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The role of venture capital securities in entrepreneurship For entrepreneurs to flourish, they need funding: venture capital is financial capital provided to early-stage, high-potential, high-risk, growing entrepreneurial companies. Venture capital is particularly attractive for new companies with a limited operating history that are too small to raise capital in the public markets, and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists (VCs) shoulder by investing in smaller and less mature companies, venture capitalists usually get a significant portion of the company's ownership (and consequently their value). ​ Once a VC decides to invest in a venture, the involved parties need to settle on a deal structure. When negotiating the deal structure, parties need to keep a few considerations in mind: ​ The deal structure needs to protect the VC against losses and should encourage entrepreneurs to work hard to make the venture a success. Most VC investments are illiquid, which means that unlike shares of listed companies, they cannot be sold very easily. Finally, most investments are characterized by asymmetric information. In general, the entrepreneur knows more about the venture than the investor. ​ VCs typically use convertible preferred equity to finance ventures. As the name suggests there are two important features of these securities: conversion and preferred. Investors of convertible preferred equity have the option of either holding a debt-like claim -preferred equity or converting into common equity. Converting into common equity implies sharing ownership in the venture with the entrepreneur. Preferred terms make it similar to a loan (debt), gives holders a right to interest payment (dividends) and additionally gives preference in payments over common equity. In other words, the preferred feature ensures that preferred investors are paid before common equity holders. In a typical deal, VCs would hold preferred equity and the entrepreneur common equity, thus the VC can get paid before the entrepreneur if the venture does not do well. However, if the venture succeeds and its value increases, the VC would convert the preferred equity into common equity and share the fruits of this success with the entrepreneur. ​ AAnother feature of VC investments is that they are done in stages. VCs would never provide all the capital upfront to a venture; instead, they would only provide sufficient capital to reach the next milestone. Once the capital has been used up, the entrepreneur has to raise another round of financing to reach the next milestone. The advantage of staging is that VCs can stop financing if the venture is not doing well. It can also be advantageous for the entrepreneur, as the terms can be made more favorable to them if their venture is successful. Staging also helps reconcile the aforementioned asymmetric information levels between entrepreneurs and VCs, since future investments are only made based on past outcomes. ​ Finally, in addition to providing capital, VCs also monitor and guide the venture. The structure of most deals is designed to ensure the monitoring role of VCs. While VCs do not hold the majority of shares, they would have the right to nominate members to the board of directors. These rights help the VC monitor progress and guide the venture and gives them the power to replace managers if operations are not going smoothly. ​ Having discussed the general features of VC investments, we will now explore details of some specific securities used in VC contracting. It must be noted that convertible preferred securities come in various flavors. Dr. Arcot analyzes one such security called participating convertible preferred security (PCP), used widely in venture capital contracts (Arcot, 2014). Participating convertible preferred stock gives its holders the right to be paid first (before common shareholders generally held by the entrepreneurs) and at the same time, allows them to participate in excess earnings (i.e., the cash flow after all debt and preferred claims have been satisfied) along with the common stockholder. PCP holders thus concurrently hold both a debt-like claim (preferred equity) as well as an equity claim (participation rights). However, PCP holders lose their preferred rights if they convert this PCP stock into common stock. His research explores why venture capitalists are willing to convert their PCP stock into common equity and give up their preferred rights. ​ He proposes a signaling model for PCP stock based on its role in venture capital exits. The two major forms of exits observed in venture capital are the initial public offerings (IPOs) and the trade sale. IPOs are exits where shares of the venture are sold to investors and then listed on the stock market and trade sale is a transaction in which a venture is sold to another company. Typically, a PCP stake is converted into common equity during an IPO exit, but is not converted in a trade sale exit. The model shows that VCs can signal the quality of their venture in an IPO by converting their PCP stake into common equity and giving up some of their cash flow rights. By giving up something during an IPO, VCs are signaling to investors that the venture is of a high quality. Signaling is of particular importance in an IPO, because in an IPO shares are sold to new investors who do not have access to documents to analyze the venture’s performance. Investors in an IPO typically have to rely on a bank to perform the due diligence and hence are thus relatively uninformed about the venture. In contrast, potential trade buyers are given access to documents, which they can analyze to reach conclusions about the venture’s quality. Since trade buyers typically come from the same industry as the venture, they are likely to have industry knowledge and are better equipped to interpret the information provided. ​ When exit is through an IPO, the entrepreneur retains control of the firm. Thus, when the firm value is high, an IPO exit rewards the entrepreneur and should be the preferred exit route. However, the VC may be reluctant to take that route, given that investors in an IPO are less informed and the VC may not get the full value for his stake. When the firm value is high, the VCs may prefer to target investors who are more informed and get a higher value for their stake. In other words, exit through a trade sale. However, the interests of VCs and entrepreneurs are more easily aligned when the VCs convert their PCP stakes into common shares and exit through an IPO. ​ Venture capitalists investing in start-ups use sophisticated financial instruments to structure their investments. This article provides a rationale for the use of one such instrument, PCP stock, based on the venture capitalist’s exit strategy. In doing so, it makes a connection between the exit route and entrepreneurial effort. This highlights factors that have direct implications for the incentives of venture capitalists to invest in ventures and entrepreneurs to exert effort to make them a success. ​ by Sridhar Arcot , 04.01.22 ​ Source: Knowledge Lab

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You hereby waive any and all defenses you may have based on the electronic form of these Terms of Use and the lack of signing by the parties hereto to execute these Terms of Use. Contact us In order to resolve a complaint regarding the Site or to receive further information regarding use of the Site, please contact us at: Feyz International LLC 16 Allée du Puits 92130, Issy-les-Moulineaux France ​ Phone: +33 7 57 83 83 33 data-protection @feyzinternational.com ​ ​ This document was last updated on November 29, 2024

EU SUSTAINABLE GROWTH REGULATIONS: THE CHALLENGES OF TRANSPARENCY, COMPARABILITY, AND LEADERSHIP With the European Green Deal of December 2019 supporting long-term signals to support green investments, and the proposed European Climate Law as a framework for achieving climate neutrality, low-carbon transition has recently featured prominently in European Union (EU) policy. “Greenwashing” (pretended concern about the environment) and false advertising in the marketing of supposedly “green” products tend to undermine this objective, and these phenomena have therefore come under scrutiny. In particular, the European Commission has adopted an Action Plan on Financing Sustainable Growth, which aims at reorienting capital flows towards sustainable investment, and fostering transparency and long-termism. The Action Plan has engendered three Regulations – “Disclosure”, “Benchmark”, and “Taxonomy” – between 2019 and 2021. The new legal framework represents a worthwhile beginning, but it is not yet fully mature. ​ The Disclosure Regulation, the Communication from the Commission on Reporting Climate-Related Information, and soft law principles targeting green bonds specifically, have together updated the 2014 requirements on non-financial information. They have increased transparency at almost all levels in the financial value-chain: issuers, investment funds, pension funds, and hedge funds, financial advisors, asset managers (all recognized as “financial market participants” in the Regulation) and rating agencies. ​ In addition, in order to facilitate investors’ access to data, the Commission has announced in its Capital Markets Union New Action Plan the establishment of a European Single Access Point for financial and non-financial information publicly disclosed by companies. ​ The low-carbon Benchmark Regulation sets out the requirements for “EU Climate Transition Benchmarks” and “EU Paris-aligned Benchmarks”, while the Taxonomy Regulation establishes a unified EU classification system to label economic activity as environmentally sustainable. The Taxonomy Regulation makes clear which economic activities contribute most to meeting the EU’s environmental objectives, and thereby guides – or nudges – investors towards “green” investments (on the model of energy consumption labelling, and its colour-gradient). Under Article 8(1) of the Taxonomy Regulation, certain large undertakings that were previously required to publish non-financial information pursuant to the Non-Financial Reporting Directive, are now required to disclose information to the public on how and to what extent their activities are associated with environmentally sustainable economic activities. SMEs and non-EU companies can of course decide to disclose information on a voluntary basis for the purpose of getting access to sustainable financing or for other business-related reasons. By December 31st, 2021, the Commission will report on how to label “brown” activities that significantly harm environmental sustainability, as well as activities that have low impact. The EU’s green finance taxonomy is, in other words, directed at avoiding greenwashing by establishing criteria for activities and financial instruments that claim to be environmentally sustainable or to contribute to a social objective. ​ This legal framework lays some groundwork for comparisons and sound decision-making on behalf of investors. However, more needs to be done in terms of standardising what is reported. In practice, the way environmental information reaches capital markets remains a sticking point. Labels, indices, and principles drawn up by various uncoordinated for-profit and nonprofit organizations have multiplied, creating complexity and confusion for companies and investors. Yet, as stressed by Robert Eccles, nonfinancial information that is of the same rigor and relevance as financial information, and that is also subject to the same degree of auditability, is indispensable for capital markets to operate sustainably. ​ Standards for nonfinancial information for companies’ environmental (as well as social, and governance) performance are important: like accounting standards, they are accepted simplified constructs to represent a company’s performance. Though imperfect (and evolving), standards enable comparability (without preventing additional information to be provided) and only fulfil their role in practice if they are mandatory. The European Financial Reporting Advisory Group’s Project Task Force issued its final report to prepare for “the elaboration of possible EU non-financial reporting standards in a revised EU Non-Financial Reporting Directive”. The European Union plans to announce its standards in April 2022. However, because the economy is global, what is really needed are standards that are also global, in addition to being independent and rigorous. ​ The EU has shown an interest in building up an international forum: with seven countries representing 55 % of the world’s greenhouse gas emissions and half of the world’s population and GDP, the EU launched the International Platform on Sustainable Finance (IPSF). Although the IPSF is not a standard-setting body, its work is aimed at preparing the ground for the international standard setters to develop globally applicable sustainable finance standards. As noted in the first IPSF annual report, the absence of coherent definitions of green investments (taxonomies) at the global level, and the low degree of standardisation of reporting, represent a limit to green and sustainable finance worldwide. Around the world, several countries have drawn up roadmaps for sustainable finance; various public and private bodies have also introduced frameworks to enhance standardisation. However, these uncoordinated initiatives tend to reflect local priorities and stages of market development and: they cause fragmentation. ​ The need to overcome this situation is also recognized in the EU-US agenda for global change announced a few weeks after the election of Joe Biden. The transatlantic initiative contemplates jointly designing a global regulatory framework for sustainable finance, based on the experience of the EU taxonomy. This illustrates the leading role that Europe is in a position to play as other major economies start to prioritize a coordinated response to climate change. ​ There is obviously a risk that collective action fails and that each entity insists on imposing its own standards rather than working towards global ones. In particular, there is a risk that the EU decides that because it can mandate standards, it should do so. Unless these are endorsed by market forces, such standards might trigger a mere compliance exercise, with little benefit to companies, investors and society as a whole. ​ If, however, the EU recognizes that it could be at the forefront of an international effort to help global standards emerge, it will be able to foster joint work with other bodies, such as the Impact Management Project, which has engaged in an effort to reconcile the various sets of existing standards, the World Economic Forum International Business Council , which can harness commitment from the corporate community, and the Sustainability Standards Board established in September 2020 to sit alongside the International Accounting Standards Board and engage in a similar role establishing international reporting standards. Were the EU to take on the role of midwife, it could deliver to the world the standards for nonfinancial information that US and Asian companies will adopt. Meanwhile a race started since the SEC proposed in March 2022 rules regarding compulsory climate-related disclosures. ​ by Geneviève Helleringer , 28.03.22 ​ Source : Knowledge Lab Essec

Istanbul IT Leadership Summit IT and Data Executives Register Now! In-Person Event | January 12, 2023 Attending Companies Discover More Why Attend our Event? Exclusive Content – In-depth, trend-forward sessions – with tons of practical takeaways and ideas to keep you ahead in the IT space. Connections – Hundreds of seasoned IT decision makers, cyber security experts, strategists, risk managers, data heads, marketers, and more to mingle and connect with. Meet your customers, vendors, expert resources, friends and colleagues. Network with leading solution providers – As a delegate, you will experience cutting-edge technology from solution providers that can fulfil your business requirements. Showcase of Technology solutions - Gather practical perspectives from many real-world use cases shared by the market’s leading players, including early adopters and leaders from across the region. Key Topics Technology is part of our daily lives and even more so in our professional environment. The goal of this invitation-only event is to encourage discussions and dialogue on what it means to be a successful IT executive and to provide tools and strategies to assist current and emerging leaders. We urge our leaders to confidentially share their experiences and plans while hearing from inspirational and visionary speakers. We explore and share the main topics amongst which artificial intelligence, fintech, cybersecurity and the metaverse are the most popular. We encourage you to come and meet some of the biggest players when it comes to cloud computing, big data security, customer service and enterprise technology. Coming together will not only expand your networks and knowledge, you can meet the industry specialists and learn more about their expert services. Innovation & Emerging Technologies Cybersecurity, Data Protection & IT Risk Management Metaverse, Blockchain & Cryptocurrencies Leadership & Business Transformation AI, Data & Analytics Cloud, Infrastructure & Operations The Agenda The event's dynamic agenda will take you through a series of roundtable discussions, real-life use cases, and dedicated industry tracks, giving you a bird's eye view of the current market situation, the latest technological innovations and strategies for propelling your organization to meet the unique challenges of these unprecedented times. Our Upcoming Events

Cybersecurity 2023: Cloud security is key issue for companies What challenges do companies currently face regarding security? What is their cybersecurity strategy for the future? And what role does digital sovereignty play in this? The results show that cloud security is the most important strategic security topic for 34% of companies in 2022 and 2023. Ranked second to fifth are secure backups/disaster recovery (20%), data security (19%), security awareness training (15%) and identity & access management (14%). ​ Along with the strategic issues, there are also the top cybersecurity challenges faced by companies. Nearly two-thirds of respondents say their security landscapes have become more complex over the past twelve months. In addition, 69% expect complexity to increase further over the next twelve months. The top five security challenges for companies in Germany, Austria and Switzerland are security complexity (24%), data protection/privacy (21%), ransomware attacks (19%), cybersecurity skills shortage (18%) and security of networked environments (16%). Fifty-seven percent of respondents agree that they already have an urgent shortage of cybersecurity personnel or will have one in the coming year. ​ Digital sovereignty is becoming more important ​ The economic and political situation has made the issue of digital sovereignty more important for three out of four companies. For 26%, it is "much more important" with strategic implications, and for another 49%, it is at least "more important" with implications for day-to-day business. This also means that many companies see numerous benefits in digital sovereignty. For example, it helps respondents to shape their own transformation in a self-determined way, to strengthen the trust of customers and other stakeholders, and to promote collaboration with partners in increasingly digital ecosystems (60% each). ​ The top 5 most common digital sovereignty challenges for companies are protecting and gaining visibility of data in clouds (31%), the cost of evaluating and adopting new technology (29%), expertise in dealing with cloud contracts and skilled employees to understand and implement individual digital sovereignty requirements (27%), the availability and cost of local compliance officers (25%), and dealing with competing requirements between regional and national jurisdictions (24%). ​ Ransomware attacks are on the rise ​ According to this study, 72% of companies in the German-speaking markets have been affected by ransomware. 40% have even seen an increase in cyberattacks over the past twelve months. Looking ahead, half of the respondents (50%) expect the number of attacks to increase even further. If a ransomware attack occurred, only 50% of companies were able to successfully defend against it. ​ "To remain competitive and successfully develop their own business model, companies must respond to technological innovations and act with digital sovereignty," analyzes Frank Sauber, Global Head of Sales & Business Enablement, secunet Security Networks AG. "Besides self-determination and independence, this also means freedom of choice, for example in terms of providers, data protection or transparency. This gives companies more influence over what happens to their data and ultimately enables them to better protect themselves against cybercrime, sabotage or espionage. Companies are already complaining about the lack of skilled personnel and the complexity of the security landscape - this can only be mastered with independent partners and secure services. ​ by Secunet, 12.07.2022 ​ Source: Factiva

Zürich Tech Leadership Conference Tech and Data Science Executives Register Now! In-Person Event | 2023 Attending Companies Discover More Why Attend our Event? Exclusive Content – In-depth, trend-forward sessions – with tons of practical takeaways and ideas to keep you ahead in the IT space. Connections – Hundreds of seasoned IT decision makers, cyber security experts, strategists, risk managers, data heads, marketers, and more to mingle and connect with. Meet your customers, vendors, expert resources, friends and colleagues. Network with leading solution providers – As a delegate, you will experience cutting-edge technology from solution providers that can fulfil your business requirements. Showcase of Technology solutions - Gather practical perspectives from many real-world use cases shared by the market’s leading players, including early adopters and leaders from across the region. Key Topics Technology is part of our daily lives and even more so in our professional environment. The goal of this invitation-only event is to encourage discussions and dialogue on what it means to be a successful IT executive and to provide tools and strategies to assist current and emerging leaders. We urge our leaders to confidentially share their experiences and plans while hearing from inspirational and visionary speakers. We explore and share the main topics amongst which artificial intelligence, fintech, cybersecurity and the metaverse are the most popular. We encourage you to come and meet some of the biggest players when it comes to cloud computing, big data security, customer service and enterprise technology. Coming together will not only expand your networks and knowledge, you can meet the industry specialists and learn more about their expert services. Innovation & Emerging Technologies Cybersecurity, Data Protection & IT Risk Management Metaverse, Blockchain & Cryptocurrencies Leadership & Business Transformation AI, Data & Analytics Cloud, Infrastructure & Operations The Agenda The event's dynamic agenda will take you through a series of roundtable discussions, real-life use cases, and dedicated industry tracks, giving you a bird's eye view of the current market situation, the latest technological innovations and strategies for propelling your organization to meet the unique challenges of these unprecedented times. Our Upcoming Events

SOCIAL ACCOUNTING: A TOOL FOR MEASURING CORPORATE SUSTAINABILITY ​ ​ Corporate social responsibility is an increasingly popular topic in the corporate world and beyond, highlighting a need for best practices and a stronger understanding of what it really means to be a sustainable business. For this to occur, we need ways of measuring corporate sustainability: social accounting is one way of doing so. Adrian Zicari, professor at ESSEC, explains its merits, as well as its limitations, in a recent chapter in the Handbook on Ethics in Finance. ​ First, a primer: social accounting refers to the measurement of an organization’s social and environmental performance, recognizing the need to go beyond measuring economic impact only. There are a number of indicators that can be used, for example the disclosure of pollution information or the composition of the company’s workforce, among others. The list of indicators goes on, as assessing social and environmental information is a complex matter. This makes the scope of social accounting quite broad, and also leads to the question of balancing comprehensiveness and comprehension: more information is not necessarily better, as it can make reports hard to understand. Many of these indicators are not measurable in financial terms, so practitioners of social accounting need to go beyond conventional accounting and gather information from different sources. This requires a significant investment. As a result, social reports are more common in bigger companies. ​ Dr. Zicari explored five issues (1): The motivation behind corporate disclosure of social & environmental information The use of social accounting internally for management purposes The link between social accounting and financial performance Whether or not regulation contributes to sustainability The potential that social accounting has for contributing to sustainable practices ​ Disclosure on social and environmental information ​ Today, the disclosure of social and environmental information is usually voluntary, though some European countries have recently implemented regulations. For instance, some companies in France have to present a “déclaration de performance extra-financière”. This means that in many cases, companies can pick and choose what, how, and when they disclose. This makes it difficult to compare companies, as there are many different frameworks in use. ​ If it is not mandatory, why do companies disclose this kind of information? One reason is to show their legitimacy, i.e. living up to social expectations. Others may have a more “defensive” strategy in play, like if they are under fire from environmental agencies. If they do produce social reports, their motivations may impact the content. Researchers have noted that companies with poorer environmental performance tend to talk more about their environmental projects (2) and use more optimistic language (3). ​ In other words, companies tend to be strategic when deciding what they share and how they share it, and their motivation is often based on protecting or enhancing the company’s reputation. This does not necessarily mean that companies are acting in bad faith, but it does mean that they may not disclose all their social and environmental indicators. Dr. Zicari notes that this can lead to tensions between companies and stakeholders: companies may not disclose all information, while stakeholders may seek more transparency. ​ Should disclosure be mandatory? ​ Corporate social responsibility initiatives and social accounting alike are typically voluntary, but there are increasingly calls for more mandatory reporting. This would be beneficial in that it could increase comparability, standardize reporting, boost the scope of information shared, result in better-informed consumers. ​ One way to increase regulation is through “soft-law” initiatives, meaning the use of frameworks that are voluntary, but provide structure, like GRI, SASB, and Integrated Reporting. If a company says that it complies with one of those, then it has to abide by that and provide the according data. This could also boost stakeholder engagement by providing a reference point and also make it easier to compare companies, as currently comparisons are hindered by the many different frameworks out there. ​ Another option is the use of “hard-law”, legally-binding regulations. One example of this is the Directive 2014/95/EU of the European Union, under which companies with over 500 employees disclose non-financial information. Some initial research suggests that this could have a negative impact on information quality, as companies prefer to share good news (4). ​ Increased regulations on social reporting could help, but regulation alone will not ensure disclosure, nor does increased disclosure lead to increased sustainability. This suggests that while regulation could be useful, it does not replace the need for stakeholders to advocate for sustainability. ​ Using social accounting internally ​ Much of the discussion has focused on disclosure to external parties. What about the goings-on inside the company? Internal indicators can help managers make decisions that align with CSR indicators. However, since the indicators can be hard to decipher, managers may struggle to work with them, especially as CSR work can be siloed within the organization. ​ Companies use different approaches when using social accounting internally. An “inside-out” approach highlights the use of internal social accounting information by managers in their decision-making processes; this can be combined with the “outside-in” perspective, wherein external stakeholders use report information to inform their decisions (5). Both of these perspectives are important in striving for sustainability. To facilitate this process and also help managers interpret the information, CSR discussions should be integrated into corporate performance and dealt with across the organization, rather than being the responsibility solely of a specialized team. ​ What is the link between social accounting and financial performance? ​ Social accounting is not interchangeable with conventional accounting: how exactly do they relate? Their scopes are different, but there is a lot of overlap, both in content and in audience. For example, perhaps a firm makes an expenditure to make a process greener: this will be reported in Profit and Loss Statements (the cost) and in social reports (the effect of the green initiative). An investor may read both these statements, as the financial statements help evaluate the company’s potential and social reports show its environmental impact. ​ The research is mixed when it comes to how sustainability actually impacts financial performance; as a result, managers may be unsure about the profitability of sustainable policies, even if they think the ethical rationale is strong. When measuring the situation, managers thus need to carefully consider the framework they use, and whether or not it is appropriate for the situation. ​ Can social accounting lead to organizational change? ​ Even if the link between sustainability and financial performance is unclear, sustainability remains a worthy goal. This means that social accounting, too, is useful, as a tool for achieving sustainability. What can it actually achieve? ​ Some scholars (cf. 6) suggest that social accounting can inform better decision-making and facilitate teamwork. Others are less certain (cf. 7), who argue that it is mainly symbolic and may not lead to significant change. One thing is true: realizing true improvements is difficult, and the mere implementation of social accounting processes will not automatically improve sustainability. Further, over-reliance on social accounting may lead to a focus on the “small picture”, rather than truly revisiting conventional business models. ​ While social accounting is not a silver bullet, it has shown success; the KPMG Survey of Corporate Reporting (2017) (8), studying reporting practices in 50 countries, found that social reporting is widespread, and there is a community dedicated to its improvement and implementation. Social accounting could also help with the “big picture”: while reports may highlight smaller, incremental improvements, these could inform long-term changes to conventional business practices. For example, mining: by definition a polluting activity, but nevertheless one that is necessary for industrial production. Using social accounting could give managers and stakeholders information that could help reduce the environmental impact as a short-term strategy, while preserving the need to look for long-term solutions that are better for the planet. ​ Social accounting is necessary and helpful for improving business models. Increased disclosure illuminates managers how the company can improve and informs the company’s efforts to be socially responsible. More transparency will benefit stakeholders and empower the public. We need to remember that social accounting remains a means to an end, and it will be tested by how effectively it creates measurable change in corporate practices. ​ Key points and takeaways ​ Tension exists between companies and stakeholders, as the former may not share all information and the latter seek greater transparency. Regulation could improve report quality, but will not automatically improve disclosure. Managers may find it challenging to work with social and environmental indicators, leading us back to the first point: some information may not be disclosed because it is not well understood or not readily available. We still do not have a clear picture of the link between sustainability and financial performance. We must be clear-eyed on the promise of social accounting. It can help improve existing business models, but does not create new ones, and managers should be encouraged to use complementary tools. All things considered: social accounting is an increasingly helpful tool for managers and stakeholders, and can help improve corporate sustainability. ​ References ​ Zicari, A. (2020). The many merits and some limits of Social Accounting: Why disclosure Is not enough. Handbook on Ethics in Finance, 541–557. https://doi.org/10.1007/978-3-030-29371-0_14 Cho, C. H., & Patten, D. M. (2007). The role of environmental disclosures as tools of legitimacy: A research note. Accounting, Organizations and Society, 32(7-8), 639-647. Cho, C. H., Roberts, R. W., & Patten, D. M. (2010). The language of US corporate environmental disclosure. Accounting, Organizations and Society, 35(4), 431-443. Costa, E., & Agostini, M. (2016). Mandatory disclosure about environmental and employee matters in the reports of Italian-listed corporate groups. Social and Environmental Accountability Journal, 36(1), 10-33. Burritt, R. L., & Schaltegger, S. (2010). Sustainability accounting and reporting: fad or trend?. Accounting, Auditing & Accountability Journal. Burke, J. J., & Clark, C. E. (2016). The business case for integrated reporting: Insights from leading practitioners, regulators, and academics. Business Horizons, 59(3), 273-283. Rodrigue, M., Magnan, M., & Cho, C. H. (2013). Is environmental governance substantive or symbolic? An empirical investigation. Journal of Business Ethics, 114(1), 107-129. Blasco, J. L., & King, A. (2017). The road ahead: the KPMG survey of corporate responsibility reporting 2017. Zurich: KPMG International. ​ by Adrián Zicari , 08.06.21 ​ Source : Knowledge Lab Essec

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A DAWN OF DATA REVOLUTION AND WHAT'S AT STAKE? ​ ​ It is estimated that by year 2025, individuals and businesses alike will produce about 463 exabytes of data per day globally and there will be an estimated 175 zettabytes of data in the global data sphere. Businesses use data for a variety of reasons; including but not limited to analyzing customer behavior, providing relevant ads, customer centric product trends and analyzing market value. ​ Thus today data is imperative to a business. As a result most companies are increasingly focusing on their data policies, individuals and businesses are increasingly concerned about ethics surrounding data and privacy laws. But even as these laws emerge, the time taken to comply with these laws officially or unofficially is not very promising. ​ In fact, in a report recently added to the net, it was disclosed that it takes companies about 62 days to discover a high severity data breach and another 71 days to disclose the said breach. Thus, purely relying on a business to do the right thing when it comes to data breaches and data privacy ethics is not enough. ​ Kuber Signal is a company that wants companies to be held accountable/responsible by the individual for their data related decisions. The company quantifies privacy policies for other companies into a standard 4-point metric and a final Goodness score that's comparable across board and then shows these scores to the individual so they can decide what companies keep their data safe. ​ The metrics are: 1. Personal Data Privacy Goodness Score 2.Behavioral Data Privacy Goodness Score 3.Technical Data Privacy Goodness Score 4. Data Sharing Goodness Score Each metric measures how much of an individual data is stored, used and shared by the Company, that individual is a customer of the company then shows what companies in the same industry, selling the same product, rank higher than the individual's company of choice. The company can also track public information around other companies and aims to provide users with the right tools and information so an individual can stay up to date with their specific security concerns, be it companies or other security threats and make better informed choices. ​ Kuber Signal ultimately provides the user with a privacy score that can help them evaluate them online behavior and help mitigate their data related threats. Kuber Signal is founded by a Data Scientist and a cyber-security expert whose expertise lies in investigating brands for their security posture using AI algorithms. The mission of the company is to ensure an individual is aware of their security posture and a know-how into how to improve it. The company also provides individual security assessment, cyber news and information on relevant scams in the individual's playground. In conclusion, data privacy and ethics have never had more value than in recent and coming years. Today a data breach is nothing less than a home invasion of yesterday. ​ This may sound extreme but almost every bit of useful information about a person is somewhere on the internet with some company whose 'terms and conditions' the customer didn't read and if a malicious actor gets access to that data, the consequences for the individuals can be devastating. ​ by P. Observer, 07.12.22 ​ Source : Factiva

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