Fund Loyalty Among Socially Responsible Investors: The Importance of the Economic and Ethical Domains

The corporate social responsibility literature has emphasized the importance of both economic and ethical domains of corporate behavior. Analyzing unprecedented survey data from investors in a socially responsible (SR) mutual fund, this article considers how economic and ethical concerns shape shareholder investment behavior. In particular, this article analyzes levels of investor fund loyalty, defined as the continued investment in a mutual fund despite the belief that one is earning a lower return on investment. Building upon existing research that shows SR fund assets are more stable than conventional fund assets, this article leverages within respondent comparisons to clarify that dual investors (i.e., those who invest in both SR and conventional funds) are more loyal to their SR fund than to their conventional fund. This suggests that a corporation’s ethical behavior attracts more patient investment capital, an important consideration for any corporation that is deciding to what degree it should engage in corporate social responsibility. In addition, this article empirically demonstrates that economic motivations reduce SR fund loyalty and that ethical motivations induce SR fund loyalty. This evidence that ethical motivation is associated with fund loyalty advances research on morality in the market by yielding empirical evidence to a largely theoretical debate.     

Is FTA/EPA effective for a developing country to attract FDI? The knowledge‐capital model revisited

To prepare an answer to the question of how a developing country can attract foreign direct investment (FDI), this paper explored the factors and policies that may help bring FDI into a developing country by utilising an extended version of the knowledge‐capital model. With a special focus on the effects of a free trade agreement (FTA) or an economic partnership agreement (EPA) between a pair of market and non‐market countries, simulations with the model revealed the following: (i) although FTA/EPA generally tends to increase FDI to a developing country, the possibility of improving welfare through increased demand for skilled and unskilled labour decreases as the size of the country grows; (ii) a developing country may suffer severe welfare losses through FTA/EPA if the availability of skilled labour is extremely limited; and (iii) a developing country can enhance welfare gains from a FTA, and it is even possible to recover the welfare effects from negative to positive, by making the arrangement an EPA.     

WTO视角下中国(上海)自由贸易试验区知识产权保护问题探析

中国(上海)自由贸易试验区(简称"上海自贸区")不是世界贸易组织体制下的国际自由贸易区,而是根据《中国加入世界贸易组织议定书》所建立的国内特殊经济区。知识产权保护是世界贸易组织密切关注的重要议题,上海自贸区知识产权保护也是不可回避的焦点问题。"一线监管放开"的上海自贸区不是知识产权侵权的避风港,上海自贸区应当加强知识产权保护政策体系建设,严格知识产权海关执法;利用"先行先试"的优惠政策,在知识产权管理和执法体制方面为促进和完善国家知识产权政策体系提供示范效应,并为知识产权规则的国际协调提供实证支持。     

The Political Economy of Brexit: Why Making It Easier to Leave the Club Could Improve the EU

The UK exit from the EU represents a qualitative change in the nature of EU membership. On the one hand, it conveyed the lesson that for the Union to be sustainable, membership needs to entail constant caretaking as far as individual members’ contributions to the common good are concerned, with both rights and obligations. Countries with preferences that are too divergent for the Union to function properly should then not be discouraged to invoke Article 50 and to opt instead for membership in the EEA or for a free trade agreement. The Union has to deliver to be sustainable, but it cannot do so if there is a constant hold up of decisions that are in the common interest. On the other hand, with the eurozone having established itself as the de facto core of European (political) integration, the UK’s preference for a stand-alone (and incomplete) economic union became untenable, because the need to make the monetary union work calls for further integration and institution-building in the economic union sphere.     

经济增长方式转变与三个层面转型——转型期的中国宏观经济体系·产业升级·企业创新

中国经济正处在一个调控市场化、农村城市化、社会知识化的转型期．以追求量为目的的单纯经济增长方式就要转向有发展的增长。这就需要经济从宏观体系、产业和企业三个层面实现转型，即建立宏观自主的经济体系。微观产业跳出比较优势陷阱，微观企业实现自主创新。     

The influence of chatbot humour on consumer evaluations of services

Technological advances have enabled firms to automate customer service by employing artificial intelligence (AI) chatbots. Despite their many potential benefits, interactions with chatbots may still feel machine-like and cold. The current study proposes the use of humour by chatbots as a gateway to humanizing them and thereby enhancing the customer experience. Across three experimental studies, the results reveal that (i) the use of humour enhances service satisfaction when it is used by a chatbot but not when it is used by a human agent, (ii) this chatbot humour effect is serially mediated by enhanced perceptions of anthropomorphism and interestingness of the interactions with the chatbot, and (iii) whilst both positively and negatively valenced chatbot humour may enhance the interestingness of the interactions, socially appropriate (i.e., affiliative) humour as opposed to inappropriate (i.e., aggressive) humour leads to enhanced service satisfaction. This study extends the understanding of the humanization processes of chatbots and provides guidelines for how firms should use chatbot humour to positively influence consumers' service satisfaction.     

How does capital control spur economic growth?

This paper provides a conceptual and empirical framework for evaluating the effect of capital controls on long‐term economic growth. In a small open economy which relies on successful investment projects to provide capital goods, taking out short‐term loans has two contradictory impacts: (i) it reduces the interest costs of financing investment projects; and (ii) it also leads to larger asset losses in the scenario of short‐term debt run. In this work, we hypothesise that private financing decisions made by domestic investors are distorted towards excessive risk‐taking, leading to ineffective capital formation. Thus, capital control policies, particularly regulations on short‐term loans, can be socially beneficial as they alter the debt composition, promote capital formation and achieve a higher output level. Using a panel data set covering 77 countries from 1995 to 2009, we employ a system generalised method of moments (GMM) estimator to sequentially test three hypotheses and find strong empirical evidence that supports our theory.     

When Responsibility Can't Do It

Is being responsible good enough? Stone (1975) argued that we need corporate moral responsibility because neither law nor market is adequate to forestall harmful effects of business activities. However, it is not possible for businesses to become responsible for all forms of foreseeable, preventable harm that they produce. This is illustrated here by cases from insurance, television programming, automobiles and weapons production. Reflection on these examples leads to the formulation of a new conception of unintended harms as moral externalities of business activities. Although one might argue that these (negative) moral external effects are outweighed by the desirable end products of business activities, three reasons not to accept the results of such a “moral subtraction”(or double effect) argument are presented. Instead, the article concludes by offering four techniques for a qualitative, ethical analysis of produced artefacts and their consequences; intended not to displace but to supplement the study of moral responsibility in business.     

How and why (imagined) online reviews impact frontline retail encounters

This research examines how frontline retail employees respond to customers whom they think might write an online review about their experience. Across six experiments (one field and five online) we show that when employees identify potential online review authors, often by what the customer says or does, it catalyzes them to deliver better service. This ensues because they experience a rise in determination to do well, motivated by the prospect of being associated with a positive review, which they believe will impress the retailer. Thus, they go ‘above and beyond’. However, determination is tempered by two boundary conditions. When employees (i) do not consider that being associated with an online review is beneficial (i.e., not goal relevant) or (ii) feel poorly equipped to serve the customer (i.e., low in self-efficacy), then a better service delivery will not occur. We also show that retailers can enhance customer service through internal championing of the importance of online reviews, so long as this is framed as promotional rather than punitive.     

产业结构演变与就业结构协调发展分析

本文认为,产业结构与就业结构具有密切的相关性,产业结构与就业结构演变之间的协调关系即和谐问题对整个国民经济的长足健康发展具有非常重要的影响。研究发现,我国产业结构与就业结构演变之间存在不协调、不合理的地方,就业结构演变明显滞后于产业结构,大量劳动力滞留在农村,严重阻碍了我国经济的健康顺利发展。因此,必须促进产业结构升级和就业结构转变的良性循环,在考虑扩大就业与产业发展问题时,注意二者之间的相互依赖性,产业政策调整要充分考虑其对就业结构和就业总量的影响。加快第二、第三产业的发展,扩大整个国民经济对劳动力的需求。     

Price discrimination through multi-level loyalty programs

Loyalty programs often feature multiple rewards with different requirements; for instance, an airline offering a free domestic ticket for 10 K miles, and an international ticket for 20 K miles. This research focuses on the role of multi-level rewards as a segmentation and price discrimination mechanism: Multi-level rewards can increase firm profits when buyers differ in purchase frequency and/or time discount factor. We propose that a program with two rewards can be designed in such a way that (i) it is more profitable than a one-reward program, and (ii) buyers self-select. Light users prefer to receive the smaller reward two times over receiving the larger reward one time, even though the smaller reward is less than half of the larger reward. We show that the smaller reward helps the firm enlarge its base in the light user segment. We also compare multi-level programs with quantity discounts.     

From scarcity to abundance: reflections on using African values to combat fraud

By trying to see how one can use African values to fight against fraud, the paper attempts to bring out the structural dimension of this moral cancer by showing how it is linked to the ethical and economic/business systems where it thrives. I start by making some theoretical remarks about how values are to be placed in each socio-cultural setting. An analysis of how the free market economy as a system creates conditions where fraud becomes possible then follows. This is contrasted with an analysis of the African worldview and economic system where the starting point is that material and human resources abound, provided they are shared. The paper ends by suggesting ways in which African ethical values can be merged with the dominant economic system.     

The Misuse of Measurement in Economics

This paper is concerned with the problems that arise in economic analysis when ordinal variables are taken to be cardinal variables in models that require variables to be cardinally quantified for manipulative purposes. The main conclusion is that, in many important cases, this practice results in constructions that are without meaning, significance and power. Such a result applies, for example, to the efficiency wage model if effort, as many believe, is capable of only ordinal measurement. Similar problems arise (i) with the use of proxy variables, and (ii) even when prediction is the only goal.     

An Agreement Index with Respect to a Consensus Preorder

In this paper, we propose an index to measure the agreement level of an individual preorder with respect to a collective preorder (or reference preorder). The originality of the proposed index consists in the two following facts: (i) it quantifies the agreement level between two preorders which are not necessarily complete (i.e. they may include the incomparability relation), a preference system rarely tackled in the literature and (ii) it takes into account the positions of the alternatives in the individual preorder. The proposed index is then used to compute, within the framework of a consensus preorder research, the agreement level of all group’s members with respect to a collective preorder.     

Values that create value: socially responsible business practices in SMEs – empirical evidence from German companies

Socially responsible business and ethical behaviour of companies have been of interest to academia and practice for decades. But the focus has almost exclusively been on large corporations while small- and medium-sized enterprises (SME) have not received as much attention. Thus, this paper focuses on socially responsible business practices of SME entrepreneurs or owner–managers in Germany. Based on the assumption that decision-makers in SMEs are the central point where all business activities start, members of a German entrepreneurs association were approached in the course of a qualitative and quantitative survey. They were asked to assess in what way their social responsibility is expressed in specific management practices towards selected stakeholder groups. These practices in turn were assumed to result in perceived positive reactions of the respective stakeholders and subsequently to positively influence the firm's financial performance, i.e. cost reductions and increase in profits. In the paper, a research model is presented that elaborates the relationship between an SME executive's social responsibility and the value creation of a firm, i.e. whether (personal) values create (economic) value. It was found that socially responsible management practices towards employees, customers and to a lesser extent society have a positive impact on the firm and its performance. As such, values can create additional value.     

PORTFOLIO SELECTION WITH MONOTONE MEAN-VARIANCE PREFERENCES

We propose a portfolio selection model based on a class of monotone preferences that coincide with mean-variance preferences on their domain of monotonicity, but differ where mean-variance preferences fail to be monotone and are therefore not economically meaningful. The functional associated with this new class of preferences is the best approximation of the mean-variance functional among those which are monotonic. We solve the portfolio selection problem and we derive a monotone version of the capital asset pricing model (CAPM), which has two main features: (i) it is, unlike the standard CAPM model, arbitrage free, (ii) it has empirically testable CAPM-like relations. The monotone CAPM has thus a sounder theoretical foundation than the standard CAPM and a comparable empirical tractability.     

Online shoppers in Australia: dealing with problems

Although the Internet is a convenient platform to conduct commercial transactions, consumers are disadvantaged in the online marketplace due to insufficient information about goods and services as well as business and transaction process, lack of access to redress and several other problems. The number of complaints regarding online transactions increased in Australia from 2001 to 2005, and the number of Internet‐fraud related complaints reported to Consumer Sentinel (USA ) also increased from 2003 to 2006. This, in turn, has undermined consumer trust and impeded the growth of e‐retailing as well as added to the fear among e‐consumers of falling prey to online fraud. In spite of this, the nature and effectiveness of e‐consumer protection has not been adequately studied, notwithstanding extensive research into other aspects of e‐retailing. This article examines (i) the level of awareness of the respondents in the survey in Australia of the current policy framework for addressing consumer protection about online shopping in terms of redress; and (ii) the behaviour of the two groups of respondents in this survey who have and have not encountered problems with online purchases. The findings suggest that most respondents are not aware of the following issues, namely (i) which organizations are involved in e‐consumer protection; (ii) government regulations and guidelines; (iii) industry codes of conduct; (iv) self‐regulatory approaches adopted by business; and (v) the activities of consumer associations to protect consumers in the online marketplace. The findings also show that most respondents would seek redress if they were unhappy with their online purchases and if they knew how to proceed, and that most of them would settle disputes directly with e‐retailers. Also, online shoppers who had encountered problems were more likely to continue purchasing via the Internet than online shoppers who had not encountered any problems. This suggests that respondents find that the benefits offered by e‐retailing outweigh the risks associated with it.     

A NEOCLASSICAL FOUNDATION OF THE NON-LINEAR INPUT-OUTPUT MODEL

A non-linear input-output system is constructed on the basis of neoclassical production technologies. Four results are reported: (i) there exists a unique solution to the developed input-output system; (ii) every real square matrix can be the Jacobi matrix of the function relating gross outputs to net outputs; (iii) if the system has a solution at a final demand vector, there is a solution at every final demand vector near it; and (iv) when the final demand for a commodity increases, its price never decreases. The system is founded on a profit function of the economy, which represents a neoclassical production possibility. By this treatment, the system can deal with joint productions, as well as no-joint productions.     

Becoming a tree when I will be dead? Why not! Generation X,Y and Z,and innovative green death practices

Within the theoretical field of ethical consumption, the study focuses on consumer behavior and innovative green death practices. While scarcely investigated in the marketing and consumer behavior research domains, at least four main reasons spur to consider the funeral industry as an interesting subject of enquiry: i) the sector boasts of a significant economic relevance; ii) it is extremely impactful from an environmental and social point of view; iii) it is witnessing interesting innovative processes in the direction of social and environmental sustainability; iv) consumer movements are rising all over the world asking for more sustainable death practices. Thus, adopting an augmented version of the theory of planned behavior (TPB), which includes individuals’ environmentally responsible consumption, and egoistic and altruistic environmental concern, the study investigates behavioral intention to adopt innovative green death practices (a green funeral) of people belonging to three different generations: X, Y, and Z. A purposive sample of 627 Italian people participated in an online the survey. Collected data were analyzed adopting an ordinal logit model. The results confirm the TPB predictive power also in the field of green funeral behavioral intention. Furthermore, environmentally responsible consumption and environmental concern – even though only in its altruistic component – positively influence behavioral intention, and generation exerts a moderating effect among the examined constructs. Overall, the research attempts to enrich the literature on ethical consumption by exploring the underinvestigated phenomenon of buying behavior of unsought and end-of-life products, that of green funerals, and provide managerial recommendations to funeral service sellers.     

Just Do It: Deniability and Renegades

When a "corporation" engages in unethical activity it is frequently difficult to determine whether the responsibility for such an action properly lies with management or should rather be ascribed to the employee engaged in the activity. In this paper I argue that managers ought to be held responsible for the moral environment in which employees work and that this be achieved through the implementation of a morals audit which focuses on the process of achieving objectives rather than on results.