The Nestlé Infant Formula Controversy and a Strange Web of Subsequent Business Scandals

The marketing of infant formula in third-world countries in the 1970s by Nestlé S.A. gave rise to a consumer boycott that came to be a widely taught case study in the field of Business Ethics. This article extends that case study by identifying three specific individuals who were associated with managing Nestlé’s response to that boycott. It reveals their subsequent direct involvement in a number of additional “classic” 1980s business scandals (some of which ended with major criminal trials and the imprisonment of eminent business figures)—and describes tangential linkages to other business scandals of the time. The article discloses a behind-the-scenes pattern of business villainy, adding both depth and breadth to previous accounts of these scandals. The article offers a conceptual framework that goes beyond personal greed as an explanatory factor for such unethical behavior in the business world, suggesting the presence of personal and organizational networks of intrigue and opportunity. The linkages between the scandals suggest an epidemiological process with the plotters acting as “virus” carriers contaminating various corporate cultures.     

Whiskey: marketplace icon

Brands are potent and efficient vehicles to diffuse and reproduce ideologies. This article revisits over a decade of research on Jack Daniel’s as an iconic brand, and provides a behind the scenes look at the process of researching cultural brands. It describes whiskey as a marketplace icon that reflects particular cultural ideologies, and updates the Jack Daniel’s story in the context of the craft liquor movement. Iconic brands, cultural icons, and marketplace icons are discussed. Further distinctions between iconicity at the category, segment and brand level are made. The article is transcribed and edited from an interview with Consumption Markets & Culture editor Jonathan Schroeder in June 2015.     

The normalization of deviance in healthcare delivery

Many serious medical adversities result from violations of recognized standards of practice. Over time, even egregious violations of standards of practice may become “normalized” in healthcare delivery systems. This article describes what leads to this normalization and explains why flagrant practice deviations can persist for years, despite the importance of the standards at issue. This article also provides recommendations to aid healthcare organizations in identifying and managing unsafe practice deviations before they become normalized and pose genuine risks to patient safety, quality care, and employee morale.     

The profitability of index futures arbitrage: Evidence from bid-ask quotes

Previous studies investigated the profitability of stock index futures based on transaction price data, and could overstate the frequency of arbitrage opportunities and size of arbitrage profits. This article obtains a data base for the Hong Kong index futures and index options market that contains both real-time transaction prices and bid-ask quotes; the article further examines the bias of identifying arbitrage opportunities based on transaction prices. The article finds the percentage of observations violating no-arbitrage bounds is significantly reduced when bid-ask quotes are employed instead of transaction prices. This suggests studies that implement arbitrage strategies based on transaction prices employ prices from the wrong side of the spread. This article finds a relationship between the frequency of violations (evaluated from transaction prices) and the size of bid-ask spreads in the futures and options markets. This phenomenon indicates that a larger mispricing, which may arise when the bid-ask spread is wider, does not necessarily imply profitable arbitrage opportunity. © 1998 John Wiley & Sons, Inc. Jrl Fut Mark 18:743–763, 1998     

The DNA of global leadership competencies

In this article, the author challenges those charged with identifying and developing global leaders to go beyond fads, trends and the "art" of leadership to find the science. An overview of the theories that have influenced our perspectives on leadership is presented first. Assumptions that have been supported by research are then presented indicating virtual DNA structures that may be the source of global leadership competencies. The article also describes two distinct themes represented in global leadership competency. © 2000 John Wiley & Sons, Inc.     

‘Toy Story’: The narrative world of entrepreneurship and the creation of interpretive communities

Anyone involved in entrepreneurial learning, teaching and research will be aware of the power of a good story about business venturing. The continuous supply of personal stories and accounts of business venturing in bookshops, airport lounges, the business press, television dramas or documentary programmes is evidence of the popular readership of entrepreneurial topics sometimes inspiring people to ‘have a go’ for themselves. But narrative accounts are often maligned in entrepreneurship studies for their anecdotal character and inability to say anything significant beyond the person telling their personal story. In this article, the benefits of a narrative style of inquiry for entrepreneurship studies are considered. This is done with reference to the Marvel Mustang account of business venturing. By relating to narrative and reader response theory, consideration is given to the function that the (Marvel Mustang) text has for the reader and how the reader (and not the text) is the key source of meaning about the practices we associate with entrepreneurship. In taking this emphasis, it is possible to understand the processes that facilitate the ‘stretching away’ of little entrepreneurial stories into transforming relations that go beyond the producer of the story and which ‘pull in’ or connect other people that are unrelated to the story. Narrative analysis helps inquirers to move beyond the ‘what’ and the ‘how’ of entrepreneurship and to be able to answer theoretically ‘why’ such processes migrate and stretch across different cultures and contexts.     

Global talent management and global talent challenges: Strategic opportunities for IHRM

The need for multinational firms to be as competitive in the global marketplace as possible has increased dramatically over the past twenty years. For international human resource management this has meant many strategic opportunities to international human resource management. An excellent example of such an opportunity is that which exists regarding the management of talent. This opportunity began to develop in the late 1990s with the advent of the challenge of “global talent management.” During the past few years this opportunity has expanded to include challenges dealing with talent shortages, talent surpluses, locating and relocating talent, and compensation levels of talent. Together, these conditions are all “global talent challenges”. In this article we describe these several global talent challenges and the strategic opportunities they present to firms and propose the implications of these for firms and for the field of international human resource management.     

The Enron story: you can fool some of the people some of the time …

This article unravels the complex set of financial dealings that are at the heart of the Enron story and follows the story through the highs and lows of Enron share prices. The key players are identified and their roles described. Apart from the financial and accounting issues, the Enron story also raises a wide range of ethical issues including corporate governance, organisational culture and ethical leadership and scrutiny. These are discussed in the article. It might be argued that Enron could never have got away with some of its practices if it had been operating in Europe. The article concludes that this view may be naïve, particularly in the light of recent media disclosures of the UK Labour government's continuing flirtation with business donations. The Enron story raises serious considerations in a whole host of financial, economic, political and ethical areas. As the Enron story continues to unfold, an article of this type can only begin to scratch the surface of some of these issues and to lay them out for further investigation.     

An Exploration of Factors Influencing Inward Technology Licensing Performance

This article describes an exploratory study of firms' performance in the use of technology licensed from foreign non-affiliate companies. It focuses on identifying the factors that distinguish between licensee firms with high and low performance. The results suggest that a firm's internal distictive competencies in manufacturing and marketing; and mangers' perceived costs and bengits of inward licensing significantly explain the firm's performance in the use of licensed technology.     

Scientific Paradigms,Entrepreneurial Opportunities and Cycles in Economic Growth

In this paper I present a model of economic growth that combines insights from endogenous growth theory, the field of entrepreneurship research and the philosophy and economics of science. The model is built on three relatively standard assumptions and a Kuhnian approach to scientific knowledge accumulation. I assume that innovation generates economic growth, that opportunity driven entrepreneurship is an important source of innovation, that entrepreneurial opportunities increasingly arise out of scientific knowledge creation and that science follows Kuhnian paradigm shifting dynamics. The model then generates opportunity driven cycles in entrepreneurial activity that in turn cause waves of innovation and cycles in economic growth. This result is highly relevant and fills a gap in all three literatures as ‚traditional’ endogenous growth models typically generate constant growth rates in the steady state, entrepreneurship research keeps the origin of entrepreneurial opportunity exogenous and the literatures on the philosophy and economics of science ignore the important downstream economic implications of the non-profit driven institutional framework that governs scientific knowledge accumulation. This paper contributes by identifying scientific institutions and entrepreneurial activity as prerequisites for economic growth and it offers a tentative explanation for the rise and fall in the levels of scientific, entrepreneurial and economic activity over the Kondratieff-cycle.      

Manufacturing Strategies for Southeast Asia after the Crisis: European, US and Japanese Firms

This article describes short-term reactions to the Asian crisis by European, US and Japanese MNCs and examines their long-term regional production strategies for Southeast Asia. In the process, it highlights similarities in the firms' responses but also distinguishes differences in the long-term regional reorganization of production activities of Western and Japanese firms. The article argues that there is currently a window of opportunity for Western MNCs to expand their Southeast Asian operations. Japanese firms face several obstacles to the implementation of a comprehensive regional production strategy as a result of their highly centralized way of managing international operations and their comparatively early production engagement in Southeast Asia whichequips most US and European MNCs with a latecomer advantage.     

Organisational Spirituality – A Literature Review

The jury remains out about the bottom-line relevance of organisational spirituality. This article reviews the arguments made thus far, using those sources most commonly cited as providing ‹evidence’ that organisational spirituality adds value to the bottom line. Having collated the evidence, this article offers some observation about the robustness of this existing ‹business case’. It then offers some preliminary conclusions on the literature review, examining the merits of pursuing a ‹business case’ in this field and identifying some specific questions for future research.     

What Is and What Is Not Social Marketing: The Challenge of Reviewing the Evidence

This paper describes our experience in undertaking a review of the effectiveness of using social marketing to tackle nutrition problems. One of the biggest challenges was identifying programmes which could be genuinely defined as 'social marketing'. Here we describe how we applied and tested a framework for identifying and assessing legitimate social marketing research. Implications for both social marketing theory and practice are discussed.     

New audit partner identification rules may offer opportunities and benefits

From the WorldCom and Enron accounting debacles that triggered the demise of Arthur Andersen to Ernst & Young’s 2013 and 2015 settlements of claims that its audits facilitated massive accounting fraud by financial services firm Lehman Brothers, large-scale financial scandals have led to increasing scrutiny of public auditors. Investors are justifiably eager to ascertain the quality of audits of public companies when making investment decisions. In the U.K., the reputation of the audit partner is recognized as a signal of audit quality, and as such, the names of the lead partners have been disclosed to the public since 2009. The U.S. standard of providing the auditing firm name without identifying the lead partner recently changed to match the U.K. and EU standard after much debate. As of May 2016, the Public Company Accounting Oversight Board has adopted—and the Securities and Exchange Commission has approved—new regulations that will require the public disclosure of the individual audit partner responsible for each public company audit, as well as the identification of any additional accounting firms that contribute to the audit. This article examines the new rules in light of disclosure requirements imposed on other professionals, as well as international auditor disclosure requirements. The accounting profession has generally opposed the new disclosures, but this article suggests opportunities and benefits for the profession as a result of the changes, including the opportunity for audit partners to develop individual reputations for quality and specialization. In addition, this article makes recommendations for business managers, owners, and investors for making the best use of the information the new disclosures will provide.     

An Essay on the Origins of Entrepreneurial Opportunity

In this article, we apply a process of logical inference to draw conclusions about the origins of entrepreneurial opportunity from existing conversations in the field of strategic management. We equate the execution of a competitive strategy – as described in the strategic management literature – to the exploitation of an entrepreneurial opportunity – as described in the entrepreneurship literature. Given this assumption, we survey five extant theories of strategy in an attempt to categorize and describe the circumstances that define how and with what consequence entrepreneurial opportunity exploitation results in future opportunity. Given this review, we characterize the `outcomes’ of strategy execution as a function of the ‹match’ between strategy and environment in an effort to extend and refine Holcombe’s [Holcombe, Randall, 2003, Review of Austrian Economics 16(1), 25–43] position that entrepreneurial opportunity is born of prior entrepreneurial action.

‘Let your hook always be cast; in the pool where you least expect it, there will be a fish.’ Ovid, A.D. 17

     

A Classroom Exercise to Simulate the Foreign Exchange Market

This article describes a classroom-tested foreign exchange market simulation game which provides a simple and effective vehicle for teaching the institutional operation and market dynamics of the foreign currency markets. By involving students in the operation of the market, the game develops intuition and a 'hands on' feel for the market which transcends textbook knowledge. The game also provides an opportunity for students to interpret the impact of current events on foreign exchange rates. The appeal of the game is that it requires nothing more than paper and pencil and the simple rule "buy low and sell high."     

Gender and Employment Flexibility within Hotel Front Offices

This article describes a study of the contemporary nature and extent of gendered employment flexibility within hotel front offices in the United Kingdom and Ireland. Previous studies in the service sector have tended to focus upon the career paths of female managers and generalised findings across the service sector. The study reported is concerned with staff at an operative level and uses the front office as an exemplar of a department with an even gender balance overall in order to examine flexible working practices. The study finds that, in the hotel front office, female employees are usually better qualified, with greater opportunity than male employees for functional flexibility; the majority of female employees are under 30 years of age. The findings are compared with previous studies and discussed in the context of female career progression, and service organisations' approaches towards the creation of a work/family balance.     

SUPPLIER EVALUATION IN A DYADIC RELATIONSHIP: AN ACTION RESEARCH APPROACH

This article describes an Action Research (AR) framework applied to the supplier evaluation environment of a telecommunication company. Within this AR framework, data envelopment analysis (DEA) was used because the methodology can successfully delineate evaluation problems and then outline a desirable path. This leads management to continuously review and improve complex systems or processes. The DEA methodology coordinates the supplier evaluation inputs and reconciles what can be very diverse performance measures and even more diverse weights applied by evaluation team members. Finally, dyadic interdependence can be demonstrated by identifying the impact of changes in buyer performance attributes on each supplier's capacity to accommodate and adjust.     

Motivations and Opportunity Recognition of Social Entrepreneurs

This study explores the motivations and opportunity recognition patterns of 30 Israeli social entrepreneurs (SEs) through life story analysis. The majority of participants were motivated by pull factors that included prosocial behaviors based on past or current life events. Others were motivated by push factors, including job dissatisfaction and a search for meaning. Based on grounded theory‐building and sensemaking perspectives, we develop a theoretical process model that links motivations, opportunity recognition, and prosocial activities of SEs. Their experiences created an awareness of unmet societal needs, which led to opportunity recognition and formation of social ventures to help fill the gaps.