Recommendations

Recommendations

DOI: 10.4018/978-1-5225-7619-8.ch008

Abstract

The recommendations target advancing corporate and financial social responsibility as prerequisites of sustainable financial sucess. The findings of public servant expert interviews about CSR outline the importance of global governance of corporate social conduct. Based on stakeholder consensus, governments may craft CSR frameworks that are backed up by institutional support. Corporations should educate leaders to adopt social responsibility policies in business plans. Accountability and transparency advance CSR.
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Introduction

The analysis of the UNGC initiative lead to recommendations of global governance and stakeholder management on CSR standards in sync with universally agreed upon principles. The implementation of the Ten Principles must be assisted by public and private efforts. The UNGC initiative must incentivize and sanction corporate social performance based on transparent quality control.

The set-up of partnerships requires global governance to foster partnership-enhancing environments. Governments should provide information on societal challenges and advocate for the adoption of socially responsible corporate practices. In networking forums multiple stakeholders must be encouraged to discuss social concerns and find consensus on commonly shared goals. Evaluations must assess and benchmark the transparent social impact of partners.

The currently-launched GAID partnership network must secure long-term financial sustainability by strengthening existing alliances and foster extensions. Stakeholder networking activities will help finding consensus and support the network. Regional initiatives must coordinate local action and govern the implementation of ICT for development. Transparent goal accomplishment strategies will monitor the partners’ contributions. Benchmarking and impact assessments will derive best practice learning models for future PPPs.

A meta-analysis of South Africa political divestiture studies found inconsistent results which raise questions about the measurement of political divestiture by the event study methodology. Internal validity threats to event studies are recommended to be overcome by well-balanced time windows that minimize confounding, a careful sample selection and transparency about potential study limitations. Threats to the external validity deriving from geographically-focused, time-targeted and non-typical samples challenge the generalizability of the results, which have to be validated in future comparative studies.

Interviews with financial experts revealed a lack of information on SRI that must be reduced by global governance on information disclosure. International financial institutions and governmental policies must work towards providing market actors information on SRI. Financial institutions and experts are encouraged to consider environmental and social responsibility promoted by media reports, social rating criteria as well as social responsibility proxy voting strategies. SRI innovations will ensure concurrent economic market prosperity and societal advancement.

Based on the outlined theoretical background and empirical findings, recommendations are given to advance corporate and financial social responsibility.

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