Better to shop than to vote?

This paper begins by reflecting on the current generalised political apathy signalled by low voter turnout and falling party membership. It would appear that people are exercising political choices not at the ballot box but by means of consumer activism. Corporations respond to consumer pressure in a way that governments do not, and are gradually assuming the role of global political actors. But this is a dangerous state of affairs for several reasons. In the first place, social welfare can never be the core activity of corporations. Corporate social motives are commercial, and there is a danger that their social policy decisions will be driven by the logic of the market place rather than social need. Recession, for instance, will curtail their social responsiveness, as will decisions to relocate. It is also the case that partnerships between governments and corporates run the risk of removing checks on the growth and abuse of corporate power. And finally, what price does society have to pay for the growth of corporate benevolence?     

On voluntarism and the role of governments in CSR: towards a contingency approach

In the corporate social responsibility (CSR) literature, the principle of voluntarism is predominant and implies that responsible business activities are discretionary and reach beyond the rule of law. This principle fails to explain that governments have a great interest in CSR and exercise influence on firms’ CSR activities. Therefore, we argue in favour of a contingency approach on voluntarism in CSR. To this end, we analyse the academic literature to demonstrate how governments are part of the CSR debate. We selected 703 papers where the impact of governments is mentioned from five journals in our field (BEER, BEQ, BSE, BAS, JBE) in the period 1982–2011. We studied the titles and abstracts of these papers and provide an overview of: (i) the geographical orientation of the reviewed studies; (ii) the variety of government levels involved; and (iii) the various subjects where governments appear to be involved. In addition, an in‐depth reading of a subsample of 39 articles offers more details on the role of governments in the CSR literature. Hence, we offer a structured overview on the discussion of CSR and governments while stimulating a contingent understanding of the voluntarism concept in CSR.     

Political Risk Assessment and the Arab Spring: What Can We Learn?

Whether dealing with debt issues in the Eurozone, investment prospects in emerging markets, or potential disruptions in patterns of global trade, the identification, assessment, and measurement of political risk (PR) are recurring issues for businesses and governments today. In the past few years, abrupt social and political change has become the rule in international relations. A prominent instance of this is the “Arab Spring,” the massive and unexpected wave of social and political turmoil that, starting in the winter of 2010‐2011, swept across the Middle East and North Africa (MENA) region. The Arab Spring has significantly affected the business climate of the countries involved. In doing so, it has also exposed the shortcomings of the extant approaches to PR assessment. This article discusses the performance of five different approaches to PR assessment (OECD, ONDD, EIU, PRS, SACE) vis‐à‐vis the Arab Spring, providing some specific suggestions on how to improve PR assessment and analysis. © 2015 Wiley Periodicals, Inc.     

Integrating Ethical Dimensions into a Model of Budgetary Slack Creation

The "Ibercorp affair" was front-page news in Spain at various times between 1992 and 1995. In itself, there was nothing particularly new about it: a newly formed financial group engaged in legally and ethically reprehensible behaviour that eventually came to light in the media, ruining the company (and the careers of those involved). What aroused public interest at the time was the fact that it involved individuals connected with Spanish public and political life, the media and certain business circles. Above all, it demonstrated the personal, economic, social and political consequences of a business culture based on the pursuit of easy profits at any price (what came to be known as the cultura del pelotazo or "culture of the fast buck"). Again, this is all too familiar in business ethics. But it served to goad Spanish society into a rejection of such behaviour. This article describes the facts and their ethical implications.     

The changing role of governments in corporate social responsibility: drivers and responses

The aim of this article is to contribute to understanding the changing role of government in promoting corporate social responsibility (CSR). Over the last decade, governments have joined other stakeholders in assuming a relevant role as drivers of CSR, working together with intergovernmental organizations and recognizing that public policies are key in encouraging a greater sense of CSR. This paper focuses on the analysis of the new strategies adopted by governments in order to promote, and encourage businesses to adopt, CSR values and strategies. The research is based on the analysis of an explanatory framework, related to the development of a relational analytical framework, which tries to analyze the vision, values, strategies and roles adopted by governments, and the integration of new partnerships that governments establish in the CSR area with the private sector and social organizations. The research compares CSR initiatives and public policies in three European countries: Italy, Norway and the United Kingdom, and focuses on governmental drivers and responses. The preliminary results demonstrate that governments are incorporating a common statement and discourse on CSR, working in partnership with the private and social sectors. For governments, CSR implies the need to manage a complex set of relationships in order to develop a win–win situation between business and social organizations. However, the research also focuses on the differences between the three governments when applying CSR public policies. These divergences are based on the previous cultural and political framework, such as the welfare state typology, the organizational structures and the business and social and cultural background in each country.     

Government-decentralized power: Measurement and effects

Using tools from computational linguistics, we construct a new measure of government-decentralized power faced by Chinese firms: the diversity between central and local government work reports. Using our measure, we document that government-decentralized power has an inverse U-shaped impact on investment efficiency (a U-shaped impact on investment inefficiency). Currently, government-decentralized power is below its optimal level. The underlying mechanisms are yardstick competition among local governments and the election effect of political officials, which dominate the preference-matching effect in support of decentralization. Furthermore, local governments present broadly positive sentiment in their reports. This strengthens the negative impact of inadequate government-decentralized power.     

The Ukraine/Russia conflict: Geopolitical and international business strategies

The Ukraine and Russian conflict is one of the most pressing current global business issues. It has become a political and social issue that is influencing business practices around the world. While the topic is popular in the mainstream business press, there has been relatively little academic work on the topic. To address this gap, this article discusses the impact of the conflict on international business in terms of the perception by society about Ukrainian or Russian business activities. This means highlighting how a conflict can involve direct military intervention but also social interaction. This article reveals that there are many effects on global business stemming from the Ukraine–Russian conflict many of which are currently known, but others will be known in the future. Managerial implications are stated in the article that highlights the cultural and social impact of the crisis as well as future research suggestions for international business researchers that stress the importance of the conflict.     

The Contingent Value of Entrepreneurs’ Political Capital: Evidence from China

ABSTRACT

Who benefit from a transitioning economy, entrepreneurs who are politically connected or disconnected? Market transition theory and power conversion theory offer two divergent answers. Our study seeks to contribute to this debate by examining the contingent value of entrepreneurs’ political capital. We draw from social network theories and investigate whether and how entrepreneurs’ social networks influence the relationship between their political capital and social mobility. Using the data on Chinese entrepreneurs, we find that the impact of political capital on entrepreneurs’ social mobility is contingent on their network centrality. Practical implications and suggestions for future research are also discussed.     

Tensions between politico‐institutional factors and accounting regulation in a developing economy: insights from institutional theory

The study contributes to building an understanding of the impact of political forces on the information environment of listed firms in a developing economy. Specifically, it investigates the tensions between politico‐institutional factors and accounting regulation on the prolonged and incomplete implementation of the International Financial Reporting Standards (IFRS) in Bangladesh from 1998 to 2010. Two phases of interviews were conducted in 2010–2011 and IFRS‐related enforcement documents from 1998 to 2010 were evaluated. The study contributes that IFRSs are being diffused to developing countries like Bangladesh, but they invariably interact with local institutions (political institutions in this case), with variable outcomes (i.e. negative outcomes of IFRS implementation). Coercive, normative and mimetic isomorphisms are low in Bangladesh. Notably, political forces have been undermining mimetic isomorphism because of the high level of government intervention and the high level of political lobbying. Political institutional pressures stand in the way of mimetic isomorphism and constitute negative forces that add further tension to accounting regulation (e.g. the implementation of IFRS) in Bangladesh. Regarding the low level of normative isomorphism, there is evidence of a ‘blame culture’, with state institutions and professional accountancy institutions in the country blaming each other for the poor progress in IFRS implementation. Although the study focuses on Bangladesh, its results have implications for international policy makers (the International Accounting Standards Board, the International Monetary Fund and the World Bank), as well as the governments and regulators of other developing economies facing similar challenges in implementing IFRS.     

Political conditions and currency crises in emerging markets

This article demonstrates the impact of structural political conditions on the likelihood of currency crises in emerging markets. Controlling for a standard and parsimonious set of macroeconomic variables, I find that: right-wing government is less conducive to currency crises; ‘strong’ governments (those with larger legislative majorities and those which face more fragmented legislative opposition) are also less vulnerable. Democracy also reduced the likelihood of currency crises in emerging markets; yet, in contrast to previous studies, this article does not find a significant impact of elections on the likelihood of currency crises.     

Social franchising: A systematic review

Abstract

Social franchising is starting to garner more interest among researchers and practitioners as a replication approach used to help address a growing array of societal issues in both developed countries and emerging economies. While there has been a proliferation of experimentation with social franchising that is occurring on the global stage, the knowledge base remains fragmented. A comprehensive review of the empirical and practitioner literature has not been done. This article fills the void by reviewing the past decade of literature and will be of interest to governments, non-governmental organizations (NGOs), philanthropists, social impact investors, corporations devoted to social goals, and other key players who support the scaling up or replication of ventures that strive to address societal ills by creating pathways to health and prosperity.     

Guanxi,political connections and resource acquisition in Chinese publicly listed private sector firms

In this study, we examined the role of guanxi as entrepreneurs’ resource-obtaining mechanism in private sector firms, using a data-set of 184 publicly listed firms in China. We found that guanxi indeed played a positive role that helped private sector firms gain easier access to resources. We also found that guanxi exerted even a greater positive effect on private sector firms’ resource obtaining compared to entrepreneurs’ political participation, due to being the lifeblood of business conduct and social interaction in Chinese culture.     

An examination of the ethical beliefs of managers using selected scenarios in a cross-cultural environment

Academic literature addressing the topic of business ethics has paid little attention to cross-cultural studies of business ethics. Uncertainty exists concerning the effect of culture on ethical beliefs. The purpose of this research is to compare the ethical beliefs of managers operating in South Africa and Australia. Responses of 52 managers to a series of ethical scenarios were sought. Results indicate that despite differences in socio-cultural and political factors there are no statistically significant differences between the two groups regarding their own ethical beliefs. Results thus support the view that culture has little or no impact on ethical beliefs.Russell Abratt (DBA Pretoria) is Professor of Marketing at the University of Witwatersrand, Johannesburg, South Africa. His research interests include business ethics and promotional strategy. His work has been published in various sources includingJournal of Business Ethics, European Journal of Marketing, International Journal of Advertising andIndustrial Marketing Management.Deon Nel (DCom Pretoria) is Professor of Marketing at the University of Pretoria, South Africa. His research interests include business ethics and group decision making in organisations. His work has been published in various sources includingJournal of Business Ethics, European Journal of Marketing, Management Research News.Nicola Higgs is a graduate student at the University of the Witwatersrand, Johannesburg, South Africa.     

文化断裂视角下农民工贫困原因透析

目前人们主要从经济、能力和权利三方面定义和衡量贫困。在人们对贫困成因的阐释中,个人、社会和自然的因素各有侧重,但文化因素同样是农民工贫困的深层原因。逐步培养和加强农民工的团结组织能力,大力发展相关教育事业,改变文化观念,提高农民工对政策或制度制定的参与和影响能力,以此来培育农民工的可行能力和“造血”功能,有利于其获得资源和机会,从而走出贫困。     

Corporate Social Responsibility and Corporate Social Investment: The South African Case

Corporate social responsibility (CSR) and corporate social investment (CSI) have become terms that are used to examine some activities of businesses. With globalization pressures and increasing burdens on governments to provide comprehensive social services, the microscope has been trained on how firms play their part in sharing this burden. Views vary from those who believe that CSR and CSI are a distraction from profit maximization to those who argue that participation in such activities contributes to positive social transformation, while benefiting participating firms themselves. In this article, the author seeks to organize these debates within particular theoretical frameworks, positing CSR and CSI, together with the Socially Responsible Investment Index that has been used to evaluate corporate behavior in South Africa, as a novel way of addressing pressing development problems.     

Impacts of tangible and intangible elements of Aid for Trade on the globalisation of developing countries

The Aid for Trade initiative was launched by the WTO in 2005 to help developing countries build their supply-side capacity and trade-related infrastructure to improve their capacity in the global market. This study investigates the impacts of both the tangible and intangible elements of this initiative on the economic, social and political globalisation of recipient countries. Intangible elements of Aid for Trade (aid for trade policy and regulation) may be considered as the software of Aid for Trade, while tangible elements (aid for economic infrastructure and building productive capacity) are the hardware. Countries that receive Aid for Trade can use both types of elements to succeed in globalisation. This research hypothesises that the tangible elements of Aid for Trade have a singular effect on the overall level of globalisation since they are expected to only increase the level of economic globalisation. Moreover, we expect that the intangible elements of Aid for Trade will have multiple effects on the overall level of globalisation as they have an impact on not only economic aspects but also social and political aspects of it. Using the dataset of Aid for Trade from 2002 to 2015, we find that the intangible elements of Aid for Trade have increased the recipients' level of overall globalisation.     

Authority and Democracy in Corporate Governance?

Although McMahon offers a potentially valuable extension of Joseph Raz's conceptualization of authority by distinguishing three different kinds of authority, this paper argues, first, that his account of the conditions and considerations that would justify managerial authority is problematic because it relies on a conception of reasons for action that excludes precisely the kind of rationality that plays an important role in the␣explanation and justification of authority in economic␣organization. This paper explains, second, why McMahon's thesis of the justificatory similarity of authority in governments and nongovernmental organizations can also be seen to hold for corporate governance of publicly owned firms more specifically. Finally, this paper raises some critical objections against McMahon's presumption of democratic governance in governments and NGO's alike. The thrust of these objections is that democratic corporate governance does not make sense in the publicly owned firms because: (1) it will not produce results that are fair or welfare maximizing, and (2) it will undermine the legitimacy of managerial authority in such firms. J. (Hans) van Oosterhout holds an M.A. in political science from Leiden University and a PhD in organization theory from RSM Erasmus University, where he is currently an associate professor. His research involves the positive and normative theory of organizations and institutions, with a current emphasis on corporate governance and comparative economic and political organization. Earlier publications have appeared in: Academy of Management Review, Organization Studies, Journal of Business Ethics and Futures.     

Decision Debacles and How to Avoid Them

Decision debacles – decisions that go so wrong they are reported in the media – involve three mistakes: faulty decision practices, premature commitments, and misallocation of resources. These mistakes, together with the more detailed traps into which they draw decision-makers, are found in many decisions that go wrong without attracting media coverage. To avoid decision debacles, governments and organizations should apply the lessons derived from research into decision-making. These lessons include the need to spend time early in the process to uncover hidden or ethical concerns, care in managing the social and political forces that might block the decision, focussing on clear objectives, exploring a wide range of options and estimating risk. It is also important to root out perverse incentive structures to gain information needed for learning.     

Political consumerism between individual choice and collective action: social movements,role mobilization and signalling

The notion of political consumerism has two implications. First, consumers wield some kind of power that they can use to effect social change through the marketplace. Second, political consumerism refers to and somehow combines the rationalities of two subsystems, politics and the economy. Yet regarding their everyday, individualized shopping decisions, consumers do not appear to command a great deal of power. What kind of influence, then, can individual economic decisions have on producers? Is that influence robust enough to attribute power to consumers? And if consumers do indeed have power, how can we conceive the implied translation of political concerns into the monetary logic of the economy? An answer to those questions needs to take into account the societal context of political consumerism. This paper analyses how political consumerism relates to the functional differentiation of modern society and how social movements are fundamental to understanding it. Through what I shall call role mobilization, social movements turn the role sets of their supporters into transmission belts for political objectives, and by authoritatively communicating those objectives, they provide signals to producers, who otherwise would not know a great deal about their consumers’ preferences.     

Nongovernmental organizations as institutional actors in international business: theory and implications

Nongovernmental organizations (NGOs) have emerged as major actors in international business. NGOs have assumed a particularly prominent role in influencing the interaction between business and governments over the terms of international business rules, norms, and practices, especially the conditions applied to international investment projects. In this paper, we argue that the rise of NGOs as important institutional actors requires new perspectives on state–firm interactions in an era of increasing globalization. Host governments and multinational corporations (MNCs) must now critically assess the potential impact of nongovernmental actors on investment plans and projects. Drawing from institutional, agency, and stakeholder theory, we develop a model to help organizations evaluate and assess the relative importance of NGOs to the stability and longevity of international investment projects and the emergent impact of NGOs on investment projects at different stages of the investment cycle. We use the specific circumstance of infrastructure privatization and state-owned enterprise restructuring to demonstrate the potential value of this perspective to MNCs and host governments. We suggest this approach is also useful in evaluating classes of other stakeholders, and in examining other situations in which governments, companies, and NGOs negotiate over the terms of international business exchanges.