. A consequence of this view is that a key must be determined for relating the social profiles of the companies along the life cycle to the product. This need is not present in Environmental LCA, where we base the connection on the physical link which exists between process and product. (2) Boundaries of the product system are determined with respect to the influence that the product manufacturer exerts over the activities in the product chain. (3) A two-layer Social LCA method with an optional and an obligatory set of impact categories is suggested to ensure both societal and company relevance of the method. The obligatory set of impact categories encompasses the minimum expectations to a company conducting responsible business. (4) A new area of protection, Human dignity and Well-being, is defined and used to guide the modelling of impact chains. (5) The Universal Declaration of Human Rights serves as normative basis for Social LCA, together with local or country norms based on socio-economic development goals of individual countries. The International Labour Organisation's Conventions and Recommendations, and the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, support development of the impact pathway top-down, starting from the normative basis. (6) The obligatory part of Social LCA addresses the main stakeholder groups, employees, local community and society. Recommendations and Outlook Social LCA is still in its infancy and a number of further research tasks within this new area are identified.     

Indicators for an expanded business operations model to evaluate eco-smart corporate communities

Major real-estate developers of business parks around the world have made environmental responsibility a priority in building design, construction, and operation. We review the green real-estate development movement occurring globally, and synthesize applicable concepts into a framework called the expanded business operations model (EBOM) to help companies gauge their goal of environmental stewardship. In contrast to the typical flow diagram of a typical business operations model, the EBOM indicates cycling behavior that synergistically enhances each of the four identified categories—Environment, Facilities, Business Synergism, and Green Image. The ultimate goal of these Eco-smart Corporate Communities is to positively impact the local and larger community, while increasing the economic success of property developers and their tenants. We review governmental policies that drive developers toward environmentally friendly techniques, outline tools and programs that assist in the implementation and evaluation of green design plans, and summarize other drivers (i.e., environmental and social issues) that encourage green building and synthesize them into an indicator system for practitioners’ reference. Using four independently operated eco-smart corporate communities as case studies, we identify the measures taken to enhance each of the four categories within the framework, and analyze the cascade of impacts. With this framework, it will be possible to set achievable goals that mark reasonable progress in corporate environmental policies.     

Getting the Data Flowing: Lessons Learned from Existing Reporting Systems in the Forestry Sector in Indonesia for REDD+ MRV

In the context of REDD+, Measurement, Reporting and Verification (MRV) is one way to manage forest change information. A national carbon and non-carbon database will be used in REDD+ to negotiate compensation schemes with the international community. Much of this data will be collected at the local level, thus a reporting system that can integrate these locally collected data into the national database is crucial. In this paper we compare and draw lessons from three existing local to national reporting systems that include the participation of local communities: 1) the government extension services, 2) the government owned forestry company, and 3) a private logging company in Indonesia, and provide recommendations for REDD+ reporting systems. The results suggest that the main desired conditions for effective data flow are: benefits to motivate local participation, based on contributions to reporting activities; simple data format and reporting procedures to allow local participation in the reporting process, and to support data aggregation at the national level; a facilitator to mediate data aggregation at the village level to ensure data consistency, completeness and accuracy; and a transparent and clear data flow. Under these conditions, continuous, accountable and consistent data flow from the local level will reach the national level where it can be fully utilized.     

Tobacco talk: reflections on corporate power and the legal framing of consumption

This article examines how North Carolina tobacco farmers think about the moral ambiguities of tobacco business. Drawing on ethnographic research with tobacco farmers and archival research on the tobacco industry, I specify the core psychological defense mechanisms that tobacco companies have crafted for people associated with the industry. I also document local social, cultural, and economic factors in rural North Carolina that underpin ongoing rural dependence on tobacco despite the negativity that surrounds tobacco and structural adjustments. This article contributes to our knowledge about tobacco farmers and tobacco farming communities, which is important for tobacco-control strategies. I reflect on ethical and economic paradoxes related to the rise of corporate social responsibility in the tobacco industry, where an official legal framing of consumption, focused on informed adult consumer autonomy and health education, is promoted to undermine more robust public health prevention efforts.     

Planning mine restoration through ecosystem services to enhance community engagement and deliver social benefits

Mining companies are expected to return land to a stable, productive, and self‐sustaining condition by rehabilitating degraded areas to also deliver social benefits, an essential dimension of sustainable land management. This research aimed to develop a framework for mine rehabilitation planning based on an integrated analysis of the social‐ecological system provided by the ecosystem services concept to facilitate community engagement and the delivery of social benefits. An Ecosystem Services Assessment for Rehabilitation framework was tested at two bauxite mines undergoing ecological restoration. The mines are operated by the same company in two countries. Key results showed that the framework can help companies, regulators, and community members alike identify whether biophysical restoration efforts translate into key human benefits. Overall the framework provides a means for enhancing community engagement to explicitly address social benefits that, with a business as usual focus on ecological goals, may not be delivered. The ecosystem services concept provides a practical approach to link ecological and social outcomes of mine restoration.     

A cross-cultural research experience: developing an appropriate methodology that respectfully incorporates both Indigenous and non-Indigenous knowledge systems

This paper engages with the methodology being used within a research project auditing concerns and aspirations in an impoverished Indigenous community in North West Australia. The community is in the heart of booming resource industries and it symbolizes the many challenges and opportunities for contemporary Australia. The paper advances the notion that social scientific research with Indigenous communities can be positioned not just as the result of consultation with the communities but as the authorized product of those communities. Although this adds to the complexity of the governing forces that impact on researchers, it also affords new possibilities for meaningful social change. If research starts with the proposition that social scientific research with Indigenous communities can be about what communities want to know, and finding out what they have to say, we may make more progress than by asking what needs to be done.     

Going Organic: Converting Patagonia's Cotton Product Line

The integration of industrial ecology principles into a business may mean significant changes in its customary activities. In this article, we present a case study of a decision by Patagonia, a manufacturer and distributor of clothing and gear for outdoor sports, to use only organically grown cotton for our cotton products as of spring I996.We describe the history of our efforts to reduce our environmental impacts, the relationship between understanding the life-cycle impacts of garments in general and cotton in particular onour decision, and the changes required throughout the company to implement the decision. Although initial salesof the organic cotton products have met or exceeded expectations, most customers continue to buy our productsfor traditional reasons: quality, fit, styling, and brand. Westruggle to change consumer perceptions about the environmental significance of their purchases and influencemajor apparel manufacturers to make a similar switch. Our experience suggests, first, that consumers and industryneed to understand the principles of industrial ecology and, second, that environmental improvements must be integrated into all aspects of operations (e.g., marketing). Anunexpected benefit of the decision was an increase in our knowledge about the garment life cycle, which in turn improves our ability to develop new fabrics when off-the-shelf products do not meet our needs. Much remains to bedone, howevel; to reduce impacts associated with other aspects Of our products and corporate activities.     

Development of composite sustainability performance index for steel industry

The steel companies are becoming increasingly aware about the sustainability challenges. In order to become a responsible corporate citizen, the industry has responded to these challenges through adoption of pillars of sustainability. The industry has made the beginning with identification of sustainability indicators. The indicators have been developed specifically for steel industry. Generally, it is quite difficult to evaluate the performance of company on the basis of large number of sustainability indicators. Integration of key sustainability indicators is quite essential for decision-making. Composite indicators are an innovative approach to evaluate sustainable performance. This paper presents a method for development of composite sustainability performance index (CSPI) that addresses the sustainable performance of steel industries along all the three pillars of sustainability—economic, environmental and societal. Organizational governance and technical aspects have also been considered fourth and fifth dimensions of sustainability.The objective of this paper is to introduce sustainability and to present a conceptual decision model, using analytical hierarchy process (AHP) to assist in evaluating the impact of an organization's sustainability performance. AHP has been used to determine the weights at various levels. Sub-indices have been evaluated and aggregated to form CSPI. The effectiveness of the proposed model is evaluated in a case study for a major steel company in India.     

Relevance and feasibility of social life cycle assessment from a company perspective

Background, aim, and scope

Methodology development should reflect demands from the intended users: what are the needs of the user group and what is feasible in terms of requirements involving data and work? Mapping these questions of relevance and feasibility is thus a way to facilitate a higher degree of relevance of the developed methodology. For the emerging area of social life cycle assessment (SLCA), several different potential user groups may be identified. This article addresses the issues of relevance and feasibility of SLCA from a company perspective through a series of interviews among potential company users.

Methods and materials

The empirical basis for the survey is a series of eight semi-structured interviews with larger Danish companies, all of which potentially have the capacity and will to use comprehensive social assessment methodologies. SLCA is not yet a well-defined methodology, but still it is possible to outline several potential applications of SLCA and the tasks a company must be able to perform in order to make use of these applications. The interviews focus on the companies’ interest in these potential applications and their ability and willingness to undertake the required work.

Results

Based on these interviews, three hypotheses are developed relating to these companies’ potential use of SLCA, viz.: (1) needs which may be supported by SLCA relate to three different applications, being comparative assertions, use stage assessments, and weighting of social impacts; (2) assessing the full life cycle of a product or service is rarely possible for the companies; and (3) companies see their social responsibility in the product chain as broader than dictated by the product perspective of SLCA. Trends for these three hypotheses developed on the basis of the opinions of the interviewees. Also, factors influencing the generalization of the results to cover other industries are analyzed.

Discussion

Full comparative assertions as known from environmental life cycle assessment (LCA) may be difficult in a company context due to several difficulties in assessing the full life cycle. Furthermore, the comparative assertion may potentially be hampered by differences in how companies typically allocate responsibility along the product chain and how it is done in SLCA, creating a boundary setting issue. These problems do, only in a limited degree, apply for both the use stage assessment and the tool for weighting social issues.

Conclusion

Despite these difficulties, it is concluded that all three applications of SLCA may be possible for the interviewed companies, but it seems the tendency is to demand assessment tools with very limited life cycle perspective, which to some extent deviate from the original thought behind the LCA tools as being holistic decision aid tools.

Perspectives

It is advocated that there is a need to focus more on questions regarding the relevance and feasibility of SLCA from several different perspectives to direct the future methodology development.     

Increasing Precision in Greenhouse Gas Accounting Using Real‐Time Emission Factors

For many companies, the greenhouse gas (GHG) emissions associated with their purchased and consumed electricity form one of the largest contributions to the GHG emissions that result from their activities. Currently, hourly variations in electricity grid emissions are not considered by standard GHG accounting protocols, which apply a national grid emission factor (EF), potentially resulting in erred estimates for the GHG emissions. In this study, a method is developed that calculates GHG emissions based on real‐time data, and it is shown that the use of hourly electricity grid EFs can significantly improve the accuracy of the GHG emissions that are attributed to the purchased and consumed electricity of a company. A model analysis for the electricity delivered to the Spanish grid in 2012 reveals that, for companies operating during the day, GHG emissions calculated by the real‐time method are estimated to be up to 5% higher (and in some special cases up to 9% higher) than the emissions calculated by the conventional method in which a national grid EF is applied, whereas for companies operating during nightly hours, GHG emissions are estimated to be as low as 3% below the GHG emissions determined by the conventional method. A significant error can therefore occur in the organizational carbon footprint (CF) of a company and, consequently, also in the product CF. It is recommended that hourly EFs be developed for other countries and power grids.     

Corporate sustainability for architecture engineering and construction (AEC) organizations: Framework,transition and implication strategies

This research aims to propose a regenerative sustainability framework for AEC organizations, not only to focus on delivering green certified projects, but to encourage a revitalized approach to systematically drive their sustainability initiative. To achieve this aim, the study conducts an extensive global review of sustainable assessment systems in various industries and organizations, such as corporate sustainable reports, green company competitions, and green-renowned stocks. After learning the best practices from other industries, a sustainable development framework for the AEC organizations is developed. The proposed framework constitutes 110 key indicators covering three-dimensions of sustainability—social, environmental, and economic, respectively—and four-elements of corporate development essentials—projects, operations, governance, and stakeholders. By comparing the proposed framework to existing AEC practices, the study identifies the skewed development of corporate sustainability in the AEC industry where much awareness have been given to project-level environmental matters, but the social dimension, such as social stakeholders and social governance, are seriously lacking and need to be prioritized. A case study of a multi-millions construction company in China was investigated to validate this framework in practice. The case analysis justifies the practical value of the proposed framework, and elaborates the future need of regenerative sustainable initiatives for AEC organizations. The study contributes to the development of corporate sustainability theory in the AEC industry, and also provides industrial practitioners and policy makers with a better understanding of the next generation of corporate sustainable performance and implementation strategies.     

Does environmental management improve enterprise's value? – An empirical research based on Chinese listed companies

The company's environmental management behaviors can improve the relationship between the company stakeholders, help companies to sustainably develop. But it is more seen as an obligation and cost of the company's environmental protection in developing countries. So what kind of impact the environmental protection have on the value of the company? Taking Chinese listing Corporation as a sample. This paper analyzes the impact of enterprises’ environmental management and its disclosure on corporate value. We conclude that environmental management excluding independent environment report can improve corporate value. In specific environmental management measures, producing environmental friendly products can help environmental friendly products gain recognition and improve corporate value significantly.     

Industrial Ecology and Competitiveness

In the emerging field of industrial ecology one of the unsettled questions is the degree to which design for the environment, closing energy and materials loops, and other industrial ecology concepts apply at the firm level. In this article we examine this issue with a particular focus on whether industrial ecology can guide company strategy and efforts to enhance competitiveness.
We conclude that industrial ecology thinking will often be useful for firms seeking to improve their resource productivity and thus their competitiveness. The systems perspective that industrial ecology promotes can help companies find ways to add value or reduce costs both within their own production processes and up and down the supply chain. But industrial ecology cannot always be counted upon to yield competitive advantage at the firm level. In some cases, the cost of closing loops will exceed the benefits. In other cases, regulatory requirements do not fully internalize environmental costs, and thus polluting firms may gain temporary or permanent cost advantages relative to companies that attempt to eliminate all emissions. Finally, because industrial ecology focuses attention on materials and energy flows, it may not optimize other variables that contribute to competitiveness within the corporate setting.     

Spontaneous Centralization of Control in a Network of Company Ownerships

We introduce a model for the adaptive evolution of a network of company ownerships. In a recent work it has been shown that the empirical global network of corporate control is marked by a central, tightly connected “core” made of a small number of large companies which control a significant part of the global economy. Here we show how a simple, adaptive “rich get richer” dynamics can account for this characteristic, which incorporates the increased buying power of more influential companies, and in turn results in even higher control. We conclude that this kind of centralized structure can emerge without it being an explicit goal of these companies, or as a result of a well-organized strategy.