Corporate Governance and CSR: Exploring the Nexus

The provided content consists of a collection of academic papers, books, and online sources related to corporate governance and corporate social responsibility (CSR). The topics covered include the history of corporate governance around the world, the political economy of corporate governance, CSR, innovation, methodology, and endogeneity. The content also includes an appendix with a questionnaire on corporate governance and CSR in the context of multinational companies, including questions about the importance of corporate governance, CSR strategies, and the implications of corporate governance on market performance.

The effect of corporate governance on
internationalization, globalization and the
performance of the firm: A case study on Emirates
airlines

ACKNOWLEDGEMENT
I am thankful to all those friends and relatives who gave me guidance and support in completing
my dissertation on corporate governance they always encouraged for completing dissertation in
the best possible way. In addition to this, I also appreciate my mentor for giving me guidance in
preparing dissertation. From his support and experience d I was in the position to complete
dissertation in a right manner. Finally, I want to extend my sincere thanks to everyone who have
directly or indirectly supported me in completion of my dissertation.

ABSTRACT
Corporate governance has gained a significant importance in the recent past across the
globe. In order to understand importance of corporate governance in context of business firms,
dissertation has been carried out. In this regard, the research is conducted on an airline company,
Emirates. For preparing a dissertation on corporate governance, lots of secondary data were
reviewed. The information was taken from books and journals etc. On the basis of evaluation of
theories, literature review is prepared. Further, sample of employees at emirates are selected for
collecting primary information. In research, sample of 20 employees were taken which includes
top, middle and lower level of management. In research, primary research was conducted under
which questionnaire was distributed among the respondents. In questionnaire, an attempt is made
to understand various aspects of corporate governance. After collecting the entire data, analysis
of the same is done and reasons behind respondent’s specific response are identified. These
reasons are mentioned in the analysis section of each theme. In research, it has been identified
that corporate governance has significant importance for the firms. By using corporate
governance, the company can curb corruption in an organization. Moreover, they can easily enter
into strategic partnership with any other company in foreign market. Thus, corporate governance
is giving lots of benefits to the firms and they must try to improve their corporate governance
system time to time.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................6
1.1 Overview................................................................................................................................6
1.2 Research aims and objectives................................................................................................9
1.3 Rational of research...............................................................................................................9
1.4 Significance of research.......................................................................................................10
CHAPTER 2: LITERATURE REVIEW.......................................................................................12
2.1 Introduction..........................................................................................................................12
2.2 Meaning of corporate governance.......................................................................................12
2.4 Benefits of corporate governance........................................................................................13
2.5 Significance of corporate governance..................................................................................14
2.6 CSR in the multinational companies....................................................................................15
2.7 Benefits of corporate governance on market performance of the firm................................16
2.8 Ways in which globalization and internationalization affects CSR of an organization......17
2.9 Ways in which Corporate governance promotes globalization and Internationalization of
the Company..............................................................................................................................19
2.10 Ways in which concept of CSR can be used to improve market performance..................19
2. 11 Ways in which corporate governance can help in increasing market performance..........21
CHAPTER 3- RESEARCH METHODOLOGY...........................................................................23
3.1 Overview..............................................................................................................................23
3.2 Research type.......................................................................................................................23
3.3 Research design...................................................................................................................24
3.4 Research approach...............................................................................................................24
3.5 Research philosophy............................................................................................................25
3.6 Data collection methods.......................................................................................................25
3.7 Data analysis........................................................................................................................26
3.8 Validity and reliability.........................................................................................................27
3.9 Ethical consideration............................................................................................................27
3.10 Limitation of study.............................................................................................................28
CHAPTER 4: DATA ANALYSIS................................................................................................29
4.1 Introduction..........................................................................................................................29
4.2 Demographic data................................................................................................................29
4.3 Meaning and significance of corporate governance and CSR in context of multinational
companies..................................................................................................................................32
4.4 Implications of corporate governance in relation to company market performance...........36
4.5 Corporate governance promotes globalization and Internationalization.............................40
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................44
5.1 Conclusion...........................................................................................................................44
5.2 Recommendations................................................................................................................46
REFLECTIVE................................................................................................................................48
REFERNCES.................................................................................................................................49
APPENDIX....................................................................................................................................53
Questionnaire.............................................................................................................................53

CHAPTER 1: INTRODUCTION
1.1 Overview
Background of research
Corporate governance is a widely used term that has been practised by various
organizations in the recent past. Across the globe, there are many large sized companies which
are known for their high level of corporate governance. This term refers to rules and regulations
that are followed in the entire organization while conducting day-to-day business operations
(Tricker, 2015). Moreover, corporate governance also helps in satisfying the needs of all
stakeholders whether they are internal or external in an appropriate manner. There are several
components of corporate governance and one of the most important components is
accountability. This component of corporate governance states that leaders of an organization
should have clear understanding of their accountability. In order to perform accountability in a
proper manner, the top management must guide their subordinates and ensure that each and
every activity in an organization is performed effectively as per the rules of corporate
governance (Harford, Mansi and Maxwell, 2012).
Transparent and open leadership is an important component of corporate governance.
According to transparency of component, leaders or company, the top management must make
all disclosures regarding company’s operations time to time to their stakeholders. Such
disclosures must be correct and true to its nature. In order to follow corporate governance,
company’s top management is required to make a good relationship with their stakeholders.
These stakeholders are employees, shareholders and creditors etc. A good corporate governance
in an organization ensures that all stakeholders will be treated equally and management will give
them due importance. If management treats employees in a systematic manner then they get
satisfied and put their efforts in achieving organizational goal (Larcker, Richardson and Tuna,
2007). Hence, corporate governance plays an important role in growth of an organization.
In order to make good corporate governance, top management should be allocated full
independence to decide future course of action. In case, the top management have not allotted
power to decide the main owners of an organization will have full grip over the organization’s
management and they will fulfil their own needs to achieve desired goals (Joseph, Ocasio and
McDonnell, 2014). On contrary to this, if directors are working independently then they will
5

improve company’s rules and regulations and will also make them strict in order to prevent scam
within a company. Hence, independence of directors is a first step towards making strong
corporate governance within an organization. In this research, an attempt is made in order to
understand impact of corporate governance on an organization. In other words, the positive
impact of corporate governance on company is analyzed through the research. Corporate social
responsibility known as CSR is an integral part of corporate governance because in today’s era
firms are using CSR is a means of building a positive brand image (Westphal and Zajac, 2013).
It is a part of corporate business practice. Hence, corporate governance and CSR are interlinked
to each other.
Emirate is following one of the CSR strategies under which it is complying with the
standards that are determined by the regulatory authority of nation. By doing this, firm is
completing its social responsibility towards government. It is also focusing on updating its
airplane’s technology. Through this, it is trying to control pollution from its airplanes. This is
another CSR strategy that is followed by the firm. Emirate airline is ensuring the safety of people
on its airplane and for this; it adopts many safety measures (Erkens, Hung and Matos, 2012).
With the help of this, it ensures the safety of life of those who are travelling on its airplane.
Hence, it can be said that these are the strategies that are followed by the firm in order to perform
CSR towards government and general public. Under CSR, companies are implementing
numerous activities like opening orphanages, helping handicapped people and reducing carbon
emission to protect the environment. Companies are using it as an instrument in order to create a
positive brand image. Further, organizations are using their CSR activities for institutional
advertising in order to show significant contribution in welfare of an organization. In many
nations, CSR have become an integral part of corporate business practice (Bebchuk, Cohen and
Ferrell, 2009). Today, the most common problem that business organizations are facing is low
retention value of the customers. In simple words, it can be said that companies are not able to
create a loyal customer base. On other hand, stiff or fierce competition is going on between
companies in every sector. In such a situation, it becomes necessary for the firms to build loyal
customer base. Due to mentioned reasons, every company is making an attempt to formulate
effective strategies for success of the business unit. Firms are adopting various ways which helps
them in creating special image in the eyes of customers (Aoki, 2013). By doing this, they can
increase employee’s retention value or can build loyal customer base. CSR is a unique and
6

perhaps an effective way to achieve objective of building loyal customer base. It is through
involvement in corporate social responsibilities that companies are trying to establish special
image of their brand name. Companies like Microsoft are giving millions of amount for CSR for
conducting social service activities in countries like India (Farber, 2005). In this way, they are
popularizing their name in foreign countries not only on the base of their product but also on the
basis of the corporate social responsibility activities.
This research is conducted in order to reveal the impact of corporate governance on
internationalization, globalization and performance of Emirates Airline. In this research,
correlation between CSR and corporate governance will be developed. This will be done in order
to show the extent to which the mentioned company effectively utilizes CSR and corporate
governance for its benefit.
Background of Emirates
An emirate is the largest airline company of UAE which is also known as united Arab
emirate. This airline is owned by Sheikh Mohamed binrashid Al Makotoum who is the ruler of
UAE and is its president. It is the world’s largest international airline and in fiscal year 2014-15,
it carried 49.3 million passengers which were 11% more than the previous year. In same fiscal
year, it carried 2.4 million ton of cargo which was 6% higher than the previous year. In
mentioned fiscal year it also increased its capacity by 9%. This reflects that company is growing
and since its inception it is growing rapidly and has emerged as the world’s largest international
airline. Currently, it is operating in 144 cities over 6 continents. This means that it has
geographical presence all over the world (Agrawal and Chadha, 2005). Company is steadily
investing on developing its fleet size and commencing its services on new routes. Emirates
understand that customers or travellers are an important stakeholders and their satisfaction will
play a decisive role in company’s success. Hence, Emirates is following concept of CSR and it is
providing quality food to its customers. Emirates are providing food facility in collaboration with
Dnata an international company that is providing in-flight catering services.
Emirates ensure that food which is provided to the travellers is of high quality. In other
words, it also ensures that their traveller does not find any sort of problem in terms of food while
travelling in airline. In alliance with Dnata, company is aimed at providing full safety to its
travellers (Larcker and Tayan, 2015). In respect to this, it is investing heavy amount of AED 70
million in order to ensure full safety of life of those who travel in its airplane. In respect to this, it
7

has made safety program in order to train its employees. Under this program, 850 of its staff
members were trained as observers. Further, s 24,000 observations are carried out till the date
through this program (The Emirates group, 2015). After observation, feedback is collected in
order to identify the weak points. Further, on the basis of these weak points measures are
prepared and implemented which ensures safety of passengers in airlines. Along with this, it also
values its employees and it assumes that they are its valuable assets and organization cannot
grow without their support. Hence, it is giving full support to its employees. Along with this, it is
also committed towards protecting an environment and in respect to this it has adopted several
pollution control measures. Emirates have limited availability of resources and due to this reason
it aims at utilizing its resources in an efficient and effective manner. Emirates are also carrying
out corporate social responsibility activities in respect to conserve flora and fauna. Further, it is
involved in Dubai Desert Conservation Reserve under which initiatives are taken to preserve
natural and cultural heritage. Hence, company is carrying out CSR activities in several areas and
in this way it is popularizing its brand name (Fan, J Wong and Zhang, 2007).
1.2 Research aims and objectives
Research aims at analyzing the impact of corporate governance on internationalization,
globalization and the performance of firm. Case study for Emirates airlines have been analyzed
through the research.
Main objectives as per the aim of research are-
 To critically evaluate the meaning and significance of corporate governance and CSR in
the multinational companies.
 To examine the implications of corporate governance on market performance of the firm.
 To identify the ways in which corporate governance promotes globalization and
Internationalization of company. To recommend the ways in which concepts of CSR and corporate governance can be
used in order to boost the market performance of Emirates Airlines.
Research questions
Research questions are prepared on the basis of research objectives and by using research
questions; questionnaire is formed for collecting primary data.
 What is the meaning and significance of corporate governance and CSR in context of
multinational companies?
8

 What are the implications of corporate governance in relation to company’s market
performance?
 In what ways corporate governance promotes globalization and internationalization of the
firm?
 What are the ways in terms of which CSR and corporate governance can be used to
enhance the market performance of Emirate airlines?
1.3 Rationale of research
Operating a business is a very difficult task and organization top and middle management
have to look after so many activities in order to ensure continuous growth of the company.
Corporate governance is simply a set of rules and regulations that an organization follows in
order to run day to day business. It also refers to procedures that an organization is following in
order to complete specific task. Corporate governance also plays an important role in
maintaining transparency in an organization. Due to lack of transparency, organization is
assumed to employ fraudulent practices. As a result of this, image of the company gets tarnished
in the eyes of the customers (Dittmar and Mahrt-Smith, 2007). Stringent rules and regulations
help the management of an organization in ensuring full transparency. This also helps in
preventing irregularities in an organization. Hence, corporate governance plays a significant role
in growth of an organization. Company has many stakeholders and it has to maintain a balance
between these entities. Many a times an organization due to poor corporate governance fails to
satisfy interests of all its stakeholders. In such a situation, company requires good corporate
governance (Black, Jang and Kim, 2006). Hence, corporate governance is an important part of
the organization and by practicing it in a proper manner, a firm can treat its stakeholders
effectually..
Today, large corporate are also involved in the corruption and due to this reason, people
rely less in them. As a result, people are losing confidence in these firms and they are also not
loyal towards single company’s product. Moreover, any bad news about company’s product
creates a fear among public. Hence firm’s customer base gets reduced to large extent. This is
observed several times. On the other hand, this strengthen the corporate governance in an
organization inevitable (Carney, 2005). Strong rules and regulation helps in preventing
origination from involving in any irregularities in the company’s operations or accounts. This in
turn results in increasing efficiency and trustworthiness of procedure of performance. . Today,
9

corporate governance is a term which is considered by large sized investors before making
investment in a single or multiple firms. Many large and medium sized firms are manipulating
their accounts and bribe is given to auditors in order to conceal real facts that are relevant to
stakeholders and regulatory authorities (Bhagat and Bolton, 2008). But, many firms are involved
in such kinds of illegal practices. As a result, corporate governance is an important issue in
business and investment streets.
1.4 Significance of research
There is a great deal of benefits of making the corporate governance stronger. This
research will help the companies in understanding the importance of corporate governance for
business. Good corporate governance acts as a symbol of company’s reliability and its loyalty
towards fulfillment of interests of its stakeholders (Masulis, Wang and Xie, 2007). This research
will help the Emirates in understanding importance of corporate governance deeply. Further,
results of research will also assist the organization in improving its corporate governance.
Research on corporate governance is also helping researcher in understanding broad
understanding on importance of corporate governance.
10

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is an integral component of dissertation. In this part of dissertation,
opinions of research scholar and intellectual people are discussed in detail and their opinions are
correlated and contradicted with each other’s statements. Secondary data is collected with an
objective of understanding the topic of dissertation effectually. This creates a base which is used
for conducting a primary research. By doing the review of literature, gap between current and
past scenario can be easily identified. In this part of literature review, critical evaluation of
various scholars’ opinions is done. Literature review would encompass the significance of
corporate governance and other issues related to the corporate governance. In today’s age
companies are increasingly expanding their operations on foreign land and they are consistently
increasing their business in the multiple nations. As a result, their social responsibility is also
increasing because firms are using resources which belong to foreign nations. Hence, it is the
company’s responsibility to perform CSR activities in all those nations in which it is operating
its business. Thus, in literature review, impact of globalization and internationalisation on CSR
activities of the companies is discussed in detail. Moreover, in this section of dissertation ways in
which globalization and internationalization affects CSR of the company is also discussed in
detail.
11
Illustration 1: Carools pyramid
(Source: Brealey. and et.al., 2012

As per this model, it is the responsibility of Emirate to fulfill its first objective to be
profitable because if it will earn good revenue then to pay salary and serve employees in the best
way would be easily possible. After fulfilling this responsibility, the second main responsibility
of firm is to follow all the rules and regulations that are determined by the regulatory authorities
of respective countries in which Emirate is operating its airplanes (Brealey and et.al., 2012).
After this, the third and most important responsibility of firm is to become ethical and provide
services to the travelers at fair price and of best quality. After this, the last and main
responsibility of firm is to become good corporate citizen and to conduct the activities that
provide social benefits to the general public. In this regard, Emirate can open hospitals that will
provide free medical service to the poor people. It can be said that these are the steps that
Emirate needs to follow in order to fulfill its responsibility.
12

2.2 Meaning of corporate governance
Corporate governance is a set of rules and regulations as well as policies by following of
which company is directed towards achievement of objectives. Corporate governance plays an
important role in the success or failure of an organization because it is directly related to the
activities of business firm. It is corporate governance from which all core business activities of
organizations are directed towards achieving organization objective. Corporate governance is
like an instrument through which companies build healthy relationship with their stakeholders
like customers and employees etc. In the absence of strong corporate governance, relationships
with stakeholders become poor. Hence, most of the companies are paying due attention on
strengthening their corporate governance. According to Harford, Mansi and Maxwell, (2012)
corporate governance is a set of rules, process and practices through which company is
controlled and directed in a specific direction. In other words, it can also be said that corporate
governance is bundle of rules and process which company’s board of directors and managers
follow to operate an organization. In many companies, there is a rule that in every quarter, at
least one meeting of board of directors will happen. In these meetings, business decisions are
taken and ways are identified in which an organization can be operated in a proper manner. As
per Aguilera and et.al, (2006) corporate governance is a mechanism which is used to satisfy
needs of all the stakeholders. By using this mechanism, interest of all stakeholders are served in a
balance. These stakeholders may be employees, debtors, creditors and government etc. Berger
and et.al, (2005) asserts that success of an organization to large extent depends on support that it
receives from its stakeholders. If employees will not work properly then, organization will not be
able to achieve its target in an effective manner. In the same way, if debt will not be paid on time
then business friends will not give loan next time to the business firm. Hence, success of any
firm depends on the support that it receives from its stakeholders. Similarly, Berger, (2005)
states that stakeholders are supporting drivers for an organization and they are required to make
rules and procedures in such a way that helps the company in fulfilling obligations towards
stakeholders in proper manner and on time. As per views of Lindgreen and en, (2010) corporate
governance helps in implementing internal control measures and due to this reason corporate
governance as a mechanism is assumed as an effective measurement to prevent scandals in an
organization. Over few years, it has been seen that investors before making investment in a
company like to know about corporate governance of an organization through its annual report.
13

Hence, in today’s era, corporate governance as a topic of research is gaining wide popularity
among research scholars and intellectual people.
2.4 Benefits of corporate governance
Accountability is what helps people to take important decisions and this accountability
can be developed easily by using corporate governance as identified by Minow, (2004). There
are various benefits of implying good corporate governance in order to boost its performance in
the most appropriate manner.
Lowering of risk- According to Solomonb, (2004) it is one of the most important aspects
of corporate governance as it helps companies to mitigate the amount of risk that is involved in
the company. By using effective corporate governance, different scandals, fraud can be avoided
easily as this aspect keeps check on every aspect of business and notifies managers if anything is
found wrong. By using corporate governance, communication is made much easier by
establishing a hierarchy and roles that everyone in the company will follow in an appropriate
manner. In the corporate governance, all rules and regulations are determined in a proper
manner. These rules and regulations determined the way in which specific activity will be
performed (Brammer, Jackson, and Matten, 2012). Corporate governance also determines the
authorities and responsibility for the specific job. Hence, due to corporate governance, an
individual cannot do anything at its own discretion. Hence, there is no chance of fraud if
corporate governance is good in an organization.
Public Acceptance- As identified by Welford, (2007) this particular concept of corporate
governance is widely accepted by all the domestic as well as international organizations. This
happens because of idea of disclosure and ability of people who work in the firm to get
information as well as general people by creating a big level of trust. It is also a fact that because
of corporate governance, there is very less chance of fraud as well as wide criminal activity in
the organization as it helps in gaining trust of people. People believe in the firm whose corporate
governance is excellent. If this will be good then fraud will not take place. Hence, this will create
a positive image of the firm among general public (Hermalin and Weisbach, 2012). Hence, it can
be said that corporate governance to a large extent helps the firm in creating strong relations with
the external stakeholders.
Public image- There are many corporations who hold a very high level of corporate
governance all because a corporation has to maintain public image in the suitable manner as
14

stated by Colley (2003). Implying corporate governance makes companies more accountable for
responsibilities and actions it takes by keeping a tab on activities that are going in company. Due
to good corporate governance, transparency comes in an organization. This creates a strong
image of company in the general public.
2.5 Significance of corporate governance
Corporate governance should be at the heart of an organization and it plays a decisive
role in success and failure of an organization in any aspect of business. No business can survive
without the cooperation of its stakeholders and especially creditors. Here, corporate governance
plays an important role and helps an organization in making its relationship with the stakeholders
very strong. According to Ferreira and Laux, (2007) changing ownership structure helps in
governing an organization in a proper manner. If board of directors is doing anything wrong in
an organization then with change in ownership these malpractices can be stopped by new board
of directors. Currently, mutual fund companies are making heavy investment in the large capital
companies and owned substantial portion in a single company. In this way, they force the board
of directors to do corporate governance in a proper manner. Earlier, majority of stake remains
with company owners and due to this reason corporate governance was not implemented
effectively. Hence, change in ownership structure is helping in implementing corporate
governance in an effective manner. However, in contrast to this Haniffa and Hudaib, (2000)
states that it is not necessary that change in ownership structure always helps in preventing
scandals and manipulation of money in an organization. Newly elected board of directors may
also be involved in illegal activities in an organization. According to Beiner, (2006) corporate
governance helps in protecting interest of all stakeholders whether they are customers,
employees or creditors etc. Thus, everyone is putting a lot of stress on quality of corporate
governance in an organization. The efficient and effective corporate governance ensures that an
organization will take care of interest of all its stakeholders. This also increases reliability of an
organization in the eyes of the stakeholders.
In today’s era scams widely takes place in the business organizations. Along with it,
it has been find out that companies are concealing important facts from its shareholders and other
stakeholders. Large companies are also involved in such kind of unethical practices. As a result,
large size companies with strong financial position also lose their reliability in the eyes of
15

investors. Council, (2010) asserts that corporate governance is the only tool that can be used to
control scams and fraud in an organization. This is because it is a set of rules and regulation that
can support organization’s audit in a proper manner. Hence, only and only corporate governance
can stop scams in an organization. However, contrary to this, Hoitash, Hoitash and Bedard,
(2009) states that it is human being that develops corporate governance. If top officials of an
organization are involved in scams then they will never remove loopholes from corporate
governance. Hence, scams will be identified too late. Further, it is not necessary that corporate
governance prevent scams in an organization. If any company since its inception is committed
towards developing effective corporate governance then it is possible to prevent occurrence of
scams in an organization.
As per views of John, Litov and Yeung, (2008) today is the era of globalization and in
order to start a business in foreign nation companies have to follow many rules and regulations.
If organization’s corporate governance is ineffective then it cannot comply with all these rules
properly. Hence, delay may occur in starting a business on foreign land. Similarly, Giroud and
Mueller, (2010) also stated that companies is required to develop their corporate governance in
such a manner that they can easily run their business smoothly in any situation.
2.6 CSR in the multinational companies and its importance for people
CSR stands for corporate social responsibility and it comes in corporate governance. In
the present time, most of multinational companies are coming forward and actively participating
in CSR activities. Among these large size corporations, there are many companies that are
helping respective governments in protecting country’s natural environment. In other words it
can also be said that these MNC'S are helping governments in implementing their environment
protection measures on the large scale. As mentioned above, there are many stakeholders of the
company and it is responsibility of the firm to take care of their well being. Through these
activities, companies protect natural environment and help the needy people and eliminate
problems that society face in their day to day life. According to Kotler and Lee, (2005) business
firms must do CSR in order to do institutional advertising. CSR not only serves interest of
society but it is also beneficial for an organization. Hence, it is advantageous for the both
companies and society. By doing CSR activities at large scale, the can initiate its word of mouth
marketing. Similarly, Lindgreen and en, (2010) also state that CSR is not only a part of corporate
governance but it is also a part of marketing, in this way CSR helps the companies in achieving
16

multiple objectives in a single attempt. According to Crowther and Aras, (2008) multinational
companies must conduct CSR activities time to time because they are present globally and use
resources of several nations. Due to this reason, it is their responsibility to do something for
various nations of the world. Hence, they must conduct CSR activities time to time in various
nations of the world.
2.7 The impact of corporate governance on market performance of the firm
Corporate governance can play a prominent role increasing market performance of the
firm. By making corporate governance strong, companies are building valuable relationship with
the stakeholders. By effectively complying with rules and regulations as well as policies
companies are able to bring transparency in their operations. Moreover, they also determine
accountability of the employees for failure of business operations. Transparency in operations
creates a reliable image of the company in the eyes of stakeholders whether they are customers,
employees and creditors. As a result, companies are getting a lot of benefits in their business
operations. As per views of Erkens, Hung and Matos, (2012) corporate governance is a system
of controlling and operating a firm in order to achieve long term goals to satisfy needs of
stakeholders. By satisfying needs of stakeholders like business friends, the organization can
improve its business terms with them and can elevate its profitability. Relationship plays an
important role in growth of an organization and relationship becomes stronger when business
friends believe in the company. Corporate governance is a tool by which the company can
expand its business. Likewise, Klein, Shapiro and Young, (2005) also states that good corporate
governance refers to transparency, accountability and responsibility that an organization have
towards its stakeholders. He states that if an organization will be transparent towards its
employees and business friends then it will be able to develop its reliability in the eyes of its
important stakeholders. Hence, due to this company will receive full support from its
stakeholders. In this way, corporate governance helps the firms in improving their market
performance. Good corporate governance assists the organization in building their reputed
image. Those firms that have good image easily get finance from external sources even
economic conditions of the company are not too good. But on basis of reclaimable image,
companies get a fully fledged support from its stakeholders. Hence, corporate governance plays a
decisive role in growth of an organization. Similarly, Farrar, (2008) also support this fact and
states that firm must give due attention on developing their corporate governance even they are
17

small in size. There are many firms that grow very rapidly in short span of time due to their
product uniqueness. But this was not a single factor that was responsible for their growth.
Corporate governance was also second most important factor that plays a prominent role in
growth of any organization. There are many companies that can employ corporate governance as
a mechanism direct their operations in perfect direction. Along with this, they also control
functions in a proper manner. By strictly following corporate governance, these companies
perform their business activities in a systematic manner. Due to this reason, many of the small
sized organizations managed to grow at a rapid pace in the short span of time. Wintoki, Linck
and Netter, (2012) states that preparing rules and policies is not sufficient as organization is also
required to ensure that its corporate governance structure will be helpful to an organization. In
other words, it can also be said that work of management is not completed merely by preparing
and implementing corporate governance in the organization. It is also required to ensure that
rules and policies are easily understandable and are not in technical terms. Along with this, it
must also be ensured that ambiguous words will not be used in rules and policies of an
organization. If same will not be done then lot of confusion will be created among the employees
and problems may be created in an organization. Hence, it is very important that rules must be
simple in nature so that everyone can understand and implement it in an easy way at the
workplace
2.8 Ways in which globalization and internationalization affect CSR of an organization
Corporate Social responsibility has achieved global acceptance in recent past. With the
internalization of the firm, CSR activities of an organization also get changed. With passage of
time, companies are also performing CSR activities not only in their country but they are
performing these activities in foreign nations also. According to Portney, (2005) globalization
affects CSR activities of an organization. This is because in many nations respective
governments are actively taking an action in order to ensure that their nation’s natural
environment will remain safe. By looking at these nations, other country also initiate formulation
and implementation of environment protection measures on their land. Hence, companies
operating in any part of the world have to start CSR activities. The term CRM is now globalized
and companies have to perform CSR activities in their domestic land and in the foreign country.
Due to entire above mentioned scenario, burden of doing CSR activities on the companies is
increased nowadays. Ten years earlier scenario was different and at that time there was a little
18

burden of performing CSR activities on an organization. As per views of Huse (2007)
multinational corporations understands their importance towards people and environment and
due to this reason they are actively participating in CSR activities both on their home land and in
the foreign country. Companies like Microsoft are the best example of this above mentioned
statement. According to Bassen, Jastram and Meyer, (2005) firms understand their responsibility
and accountability and they will initiate their CSR activities without any push from the
government. He thinks that CSR activities also benefit an organization and due to this reason
they are actively participating in conducting CSR activities on domestic country and foreign
country. In other words, it can also be said that, it thinks that governments does not need to put
pressure on companies for performance of CSR activities. Companies will solely initiate CSR
activities because it benefits them. In contrary to this, Garriga and Melé, (2013) thinks that there
are few organizations that will do CSR activities at their own discretion and governments
requires to put pressure on companies for performing CSR activities. Normally, it has been seen
that large sized firms whose names are known to everyone comes forward to help the
government in implementing environment protection measures like reduction of carbon
emission. This creates perception that companies are actively participating in CSR activities.
According to Kahan and Rock, (2007) internationalization also affects CSR activities of
an organization. With internalization of a company its CSR activities also get increased. In other
words, it can also be said that when any company starts its operations in foreign country then it
use that country resource. Hence, the firm which initiates its operations in foreign country is
responsible to start CSR activities because it is using that country’s natural or human resources.
According to Dhaliwal, (2011) in many nations like India, performing CSR activities is
necessary and whether an organization is small or medium in size it has to perform mentioned
activities. When companies start operation in such kind of nation, the burden of performing CSR
activities gets increased on these companies. Hence, internationalization to large extent affects
CSR activities of the firms. Countries like UK are preparing to bring reforms that will make it
mandatory to perform CSR activities for the firms. Hence, in upcoming time period burden of
CSR activities on the firm will increase. In accordance with views of Dahlsrud, (2008) Europe is
focusing on controlling and reducing carbon emissions and due to this reason all those firm that
have operating plants in UK are required to use technology that emit less carbon. In alternative to
this, companies are also required to implement such a technology at the plant which helps in
19

controlling carbon emission from the facility. Hence, in upcoming years burden of CSR activities
will be increased on companies due to internalization of business and globalization of an idea of
CSR.
2.9 Ways in which corporate governance promotes globalization and Internationalization of the
Company
In earlier part, discussion is carried out on the impact of globalization and
internationalization on corporate governance. But in this section, way in which corporate
governance promotes globalization and Internationalization of company is discussed. If any firm
wants to enter into any foreign nation it is required to join hands with other companies in order to
get distribution infrastructure. Other nation’s company look on many factors before joining
hands with other firm. Here corporate governance plays a crucial role for the firm. If the
corporate governance is good then it means that it takes care of its stakeholders. This it also
reflects that there are strict rules and regulations in the company which curb wrong practices in
the firm. According to Mallin, (2004) good corporate governance indicates that a firm is
maintaining a transparency in its operations. If there will be transparency in an organization then
there will be less chances of manipulation in accounts. Thus, it can be said that if corporate
governance of the firm will be good then other firms will rely on the firm and they will be
prepared to enter into strategic alliance with the other firm. Hence, it can be said that corporate
governance helps the firms in globalizing its business. Minow, (2004) agree with the statement
and he also states that firms must improve their corporate governance in order to create their
good image across the globe. If this will happen then they will be able to create a strategic
alliance in order to give stiff competition to their competitors.
2.10 Ways in which concept of CSR can be used to improve market performance
CSR refers to the activities that Emirate performs in order to provide support to the
general public. It also includes company’s activities that are related to the compliance with
government rules and regulations. On the other hand, corporate governance is another term that
refers to the rules and regulations that are used by the managers in order to perform company’s
operations related to different stakeholders in a systematic way (Sapra, Subramanian and
Subramanian, 2014). CSR is a part of corporate governance because in CSR, Emirate is
performing tasks that are related to stakeholders like customers and government. In today’s era,
20

CSR has been used as a measure to popularize company’s brand name among the customers. As
a result, on large scale basis many companies are performing CSR activities in their countries.
Some of the companies successfully use this tool to create their good image in the eyes of the
customers. CSR is not just a social activity but is a source of earning profit indirectly and to
some extent it directly depends on product of the company. According to Klein, Shapiro and
Young, (2005) modern empirical analysis clearly states that CSR helps an organization and in
current time period companies are strategically involved in CSR activities. This is done by the
firms in order to increase their business profit directly or indirectly. As per the views of
McWilliams, Siegel and Wright, (2006) if companies perform CSR activities, then stakeholders’
values the firm’s social efforts and an organization successfully create a special image in the
eyes of the customers. Hence, memory retention value of the firm’s product also increases
among the customers. Thus, CSR activities may possibly increase company’s profitability.
Customers are important stakeholders of the companies and if firms guarantee safety of its
customers then also it can create a loyalty among its customers. Companies like Emirates are
making every effort in order to ensure that life of its passengers is safe while travelling in its
airplanes. This is also a part of CSR activities and Emirates by using this CSR activity is earning
substantial profit every year. In contrast to this Campbell, (2007) states that it is not necessary
that CSR play an important role in elevating profitability of an organization. This is because,
every year many companies perform CSR activities but most of people do not know anything
about their social efforts. Hence, it is not necessary that performance of CSR activities will
increase the firm’s profitability. In relation to this, Dhaliwal, (2011) asserts that an organization
must advertise its CSR activities at a wide level so that general public comes to know about
whatever work companies had done for them. If this will not be done then entire money spend on
CSR will be worthless and company will not get any sort of benefit from its CSR activities.
In accordance with views of Pagano and Volpin, (2005) whatever CSR activity which
company is doing must have some level. In other words, it can be said that company must
perform such kind of activities under CSR program so that people feels that it is beneficial for
them to large extent. People must feel that CSR activity of the company is solving their big
problem. If such kind of activities will be performed under CSR program then people will value
company’s social efforts. By doing this, the firm can increase its profitability so as to support
corporate social responsibility. As per views of Kotler and Lee, (2005) advertisement of CSR
21

activities will play a decisive role in word of mouth marketing of an organization. Thus, CSR
helps the companies in increasing profitability and creating positive brand image of the business
unit.
2. 11 Ways in which corporate governance can help in increasing market performance
Corporate governance plays a crucial role in increasing business performance. Corporate
governance is not only an instrument for controlling internal business operations but it is also a
tool that is used for increasing firm’s market performance. By using corporate governance,
companies make a strong relationship with their stakeholders. Thus, it receives full cooperation
from its stakeholders in the business operations. Consequently, market performance of the
company gets improved. According to Morck, (2007) preparing rules and regulation are not
sufficient. An organization always requires a good leadership. In absence of strong leadership,
corporate governance is simply a book that covers rules and regulations as well as policies. This
is because leaders are those people who ensure that corporate governance will be implemented
strictly. If they are not providing good leadership then corporate governance will not be
implemented perfectly. Similarly, Liu and Lu, (2007) also states that leadership is a heart of
corporate governance and in its absence governance of an organization will be poor.
As per the views of Huse, (2007) board of directors of an organization must have
appropriate mix of skill sets and experience. As it is already mentioned above that corporate
governance cannot be implemented effectively in the absence of good leadership. It is through
efficient leadership skills that the corporate governance can be practiced in an efficient manner.
Then they will not be able to implement rules and regulations in efficient and effective manner.
Similarly, Brown and Caylor, (2006) also states that if leaders have less knowledge and their
leadership is also weak then company cannot maintain sound relationship with the stakeholders
like employees and business friends. Hence, corporate governance of the company will
automatically become weak. But on other hand, if leaders are giving strong leadership and
maintaining sound relationships with stakeholders then profitability of the firm can be increased.
Hence, corporate governance plays a decisive role in increasing business performance.
According to Boubakri, Cosset and Guedhami, (2005) corporate governance helps in
ensuring that money manipulation will not be happened in an organization. In other words, it can
also be said that good corporate governance prevent occurrence of any illegal activity in an
organization. Thus, corporate governance assists in boosting market performance. If any scandal
22

happens in an organization then image of the company gets tarnished and bitterness comes in its
business relations. As a result, the firm does not get help from any business friends. On contrary
to this, if company corporate governance is very strong then it will be able to create its reliable
image among its business friends or trading partners. Hence, this strong relationship will provide
lots of support to an organization. Thus, market performance of the firm will get increased.
In accordance with views of Doidge, Karolyi and Stulz, (2007) in order to effectively
implement corporate governance, companies must form several committees like audit,
compensation, and finance and quality committee. This effort will ensure that all policies and
rules as well as regulations related to specific thing will be strictly followed. This will ensure
effective implementation of the corporate governance in an organization. Hence, good
relationship will be maintained with all the stakeholders through guidance which board of
directors will receive from these committees. Due to correct guidance form committees’ board of
directors are able to maintain sound relations with the stakeholders. This will boost company’s
market performance. On the basis of above literature review it can be said that corporate
governance and CSR activities both benefits an organization. Firms are required to use both in
systematic manner in order to run their business in efficient and effective manner and to create
good image of the company in the eyes of general public.
CONCLUSION
On the basis of above discussion, it is concluded that corporate governance is a set of
rules and regulations that is followed in order to perform the organization’s activities. Good
corporate governance brings transparency in a firm which create a positive image in the eyes of
general public. It is also concluded that corporate social responsibility is an integral part of
corporate governance and by conducting social activities, company create its good image among
stakeholders. It is also concluded that corporate governance affects the market performance of
firm because by applying these rules and regulations in a proper manner, firm can maintain a
strong relationship with the business friends. With the help of this, firm receives cooperation
from its business friends whenever required. This leads to good market performance from the
firm’s side. Hence, it can be finally concluded that corporate governance gives a multi
dimensional advantage to the firm.
23

CHAPTER 3- RESEARCH METHODOLOGY
3.1 Research introduction or overview
In research, large number of data is collected from various sources. For conducting a
research, various sample designs are evaluated and best of them is selected for the research. This
research design is discussed in the sub part of this chapter. Data collection methods are used for
collecting primary and secondary data. For collecting a secondary data publications are used and
for conducting a primary research questionnaire is issued by the researcher (Sample Dissertation
Methodology, 2013). The sources of data collection are discussed in the research type section of
this chapter. This questionnaire is distributed among the employees of Emirates. Validity and
reliability issues are addressed properly while collecting data and are also discussed in the sub
sections of this chapter. Hence, it can be said that reliable data is collected in the research and it
is producing proper results.
3.2 Research type
Research plays a key role in identifying a solution to the problem. From this, a lot of
information are required that can be taken from the various sources. Hence, it becomes very
difficult task to identify information which is required by researcher to conduct research work.
In order to simplify this problem, sources of information are divided into two parts. There are
two ways of conducting a research, one is primary and second is secondary research. In primary
research, data is collected for the first time (Jackson, 2010). This means that data used in primary
research is collected by the researcher at his own level and it is not taken from any source of
published data like newspaper etc. On the other hand, secondary research is a research in which
data is collected from the sources like newspapers, magazines, books and journals. This means
that, in a secondary research data which is used is already published on any of the
aforementioned publication sources. There is importance attached to both kinds of research.
Before conducting a research, it is necessary to understand the topic. Along with this it is also
important to understand past trend in the research topic. In order to identify these trends
secondary research is inevitable. This creates a broad understanding among researchers about the
research topic. This understanding is used to prepare a questionnaire which will be used to
conduct a primary research. By conducting a primary research, a researcher comes to know about
24

the current trends in the research topic. Hence, both the research has a great importance for the
researcher (Sullivan, 2011). Thus, in research we use both primary and secondary sources. In
research, I use a secondary source to prepare literature review. On other hand, primary research
is used to collect recent information about the corporate governance.
3.3 Research design
In order to start a research, a starting point is required. Many times a researcher has little
knowledge about the research topic. But sometimes he has vast knowledge about the research
topic. In order to give a proper start to the research designs regarding same is prepared. It is a
technique which is used to determine a way in which data will be collected from various sources.
There are three kinds of research designs namely exploratory, descriptive and experimental
research design. These research designs are used in different situations (Goddard and Melville,
2004). Descriptive research design is sued when researcher has lots of knowledge about the
research topic and he requires limited information about the research topic for conducting a
research. Whereas, exploratory research design is used when researcher has a very limited
knowledge about the product and he wants to gather knowledge about the product. On the other
hand, there is an experimental research design which emphasizes on employment of scientific
methods to conduct research. In research, literature review is done and due to this reason broad
understanding of research topic is created. Hence, as per research requirement descriptive
research design will be applied in the research (Flick, 2015).
3.4 Research approach
In order to do anything an approach is required because it provides guidance about the
way in which a specific task can be performed. Without approach, a task can be performed in
wrong way and it is impossible to achieve objectives in that situation. Same thing apply in case
of research and for this also approaches are designed that need to be followed while conducting a
research. Research approach indicates the way in which research will be done. In the research,
there are two approaches one is inductive and deductive (Saunders, M. and et. al, 2007). These
two names are sufficient to reflect lots of things. Inductive approach indicates that for conducting
research, observation needs to be done initially. Thereafter, a hypothesis is created to formulate
new theory. Observation technique can be selected as per research requirements. On the basis of
research, data will be collected. Collected data may be qualitative or quantitative in nature.
25

Nature of data collected will be determined on the basis of research topic. After collection of
data, pattern is identified. This pattern indicate the trends or direction in which particular thing is
moving. After identifying a trend of the specific variable a hypothesis is prepared and the same is
tested whether it is right or not. After this, on the basis of right hypothesis a theory is prepared.
On other hand, there is a deductive approach. This approach is opposite of the inductive
approach. According to this approach, first of all theory related to the research topic is identified
and then by formulating a hypothesis this theory is tested. This in turn helps in assessing the
application of theory in present scenario (Pickard, 2012). After this, data is collected related to
the research topic. Data collected is analyzed by applying an evaluation techniques or statistical
tools. On the basis of analyzed data, hypothesis is confirmed. This means that, on the basis of
analysis of data it is identified that hypothesis determined by the researcher were accurate or not.
Hence, both techniques are important but both the methods cannot be used in single research.
Hence, researcher is required to select an appropriate research approach for conducting a
research. In research, quantitative data will be collected and due to this reason inductive
approach is selected by the researcher for the research.
3.5 Research philosophy
The research philosophy provides guidance to the researcher for conducting a research.
The collection of data may be based on interpretative or positivism philosophy and selection of
research philosophy depends on the characteristic of the work (Gast and Ledford, 2014).
Through research philosophy, researcher indicates the sources of data collection. It is inevitable
for the researcher to select appropriate research philosophy so that he can select appropriate
methods. It can be said that philosophy used in research work provides guidance to the
researcher to implement the research activity. The positivism philosophy is used when scientific
data is collected by the researcher for conducting a research. In this, facts and figures are
calculated by using various sorts of techniques. Interpretivism philosophy collects data by using
simple methods like distribution of questionnaire or collecting data from books and journals etc.
In research interpretative philosophy is applied because in research non-scientific data is
collected by the researcher. So, it can be said that Interpretivism philosophy is appropriate for the
research (Smith, V. and et.al, 2011).
26

3.6 Data collection methods
For conducting a research, there are many data collection methods. Researcher can use an
appropriate data collection method for conducting a research. For selecting a data collection
method, it is necessary to determine that primary sources are selected for the research or
secondary sources are used for data collection. There will be different techniques for both
sources of data collection. In case of primary source of data collection, observation technique can
be used for collecting a data. Under this, a researcher observes sample units while they are doing
a specific work (Vaismoradi, Turunenand Bondas, 2013). On the basis of observation, data is
collected by the researcher. In case of secondary research data can be collected from books,
journals and magazines. Internet is another source from which the data can be collected related to
the research. On the web sites, there are lots of data related to the research topic that are similar
to the given set of format (Joffe, 2011). From these archives, a large amount of facts and figures
can be taken by the researcher related to the research topic. In our research, both primary and
secondary data is collected. Secondary data is collected from books and journals. From these
sources various articles related to the research topic are reviewed by the researcher. On other
hand, in order to collect primary data questionnaire is prepared and data is collected by
distributing same among the employees of the Emirates. Hence, in this way data collection
methods are used in the research for collecting varied data.
3.7 Data analysis
Researcher cannot arrive at a specific conclusion merely by looking at the values of data.
In order to derive accurate information from huge set of data, it is necessary to analyze a data. In
this regard data analysis technique is used by the researcher for the research. It refers to
analyzing the data which is collected from the various sources of information. In order to analyze
a data in research thematic analysis technique is used. This method of data analysis is employed
when collected data is qualitative in nature. Under this method of data analysis, several themes
are prepared on the basis of questionnaire. On the basis of collected data related to the specific
theme interpretations are made related to individual theme. For each theme, a table is prepared
and below it chart is prepared. After preparing chart, interpretation is done in which it is
indicated that what sort of response respondents gives on a specific theme (Goddard and
Melville, 2004). After that, analysis is done in which reasons due to which respondents gives a
specific answer is also explained in detail. Hence, it can be said that this method of data analysis
27

divide entire collected data into various parts and also indicates the response that is given by the
specific number of respondents out of sample size. Moreover, in this research a researcher has
attempted to identify justification for respondents’ feedback. . Hence, conclusion is that a deep
understanding of the research topic is created among the researcher.
3.8 Validity and reliability
In order to conduct a research an individual that is conducting a research is required to
consider lots of factors. By keeping in mind these factors, research can be done in a proper
manner. In other words, it can be said that by keeping in mind these factors a research can be
conducted in such a way so that reliable results can be derived from data analysis. Validity and
reliability are an important aspect of a research. Every researcher makes an attempt to make sure
that collected data is valid and reliable in nature (Smith and et.al, 2011). Validity refers to the
fact that information collected for the research purpose must be authentic in nature. This means
that such kind of information must be taken from the reliable sources. Moreover, collected
information must be reliable in nature. This means that same fact must be collected from the
multiple sources in order to make sure that collected data is accurate. Many a times, on single
information different data is given on different sources of information. In that case, if wrong
information is collected by the researcher then research will produce false results. Hence, on the
basis of research wrong conclusions will be derived by the researcher. In order to prevent this
situation it is the responsibility of the researcher to make sure that data collected is hundred
percent authentic and reliable in nature (Flick, 2015). Due to this reason, every researcher gives
lots of importance to the validity and reliability of the information.
3.9 Ethical consideration
In every field of business ethics are applied. In the same way, ethics are also applied in
case of research. As a researcher, an individual have some responsibilities like we see in case of
every type of profession. A researcher must follow all aspects of ethics while conducting a
research. It is ethical responsibility of the researcher to conduce a research in the proper manner .
When any one conducts a research, he reviews previous research paper that was prepared by the
other people (Bell, Filatotchev and Aguilera, 2014). If research paper produces wrong results
then the research will be directed in wrong direction. Thus, it is ethical responsibility of the
researcher to conduct research in a right way. This is because other person will prepare its
28

research by reviewing the research paper of the researcher. For this, researcher is required to
make sure that he collects data from reliable sources and data collected from these sources are
hundred percent reliable in nature (Pickard, 2012). On the other hand, it is also ethical
responsibility of the researcher to make sure that personal information of the researcher will be
kept secret. For this, researcher must take some steps which make sure that personal information
will not be accessible to other people. In research, data is collected from the people that are
working in Emirates. In case, company has generated high profitability due to misleading
information the managers are going to take strict action. Hence, it is ethical responsibility of the
researcher to make sure that personal information of the respondents will not disclosed any
entity.
3.10 Limitation of study
Every research has some limitations and these factors cannot be controlled fully by the
organization. Improper sample size is one of the main limitations of the research. In a research,
sample of twenty respondents is taken. So there is a very high possibility that accurate data will
not be collected. But in order to remove this loophole sample units are taken from the different
departments of the Emirates. This will ensure that data collected from the respondents will be
highly reliable in nature. In order to reach at respondents which are the employee of Emirates, I
made a contact with my friends and through them; I came in touch with employees of Emirate. I
also sent them questionnaire online and collected data from all the respondents. In this research,
other stakeholders like customers are not included. The sample from different departments is
selected so as to collect reliable information (Vaismoradi, Turunenand Bondas, 2013).
Availability of limited resources is one of the limitations of the research. Due to limited
availability of resources, limited data is collected from secondary sources of data collection.
However, data was collected from the reliable secondary sources and an attempt is made to cover
almost each and every factors of corporate governance. Due to this reason, this limitation will
not largely affect the research results. While conducting research, lots of information is collected.
During this research, many types of unnecessary information are collected and sometimes it is
very difficult to differentiate between relevant and irrelevant information. Hence, it is possible
that in research some irrelevant data may be considered for data analysis. But an attempt is made
to make sure that most of the collected data is reliable in nature. (Gast and Ledford, 2014).
29

Types of forms Checklist forms- These are those forms in which there are options and one have to select
any one option to answer researcher specific question. Without checklist forms- These are the forms in which there is no checklist and
respondent have to give a detailed answer of each and every question. This type of form
is used for the research when respondents are intellectual and experienced people.
Means of carrying out research
Questionnaire- Under this a questionnaire is distributed among the respondents and they answer
same. Following are pros and cons of the questionnaire.
Pros
 Wide geographic area can be covered.
 Low cost of conducting a research. Research can be conducted in rural areas.
Cons
 Need to keep large workforce in order cover large geographic area. Respondent can fill wrong answers which will lead to collection of inaccurate data from
the respondents.
Telephone- Under this all research questions are asked to the respondents and data is collected
on telephone from the relevant respondents.
Pros
 Large area can be covered for research.
 Lot of time is saved in research. No need to keep large workforce.
Cons
 For short duration calling is done and due to this reason only on small number of
questions answers can be collected from the researchers.
For research, questionnaire is selected because under this, an individual can give
guidance to the respondent while filling a questionnaire. If he has any doubt then one can help
respondent in understanding that question. Moreover, respondent get a sufficient time to answer
the question. Hence, on the basis of these positive points, questionnaire is assumed to be
appropriate method of data collection.
30

31

CHAPTER 4: DATA ANALYSIS
4.1 Introduction
Data analysis in the research project is one of the most significant aspects however, it
assists the researcher in generating findings on the basis of which suitable conclusion and
recommendations can be presented. The main purpose behind carrying out findings and analysis
chapter is that, it helps in evaluating and analysing the gathered information through different
sources. By considering the nature of present study, qualitative approach has been used by the
investigator. Rationale of electing the approach is that it helps in analysing each and every aspect
of collected information in reliable and in a suitable manner. In this regard, questionnaire has
been distributed to 20 employees of Emirates so that accurate and reliable information can be
gathered. In the present research, only managers of mentioned firm are selected. Stakeholders
like customers are not involved in the investigation. Along with this, thematic approach has been
employed so that collected information can be presented in attractive and in suitable manner.
4.2 Demographic data
Table 1: In which age groups do you fall?
Below 20 years 1
20-45 years 10
35-50 years 5
Above 50 years 4
32

Interpretation
For the research twenty employees of Emirates are taken as sample. On the basis of chart
if the sample is divided then it can be seen that in the entire sample there is only one employee
who is below 20years. 10 employees are in age group of 20-45 years followed by 5 employees
who are in age group of 30-50 year. In a sample, only 4 employees are above the age of 50.
Analysis
In research, most of the sample units are taken from age group of 20-45 years because
these are those employees that learn many new things in an organization and are well aware with
the current trends of corporate governance. After that, priority is given to the people that fall in
the age group of 30-50 and above 50 ages.
How many years of experience you have in Airline industry?
Table 2: Year of experience respondents have on airline industry
Below 2 year 1
2-5 Year 2
5-10 year 7
More than ten years 10
33

Interpretation:
From the sample of 20 respondents only one sample unit is taken into consideration. The
sample of respondents who are below 2 years of experience is selected. Whereas, there are two
respondents who have 2-5 year of experience in the Airline industry followed by 7 respondents
that are working in the mentioned industry since 5-10 years. Majority of samples are taken from
the employees that have more than ten years experience in the Airline industry.
Analysis:
While conducting a research, reliability factor is kept in mind and due to this reason most
of the sample units are taken that have more than ten years of experience in the Airline industry.
After that, 7 respondents are taken which have 5-10 years of experience in the relevant industry
followed by 2 and 1 respondent that 2-5 and below 2 year work experience.
Theme 3: How many years of experience you have in Emirates?
Experience you have in the Emirates Frequency Percentage (%)
Below 2 year 2 10
2-5 Year 4 20
5-10 year 6 30
More than ten years 8 40
Figure 1: Experience you have in the Emirates
Interpretation:
It can be seen in the research that 8 respondents are taken in the research who are
working in Emirates for more than 8 years. On other hand, 6 respondents are taken that are
working for 5-10 years in Emirates followed by 4 employees that have experience of 2-5 years in
the mentioned firm. In research, only 2 respondents are taken who have below 2 years of
experience in the Emirates.
Analysis:
On analyzing the data, it can be seen that most of the respondents are taken who have
good experience in the mentioned company. This is done in order to make sure that accurate data
about the corporate governance can be collected from the employees. Hence, there is a high
reliability of data collected from the research.
34

Theme 4: Designation in company.
Top level management 8
Middle level management 7
Operational level of management 5
Interpretation:
From the chart it can be seen that most of the respondents are taken as a sample unit that
are working in top and middle level of management. On other hand, only 5 respondents are taken
as a sample in the research.
Analysis:
Most of the respondents are taken from the top and middle level of management because
they are actively participating in day to day management of the company. On other hand, lower
level of employees have less role in the management of the firm and due to this reason their
proportion in sample is also low.
4.3 Meaning and significance of corporate governance and CSR in context of multinational
companies
Respondents are the managers who day to day business practices rules and regulations in
orders to manage company’s operations. Hence, they are already aware about the corporate
governance and due to this reason, these two terms are not asked to the respondents in research.
Under this theme, the researcher aims at evaluating significance of corporate governance for a
multinational company. Further, researcher will highlight about the importance of adopting CSR
strategies for Emirates. It also identifies main reason due to which companies are motivated
towards adoption of corporate governance practices.
Theme 1: Emirate Airlines follow corporate governance legislation.
Emirate Airlines follow corporate governance legislation Frequency Percentage (%)
Yes 14 70
No 2 10
Maybe 4 20
35

Figure 2: Emirate Airlines follow corporate governance legislation
Interpretation:
On the basis of above illustrated graph it has been evaluated that, 70% of the respondents
are in the favour that Emirates Airlines abide by corporate governance legislation. Corporate
governance legislation means the rules that are framed by company. While contradicting to this,
only 10% of the respondents are not in the favour of this fact and strongly argue that company is
not abiding the regulations of corporate governance. Apart from all, there are some respondents
who are unaware of legal practices adopted by Emirates.
Analysis:
On the basis of above findings it has been analyzed that, in order to maintain competitive
position across the globe, Emirates Airlines abide by corporate legislations. However, in doing
so senior authority of cited firm is required to make good relationship with their stakeholders
such as employees, shareholders and creditors etc. However, suitable corporate governance in
Emirate ensures that all stakeholders will be treated equally and management will give them due
importance and will carry out the operations in a manner that all the expectations are met in
suitable and reliable manner. The main purpose of cited firm to abide corporate governance is
that it assist in carrying out the day to day operations as well as it plays important role in
maintaining transparency in company.
Theme 2: Employees agree that corporate governance has significance for Emirates.
Employees agree that corporate governance has significance
for Emirates
Frequency Percentage (%)
Strongly Agree 5 25
Agree 9 45
Somewhat agree 4 20
Disagree 2 10
Highly disagree 0 0
Figure 3: Employees agree that corporate governance has significance for Emirates
36

Interpretation:
On the basis of above pie chart, varied results have been identified when asked to the
respondents about the significance of corporate governance for Emirates Airlines. However,
most of the employees (45%) were in the favour and agreed to the fact that it has great
importance for the company. Supporting to this, (25%) of respondents strongly agreed and stated
that it is the need of Emirates in maintaining competitive position within the market. Only (10%)
were not in the favour and disagreed to this fact.
Analysis:
Through the means of above study, it has been evaluated that, corporate governance is set
of rules and regulations that assist an organization to carry out its operations in such a manner
that it help itself as well as the society as whole. However, multinational corporations like
Emirates, Microsoft etc. understands their importance towards people and environment and due
to this reason they are actively following rules and regulations of corporate governance on their
home land and foreign country operations. The main purpose of top level management of
Emirates behind employing corporate governance is that it ensures meeting expectations of each
stakeholder. Furthermore, corporate governance helps in protecting the interest of all
stakeholders whether they are internal or external stakeholders. However, this is the reason
regarding which Emirates as a whole organization pays great attention on the quality of corporate
governance. In this regard, efficient and effective corporate governance ensures that cited firm
will take care of expectations and needs of all the stakeholders associated with it. .
Theme 3: Emirates do CSR activities
Emirates adopts CSR strategies Frequency Percentage (%)
Yes 16 80
No 4 20
Figure 4: Emirates adopts CSR strategies
Interpretation:
Expected results have been achieved when asked to the employees of Emirates about the
fact that company perform CSR activities. However, 80% of the selected respondent said yes that
company in order to enhance its brand image within the market adopts various CSR activities.
37

While on the other hand, only 20% of respondents were denying this fact and stated that
company does not adopt any CSR activities for the betterment of society or environment where
they operate their business.
Analysis:
From the above study, it has been identified that, CSR helps the organizations and in
current time period companies are strategically involved in CSR activities. This is done by the
firms in order to increase their business profit directly or indirectly. Considering the significance
of corporate social responsibility, Emirates are following the concept of CSR and it is providing
quality food to its customers. Emirates are providing food facility in collaboration with Dnata
which is an international company that is providing in-flight catering services. Emirates ensure
that food which is provided to the travellers is of high quality. Offering high quality food to
travellers account for social responsibility practices that are adopted by the business unit.
4.4 Implications of corporate governance in relation to company market performance
Theme 1: Corporate governance is gaining significant advantage within the Airline industry
Agree 7
Strongly agree 5
Somewhat agree 1
Disagree 4
Highly disagree 3
7+5+1+4+3= 20 people
Interpretation
There is no evidence for this but we all know that today, every nation is giving due
importance to transparency for gaining success. Due to this reason, all companies operating in
these countries are also giving due importance to the corporate governance. It is because; this is
the corporate governance which will bring transparency in company’s operations. Hence, it can
be said that corporate governance is gaining advantage in the Airline industry. From chart it can
be seen that 13 respondents agree in statement that corporate governance is gaining advantage in
the airline industry. It can be broken down into three parts. Out 13, 7 agree with this statement
followed by 5 and 1 respondent who are agree and somewhat agree with this statement. On other
hand, only 4 are disagreeing and highly disagree with this statement. Corporate governance
38

cannot be seen by the employees but they can feel that due to strong corporate governance, all
procedures in an organization are followed in a systematic way.
Analysis
On analyzing the data, it can be seen that respondents give a mixed response. However,
majority of respondents assume that corporate governance is important for airline industry
because it helps in bringing transparency in the firm’s operations. It creates a good image of the
firm among the people. However, some of the people think that corporate governance is not
getting importance in Airline industry because companies operating in this industry are mainly
focusing on increasing their customer base rather than improving corporate governance.
Theme 2: Corporate governance helps in curbing corruption in the firm
Yes 15
No 5
Interpretation:
Out of 20 respondents, 15 people agree with the fact that good corporate governance
practices helps in curbing corruption in the company. Whereas, only 5 respondents assumes that
corporate governance is not playing any role in controlling corruption in the firm.
Analysis
By evaluating the data, it has been found that most of respondents believe that corporate
governance is playing a very important role in controlling corruption in an organization. They
think so because under corporate governance practices board members’ change in the fixed time
period. Hence, if any member of board of director is involved in any corrupt practice then newly
selected board of director will not continue that practice and will bring corruption in light of the
other Board of directors. Due to this reason, most of the respondents think that it is an effective
tool which helps in controlling corruption in an organization. On other hand, some of the
respondents think that corporate governance does not play any role in controlling corruption
because it is possible that majority of members are involved in the corruption. This was seen in
case of Toshiba where many top management officers resigned from their posts after scandal
news comes into media. Due to such kind of cases some of the respondents think that corporate
governance does not play any role in controlling corruption.
39

Theme 3: Corporate governance helps firm in internalizing its business easily.
Yes 13
No 7
Interpretation:
From the graph it can be seen that out of 20 respondents 13 believes that corporate
governance plays a supplementary role in internationalization of the firm business. Whereas, 7
respondents think that corporate governance does not play any role in globalization of the firm
business.
Analysis:
On evaluating the data, it has been seen that most of the respondents feels corporate
governance is playing crucial role in internationalizing of firm business. In International
business, back end model is followed in which by making use of the company’s resources and
distribution channel firm expand its business on the foreign land. In this model, foreign firms
arrive to enter in to partnership with the firm for distributing its product. If corporate governance
is good then it means that a firm is taking care of its stakeholders. This refers that a firm is
maintaining a strong relationship with its business friends. In this way, corporate governance
helps the organization in internalizing its business globally. However, some of the respondents
feels that corporate governance does not play any role in easy internationalization of the business
because corporate governance cannot be measured in a monetary terms. On other hand, it is not
possible to gather information about every company’s corporate governance. Hence,
relationships are based on mutual understanding of each other concerns. Due to this reason, some
of the respondents do not believe that corporate governance helps the firm in internationalizing
its business.
Theme 4: Company’s performance and corporate governance have deep correlation.
Table 3: Respondents response on relationship between corporate governance and company’s
performance
Yes 17
No 3
Interpretation
40

From chart, it can be seen that most of the respondents think that there is a positive
relationship between corporate governance and company’s performance. Out of 20 respondents,
17 agree with the statement that there is a relationship between corporate governance and
company’s performance. Whereas, 3 respondents think that there is no relationship between both
the factors.
Analysis
It is a fact that corporate governance affects organization’s performance and this is
proved from respondent’s response. If corporate governance is good then it means that there is a
high level of transparency in an organization and it is fulfilling its obligations towards the
stakeholders on time. This indicates that a firm is paying its creditors on time and making its
products available at a fair price. It also indicates that fair treatment is given to the employees
and they are treated in a proper manner. Conclusion is that an organization is taking care of all
those who are related to its business. When such kind of firm implements any new strategy in the
market then they get good response from the people due to its good image among them. Apart
from this, in case of business relationship also company gets good cooperation from the business
friends on various fronts. Hence, all these things positively affect the organization’s
performance. Thus, it can be said that good corporate governance helps the firm in performing
better in the market. In research, only three respondents think that there is no relevance of
corporate governance and company’s performance. They also feel this because company
performance depends on various factors like product quality, price and distribution network.
Hence, they believe that these factors primarily affect firm’s performance. If company’s
corporate governance is good but its product quality is not good or its product price is too high
then its performance will not be good. Hence, due to this reason they think that there is no
relevance between corporate governance and firm’s performance.
Theme 5: Corporate governance in increasing firm’s efficiency level regarding performance if
business activities in long term?
Corporate governance affects firm
performance in long term
Frequency
41

Yes 15
No 2
Interpretation:
In previous question, only 17 out of 20 respondents agree on fact that there is relevance
between corporate governance and market performance. So, only 17 respondents give answer to
this question. From graph, it can be seen that 15 respondents think that corporate governance
affects firm’s performance on long term. Whereas, 2 respondents think that in long run corporate
governance does not affect company’s performance.
Analysis:
In research it has been identified that majority of respondents think that corporate
governance affects firm’s performance in long run. They also feel that firm’s performance and
corporate governance are interlinked to each other. It is because; according to them, if an
organization brings any change in its corporate governance system then its immediate impact
cannot be seen on the firm. Gradually, positive impact of new changes in corporate governance
can be observed. Hence, due to this reason they believe that corporate governance affects firm’s
performance in long run. On other hand, 2 respondents think that in long run corporate
governance does not affect organization performance. This means that they believe that
corporate governance affects firm’s performance in short term. They believe so because those
who are closely associated with the firm when comes to know about new changes in the firm’s
corporate governance they are in position to predict company performance in short term. Due to
this reason, they assume that corporate governance affects company’s performance in short term.
4.5 Corporate governance promotes globalization and Internationalization
In this theme, researcher focuses on evaluating the benefits of corporate governance that
helps in promoting globalization and internationalization of a company irrespective to its sector.
Further, it develops understanding of the platform provided by corporate governance to the
company within international market. Focus is made on the positive brand image created by the
company’s corporate governance across the globe.
Theme 1: Employees strongly agreed to the fact that corporate governance assist in expanding
business at global level.
42

Employees strongly agreed to the fact that corporate
governance assist in expanding business at global level
Frequency Percentage (%)
Strongly Agree 4 20
Agree 9 45
Neutral 5 25
Disagree 2 10
Strongly Disagree 0 0
Figure 5: Corporate governance assist in expanding business at global level
Interpretation:
With the help of graphical presentation it has been easy to identify the significance of
corporate governance for the Emirates Airlines. However, when asked to employees about the
fact that corporate governance assist in expanding business at global level then, 45% of the
respondents agreed to this fact and stated that it is one of the major tools for business to attain
suitable entry in the foreign market. Similar to this, 20% of respondents strongly agreed to this
fact that corporate governance is playing vital role for the companies at international level. While
25% of selected sample size was neutral and unable to predict whether it is helping in expanding
business at international level or not. Whereas, only 10% of the respondents disagreeing to this
fact.
Analysis:
There are several authors and scholars which have stated that, corporate governance is
vital tool for companies in expanding its business operations at global level without any major
issues. However, it assist in developing better image within the market which creates a suitable
and reliable platform for the companies to enter into new market place in suitable and reliable
manner. Furthermore, having better corporate governance clearly indicates that company is
meeting the expectations of its stakeholders in an appropriate manner. Furthermore, at the time
when Emirates wants to enter into foreign market it is important for the firm to make strategic
alliance with another company. However, other nation company may look at various factors
before joining hands with other firm. Thus in this case, corporate governance play a crucial role
for Emirates and it is the duty of senior authority of Emirates to ensure suitable corporate
43

governance background that clearly indicates that firm take care of its stakeholders as well as
reflects that company follows strict rules and regulations to avoid wrong practices.
Theme 2: Corporate governance provide suitable platform for Emirates within international
market.
Corporate governance provide suitable platform for
Emirates within international market
Frequency Percentage (%)
Yes 13 65
No 2 10
Maybe 5 25
Figure 6: Corporate governance provide suitable platform for Emirates within international
market
Interpretation:
Mixed results have been generated when respondents were asked about the fact that,
corporate governance provide suitable platform for Emirates within the international market.
However, 13 out of 20 respondents states that yes corporate governance creates suitable platform
for the Emirates to enhance its business operations in the international market. While on the
other hand, 5 of the employees are unaware about this fact which states that maybe it is helping
the company in expanding business operations to international market. While only 2 out of 20
respondents disagree to this fact and said that corporate governance is not creating any platform
for Emirates to enhance its business operations in the foreign market.
Analysis:
Corporate governance is a system of controlling and operating a firm in order to achieve
long term goals in order to satisfy needs of stakeholders. By satisfying needs of stakeholders like
business friends, company can improve its business terms with them and can elevate its
profitability. However, on the basis of above findings it has been analyzed that, there are many
firms in different sectors that are growing at a rapid pace in very short span of time due to their
product uniqueness. But this was not a single factor which was responsible for their growth.
Corporate governance was also the second most important factor that plays a prominent role in
44

growth of any organization. There are many companies which by using corporate governance as
a mechanism direct their operations in perfect direction.
Theme 3: Corporate governance creates positive brand image across the globe.
Corporate governance creates positive brand image
across the globe
Frequency Percentage (%)
Strongly Agree 9 45
Agree 7 35
Neutral 3 15
Disagree 1 5
Strongly Disagree 0 0
Figure 7: Corporate governance creates positive brand image across the globe
Interpretation:
On the basis of above depicted graph it has been identified that corporate governance is
one of the major factor for the companies in creating positive image across the globe. In this
regard, 9 out of 20 respondents strongly agreed to the fact that corporate governance leads to
develop positive image while supporting to this, 7 respondents agreed to this fact. However,
there are several respondents (4) which are unaware or denying the fact that corporate
governance is not the major tool for creating better image across the globe.
Analysis:
Researcher with the help of above study has been analyzed that corporate governance and
CSR is the major strategic tool through the means of which business in intense competitive
environment can sustain and enhance its business operations. However, as per the views and
understanding to different authors, it has been evaluated that corporate governance and CSR
activities help in developing a better image in the target market. In this regard, multinational
companies like Emirates must conduct CSR activities at constant basis because they are present
globally and use resources of several nations. Due to this reason, it is their responsibility that
they take initiatives for betterment of nations across the world. Hence, they must conduct CSR
activities time to time in various nations of the world.
45

46

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
From the dissertation it can be concluded that, corporate governance and CSR activities
play significant role for the companies in enhancing their brand image as well as generating long
term sustainability. However, considering the airline industry which is one of the most
competitive sectors around the globe makes it more essential for the companies operating in it to
encourage CSR activities and employing corporate governance. Furthermore, through the means
of different authors study, investigator evaluated that CSR activities assist in developing better
brand image as well as goodwill in the market. Under CSR, Emirates top level management is
planning and executing numerous activities like opening orphanages, helping handicapped
people and reducing carbon emission to protect environment. However, Emirates is using CSR
as an instrument in order to create a positive brand image. In addition to this, there are several
other firms which are using CSR activities in institutional advertising and positively showing
that they are giving significant contribution in welfare of society and environment.
Furthermore, with the help of data analysis researcher was able to understand
significance of corporate governance for Emirates. However, through the help of corporate
governance, Emirates Airlines was able to carry out its business activities in accordance with
proper rules and regulations in an ethical manner so that better image of the company can be
promoted. Along with this, researcher evaluated that there are many components of corporate
governance and one of the most important components is accountability. This component of
corporate governance states that leaders of an organization must understand their accountability
towards an organization. The top management must guide their subordinates and ensure that
each and every activity in an organization is performed in an appropriate manner as per the rules
of corporate governance.
Through the means of above entire dissertation it can be said that, good corporate
governance acts as a trademark of the company reliability and its loyalty towards fulfillment of
interests of its stakeholders. Considering the benefits of corporate governance and corporate
social responsibility activities, companies are constantly making efforts in improving these
aspects so that they can enhance their business functioning at local market as well as on the
international platform. By the means of corporate governance rules and regulations companies
47

are minimizing the rate of fraud and scam in their functioning. Further, large and medium sized
firms are manipulating their accounts and bribe is given to auditors in order to conceal real facts
for stakeholders and regulatory authorities are being avoided these days due to employment of
corporate governance legislations. On the basis of analysis of data which is collected by the
conducting a primary research it is concluded that corporate governance has a significance
advantage to the Airline industry. Thus, by bringing changes in the corporate governance, firms
operating in this industry can create their distinct image among their stakeholders.
In research it has been identified that corporate governance helps in curbing corruption in
an organization and due to this reason strong emphasis is laid down on improving corporate
governance system in an organization. Firms can do this by bringing change in their rules and
regulations. On the basis of data analysis it is also concluded that there is a strong relationship
between corporate governance and company’s performance. Thus, in order to improve
performance, the company must bring change in their corporate governance structure. In
research, it has been found that corporate governance affects firm’s performance in the long
term. Every company has a strong ambition to grow business in future at a rapid pace. Hence,
corporate governance is a tool which firms can use to grow their business. However, it does not
mean that future growth of the firm entirely depend on the corporate governance. There are many
other factors that play a crucial role in firm’s growth.
Corporate governance is only a way by which firm can improve its relationships with the
stakeholders that are major drivers of the company growth. On the basis of data analysis, it is
also concluded that corporate governance helps the company in expanding their business at
global level. This is because by improving corporate governance the company creates their good
image among the stakeholders. Due to this reason, it becomes easy for the firm to enter into
strategic alliance with foreign nation firm. Hence, by building many new partnerships a firm
increases its global presence. In corporate governance, rules and regulations are formed and this
helps the firm in creating good brand image. In other words, it can be said that strong rules and
regulation creates an image of the firm since it is strictly following all rules and regulations that
are formed by the government in terms of product quality. Hence, this factor motivate propel to
believe on the company’s product in terms of quality that it is promising in product
advertisement. This results in creating company’s good brand image in the eyes of general
public.
48

5.2 Recommendations
On the basis of literature review and data analysis it is recommend that firms must give
due importance to the corporate governance. This is because it helps the firm in ensuring that its
operations will be performed in a proper manner especially those that are related to its
stakeholders. Many a times interest of these stakeholders is not met in a proper manner and due
to this reason firm’s relationship with stakeholders gets weak. In order to prevent this situation,
Emirates needs to improve its corporate governance system. Only by improving this system the
company can fulfil needs of its stakeholders in a balanced manner. In context of corporate
governance, to improve relationship with the external entities Emirates must improve its
corporate governance system. If this system will be improved then the firm business will expand
at a rapid pace. It is also recommended that Emirates must improve its corporate governance
system in order to keep control on corruption on its workplace. It has been seen that due to weak
corporate governance system, top officials of the firm gets an opportunity to manipulate
accounts. By doing this they initiate corruption in the company. Sometimes, in order to show
good performance top level managers hide reality from the public and by showing fake
transaction they bring change in accounts which are not genuine. This happens due to loopholes
in the firm’s corporate governance system. If this system will be improved then such kind of
unethical practices will not take place in the Emirate. Hence, by considering this factor Emirate
must bring changes in its corporate governance system. In Airline industry, most of the
companies are taking steps in order to improve their corporate governance system and this
creates strong positive image among the general public and business friends. Hence, if in such a
situation Emirate will not bring changes in its corporate governance then it will send a negative
message to the stakeholders. Hence, it is highly recommended to the firm to bring changes in its
corporate governance with passage of time. Some of the changes that Emirate must bring in its
corporate governance are as follows. Change in Board of directors- Emirate should keep tenure of its Board of directors in the
company for short time period such as two or three year instead of five year. By doing
this, probability of corruption in an organization will be reduced to a large extent. Due to
short tenure, even corruption will take place then it will come in light of the top managers
at the early stage. Emirate must make a rule under which an individual can again be
selected as a member of the company’s Board of director team. This means that at the
49

end of tenure performance of broad of director must be evaluated. If he perform well then
he must be again selected in a team of Board of directors.
 Inviting external auditing agency for audit of accounts- In case of Toshiba, all top
managers and accountants will be involved in the corruption. Due to this reason,
corruption takes place and it does not get disclosed easily. In order to prevent this
situation Emirates can invite external auditing agency for verifying its accounts. This
must be a part of company’s rules and regulations. A rule must be made under which it
must be made necessary to conduct audit by external agency. If this will become a rule
then the top management will be compelled to follow such practice every year. Thus, it
will help Emirate in identifying and controlling corruption practices in its organization.
50

REFLECTIVE
As a researcher, I am glad to conduct the research presented herewith. The research has
provided valuable insights in relation to the corporate governance. I have learnt interesting facts
related to manner in which corporate social responsibility helps the business unit in gaining
positive brand image. I am glad to know that the business units in present scenario are
emphasizing on their social responsibility. I also feel that the increasing focus on corporate social
responsibilities is going to bring a new era in society whereby interests of all individuals will be
satisfied. I believe that researchers are constant learners who gain insights from every aspect of
their life. This research has forced me to believe that every individual has certain set of
responsibility towards the society.
We as a group of individuals are living together in place that is termed as society.
Henceforth, we all as a group are considered to be responsible for developing a society as a
whole. The businesses which are operating within a country tend to earn huge level of profits.
Traditionally, profit earning was the sole motive of corporate. However, with passage of time
importance of individuals and society is understood. It is through CSR strategies that the
organization is able to provide benefits to the society in which it is operating. As a part of the
research, I have learnt that the government has adopted corporate governance as legislation. I felt
good to learn about the manner in which our concerned authorities are working for the welfare of
society. However, I was sad to know that some of the organizations still adopting fraudulent
practices. This in turn negatively impacts their stakeholders. I believe that the business unit tends
to achieve success when its ethical foundation is strong. In present scenario, everyone around us
is aware of his/her rights as well as duties. The business units that form a significant part of
economy should understand their responsibility and act accordingly. Finally, I can say
emergence of corporate governance as a distinct law and corporate social responsibility as a
distinct department sets a foundation for developing a peaceful society.
51

REFERNCES
Books and Journals
Agrawal, A and Chadha, S., 2005. Corporate governance and accounting scandals*. Journal of
law and economics. 48(2). pp. 371-406.
Agrawal, A. and Cooper, T., 2016. Corporate governance consequences of accounting scandals:
Evidence from top management, CFO and auditor turnover. Quarterly Journal of
Finance.
Aguilera, R. V. and et.al., 2006) Corporate governance and social responsibility: A comparative
analysis of the UK and the US. Corporate Governance: An International Review. 14(3).
pp. 147-158.
Aoki, M., 2013. Controlling insider control: issues of corporate governance in transition
economies. Chapters.
Armstrong, C.S. and et.al., 2015. Corporate governance, incentives, and tax avoidance. Journal
of Accounting and Economics. 60(1). pp.1-17.
Bassen, A., Jastram, S. and Meyer, K., 2005. Corporate social responsibility. Zeitschrift für
Wirtschafts-und Unternehmensethik. 6(2). pp. 231-236.
Bebchuk, L., Cohen, A and Ferrell, A., 2009. What matters in corporate governance?. Review of
Financial studies. 22(2). pp. 783-827.
Beiner, S., 2006. An integrated framework of corporate governance and firm valuation.
European Financial Management. 12(2). pp. 249-283.
Bell, R.G., Filatotchev, I. and Aguilera, R.V., 2014. Corporate governance and investors'
perceptions of foreign IPO value: An institutional perspective. Academy of Management
Journal. 57(1). pp.301-320.
Berger, A. N., 2005. Corporate governance and bank performance: A joint analysis of the static,
selection, and dynamic effects of domestic, foreign, and state ownership. Journal of
Banking & Finance. 29(8). pp. 2179-2221.
Berger, A. N., et.al., 2005. Corporate governance and bank performance: A joint analysis of the
static, selection, and dynamic effects of domestic, foreign, and state ownership. Journal
of Banking & Finance. 29(8). pp. 2179-2221.
Bhagat, S and Bolton, B., 2008. Corporate governance and firm performance. Journal of
corporate finance. 14(3). pp. 257-273.
Black, B. S., Jang, H and Kim, W., 2006. Does corporate governance predict firms' market
values? Evidence from Korea. Journal of Law, Economics, and Organization. 22(2). pp.
366-413.
52

Boubakri, N., Cosset, J. C. and Guedhami, O., 2005. Postprivatization corporate governance: The
role of ownership structure and investor protection. Journal of Financial Economics.
76(2). pp. 369-399.
Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and institutional
theory: New perspectives on private governance. Socio-Economic Review. 10(1). pp.3-28.
Brealey, R.A., Myers, S.C., Allen, F. and Mohanty, P., 2012. Principles of corporate finance.
Tata McGraw-Hill Education.
Brown, L. D and Caylor, M. L., 2006. Corporate governance and firm valuation. Journal of
accounting and public policy. 25(4). pp. 409-434.
Campbell, J. L., 2007. Why would corporations behave in socially responsible ways? An
institutional theory of corporate social responsibility. Academy of management Review.
32(3). pp. 946-967.
Carney, M., 2005. Corporate governance and competitive advantage in family‐controlled firms.
Entrepreneurship theory and practice. 29(3). pp. 249-265.
Council, A. C. G., 2010. Corporate governance principles and recommendations with 2010
amendments. Australian Securities Exchange. Sydney.
Crowther, D. and Aras, G., 2008. Corporate social responsibility. Bookboon.
Dahlsrud, A., 2008. How corporate social responsibility is defined: an analysis of 37 definitions.
Corporate social responsibility and environmental management. 15(1). pp. 1.
Dhaliwal, D. S., 2011. Voluntary nonfinancial disclosure and the cost of equity capital: The
initiation of corporate social responsibility reporting. The accounting review. 86(1). pp.
59-100.
Dittmar, A and Mahrt-Smith, J., 2007. Corporate governance and the value of cash holdings.
Journal of Financial Economics. 83(3). pp. 599-634.
Doidge, C., Karolyi, G. A and Stulz, R. M., 2007. Why do countries matter so much for
corporate governance?. Journal of Financial Economics. 86(1). pp. 1-39.
Erkens, D. H., Hung, M. and Matos, P., 2012. Corporate governance in the 2007–2008 financial
crisis: Evidence from financial institutions worldwide. Journal of Corporate Finance.
18(2). pp. 389-411.
Erkens, D.H., Hung, M. and Matos, P., 2012. Corporate governance in the 2007–2008 financial
crisis: Evidence from financial institutions worldwide. Journal of Corporate Finance.
18(2). pp.389-411.
53

Fan, J. P., Wong, T. J and Zhang, T., 2007. Politically connected CEOs, corporate governance,
and Post-IPO performance of China's newly partially privatized firms. Journal of
financial economics. 84(2). pp. 330-357.
Farber, D. B., 2005. Restoring trust after fraud: Does corporate governance matter?. The
Accounting Review. 80(2). pp. 539-561.
Farrar, J., 2008. Corporate governance: theories, principles and practice. Oxford University
Press.
Ferreira, M. A. and Laux, P. A., 2007. Corporate governance, idiosyncratic risk, and information
flow. The Journal of Finance. 62(2). pp. 951-989.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Garriga, E. and Melé, D., 2013. Corporate social responsibility theories: Mapping the territory.
In Citation Classics from the Journal of Business Ethics. Springer Netherlands.
Gast, D.L. and Ledford, J.R., 2014. Single case research methodology: Applications in special
education and behavioral sciences. Routledge.
Giroud, X. and Mueller, H. M., 2010. Does corporate governance matter in competitive
industries?. Journal of Financial Economics. 95(3). pp. 312-331.
Goddard, W. and Melville, S., 2004. Research Methodology: An Introduction. Juta and Company
Ltd.
Haniffa, R. and Hudaib, M., 200. Corporate governance structure and performance of Malaysian
listed companies. Journal of Business Finance & Accounting. 33. pp. 1034-1062.
Harford, J., Mansi, S. A and Maxwell, W. F., 2012. Corporate governance and firm cash
holdings in the US. In Corporate Governance . Springer Berlin Heidelberg.
Harford, J., Mansi, S. A. and Maxwell, W. F., 2012. Corporate governance and firm cash
holdings in the US. In Corporate Governance . Springer Berlin Heidelberg.
Hermalin, B.E. and Weisbach, M.S., 2012. Information disclosure and corporate governance.
The Journal of Finance. 67(1). pp.195-233.
Hoitash, U., Hoitash, R. and Bedard, J. C., 2009. Corporate governance and internal control over
financial reporting: A comparison of regulatory regimes. The Accounting Review, 84(3),
839-867.
Huse, M., 2007. Boards, governance and value creation: The human side of corporate
governance. Cambridge University Press.
Jackson, S., 2010. Research Methods: A Modular Approach. Cengage Learning.
54

Joffe, H., 2011. Thematic analysis. Qualitative methods in mental health and psychotherapy: A
guide for students and practitioners. pp.209-223.
John, K., Litov, L. and Yeung, B., 2008. Corporate governance and risk‐taking. The Journal of
Finance. 63(4). pp. 1679-1728.
Joseph, J., Ocasio, W. and McDonnell, M.H., 2014. The structural elaboration of board
independence: Executive power, institutional logics, and the adoption of CEO-only board
structures in US corporate governance. Academy of Management Journal, 57(6),
pp.1834-1858.
Kahan, M. and Rock, E. B., 2007. Hedge funds in corporate governance and corporate control.
University of Pennsylvania Law Review. pp.1021-1093.
Klein, P., Shapiro, D. and Young, J., 2005. Corporate governance, family ownership and firm
value: the Canadian evidence. Corporate Governance: An International Review. 13(6).
pp. 769-784.
Kotler, P. and Lee, N., 2005. Corporate social responsibility. Doing the Most Good for Your
Company and Your Cause. New Jersey.
Larcker, D. and Tayan, B., 2015. Corporate governance matters: A closer look at organizational
choices and their consequences. Pearson Education.
Larcker, D. F., Richardson, S. A and Tuna, I., 2007. Corporate governance, accounting
outcomes, and organizational performance. The Accounting Review. 82(4). pp. 963-1008.
Lindgreen, A. and en, V., 2010. Corporate social responsibility. International Journal of
Management Reviews. 12(1). pp. 1-7.
Liu, Q. and Lu, Z. J., 2007. Corporate governance and earnings management in the Chinese
listed companies: A tunneling perspective. Journal of Corporate Finance. 13(5). pp. 881-
906.
Maclean, M., Harvey, C. and Press, J., 2006. Business elites and corporate governance in
France and the UK. Basingstoke: Palgrave Macmillan.
Mallin, C., 2004. Corporate governance. Oxford: Oxford University Press.
Masulis, R. W., Wang, C and Xie, F., 2007. Corporate governance and acquirer returns. The
Journal of Finance. 62(4). pp. 1851-1889.
McWilliams, A., Siegel, D. S. and Wright, P. M., 2006. Corporate social responsibility: Strategic
implications*. Journal of management studies. 43(1). pp. 1-18.
Minow, N., 2004. Corporate governance. Malden, Mass.: Blackwell Pub.
55

Morck, R. K., 2007. A history of corporate governance around the world: family business
groups to professional managers. University of Chicago Press.
Pagano, M and Volpin, P. F., 2005. The political economy of corporate governance. American
Economic Review. pp. 1005-1030.
Pickard, A., 2012. Research methods in information. Facet publishing.
Portney, P. R., 2005. Corporate social responsibility. Environmental Protection and the Social
Responsibility of Firms—Perspectives from Law, Economics, and Business. 4(39). pp.
237-242.
Sapra, H., Subramanian, A. and Subramanian, K.V., 2014. Corporate governance and
innovation: Theory and evidence. Journal of Financial and Quantitative Analysis.
49(04). pp.957-1003.
Saunders, M. and et. al., 2007. Research Methods for Business Students. Prentice Hall.
Smith, V. and et.al., 2011. Methodology in conducting a systematic review of systematic reviews
of healthcare interventions. BMC medical research methodology. 11(1). pp.15.
Sullivan, P., 2011. Qualitative Data Analysis Using a Dialogical Approach. SAGE.
Tricker, R.B., 2015. Corporate governance: Principles, policies, and practices. OUP Oxford.
Vaismoradi, M., Turunen, H. and Bondas, T., 2013. Content analysis and thematic analysis:
Implications for conducting a qualitative descriptive study. Nursing & health sciences.
15(3). pp.398-405.
Westphal, J.D. and Zajac, E.J., 2013. A behavioral theory of corporate governance: Explicating
the mechanisms of socially situated and socially constituted agency. The Academy of
Management Annals, 7(1), pp.607-661.
Wintoki, M. B., Linck, J. S. and Netter, J. M., 2012. Endogeneity and the dynamics of internal
corporate governance. Journal of Financial Economics. 105(3). pp. 581-606.
Online
Sample Dissertation Methodology, 2013. [Online]. Available through:
<http://writepass.com/journal/2013/04/sample-dissertation-methodology/>. [Accessed on
18th December 2015].
The Emirates group, 2015. [Online]. Available through: <
http://www.theemiratesgroup.com/english/facts-figures/annual-report.aspx>. [Accessed
on 26th October 2015].
56

APPENDIX
Questionnaire
Demographic questions
Q.1. In which age group do you falls?
 Below 20 years
 20- 35 years
 35- 50 years
 Above 50 years
Q.3. How many years of experience you have in Airline industry?
 Below 2 year
 2-5 year
 5-10 year
 More than ten years
Q.2. From how many years you are working in Emirate?
 Below 2 year
 2-5 year
 5-10 year
Q4: What is your designation in company?
 Top level management
 Middle level management Operational level management
What is the meaning and significance of corporate governance and CSR in context of
multinational companies?
1) Do your company is abided by corporate governance legislations?
 Yes
 No
 Maybe
2) Corporate governance is important for companies. Do you agree?
 Agree
 Strongly agree