The Impact of Business Education on Moral Judgment Competence: An Empirical Study

Recent highly publicized ethical breaches including those at Enron and WorldCom have focused attention on ethical behavior within the accounting profession. At the heart of the debate is whether ethical attitudes of accountants are to blame. Using a nationally representative sample of accounting practitioners and a multidisciplinary student sample at two Southern United States universities, we compare sample responses to 25 ethically charged vignettes to test whether they differ. Overall, we find no significant difference – even for a specific “accounting tricks” vignette, which resembles the Enron and WorldCom situations. We do find, however, that the practitioners were more accepting of vignettes that involved physical harm (PH) to individuals and those that were legal (but ethically questionable). We postulate that accounting practitioners may apply a legalistic framework to their assessment of the acceptability of each vignette. Focusing on an “accounting tricks” vignette, we also find no significant difference between auditors and institutional practitioners compared to all other types of accountants in the sample. We conclude that ethical attitudes of accounting practitioners do not differ significantly by specialty area. Tisha L. N. Emerson is an Assistant Professor of Economics at Baylor University in Texas. In addition to business ethics, Professor Emerson has published articles in the areas of environmental economics and economic education. She teaches courses in environmental economics, international trade, intermediate microeconomics and microeconomic principles. Stephen J. Conroy is an Associate Professor of Economics at the University of San Diego in California. In addition to business ethics, Professor Conroy has published articles in the areas of economic development and demography, economics of education and economics of aging. He teaches courses in managerial economics at both the graduate and undergraduate level, as well as undergraduate courses in urban and regional economic development, intermediate microeconomics and principles of micro- and macroeconomics. Charles W. Stanley is an Associate Professor of Accounting at Baylor University in Texas. In addition to business ethics, Dr. Stanley has published articles in the areas of financial accounting, managerial accounting, auditing, accounting systems, tax, and professional ethics for accountants. He has also authored several on-line continuing education courses for CPAs including one that meets the Texas State Board of Accountancy requirements for continuing education by Texas CPAs. He teaches courses in auditing, ethics, financial accounting and managerial accounting in the MBA program at Baylor.     

Ethics in Business: Answering the Call

What might happen if business leaders across the globe viewed their work as a sacred calling in a religious sense? Might not the world be a far better place? This paper is an effort to stimulate debate and discussion on this topic. Concepts addressed include: (a) ethics in business, (b) ethical standards in business settings, (c) the role of law, (d) levels of corporate responsibility, (e) the role of religion in business ethics, (f) the idea of business as a calling in a religious sense, (g) the elements of modern corporate culture, (h) creating an ethical corporate culture, (i) demonstrating corporate social responsibility, and (j) providing servant leadership. The introduction to the paper shows how these concepts interrelate; its conclusion offers a challenge to business leaders to answer their call to business in the truest sense.     

‘The Impact of Corporate Ethical Values and Enforcement of Ethical Codes on the Perceived Importance of Ethics in Business: A Comparison of U.S. and Spanish Managers’

This two country study examines the effect of corporate ethical values and enforcement of a code of ethics on perceptions of the role of ethics in the overall success of the firm. Additionally, the impact of organizational commitment and of individual variables such as ethical idealism and relativism was examined. The rationale for examining the perceived importance of the role of ethics in this manner is to determine the extent to which the organization itself can influence employee perceptions regarding ethics and social responsibility. Results indicate that all of the variables tested, except relativism, impacted upon one’s perceptions of the importance of ethics and social responsibility. Perceptions of the importance of ethics and social responsibility also varied depending upon country of residence with the U.S. sample having somewhat higher perceptions concerning the importance of ethics and social responsibility than their counterparts in Spain. Furthermore, when comparing the two samples, the U.S. sample had significantly higher corporate ethical values, greater enforcement of ethical codes, less organizational commitment and both lower idealism and relativism.     

An Exploratory Comparison of Ethical Perceptions of Mexican and U.S. Marketers

This is a study of the effects of a number of background variables on ethical perceptions of Mexican and U.S. marketers. This research investigates how a marketer’s personal religiousness, relativism, and the ethical values influence in perceptions of the degree of ethical problems in hypothetical marketing scenarios. It also examines differences between Mexican and U.S. marketers on these variables. The results show significant differences in perception between the countries, and we discuss the implications of these differences for cross-cultural business activities. The authors wish to thank Rebecca McLaughlin for her help with data collection in Mexico     

Budget Allocation Patterns of U.S. Households across Income Levels in the 21st Century

This study examined the budget allocation patterns of U.S. households during the period 2000–2015. Four household groups—classified based on their income levels in relation to the federal poverty level—are used for the analyses. Data from the quarterly interview component of the BLS Consumer Expenditure Survey were used in order to calculate households' annual expenditures in eight commodity groups: food, utilities, apparel and apparel services, transportation, medical care, shelter and household operations, other nondurable expenditures and services, and durable goods. An exact affine stone index (EASI) demand system was used to estimate demand relationships (i.e., price, income elasticities, and marginal effects). Overall, we find that budget allocation, consumers' responses to changes in prices and income, and the effects of sociodemographic characteristics on spending can be markedly different between income groups. The use of a representative or average household for demand analyses can mask substantial differences in economic behaviors between these four income groups.     

The Corporate Social Responsibility of Pharmaceutical Product Recalls: An Empirical Examination of U.S. and U.K. Markets

The pressure on companies to practice corporate social responsibility (CSR) has gained momentum in recent times as a means of sustaining competitive advantage in business. The pharmaceutical industry has been acutely affected by this trend. While pharmaceutical product recalls have become rampant and increased dramatically in recent years, no comprehensive study has been conducted to study the effects of announcements of recalls on the shareholder returns of pharmaceutical companies. As product recalls could significantly damage a company’s reputation, profitability and brand integrity, this paper investigates the effect on shareholder wealth and the extent to which the adoption of CSR practices by pharmaceutical companies in the United Kingdom (U.K.) and the United States (U.S.), the two largest markets for pharmaceutical products in the world, affected market reactions surrounding product recall announcements. The analysis of product recall announcements from 1998 to 2004 compiled from The Pharmaceutical Journal and U.S. Food and Drug Administration enforcement reports revealed marked differences in the way market participants in the two countries responded to news of product recalls. U.S. investors penalised firms according to the severity of product defects while U.K. investors were indifferent. While U.K. investors rewarded product recalls by firms which were not usually CSR-active, U.S. investors punished non-CSR active firms that performed recalls. These observations could pose strategic challenges to pharmaceutical firms operating in both countries. Jeremy Cheah is an Assistant Professor of Finance at Nottingham University Business School, Malaysia Campus. His research interests lie in the area of applied corporate finance and investment management. Wen Li Chan was an Advocate and Solicitor in Kuala Lumpur, Malaysia before assuming the post of University Teacher in Information Systems and Strategy at Nottingham University Business School, Malaysia Campus. She is currently investigating the roles and implications of information on firm valuation, particularly in the area of corporate cyber-litigation and corporate social responsibility. Corinne Chieng is a Corporate Executive at Star Publications (M) Berhad, Malaysia. She has previously worked as a tax consultant at Arthur Andersen Malaysia. Her research interests include the financial implications of corporate social responsibility on the valuation of firms.     

Why CIBERs matter to the competitiveness of U.S. businesses in the 21 century

Centers for International Business Education and Research (CIBERs)—located at 33 institutions of higher education across the U.S. and administered by the U.S. Department of Education under Title VI of the Higher Education Act—serve as regional and national resource centers for the business community, and as conduits for major initiatives to support and strengthen the international components of curricula in K-12 schools and institutions of higher education. This article argues that CIBERs are well-positioned to not only address current needs, but also drive innovative thinking and leading-edge activities toward longer-term challenges. Herein, exemplary activities from CIBERs serve as examples to support this claim, and Indiana University's CIBER strategic trajectory for the 2010-2014 grant cycle is explored within the context of the current global situation.     

An Examination of Dividend Policy in the U.S. Restaurant Industry

Abstract

We examine the potential role that agency costs have on dividend payout policy in the restaurant industry. Specifically, we hypothesize that dividends serve to constrain the actions of management. Interest payments also have the same effect, and in a sense, may act as an effective substitute for dividend payments. Furthermore, the larger number of firm owners, the greater the need for dividends to control agency costs. Our findings show significant differences in debt ratios and the number of shareholders between restaurant firms that pay dividends and those that do not.     

Business Ethics and Accounting Information. An Analysis of the Spanish Code of Best Practice

The main purpose of this article is to analyse one aspect of Spanish business ethics: the role of the transparency and quality of the economic and financial information given to meet the demands and requirements of shareholders. To that end we concentrate firstly on analysing the Spanish capital market and the situation of shareholders prior to the publication in February 1988 of the Code of Best Practice for Spanish Companies, drawn up by a Special Committee created at the request of the Ministry of Economy and Finance. We analyse the importance of the behaviour and actions of three groups which are fundamental to assuring quality and transparency of information: those who prepare financial statements, the Board of Directors (particularly the Audit Committee) and the external auditors. Finally, we look at the possible consequences of the Code of Best Practice on Spanish business ethics.     

21世纪初中国老龄产业发展的指导思想及政策构想

分析了中国老龄产业发展的宏观背景、历史机遇及发展所面临的困难与挑战,提出了推进老龄产业发展的指导思想、基本思路和政策构想.     

An Investigation of Control and Performance in U.S.-Chinese Joint Ventures

ABSTRACT

This study took an integrated approach to managerial control in international joint ventures (IJVs). The various control mechanisms used in U.S.-Chinese joint ventures were examined. The linkage between control and performance was empirically tested using a sample of U.S.-Chinese joint ventures established in China during the period of 1979–1989. The findings support the hypothesis that effective managerial control exercised by the U.S. partner over the joint venture operation is positively related to its performance. U.S.-dominant joint ventures significantly outperformed Chinese-dominant joint ventures, but no significant performance differences were found between U.S.-dominant joint ventures and shared management joint ventures.     

An Investigation of Moral Values and the Ethical Content of the Corporate Culture: Taiwanese Versus U.S. Sales People

An empirical study using two ethics-related and three sales force outcome variables was conducted in Taiwan and compared to an existing U.S. sample. Across the two national cultures, individual perceptions of corporate ethics appears to be a more direct determinant of organizational commitment than individual moral values. Differences between the two national cultures were found in ethics perception as it relates to moral values, job satisfaction, and turnover intention. Explanations for the differences are discussed.     

“Minding Our Business”: What the United States Government has done and can do to Ensure that U.S. Multinationals Act Responsibly in Foreign Markets

The United States Government does not mandate that US based firms follow US social and environmental law in foreign markets. However, because many developing countries do not have strong human rights, labor, and environmental laws, many multinationals have adopted voluntary corporate responsibility initiatives to self-regulate their overseas social and environmental practices. This article argues that voluntary actions, while important, are insufficient to address the magnitude of problems companies confront as they operate in developing countries where governance is often inadequate. The United States can do more to ensure that its multinationals act responsibly everywhere they operate. First, policymakers should define the social and environmental responsibilities of global companies. They must consistently make their expectations for global business clear – and underscore that this objective can often be accomplished without mandates. Second, the US should closely examine the policies that undermine global Corporate Social Responsibility (CSR) and address the many conflicting signals sent by policymakers. Third, the President should make the US government a CSR model by examining how to use its purchasing power to promote human rights. Finally, the US government should require pension funds to report on the social and environmental consequences of their investments. In these ways, Americans can mind our business – and thus make sure that US based firms do not undermine social and environmental progress when they operate in the developing world. Susan Aaronson is Senior Fellow and Director of Globalization Studies at the Kenan Institute Washington Center, an arm of the Kenan-Flagler Business School, University of North Carolina Chapel Hill. Her scholarly research focuses on international investment and social responsibility issues. Aaronson devised and directed a study, funded by the Ford, UN and Levi Strauss Foundations, that examined how U.S. public policies can promote or undermine global corporate social responsibility. She is now beginning a Levi-Strauss funded project on trade and human rights. Aaronson is a frequent speaker on public understanding of globalization issues and the author of four books on globalization including, Taking Trade to the Streets: The Lost History of Public Efforts to Shape Globalization (Michigan: 2001).     

美在华直接投资与中国对美出口商品结构关系研究

文章运用大量数据分别考察了美国在华直接投资的结构特征与中国对美国出口商品的结构特征,发现它们之间存在显著相关性.通过计量方法进一步论证了美国在华直接投资每增加一个百分点可带动劳动密集型和资本密集型产品及低、中、高技术产品对美国出口的不同出口效果,据此说明美国在华直接投资对中国向美国出口的商品结构产生了极大的影响.     

美国对华贸易逆差对美国制造业失业率影响的实证分析

本文通过对大量经济数据的统计分析以及建立相关的经济计量模型,运用协整方法就美中贸易逆差是否是美国制造业失业率上升的主要原因进行实证分析.定量研究结果不但表明美中贸易逆差并非近年来美国制造业失业率上升的主要原因,而且还指出了造成美国制造业失业率上升的主要原因在于美国近几年来快速提高的生产率,以及美国对日本制造品出口额的大幅下降.最后本文给出了简要结论和相关建议.     

Small Business Entrepreneurship in the High Technology Services Sector: An Assessment for the Edge Cities of the U.S. National Capital Region

The Washington D.C., National Capital Region is surrounded by a series of edge cities. These edge cities developed rapidly in the 1980s and are tied to extensive commercial and retail centers within the larger urban field. Economically they focus on the delivery of high technology information-oriented services and are populated by small and medium sized firms. The region has been recently titled "The Capital Netplex" because of its concentration on advanced information network technologies. An examination of the intra-regional differential associated with firm size, start up rates and industrial composition is evaluated. An assessment of the economic impact of the Netplex firms on the regional economy and selected policy issues are examined.     

美国对于政府采购所实施贸易措施的分析

世界各国的政府采购是一个庞大的市场,美国的态度一直是积极倡导世界各国对外开放政府采购市场同时,我们可以发现美国在这个领域所采取的手段和措施具有比较明显的保护主义倾向,一方面美国想方设法为自己的企业打开别目的市场,同时在国内的立法和行政方面,对自己的政府采购市场采取了种种的保护手段。     

The Sarbanes-Oxley Act of 2002: Has It Brought About Changes in the Boards of Large U. S. Corporations?

The Sarbanes-Oxley Act of 2002 is considered by many to have made the most sweeping changes affecting corporate governance since the Securities and Exchange Acts of 1933 and 1934. About 4 years after its passing, however, many governance experts question whether the time and expense of compliance engender any real reforms. This article examines whether corporations have restructured their boards in response to the enactment of Sarbanes-Oxley and finds evidence that companies are implementing changes that should strengthen the monitoring ability of their boards.     

An Empirical Model of the Sources of Innovation in the U.S. Manufacturing Sector

This paper estimates a simple model of innovation in the U.S. manufacturing sector and derives summary indicators of product and process innovation. Our empirical work reveals that the drivers of innovation extend well beyond business research and development spending. Capital investment, cutting-edge scientific output from academic institutions, and the growth of the science and engineering workforce all matter. The dynamic structure of our model suggests that policymakers must look beyond the short-term when developing and evaluating innovation initiatives because there can be lags of several years before inputs are fully realized in innovative performance. But simple simulations conducted with our equations indicate that even a modest increase in key innovation inputs reaps significant benefits. JEL Classification O31     

美元特权对美国贸易逆差的影响探析

美元特权的形成使贸易逆差成为输出美元的主要途径,并对贸易逆差起到了助长作用,集中表现在美元特权使美国维持着巨额贸易逆差而不受外汇储备短缺的制约和金融危机的威胁,却使其他追求美元储备的国家依靠贸易顺差和过度储蓄来摆脱不利处境,从而从供给和需求两个方面推动了美国贸易逆差的持续扩大。但贸易逆差的继续发展和未来的调整势必会影响美元特权地位的巩固,使世界经济特别是发展中国家的国际经济活动面临极大的风险。