New Approaches to CSR, Sustainability and Accountability, Volume IV

Table of Contents

1. Frontmatter

2. Introduction

   1. Frontmatter

   2. Chapter 1. Overlooking to CSR and Women Issues After 12th IConGFESR and 12th IWBC London 2020 Conference

      M. Abu Naser, Kıymet Tunca Çalıyurt

      Abstract

      International Group on Women & Business, Governance, Fraud, Ethics & Social Responsibility started working on women entrepreneurships and governance and CSR-related debate from 2009. Several conferences have been held since the group was founded. This book has been exemplified using papers presented in the 11th International Conference on Governance Fraud Ethics and Corporate Social Responsibility (CSR) and 11th International Women and Business Conference hosted by London Metropolitan University in 2020, in the past conference held in different countries, e.g., 2018 in India; 2017 in Malaysia; 2016 in Canada; 2015 in Brazil. In this book, we have published some of the papers presented at the 2020 conference in London. The debates that take place in the conferences are extensive, outlining the contemporary issues in the world. Our group’s fundamental purpose is to recognize, promote, and support excellence in research and to encourage the development and use of knowledge for the benefit of humanity. Following few pages are summarized version of research scholars’ contributions from India, Canada, Brazil, Portugal, Turkey, Bangladesh, Estonia, Tunisia, Bosnia, Lebanon, and UK.

3. Sustainability in Digital Transformation and COVID Times

   1. Frontmatter

   2. Chapter 2. Challenges of COVID-19 Lockdown on Indian Universities

      Christo Joseph

      Abstract

      In the wake of the growing coronavirus crisis, 25th March 2020 saw a pan-India lockdown being strictly enforced across the country, initially for a three-week period—which was further extended several times, either uniformly nationwide or on a state-by-state basis. As was expected, this led to tremendous hardship for a large swathe of the country’s population. Amid all this, the education sector in India was unduly affected in several ways. Now, nearly a year on, there is still no clarity on when educational institutions will be able to open and function “normally”. This paper delves into various aspects related to the way COVID-19 lockdowns affected the education sector in India, universities especially. Offering a multiplicity of perspectives, the objective of the paper is to provide a balanced viewpoint on the way several dynamics of the COVID-19 lockdown in India panned out, especially the challenges that it presented to Indian universities. Following the methodology of interpretivism research philosophy, the paper relies primarily on secondary—yet credible sources of data for providing its perspectives. These especially include a multiplicity of online news sites and other publications that have been gleaned over extensively before providing pertinent information. Additionally, social media sites have also been tapped widely for this paper. While perspectives on such sites are frequently opinionated and subjective, a plethora of them when taken in tandem work towards providing a holistic set of beliefs centred around the primary theme of this paper. For data analysis, a thematic analysis has been used for identifying consistent themes gleaned from secondary data that has been obtained as described above. The findings of the paper point towards significant challenges faced by all stakeholders in Indian universities, with no clear resolution in sight, in the immediate future. As the ongoing vaccination drive intensifies, the challenges faced by these universities are likely to resolve gradually, over a prolonged period.

   3. Chapter 3. Factors Influencing the Continuance Intention to Use e-commerce: An Empirical Study

      Burim Prenaj, Fitore Kostanica, Luljeta Aliu Mulaj, Adelina Zeqiri

      Abstract

      The purpose of this paper is to examine the intention to continue using online purchases among Kosovan consumers. Specifically, the study aims to investigate how personal characteristics, combined with perceived usefulness and satisfaction, affect consumers to continue using online purchasing services. We extend the IT Continuance Model by incorporating personal innovativeness, e-skills, and perceived security/privacy. A survey is conducted with 339 students representing all universities in Kosovo. The structural equation modeling (SEM) technique is applied for data analysis. The results show that all IT Continuance Model hypotheses are confirmed, with satisfaction being the most important factor. Moreover, perceived security and personal innovativeness are found to significantly influence continuance intention, while e-skills do not have a significant impact on it. The main limitation of this study is that the survey only includes university students. Since this group has typically more competent users of new technologies, generalizing the findings of this paper should be done with caution. These findings should serve as good guidelines for targeting youths, but the usage and intention to continue using e-commerce may differ across different age groups. There are a very few studies that deal with consumer online purchasing in Kosovo, even fewer for post-consumer online purchasing. This paper fills this gap by examining the effect of personal characteristics on online purchasing continuance intention. Another contribution is the combination of the IT Continuance Model with personal characteristics in the context of online purchasing services.

   4. Chapter 4. Knowledge-Based Society: R&D Investments in New Economic Transformation

      Luljeta Aliu Mulaj, But Dedaj

      Abstract

      Today’s industrial firms are seeking to adopt strategies in which new technologies play key role in the sustainability of the industry and growth. The record on growth, as the most important measure for the long-run success in economy, requires continued innovation in the wide range of products, services as well as advanced methods on the production process and delivery. Furthermore, the importance of the technologic advancement has been confirmed by many studies, especially by emphasizing intellectual human capital and university science on the commercialization of scientific work and discoveries. The study gives an insight on the R&D investments: types, phases, and outcomes from the investments, as well as analysis on the literature for the R&D aspects, innovation, and technological improvement. Besides, evidence is given from the 30 world countries on R&D investments as share of GDP. Comparison among countries are made, as well as among three types of the group composed of 10 countries: (a) countries with the highest GDP in the world, (b) countries with the highest GDP per capita, and (c) Balkan countries. The estimation is done based on the data for year 2017. Additionally, there are analyzed and elaborated policies for investments in R&D at the European level, and evidence is provided also for the world top R&D investments distribution.

   5. Chapter 5. Analysis of CSR—Corporate Social Responsibility—Initiatives by CPSEs—Central Public Sector Enterprises of India

      Jagbir Singh Kadyan, M. Abu Naser, Leena Jenefa

      Abstract

      In India, Central Public Sector Enterprises—CPSEs—are the government-owned corporations in which majority (51% or more) of the paid share capital is either held by central government or by any state government or partly by the central government and partly by one or more state governments. According to the Government of India, Public Enterprise Survey Report, 2018–19, there were total of 178 profit-making CPSEs making a net profit of ₹1,74,587 crore. The top ten ranking profit-making CPSEs among them made a net profit of ₹1,07,947 crore, contributing 61.83% to the total profit earned by the CPSEs during 2018–19. CSR—Corporate Social Responsibility—in India is mandatory in nature. According to Section 135 of Companies Act, 2013, all profit-making corporates, including Central Public Sector Enterprises (CPSEs), exceeding threshold limits prescribed in the Act regarding net worth of ₹500 crore (₹5000 million), or turnover of ₹1000 crore (₹10,000 million) or net profit of ₹5 crore (₹50 million), in pursuance of its CSR policy are mandated to spend at least 2% of the average net profit (profit before tax) of immediate three preceding year ₹ towards CSR activities as per items listed in Schedule VII of the Companies Act 2013. Such companies are required to constitute a CSR committee, formulate a CSR policy and undertake CSR initiatives in accordance with Schedule VII of the Act and are also required to mandatorily report it in their annual reports in the prescribed format. The mandatory CSR reporting facilitates the company to demonstrate their commitment towards the society and also act as a communication tool to engage with different stakeholders, including shareholders, regulators, communities, customers and society at large. Central Public Sector Enterprises (CPSEs) in India are regularly undertaking various social initiatives and fulfil their corporate social responsibility towards the society and the nation. This research paper analyses the corporate social initiatives undertaken by the top ten profit-making CPSEs of India as per their ranking in the Public Enterprise Survey report, 2018–19. The duration of this research work is for the period of 05 year starting from the financial year 2014–15 to 2017–19.

4. Reading Fraud by CSR, AI and Social Entrepreneurship

   1. Frontmatter

   2. Chapter 6. Adherence of Fraud Pentagon Dimensions in Cases Reported by Security Exchange Commission in United States Between 2018 and 2019

      Ana Lucia Fontes de Souza Vasconcelos, Liliane Cristina Segura, Mariana Alves Serbonchini, Natany Kristine dos Santos Silva, Paulo Andre Matta Chagas, M. Abu Naser

      Abstract

      The business scenario has presented, over the last few years, several cases of accounting scandals, many of which have been taken forward by organs’ inspection agencies of their respective countries. Nevertheless, several companies have seen an increase in their experience with fraud, according to research conducted by PWC (Fraud, who´s committing it? Who knows about it? https://pwc.blogs.com/files/2009-uk-survey-report.pdf, 2018). Many authors discussed the fact that pressure is one of the most recurrent characteristics when analyzing fraud cases. Literature presents, among several other theories, the fraud triangle, the fraud diamond and the pentagon fraud model developed by Crowe. The pentagon of fraud model names five factors that cause fraud: pressure, opportunity, rationalization, capability and arrogance. The overall objective of the study is to verify the adherence of the fraud pentagon theory to the complaint processes carried out by the United States Security Exchange Commission (SEC) between 2018 and 2019. To meet the purposes of the research, this study has as specific objectives the survey of the files of fraud reporting processes from 2018 to 2019, seeking to identify the dimensions of the fraud pentagon theory; analyze the dimensions present in the situations that preceded the case raised by the SEC, according to its judgment reports; and identify which were the most prominent dimensions in the cases reported by the SEC. Thus, the identified cases of fraud and corruption that were disclosed on the SEC website in the period 2018–2019 were identified and analyzed through the fraud theory and the framing of the motivations in the fraud pentagon (on the qualitative nature of the fraud), in order to describe, based on the theoretical assumptions of the fraud pentagon, the dimensions of fraud in the cases raised on the SEC website from 2018 to 2019, in the North American environment, since the information was easier to access. The motivations and purposes of the fraud were analyzed in order to fit them in the dimension or dimensions that best describe the cases analyzed, based on a qualitative descriptive analysis of the information obtained from the documents “SEC Complaint”; it was possible to conclude that the dimensions of the pentagon are still valid and observable in cases reported by the United States tax authorities.

   3. Chapter 7. Artificial Intelligence (AI) and Big Data: Impediments to Fraud in Social Entrepreneurship Using Participative Social Governance

      M. Abu Naser, Mumtahina Zaman

      Abstract

      Here we present some reflections and a series of observations on the position of AI and Big Data in the management and implementation of social entrepreneurship. As major corporations, social entrepreneurs support the community by providing jobs and revenues. AI has the potential to support significantly, and in diverse ways, the work of people who are engaged in social entrepreneurship. The objective of this study is to bring to light the fraudulence occurring in social entrepreneurship and the necessary steps to eliminate it. The finding of this study indicates three examples of fraud occurred in social entrepreneurship. This study argues that the role of AI and Big Data is more effective in fraud prevention rather than manual investigation. These types of fraud could be prevented by participation of groups in decision making and monitoring process known as participative social governance. Therefore, the purpose of this paper is to discuss types of fraud risks in social enterprises in Bangladesh and the effective ways to prevent it. This study used case study in the social enterprises in Bangladesh, to be specific in Dhaka, the capital of Bangladesh. This study argues that the role of AI and Big Data is more effective in fraud detection rather than manual monitoring of personal. The study will be useful for scholars, policy makers and regulators who are interested in social entrepreneurship in Bangladesh. The review provides guidance to researchers and educators and offers directions and suggestions for practical study in this field. Overcoming the obstacles, entrepreneurship researchers rise to the challenges and engage in analyzation of the probable and concrete AI and Big Data applications. It includes both increased partnerships with other sectors (e.g., computer science and information systems) and updated study frameworks including different forms of technology inside entrepreneurship research (e.g., modern testing centers and exposure to the newest and efficient innovations or networking networks and social network like seminars, meetings, data depository).

   4. Chapter 8. Restorative Justice: Application to Corporate Fraud

      Mark Lokanan

      Abstract

      The paper argues for a restorative justice approach to corporate fraud. Drawing from the restorative justice and crime control literature, the paper argues that given the nature of corporate fraud and the stakeholders affected, restorative justice can have an impact in disciplining corporate offenders. Restorative justice is a different framework from criminal justice or regulatory proceedings. A restorative approach to justice sees crime as involving all the stakeholders affected by the offender’s action. In the aftermath of a crime, the victim, offender, community, and authorities meet to discuss how the offenses affected the lives of the victims and neutralize its collective impact. The fundamental postulate of restorative justice is to promote healing and rehabilitation for the victim, offender, and all other stakeholders affected by the crime. While restorative justice is widely used in addressing street crimes, little effort has been made to link its applicability to corporate crime.

5. Recent Issues on Boards, Gender Issues

   1. Frontmatter

   2. Chapter 9. Female Entrepreneurship: Is It Possible to Reconcile Family and Business?

      Karine Rosália Felix Praça Gomes, Emanuel Ferreira Leite

      Abstract

      The desire for professional achievement and independence, the unemployment of a partner or the lack of increased family income have brought women into the business world. The objective of the research is to conduct a study on female entrepreneurship, considering the obstacles faced by women who are committed to harmonizing business and family. The research used was qualitative through literature review and case study. The instruments applied were classroom observation and the questionnaire applied to a certain population who participated in the III Entrepreneurship Fair held at the Faculty of Science and Technology, Professor Dirson Maciel de Barros (FADIMAB) in Goiana-PE. According to the selected sample, more than 41.67% of respondents are women and 58.33% are men. With the work it was possible to infer that of the various attributes that entrepreneurial students have in common, there are certain characteristics such as self-realization, persistence, ability to create, positivity, entrepreneurial vision and courage to achieve their goals and overcome obstacles. The data obtained confirms the literature on female entrepreneurship, that the female public innovates to face obstacles, introducing changes in the family, professional and personal spheres. The study presents important contributions to the analysis and understanding of the phenomenon of entrepreneurial behaviour and female entrepreneurship in the local context analysed, shedding light on a reality still little explored from an academic and scientific point of view.

   3. Chapter 10. Women on the Board of Indian It Companies: Are They Audible and Visible?

      Fincy Pallissery, Chaitra Rangappa Beerannavar, Freddy Thomas

      Abstract

      Gender disparity on the board of Indian IT companies is a continuing saga despite the Indian Companies Act, 2013 mandating at least one-woman director in the executive position of public listed companies. Women in India are leaders of varied sectors of businesses and on top leadership positions except in IT companies. This study has found that 14 out of 25 leading IT companies in India has, got not more than two women on the board of directors. It has also been found that the reasons for said nomination are due to the statutory compulsion to have women on board. Information technology companies are responsible for innovation, business growth, transformation and diversification. Strategic leadership is the key for IT companies to achieve the above-stated objectives. Inclusiveness in the economic reforms is possible when women are given adequate representation in entrepreneurship and leadership positions in all sectors of industries. This study aims at examining the causes of the inadequate representation of women in Indian IT companies. Paper has examined the following issues to analyse the above-stated proposition: (a) How far the Indian IT industry has contributed to the empowerment of Indian women? (b) Whether the employment terms and recruitment policies of IT companies are sufficient to ensure the security of tenure and promotion to women employees and do it incentives women employees’ contribution towards innovation in their respective companies? (c) What are the factors contributing to women taking up leadership positions in Non-IT Industries? (d) Whether family commitments are the reasons for women in the IT sector to decline leadership positions or whether male domination is a cause for women to be backward in IT companies’ leadership positions? (e) Should mandatory reservation of adequate percentage of seats for women in administration be uniformly applied also for employment of women in the IT sector and how far the practice followed in developed jurisdictions need to be incorporated under the Indian law? Enrolment of women in IT and business education is on par with their counterparts. Since women occupying leadership positions is negligible, the paper examines the challenges and proposes solutions to ensure gender equitable reforms in the leadership roles of Indian IT companies. Data related to board composition and shareholding patterns of Indian IT companies are looked into and analysed to identify whether women possess capital or management control in the Indian IT companies. To critique the role of women in other sectors of employment with that of the IT companies, data collected from the National Association of Software and Services Companies (NASSCOM) and Indian government-sponsored schemes are considered. The data are also collected from various sources such as Sustainability Reports of Wipro, Infosys, HCL, Dell, Accenture, Tata, Human Development Index (HDI), United Nations Department of Economic and Social Affairs (UNDESA). The data compiled reflect the factors that affect women’s career progression in the Indian IT sector. This study has found that there is an absolute imbalance in terms of gender diversity on the boards of Indian IT companies. Reasons for the same are as follows: 1. Women who have excelled in technological education are not willing to take up leadership positions in IT companies due to the challenges and risks involved in this specific sector, 2. Family commitments and health issues are not conducive for women to dedicate the required time in managing corporate boards of IT companies, 3. Joint families and a patriarchal Indian system limits woman to undertake employment, 4. Women with liberal outlook and merit are not preferred as a choice by male leaders of IT companies due to the fact that they never want to be led by women, 5. The upskilling programmes organized by IT companies to their women employees are not sufficiently focused to promote women to leadership positions and 6. Excess share qualification for directorship prescribed by listed public companies is an impediment for women to be considered for executive positions. Paper suggests strategies and policies for the promotion of women employees to executive positions and ensuring the disclosure of diversity of corporate boards as a prerequisite to listing its shares. Secondly, it proposes to amend Companies Act, 2013 to prescribe a higher number of mandatory appointments of women on board to make it mandatory for women to be part of committees of the board mandated under the Companies Act. Thirdly, it proposes that the B-Schools admission policies should increase the intake of women candidates for management programmes so that they would possess the adequate competency to govern corporate boards of Indian IT companies.

6. Backmatter