Judging the morality of business practices: The influence of personal moral philosophies

Individuals' moral judgments of certain business practices and their decisions to engage in those practices are influenced by their personal moral philosophies: (a) situationists advocate striving for the best consequences possible irrespective of moral maxims; (b) subjectivists reject moral guidelines and base judgments on personal values and practical concerns; (c) absolutists assume that actions are moral, provided they yield positive consequences and conform to moral rules; (d) exceptionists prefer to follow moral dictates but allow for exceptions for practical reasons. These variations, which are based on two fundamental dimensions (concern for principles and concern for promoting human welfare) influence a variety of moral processes and have implications for ethical debates over business practices.Donelson R. Forsyth is Professor in the Department of Psychology at Virginia Commonwealth University. A social psychologist, his three major interests are affective and attributional reactions in interpersonal, education, and clinical settings, individual differences in ethical ideology, and the dynamics of interacting groups. He is the author of numerous journal articles, as well as several books dealing with social psychology, group processes, and health.     

The role of moral intensity and moral philosophy in ethical decision making: a cross‐cultural comparison of China and the European Union

The present study uses cross‐cultural samples of marketing practitioners from two European Union (EU) nations (the United Kingdom and Spain) and China to examine the relationships between moral intensity, personal moral philosophies and ethical decision making. Additionally, cross‐cultural comparisons were made regarding intentions, personal moral philosophies and moral intensity. Results indicate that both samples tend to use the perceived harm construct (e.g. magnitude of consequences, probability of effect, temporal immediacy and concentration of effect) to determine intentions in situations involving ethical issues. However, social consensus tends to be situation‐specific for both groups and proximity seems not to be used at all when making decisions in situations involving ethics. As for personal moral philosophies, idealism is only used by the EU sample; however, for both samples, the use of relativism depends upon the specific situation.     

Women's responses to fashion media images: a study of female consumers aged 30–59

The purpose of this study was to examine whether female consumers ranging in age from 30 to 59 prefer fashion advertising models more closely resembling their age. The sample for this study consisted of 182 women. Stimuli included full‐colored photographs of current fashion models. A questionnaire designed to explore participants' responses to the stimuli included scales measuring participants' beliefs about the stimulus models' appearances and attractiveness, participants' purchase intentions and perceived similarity with the models and participants' perceived fashionability of the model's clothing. Participants rated models appearing older in age significantly higher than younger models on the characteristics related to appearance and attractiveness. Advertisements with older models also had a significant positive relationship to participants' purchase intentions as compared to younger‐age models. Participants who perceived more similarity to the models were found to have more positive beliefs about the model's appearance and attractiveness and the fashionability of the model's clothing. Perceived similarity also had a significant positive relationship to participants' purchase intentions. As a result of this study, findings suggest that marketers and retailers should consider the age of the model used in their promotional materials. Specifically, it is possible that female consumers either transitioning into, or currently in, the middle adulthood life stages may have a preference for fashion models more closely resembling their age group.     

Responding to Agenda 21: purchase and waste behaviour and the introduction of weight-based billing – a case study

In many societies unsustainable consumption patterns are currently being recognized as a critical problem receiving increasing public attention. Communities in many parts of the world are responding to United Nations Agenda 21 by attempting to increase public awareness about the necessity of increasing recycling, by increasing fees and taxes on products that are harmful to the environment, by introducing re-use systems, and by changing legislation. These are just a few examples of the kinds of measures that are being employed in an attempt to move towards an ecocyclic society. This article reports a case study from a Swedish municipality, Varberg, and the focus is on the relationship between household routines related to purchases of everyday commodities and waste management. In 1994, Varberg introduced a weight-based billing system for household waste and at the same time a green shopping campaign was launched by the authorities. The article reports findings from a study of 39 households, located in two different areas, a town area with rented apartments and a suburban area with owner occupied, one-family houses. Data have been obtained through interviews and weighing of household waste. Results show that there are important differences between these areas with respect to awareness of the information launched in the campaign, knowledge of the goals of the campaign and in the manners in which dwellers felt affected by the message conveyed. Households in the suburban area, for instance, had a better knowledge of green labels and what they stand for. There are also clear differences in concrete actions that can be taken by those living in the two areas. In the area with rented apartments, weight-based billing for the individual household is not possible, nor is composting a viable alternative. For the suburban families living in their own houses, there are a broad set of measures that could be taken to modify purchase behaviours and waste management towards more environmentally friendly alternatives.     

Individualism and the ‘new tourism’: a perspective on emulation,personal control and choice

Changes can be identified in patterns of Western tourism over recent decades. The changes are linked with the theorized cultural shift from modern to postmodern. The discourse of change points to a shift in emphasis from the designated resort environment to a proliferation of individuated experiences. Analysts are apt to link these changes to a growth in individualism and individualistic expression. This study argues that the new tourists' real needs are to discover a new form of the collective. The argument is constructed drawing on the work of Veblen and Bourdieu. The final diagnosis draws on the work of Foucault.     

Money talks – a program to improve financial literacy of teens

Many researchers have studied and documented the financial literacy of youth. Even more have developed educational programs or curricula to teach financial and consumer issues to youth; however, few have actually evaluated the effectiveness of their programs. The Money Talks: Should I be Listening? curriculum, developed by a University of California Cooperative Extension team, was created to appeal to teenagers as it increased their financial literacy. In order to develop a program that young people would readily use, and from which they would learn, teenagers were surveyed prior to program development to determine the topics that were relevant to them, the educational format that appealed to them, and when and where they preferred to receive the information (Varcoe, Peterson, Garrett, Martin, Rene, & Costello, 2001). This paper discusses the effectiveness of The Money Talks: Should I be Listening? curriculum on the financial knowledge and behaviour of participants using the series. The curriculum was designed for use as a part of school curriculum as well as for presentation in other venues. The findings indicate that using the curriculum did improve the financial literacy of high school students with significant positive changes in both knowledge and behaviour. They have a better understanding of the value of savings and have changed behaviours. It is interesting to note that the males demonstrated a significantly greater increase in knowledge from pre‐test to post‐test than females. Perhaps the females have more interest in or knowledge of financial issues prior to participation in this project? Overall the results of this study are consistent with the findings of others. Research based curricula in personal finance seem to yield results. This age group has specific requirements for method of delivery and location of the seminars suggesting that it is important to keep the materials interactive. To address this issue, a web‐site http:www.moneytalks.ucr.edu was added to the program. Included on the web‐site are interactive games and a video on the importance of saving. The teens are naturally more interested in learning about the consumer and financial issues they perceive as salient in their lives at that particular time. Educators should identify topics of interest to the teens and develop, or use existing, interactive methodology to present the information.     

The influence of ‘low-balling’ on buyers' compliance: Revisited

Central to the low-ball strategy is the revocation and subsequent alteration of an integral part of an offer after a target subject accepts. Allegedly used to some extent in the automobile industry, it has drawn criticism as an unethical and characteristically deceptive practice. Yet, is such a strategy really effective in increasing customer compliance in real commercial settings? Using a sample of 160 subjects, the low-ball procedure was again tested. Although effective, its predicted superiority over several competing strategies was unconfirmed.     

Contracting, signaling, and moral hazard: a model of entrepreneurs, ‘angels,’ and venture capitalists

Investment by wealthy individuals, known as ‘angels,’ in startup firms is quite significant and has taken off in the last few years. Angels invest in the company at an earlier stage than venture capitalists (VCs) do. This paper examines the relationship between an entrepreneur, an angel, and a VC from the seed investment made by the angel to the exit stage. The study characterizes the equilibrium contracts among the players and provides insights into the related institutional arrangements. Next, the study examines the signaling aspects of the game. The paper also analyzes the moral hazard problems of the entrepreneur and the VC. It shows that the outcome in a startup firm is not efficient because of the free-rider phenomenon.     

Exploring adolescent development skills through Internet usage: a study of French 11–15 year olds

In order to develop a better understanding of teenage consumers, who represent the most highly sought after market segment for researchers and marketing practitioners in France, it is important to explore their competencies as consumers. This ethnographic research explores the consumption skills of teenage consumers using the new technologies. By examining how teenagers particularly in the age group of 11–15 year olds define a competent consumer and how they perceive themselves as competent consumers, we should be able to understand the better consumption behaviours they exhibit, the purchase decision they make and the limitations they feel they must overcome to become fully competent consumers. This study begins by exploring teenage social activities and how they engage with and use digital products as part of their subculture. Broad concepts of competence are then discussed from a psychosociological perspective and a marketing perspective. Next, teenage perceptions of what it means to be a competent consumer are explored and what are the behaviours associated with a competent consumer. Findings of this study showed that teenagers are not mere followers of marketing strategies. They develop consumption skills in relation to their experiences, their peers and media, which are more often linked to their consumption learning. The study importantly suggests that nowadays teenagers are active participants and producers of their cultural consumption processes.     

Business ethics: is it useful? – An empirical study of Chinese enterprise

There are many ethical issues that arise during the period of transition from a planning economy to a market economy. Academics and researchers on ethics appear to think that business and ethics overlap. However, this paper addresses the relation between business and ethics from the perspective of business people. From a historical and cultural perspective, the connection between business and ethics is relevant. But in practice business people only sometimes regard this connection as useful, most of the time considering the two as being quite separate. In interviews of 21 people who are owners, chief executive officers or senior managers in state–owned or private enterprises, this study found that business ethics is indeed a dilemma for them for reasons of competitive survival. Therefore, in order to improve the ethical climate, the definition of enterprise, the guidance of government policy and the audit system all have an important role to play.     

Combating deceptive advertisements and labelling on food products – an exploratory study on the perceptions of teachers

People are becoming more health conscious nowadays, but most of them are not able to adopt a lifestyle with adequate physical exercise and a healthier eating pattern. Many attempt to compensate by taking ‘health foods’. Despite the recent economic recession, the functional food market expands rapidly in Asian countries. Recent statistics indicate a huge increase in weight loss and functional food product advertising expenditure in Hong Kong and other Asian countries. In a massive survey conducted by the Hong Kong Consumer Council, it was found that 85% of the medicines, health food and therapies sampled contain questionable claims and misleading messages (Consumer Council, 1999). In fact, young people do not understand much about modern food processing, in particular those present in low energy and functional foods, and they know very little about the modern food marketing strategies. The situation is detrimental to consumer welfare especially to the younger generation. This study attempts to reflect critically on the implications of these issues for the health and well‐being of young people in Hong Kong. It explores directions for designing relevant and effective education programmes to empower young people in understanding food advertising strategies and making informed decisions on food choice. The paper will begin with a critical review on the current situation in Hong Kong. An interview survey on preservice and in‐service teachers’ perception towards misleading food advertising and labelling will then be reported. The situations at schools will be defined and problems faced by teachers in providing relevant consumer education programmes to students will be identified. Finally, the study will look to the future, with a view to developing students’ critical skills in evaluating claims offered in food advertisements.     

平抑出口退税下调影响以加工贸易为突破口

自2004年1月1日起,我国实施新的出口退税政策,机电产品出口平均出口退税率约下调3.5个百分点,这个幅度不算太大,但对多年以此驱动出口增长的机电产品出口来讲,与其促进产品结构优化的正面效应相比,其负面影响也非常直接。但其影响     

Determinants of Export Diversification Around the World: 1962–2000

Using a large dataset for 79 countries covering the period 1962–2000, this study analyses the main determinants of export diversification (concentration). We explore the role of several factors and we use three different indicators of export concentration. We find robust evidence across specifications and indicators that trade openness induces higher specialisation. In contrast, financial development does not seem to help countries to diversify their exports. Looking at the effects of exchange rates, in some of the results, a negative effect of real exchange rate volatility on export diversification is detected, but no significant effects of exchange rate overvaluation. There is also evidence that human capital accumulation contributes positively to diversify exports and that increasing remoteness tends to reduce export diversification. We also explore the role of terms of trade shocks. Most of the results suggest an interesting interaction between this variable and human capital: improvements in the terms of trade tend to concentrate exports, but this effect is lower for those countries with higher levels of human capital. This evidence suggests that countries with higher education can take advantage of positive terms of trade shocks to increase export diversification.     

From the Soviet Union to the European Union: Estonian Trade Policy, 1991–2000

This paper examines the political economy of Estonian trade policy in the 1990s. Estonia is a unique case in the world economy, in that the country rapidly implemented unilateral free trade after regaining independence and sustained it right through the 1990s. We analyse the circumstances, interests, ideas and institutions that have shaped Estonian trade policy during the past decade. Our stress is on institutions, particularly the national decision‐making setting for trade policy. Through this prism we try to understand how a free trade regime was implemented and sustained, and what this experience suggests for the feasibility of tree trade elsewhere. We also look at the increasingly ‘multi‐track’ nature of Estonian trade policy through bilateral free trade agreements, WTO accession and, especially, the movement towards EU accession. Although the other trade policy tracks to some extent provide a lockin for unilateral reforms, we argue that EU accession is undermining the simple, classical liberal trade policy regime that existed during the 1990s.     

Modelling the Impact of Environmental Regulations on Bilateral Trade Flows: OECD, 1990–1996

Since the early seventies an increasing attention has been paid to the impact environmental polict nmight have on foreign trade. One of the most important issues is whether countries with relatively strict environmental regulations tend to experience a deterioration of international competitiveness and thus a fall in exports and a rise in imports, of the pollution‐intensive commodities or, on the other hand, benefit from the improvement in environmentally more sensitive industries. So far, most empirical studies have concluded that the proportion of environmental costs to the total production costs is still so marginal that environmental policies have hardly any effect on comparative advantage patterns and thus on foreign trade. One of the few exceptions is Van Beers and Van den Bergh (1997), who found that stricter regulations have some negative impact on bilateral trade flows between OECD countries. The aim of this paper is to show that tyhis outcome is partly due to model mis‐specification. The analysis id based on a triple indexed model and on its variants. It is found that, as soon as both the importing and exporting country specific effects are taken into consideration, the relationship between stricter regulations and foreign trade becomes statistically insignificant. This suggests that environmental costs do not have a real impact, neither negative nor positive, on foreign trade.     

The role of exchange rates in a popular model of international trade : Does the ‘Marshall–Lerner’ condition hold?

This paper examines the empirical relationship between the real effective exchange rate and the aggregate real trade balance for five major OECD countries in the post-Bretton Woods era. A variety of parametric and non-parametric techniques are used. There is little evidence that the exchange rate significantly affects the trade balance.     

Unlocking the potential to influence government skills policy: a case study of the UK construction industry

Despite a series of national policy initiatives aimed at addressing skills shortages in a number of sectors, little evidence of longer‐term change is apparent. This paper examines concerns expressed by small businesses that their local views are not sought or considered when national training policies and initiatives are either being developed or being implemented, and that the investment in skills development does not appear to adequately represent their skills needs. The research was carried out on the UK construction industry, which is characterized by a small number of large contractors who employ mainly managerial and professional staff, and a large number of small, micro‐ and self‐employed firms that provide, on a subcontract basis, the majority of the industry's demand for a skilled manual workforce. The identification and delivery of vocational education and training at an industry level rests firmly on addressing the skills needs of the small and micro‐type organizations and not those of the large construction firms, although it is the voice of the larger firms that appears to dominate the skills and training development agenda. The public policy model that articulates the requirements for training and skills development in the UK is based on sector‐specific skills councils. This model is examined in relation to the construction sector by drawing upon the experiences of the South Wales region as a case study. Findings indicate that the current construction skills framework, upon which public policy is formulated and delivered, fails to adequately reflect the structure, skills and training priorities of the industry. The tensions that exist in this system are highlighted and the implications for reform of public policy articulation with regard to sector skills councils are discussed.