The road to European Economic and Monetary Union

The debate on the concrete shape of the second stage of European economic and monetary union ist in full swing. What are the benefits that may be expected from EMU? What risks have to be avoided?     

The road to a market economy

The ongoing conversion of the economies of former socialist countries into market economies has so far suffered from the lack of a theory of system transformation (policy) which indicates the means of achieving the desired objectives and makes it possible to evaluate the transformation policies of individual countries. The following article outlines the essential aspects of such a theory.     

The social charter as a counterpart to the single European market?

The debate over the completion of the single European market is increasingly centering on its so-called social dimension. Does it make sense to streamline social security in the member states as a safety net against the adverse consequences of the single market?     

Joint European development strategy

On July 27,1971, the Commission of the European Communities has submitted a memorandum on a Joint European development policy to the governments of the EEC’s member states. It has thereby called for a beginning of the discussion on cooperative action by the Communities also in the field of development policies.     

The European Monetary System as a factor of integration

Critics of the EMS claim that it has failed to realise the hopes aroused at the time of its inception; a convergence of economic policies, they maintain, has not been induced by fixed exchange rates. What is the true position with regard to the convergence of economic policies?     

Corporate social responsibility and gender equality: women as stakeholders and the European Union sustainability strategy

This paper examines how progress on gender equality in the field of corporate social responsibility (CSR) might contribute to broader EU gender and sustainability objectives. It focuses on corporations and citizenship, and on company stakeholder relations (SR) in particular. While the literature on SR has previously engaged with scholarship on feminist ethics, and in particular the 'ethics of care', this paper draws upon the feminist citizenship and feminist ethics literature, and upon gender mainstreaming strategy to suggest a more comprehensive approach to gender equality within SR. The aim is to extend our understanding of CSR as a potential policy instrument to advance gender equality.     

Demarketing as a differentiation strategy

Demarketing discourages consumers from buying. This paper shows that demarketing can be a profitable alternative when differentiation through product improvements is not cost effective. The impact of differentiating demarketing on profit, market share, consumers, and total welfare is investigated.This research began while Hess was visiting MIT's Sloan School of Management and was finished while visiting University of Haifa; he thanks both for their support.     

Stealth marketing as a strategy

Stealth marketing has gained increasing attention as a strategy during the past few years. We begin by providing a brief historical review to provide some perspective on how this strategy has been practiced in a myriad of ways in various parts of the world, and how it has consequently evolved in the emerging new marketplace. A more inclusive definition of stealth marketing is then proposed to conceptually understand its use in various contexts. Specifically, we propose a new typology of stealth marketing strategies based on whether businesses or competitors are aware of them, and whether they are visible to the targeted customers. We further provide suggestions of how firms can counter the stealth marketing strategies used by their competitors. Contrary to conventional wisdom, evidence is also provided about how such strategies can be used for “doing good” for society. Finally, the assessment of efficiency and effectiveness of stealth marketing strategies, and their related ethical implications, are discussed.     

The ethics of using Chapter XI as a management strategy

In the past decade, the use of the Chapter XI has soared to the detriment of many creditors, workers, and consumers. A good number of cases were not based on imminent insolvency, but on firms attempts to avoid litigation claims against them, to terminate labor or other contractual obligations, or to gain new financing.These filings for Chapter XI highlight the use of bank-ruptcy as a strategic option used by management in running a viable organization. This usage is even advised by some academics and management consultants.While such uses may not be illegal, this paper questions the seeming ease with which a firm may use bankruptcy to escape contractual obligations to customers, suppliers, and other stakeholders. It also questions the ethics of the academics and management consultants who recommend such usage. Finally, the paper calls for a change in the law in order to minimize the opportunity for the unethical abuse of the bankruptcy law.Dr. Mahmoud Salem is a lecturer, consultant, and executive training specialist. He is President of The Center for Organizational Synergy in Uniondale, New York. His major areas of interest are Global Strategic Management, Organizational System Transformation, Executive Integrity and Business Ethics.Ms. Opal-Dawn Martin is on the administrative staff of Science Applications International Corporation in McLean, Virginia. Her major areas of interest are International Business and Finance.     

Catalytic defiance as a crisis communication strategy: The risk of pursuing long-term objectives

In 2014, Dairy Khoury, a medium-sized family dairy located in Lebanon, was accused of using a health-threatening carcinogenic substance as a preservative in its products. The news created an immediate food safety concern and a product harm crisis, resulting in dramatic reputation loss and operational risks to Dairy Khoury. In this article, we analyze Dairy Khoury’s response to the product harm crisis through an examination of the communication strategies used to address internal and external stakeholders. We then introduce traditional corrective action response strategies from the crisis communication literature. In the Dairy Khoury case study, the company opted to defend its reputation and clarify the misunderstanding using catalytic defiance, a long-term crisis response strategy. Our analysis provides insight regarding the risks and benefits of pursuing long-term versus short-term strategies during crisis recovery. This article contributes to crisis communication theory and practice and sheds light on the dynamics of crisis management in family businesses.     

Change in international market strategy as a reaction to performance decline

While a great deal of research has explored how international marketing strategy influences performance, researchers have paid scant attention to understanding changes to international marketing strategy resulting from firm reaction to past performance. In this study, organizational learning theory addresses when and how international marketing strategy will change. Employing data from over 500 exporters, the results, which are consistent with theoretical predictions, indicate that (1) firms are generally not prone to inertia and do, in fact, change their international marketing strategy when facing declines in performance, and (2) that the direction of change depends on the level of competition in the specific foreign market, with firms adapting their international marketing strategy in low competitive markets and standardizing their international marketing strategy in highly competitive markets. The paper includes implications for academics and practitioners.     

Managed floating as a strategy to achieve selected monetary policy objectives

The paper considers the connection between exchange rate regimes and economic performance as measured by inflation, output growth, and their volatility. It is argued first that the choice of an intermediate exchange rate regime is complicated by potential conflicts with the requirements of central bank transparency and accountability. These are considered to be longer run questions. Next, three types of managed floating regimes are defined. A variety of counterfactual experiments are shown to illustrate that a managed float, such that the objective of monetary policy is expressed in terms of an inflation target, will produce the most desirable macroeconomic outcome. The counterfactuals are supplemented with estimates of forward-looking Taylor rules to ascertain whether such rules are informative under a managed floating scenario. In general, the answer is that central bank reaction functions become less useful when the exchange rate regime is an intermediate one.     

The long road to regional cooperation

Cooperation measures conducive to increased integration between developing countries are considered to be necessary from the point of view of development theory as well as beneficial. Such measures are also in general welcomed, and on occasion even supported, by the governments of the industrialised countries. Organizations for the promotion of cooperation and integration of neighbouring countries have been brought into being in almost all regions of the Third World.     

European integration as a financial adjustment problem

The European summit in Dublin has shown that any further European integration will be determined in great measure by agreement on the financing of future Community budgets and by the EC’s expenditure policy. This article shows how the political controversy about the Community’s budget expenditure and receipts can be raised to a more rational level by the adoption of an economic approach.