Corporate Governance and Sustainability Reporting

This assignment is based on a research proposal that aims to analyze the influence of governance structure and strategic corporate social responsibility toward sustainability reporting quality. The proposal involves a literature review, defining background or rational, deciding aims and objectives, devising a questionnaire, gathering data, examining the data, making recommendations, and final submission. It also includes references from books and journals on corporate governance and sustainability reporting.

Corporate strategy and governance

Table of Contents
INTRODUCTION...........................................................................................................................1
Literature review..............................................................................................................................1
Research question............................................................................................................................2
Research methodology.....................................................................................................................2
Access and ethics.............................................................................................................................3
REFERENCES................................................................................................................................4

Title – to evaluate dependence of company profits on corporate governance. A case study on
automobile sector
INTRODUCTION
Corporate governance is a concept that is followed by business in order to remain
sustainable in industry for long term (Su and Sauerwald, 2018). It consists of rules and
regulations, process, etc. that are followed by business. this helps in maintaining balance
between interest of shareholders and activities of company. Usually, a firm is directed and
controlled by stakeholders. They are responsible for doing business in transparent way.
Purpose – this research is conducted in auto mobile to identify how profitability of firm is
affected due to change in corporate governance. it will help in determining factors that enable
companies to work in interest of stakeholders.
In automobile sector there is major are many issues related to corporate governance that
arises. It has created a great impact on profitability of company. Also, many companies are
involved in controversies and legal cases.
Volkswagen is an MNC that is operating in many countries (Too and Weaver, 2014). the
company has also faced critical issues. They are been involved in scandals that has led to decline
in sales and profits. This has occurred due to ineffective implementation of corporate
governance.
Literature review
In such as changing business environment it is very important to companies to follow an
effective corporate governance strategy. this is because it will be beneficial in sustaining in
market for long term. According to Davies, 2016, change in environment forces business to
work in interest of stakeholders. It enabled them to earn huge profits. The profitability is entirely
dependent on corporate governance (Chu, Teng and Lee, 2016). It reflects values, rules and
regulation on that company follows in their operations. a rigid structure will enable in generating
higher profits.
major profits are earned through shareholders. It is because they represent company in society.
In view of Barkemeyer, Preuss and Lee, 2015, practices followed includes protecting
atmosphere, using renewable resources, etc. this creates a positive impact on performance of
business and outside it. due to this they are able to provide new products and high quality
services to customers.
1

As said by Mallin, 2016, the more contribution of business towards stakeholders will
enable in reflecting a better image in industry. They will be able to sustain in market for long.
Auto mobile sector operates globally. Thus, they have to follow strict rules and regulations and
work with government. As elucidated by Jiang and Kim, 2015, proper communication between
directors and managers will create better relationship. This influences overall organizational
culture. Moreover, internal attributes of firm shows corporate governance.
In opinion of Sako and Zylberberg, 2015, globalization has create a positive impact on
business. It has allowed companies to promote their ethics, fairness, etc. in dealing with
customers, suppliers, etc. it has resulted in small number of scandals and frauds (Driver and
Thompson, 2018) .It is expected that a good governance depicts good performance of business.
Research question
Aims and objectives
Aim- to evaluate dependence of company profits on corporate governance. A case study on auto
mobile sector.
Objectives
 To access role of corporate governance in auto mobile industry
 To analyze contribution of CG in profitability.
 To evaluate impact of change in corporate governance on profits
Questions
 What is the role of corporate governance in auto mobile sector?
 How profits are related to corporate governance?
 What is the impact on profits due to change in corporate governance?
Research methodology
There are several methods that are followed while conducting research. They help in
developing a framework so that research is conducted in systematic way. For present research
methodology is as follows:-
Research design – These designing approaches focus on preferences made by the researches for
data analysis and collection. This project will use both qualitative and quantitative methods for
designing purpose.
Research philosophy - Research philosophy describes the ways in which knowledge data for the
research can be gathered and evaluated so that it can be used for research purpose. There are
2

various types of research philosophies such as positivism, interpretivism, etc. (Amran, Lee and
Devi, 2014) Positivism approach will be used by researcher.
Data collection- In order to answer the proposed questions of research various types of data are
collected. Data collection methods are classified into two categories namely primary and
secondary. Primary data will be collected through questionnaire.
Data sampling- A technique to select sample from population. The sample selected will be 30
corporates that are engaged in auto mobile sector.
Data analysis- it is very essential to analyze data as overall results are based on this. In context
to this, researcher will use thematic analysis technique. also, graphs, charts, etc. will be
developed to get precise outcomes.
Access and ethics
Ethics - The research study must ensure that ethical considerations are not neglected During
research it was assured that none of the participant was harmed and their dignity was maintained
during process (Mair, Mayer and Lutz, 2015). Prior to study the consent was taken from all the
participants so that accurate conclusions can be developed.
Access – In this researcher must have the access for collecting and analysing data. For present
study researcher will follow a systematic way for this. It will help in getting specific and precise
results.
3

REFERENCES
Books and journals
Amran, A., Lee, S.P. and Devi, S.S., 2014. The influence of governance structure and
strategic corporate social responsibility toward sustainability reporting quality. Business Strategy
and the Environment, 23(4), pp.217-235.
Barkemeyer, R., Preuss, L. and Lee, L., 2015. On the effectiveness of private transnational
governance regimes—Evaluating corporate sustainability reporting according to the Global
Reporting Initiative. Journal of World Business, 50(2), pp.312-325.
Chu, C.C., Teng, Y.M. and Lee, H.L., 2016. Does Law Matter for Corporate Governance
and M&A Performance in Banks? Evidence Under the Financial Institutions Merger Act in
Taiwan. Emerging Markets Finance and Trade, (just-accepted).
Davies, A., 2016. Best practice in corporate governance: Building reputation and
sustainable success. Routledge.
Driver, C. and Thompson, G., 2018. Corporate Governance and Why It Matters. Corporate
Governance in Contention, p.1.
Jiang, F. and Kim, K.A., 2015. Corporate governance in China: A modern perspective.
Mair, J., Mayer, J. and Lutz, E., 2015. Navigating institutional plurality: Organizational
governance in hybrid organizations. Organization Studies, 36(6), pp.713-739.
Mallin, C.A. ed., 2016. Handbook on Corporate Governance in Financial Institutions.
Edward Elgar Publishing.
Sako, M. and Zylberberg, E., 2015. From governance to strategy: Injecting management
studies into global value chains.
Su, W. and Sauerwald, S., 2018. Does corporate philanthropy increase firm value? The
moderating role of corporate governance. Business & Society, 57(4), pp.599-635.
Too, E.G. and Weaver, P., 2014. The management of project management: A conceptual
framework for project governance. International Journal of Project Management, 32(8),
pp.1382-1394.
4

5

Appendices
Activiti
es
Week 1 Week
2
Week
3
Week
4
Week
5
Week
6
Week 7 Week
8
Week
9
Week
10
Wee
k 11
Definin
g
research
proposal
Definin
g
backgro
und or
rational
Literatu
re
review
Decidin
g aims
and
objectiv
es
Devisin
g the
question
naire
6

Gatheri
ng data
Examini
ng the
data
Recom
mendati
ons
Final
Submiss
ion
7