Codes of Conduct in Subcontracting Networks: A Labour Law Perspective

In the past ten years, many European companies organised into subcontracting networks have decided to adopt codes of conduct to regulate labour relations and to ensure the respect of fundamental social rights. This paper first determines the context and the issues to be addressed by codes of conduct within networks of companies, and second analyses the terms under which they can be implemented. The paper argues that codes of conduct can complement the standards developed by States, the European Union or the social partners, but that steps should be taken in order to avoid that these texts replace the existing labour law.     

Assessing the Effects of Certification Networks on Sustainable Production and Consumption: The Cases of FLO and FSC

Private governance approaches to foster sustainability have gained importance in recent years. The article focuses on such approaches that involve actors from different parts of the value chain, as well as consumers, labour unions, and NGOs. As these approaches rely on the certification mechanism to document the adherence to environmental and social standards, we refer to them as “certification networks.” The main objective of these networks is to realize more sustainable production and consumption patterns from within existing market structures. Concerning their impact on sustainability, however, existing research revealed mixed results. This raises the question, how to systematically assess the success of certification networks. Referring to debates on private governance, this paper proposes to consider structural–material (e.g., altered market and incentive structures) and regulative–normative effects (e.g., altered institutions). Taking this broader perspective, two cases are analysed: The Fairtrade Labelling Organization and the Forest Stewardship Council.     

Labour and Environmental Standards: The ‘Lemons Problem’ in International Trade Policy

Environmental and labour standards have become an important international trade issue. This article examines and ranks alternative trade policy responses available to an importing country with concerns over such standards. While a full import embargo may sometimes be preferable to allowing unrestricted access to unlabeled noconforming imports, a partial embargo that allows imports which demonstrably conform to the standard is always a better policy; and labeling solutions, which separate conforming and non‐conforming imports, are typically better still. Consequently, full import embargoes based on non‐conformity with labour or environmental standards are poor policy choices and should generally remain prohibited by WTO rules.     

Disruptions in Supply Networks: A Probabilistic Risk Assessment Approach

Supply disruptions are attracting growing attention. Even in geographically, politically and economically stable locations, companies are exposed to disruptions, because they depend on their suppliers and suppliers’ suppliers. The analysis of these disruptions helps mitigate risks: for example, instead of relying on local measures such as safety stock or insurance, a company can introduce new supply contracts or backup risky suppliers. In this article, we analyze risks caused by supplier disruptions by introducing concepts from probabilistic risk assessment (PRA), which is a widely employed methodology for the risk analysis of complex engineering systems. We apply PRA to examine simple networks such as triads analytically, and use simulation to analyze disruption risks in random networks of realistic size. We also illustrate how PRA can support strategic decisions such as whether or not to use single or multiple suppliers; which suppliers are more risky than others; and what impacts the complexity of the supply base has on the reliability of the supplier network.     

论风险导向审计中的“风险”定位——兼论风险管理相关内部审计准则的修订

基于内部控制职能论,风险导向审计中的风险应该被定位为企业全面风险。风险导向审计既以全面风险管理为基础,又具有相对独立性。由于内部控制等同于风险管理,因此现行内部审计准则中的《内部控制审计》准则与《风险管理审计》准则应该合二为一。从层次上看,《内部控制审计》准则居于主导地位,而《经济性审计》、《效率性审计》、《效果性审计》和《遵循性审计》等准则居于从属地位。3E审计内生于内部控制审计之中。     

The Role of Integrity as a Mediator in Strategic Leadership: A Recipe for Reputational Capital

In the context of a crisis of confidence in executive leadership in corporate America, this paper examines the role of integrity as a mediator within strategic leadership and its impact on credibility in reputational capital. A tension can occur within strategic leadership between the elements of strategic planning and leadership vision. This tension can destroy the credibility of reputational capital unless strategic leadership is managed effectively. Integrity can be used as the glue providing for credible leadership vision amid a strategic perspective oriented to competitive pressures, thereby enabling strategic leadership to contribute to a sustainable competitive advantage. A strategic leadership audit is presented as a tool by which strategic leadership and reputational capital can be managed.     

Not Roadmaps but Toolboxes: Analysing Pioneering National Programmes for Sustainable Consumption and Production

The profusion of knowledge about the complexity of promoting sustainable consumption has led to calls to address the issue in a cross-cutting manner. This article discusses pioneering national sustainable consumption and production (SCP) programmes as tools for informed decision making. The analysis is based on a theory of three organizing principles for SCP policy: (1) deliberation, (2) efficiency and (3) sufficiency. These organizing principles protect and enact particular values and can be promoted in either a weak or strong manner. A comparison of three SCP programmes from Finland, Sweden, and the UK shows that different programmes emphasize somewhat different principles: programmes in the UK and Finland emphasize the efficiency principle, whereas the Swedish programme places considerable emphasis on promoting sufficiency, as well. Meanwhile, deliberation is well presented in all the programmes, but the countries apply it somewhat differently. On the whole, government commitment to the programmes is limited, and clear targets, timetables, and resources are mentioned only occasionally. Thus, rather than being credible roadmaps towards SCP, the pioneering programmes take the form of mixed toolboxes. The programmes contain many innovative and potentially effective proposals, but in responding to the challenges acknowledged in the programme documents, individual actors must bear heavy responsibilities. From this perspective, the pioneering SCP programmes also provide false reassurance and a means to outsource the promotion of SCP to non-government actors.     

The Changing Nature of Japanese Production Systems in the 1990s and Issues for Labour Studies

The authors discuss the changing character of production strategies and organizational arrangements at three leading Japanese automotive assemblers against a background of concern with the impact of work regimes upon employees. Innovations in production line organization are compared within and between the companies, and the argument advanced suggests that the attempt to ‘humanize’ work routines and procedures, by the leading company especially, has met with mixed results. Sornetimcs more ‘efficient’ technologies and forms of organization have been inhibited in the pursuit of ‘human-centred’ forms of work organization. Nevertheless, the article points up the considerable variations which exist both between and within Japanese companies and trade unions with respect to the understanding of the role played by labour.     

Issue Networks, Value Structures and the Formulation of Accounting Standards: An Exercise in Theory Building

This study is an exercise in theory building. It begins from the premise that current theory with respect to the setting of accounting standards is inadequate. We advance current theory by incorporating new ideas from sociology (issues network theory, see Heclo (1978, In: King A (ed) The New American Political System. American Enterprise Institute, Washington, DC, pp 87–124) and social psychology (values structure ideas drawn from Shakun (1988, Evolutionary system design: policy making under complexity and group decision support systems. Holden-Day, Inc., Oakland, CA). In doing so, we extend previous theorizing on the accounting standard setting process (e.g., triocracy theory). Issue network theory holds that groups with intellectual, ideological and economic interests have interests in, and may exert efforts to influence, policy adoption. It is a natural outgrowth of, and important extension to, triocracy theory. We draw on Shakun’s (1988, Evolutionary system design: policy making under complexity and group decision support systems. Holden-Day, Inc., Oakland, CA) Evolutionary Systems Design theory to elucidate a theory of motivation. We argue that complex motivational structures influence the behaviors of the parties to the accounting standard setting process. As part of this effort, we categorize the guiding terminal values, instrumental values and operational goals that guide participant behaviors. We draw on previous literature to document parts of the model.     

Labor Standards in the Global Economy: Issues for Investors

In the mid-1990s, global labour standards emerged as a new and important are of concern for socially responsible investors, especially with respect to investments in the "problematic" footwear, apparel, and toy industries. In this paper, I elucidate the primary areas of concern for investors and discuss a framework for evaluating firms' labor standards performance. In addition, I argue that today's sweatshop debates follow closely those of centuries ago, with the standard economic defense of low wage manufacturing on the one hand, and the activists' protests against poor conditions and wages on the other. An examination of this historical context reveals a promising middle ground in this ongoing debate.     

Towards a theory of Sustainable Communication in Risk Society: Relating issues of sustainability to marketing communications

There has recently been much discussion about a preferred ecological outcome for late capitalism to work toward, that is sustainable consumption. Related to this is a fundamental question, can business in Western industrial society (some now use the label risk society) be transformed into ecologically sustainable organizations? If we optimistically assume the answer to this question to be 'yes' how would these organizations communicate with the world in which they operate? This paper reports the author's application of a social constructionist approach to 'green' communicative acts and those responsible for them in an attempt to start answering such questions. In a qualitative empirical study of an environmental and social justice communications consultancy the social world of the people involved is explored as they interact with and communicative the issues with which they are concerned in risk society. A main research theme attempted to relate three issues of ecocentrism to what is known as marketing communications. In this respect the author has concentrated on a leading edge agency and four of its clients in the fields of animal, personal health and planet preservation. In the analysis the author lays the foundations for a new theory, Sustainable Communication, which can account for communicative acts, in any eco-discourse (Harris, 1996), that have issues of sustainability as their focal point. This process is then problematized for the reader in relation to capitalist organizations and the final discussion proposes that others, interested in this theoretical area, play with this notion of Sustainable Communication to help in its future development. In this respect the author proposes a fruitful allegiance between Critical Macromarketing and Sustainable Communication. Throughout the paper, especially in the section on 'building blocks', the author chooses to illustrate key points for the reader by drawing on data from the study.     

Alternatives for Targeting Women in Anti‐Smoking Campaigns: Insights from a Smoking Perceived Value Perspective

Although public anti‐smoking campaigns have undoubtedly paid off, their scope has been rather limited. This paper aims to contribute to this debate and provide a theoretical foundation based on the perceptions of female smokers that could provide guidance for the planning and design of more effective anti‐smoking campaigns. To attain this end, this study resorts to the concept of Perceived Value (PV). A scale of measurement was drawn up from the conceptualization of the Smoking PV (SPV) founded on a review of the specialized literature on smoking habits and an empirical study drawn from a sampling of female smokers. Results offer empirical evidence on the utility of the SPV both to improve our understanding of the perceived smoker experience and to predict intentions to quit smoking.     

Relaxed Credit Standards in the U.S. Housing Boom: Changes in Risk Characteristics of Mortgage Recipients*

This paper examines components of credit risk and how their ability to predict the interface between households and mortgage market changed under the relaxed lending standards prevailing during the U.S. housing boom of the 2000s. Using data from the Federal Reserve Board's 1998 and 2007 Survey of Consumer Finances, the paper evaluates changes between 1998 and 2007 in the significance of credit risk characteristics in explaining three variables regarding the purchase of a primary residence by households in low‐, moderate‐, and high‐income groups: the loan‐to‐value ratio of the purchase mortgage, the likelihood of purchase, and the price paid. The study also analyzes the extent to which the period saw increases in the values of those three variables. The findings strongly suggest a decline in the ability of credit risk characteristics in predicting the interface between households and mortgage market over the period.     

Negotiation for Cooperation in Logistics Networks: An Experimental Study

This paper investigates the negotiation problem in a supply chain in which a supplier can realize cost savings if she reaches an agreement with a retailer to use the retailers accurate market data for production planning. We study the participants behavior in an asymmetric and a symmetric information scenario and model the experimental study as a reverse ultimatum game. The main finding is that the revelation of information in the game leads to higher payoffs for both parties and to a higher welfare.