Strengthening Systems
CSR, Firm Performance and Financial Executive Compensation: An Empirical Analysis of Moderating Effect View Digital Media
Paper Presentation in a Themed Session Daniel Shim
This study empirically examines whether Corporate Social Responsibility (CSR) affects the remuneration of bank and other financial executives. Specifically, we test whether CSR performance directly impacts executive compensation or indirectly moderates it. To test the proposed hypotheses, we employed the lagged regression analysis. Our initial sample includes all U.S. banks and financial institutions (SIC 6000–6799) listed on COMPUSTAT. Our final sample consists of 1,425 firm-year observations for the 5-year period from 2014 to 2018, immediately prior to COVID. The results show that CSR performance significantly and positively impacts bank and financial executives’ cash compensation (salary and bonus). As expected, CSR performance significantly and positively moderates and interacts with market performance (stock price) and cash compensation, CSR performance also significantly and positively moderates the relationship between firm size and cash compensation, Contrary to expectations, CSR performance has a significant but negative moderating effect on the relationship between accounting performance (ROE) and executive pay. The results of additional studies suggest that CSR performance does not influence the long-term and total compensation of bank and financial executives, which accounts for a major portion of executive compensation. Our research is significant and important because it represents a new line of study examining the moderating effect of CSR performance on the remuneration of bank and financial executives. Prior research on this relationship has been limited and, at best, shows mixed results. Our study provides additional insights into the pay-for-performance relationship between bank and financial executives.
Strengthening Transformational Change and Sustainable Knowledge Transfer: Insights from an Engineering Research Organization with an Interdisciplinary Future Orientation View Digital Media
Paper Presentation in a Themed Session Falk Kunadt
Engineering research often tends to take a strong technology-centric view leaving out important driving factors such as political, economic or ecological perspectives. Such a techno-centric perspective hinders the dialogue with important stakeholders inside and outside the organization on long-term socio-economic developments of technologies including opportunities and barriers. It can also be a showstopper to new technologies as external future developments are not fully considered. In this paper, I argue that engineering research needs a wider perspective that considers the past, present and future of driving forces of technologies. Such an approach looks for tipping points from one dimension to another, e.g. from politics to the market or ecology to technology. In widening the perspective throughout the entire technology lifecycle, transformational pathways can be better perceived, analyzed and integrated into the development process. This paper presents case studies from a large engineering organization with more than 10.000 employees using methods from foresight and innovation management like future questions, future theses, scenarios, roadmaps and ai/big data approaches. It shows how diverse and complex organizations can organize knowledge on technologies and prepare for future technology demands from various perspectives such as politics, sustainability requirements or markets. Furthermore, the presented methods show how interorganizational and interdisciplinary knowledge transfer can enhance external technology transfer.
Threats and Capacities of Artificial Intelligence: Temporal Work Transforming Organizations View Digital Media
Paper Presentation in a Themed Session Rannveig Røste
There has been an increasing interest for emerging artificial intelligent (AI) technologies in organization theory, emphasizing ethical and societal challenges of computerizing of human work. However, how AI disrupts existing organizational routines and creates new ones has received little attention. This paper argues for a need for a more solid theoretical foundation for understanding how organizations can innovate with AI to overcome ethical and societal challenges, and contributes to this by discussing findings from a longitudinal case study of temporal work with AI. The notion of temporal work is based on the influential contribution by Kaplan and Orlikowski, which shows how the organizational actors are guided by temporal assumptions of the past, the present and the future. The case study brings to the field rich data of temporal assumptions collected over time in an organization considering using AI. The selected organization provides an interesting setting to study temporal work of AI given its pioneering role as the first public organization in Norway that launched a strategy for AI in 2015, and that established an innovation lab of data scientists in 2017. Still, the organization has not launched any “real” AI-product by 2023. The findings show that the use of AI depends on several organizational processes involving temporal assumptions of threats and capacities of AI. Moreover, these temporal assumptions are co-constructed in organizational and technological shifts. The organizational interests for AI change in correspondence with technological shifts, but also with the temporality of work, in existing experiences and beliefs of AI.
Reformulating Organisational Due Diligence to Assert Intellectual Property Rights and Enhance Asset Valuation: Responding to Emerging Jurisprudence Governing Artificial Intelligence
Paper Presentation in a Themed Session M.P. Ramaswamy
In the knowledge economy, accumulating a wealth of intellectual property and safeguarding the associated rights is crucial for all organisations. Measures aimed at effectively asserting intellectual property rights (IPR) and enhancing its valuation are inevitable processes, which organisations need to cultivate and sustain. However, the internalisation of such a capacity often has a strong influence from lateral factors, like those exerted by market and legal forces. Based on the premise that the IP accumulation of organisations and the ensuing valuations have a significant nexus with legal and regulatory regimes governing relevant rights, the study identifies and evaluates emerging organisational challenges. Especially in the era of artificial intelligence, the paper emphasises the importance of organisations to take cognisance of contemporary legal developments pertaining to the permeating legal standards. The paper examines this in the specific context of emerging jurisprudence governing generative AI related IPR claims in major legal systems and identifies the implications for organisations in developing IP assets and sustaining their valuations. To determine how organisations need to develop response measures, the paper further examines potential legal harmonisation efforts of relevant international legal regimes and institutions. The paper argues that independent of any future standardisation in legal recognition and enforcement of IPR, organisations must develop their mission-specific strategies to assert and enhance valuation of IPR in AI assets and AI-generated works. The paper concludes with relevant recommendations based on the critical assessment of the formidable challenges and some early organisational responses to such challenges.
