Corporate governance Essay

Other studies have attempted to isolate the impact of separate social factors on financial performance. For instance, Derwall, Gunster, Bauer, & Koedjik, K. (2003) have included the innovest eco-efficiency scores of US companies, and have looked at the environmental factor. After controlling the risk and investment style, they concluded that the high-ranked portfolio outperforms the low-ranked portfolio. The results become significant when adjusted for industry effects. Becker & Huselid (1998) have concentrated on the relationship between human resources management and firm performance. An analysis of over 500 multi-industry US companies present that a high performance HRM system has an economically and statistically positive effect on organizational performance. Gompers, Ishi, & Metrick, A. (2003) have emphasized the corporate governance aspect. They have drafted a governance index using 24 governance rules on 1,500 large US firms. An investment strategy that purchased shares of well-governed firms and sold shares in badly-governed firms earned an abnormal return during the 1990s. The research has applied style-adjustments. Bauer, Gunster, & Otten (2003) have analyzed the effect of corporate governance on stock returns and firm value. They have utilized the Deminor Corporate Governance ratings to build a portfolio of organizations with bad corporate governance. They find positive results for style-adjusted returns, with weaker positive results after adjustment for country differences. In summary, majority of the studies have presented an out-performance for SRI portfolios compares with more traditional investment approaches, even if such differences do not always present as statistically significant. When particular dimensions of sustainability are investigated, more significant and positive results are brought forth, suggesting that some facets of corporate social responsibility may also contribute shareholder value. Hypothesis This research will look into the efficiency of the internet, especially the corporate websites in transmitting messages with regard to one’s corporate social responsibility. In the same way, it would determine the role of corporate responsibility in increasing profits and revenues of a certain organization. It would look at how US companies incorporate their corporate social responsibility into their websites and how they link the most present and relevant issues into the general characteristics of the company (corporate profile) and of their products and services. In the same manner, this study aims to look at how these issues have been presented in their websites. Are they using the descriptive or informative approach and are they more commercial in perspective instead of allowing an ethical valuation or an appraisal of the company’s compromises in its production. This would also look into the issue of corporate governance. This research shall be qualitative in nature. According to Fay (1996), qualitative researchers attempt to accurately describe, decode and interpret the precise meanings of a certain phenomenon to a person or group of people. The research will also be based on the interpretative paradigm. According to Saunders et al. (2003) interpretive research is a broader term than qualitative research and it encompasses all other approaches based on participant observation such as ethnographic, qualitative, phenomenological, constructivist, and case studies. Second, interpretive research does not carry with it the false connotation of excluding the use of quantitative measures. The focus lies at the different constructions and meanings people place upon their own experiences and the reasons for those differences. The researcher shall use three tests focused in one group. These shall include surveys, focus group discussions and interviews that are essential in gaining necessary data. The focus group discussion of qualitative analysis was utilized, offering the proponent the opportunity to follow up and clarify certain facets of the research to the researchers and to the peers of the research group. It also permitted the members of the focus group to express his/her feelings, opinions and concerns. Following this, the focus group discussions created were documented and thematically analyzed. In order to effectively evaluate the research hypothesis and meet the objectives of the study, this study will employ two qualitative research methods – the focus group discussion and interview method of research. Qualitative research in itself makes for an in-depth evaluation and analysis of human dynamics and the kind of reasons that motivate such behaviour and the reasons that revolve around such behaviour to spur out in the first place. As compared to quantitative research, the qualitative method of analysis relies on the fundamental reasons behind the reactions of people when external factors are applied to a given situation. Simply put, it investigates the why and how of decision making, relative to what is being identified by the quantitative method of analysis – what, where, and when (Denzin & Lincoln 2000). For this reason, qualitative research only requires a relatively small group as compared to the relatively large yet most of if not all of the time are random samples. Qualitative research also identifies and sorts data into relevant and helpful patterns as the foundation for organization and the basis for reporting the kind of results for data.