On economics and business ethics

Economics has an impoverished view of virtuous human behaviour in general, and corporate social responsibility in particular. We claim that this is due to a particular, albeit currently dominant approach to economics. This approach focuses on the pursuit of wealth through efficient allocation of scarce resources by 'rational' utility-maximizing economic agents and institutions, such as markets, firms and states, in the exclusive pursuit of 'efficiency'. This results in an ethic-free and often inimical approach to virtuous behaviour. However, a different approach to economics, which focuses on sustainable global resource creation and allocation, asserts virtuous responsible behaviour to be part and parcel of economic analysis and performance.     

Implementing corporate social responsibility through social partnerships

This paper examines how corporate social responsibility (CSR) is implemented through social partnerships. Drawing on previous literature and case study research, it presents a conceptual model of the process of implementation. An exploratory case study of the social responsibility partnership programme at the Union of European Football Associations (UEFA) has been conducted. The case study draws on interview data and documentary sources of evidence gathered from UEFA and the six partner organisations that comprise its CSR portfolio. The conceptual model identifies three stages of the implementation process (selection, design, management), with partnership evaluation being an ongoing process during all three. The latter consists of two elements, namely project and process evaluation. A key finding is the lack of process evaluation due to a high degree of inter‐personal trust. The conceptual model adds to the growing body of research on the implementation of social partnerships and CSR. This paper is also the first to empirically explore the process of CSR implementation through social partnerships in the football sector.     

Consumer Trends and Attitudes to Functional Foods

Abstract

Consumers' needs have grown to such an extent that they are sought out of nutritious and pleasant organoleptic foods, as well as functional foods. This study explores consumer attitudes towards health nutrition products and particularly functional foods, using data from a survey to 325 consumers. The results designate that consumers recognize different kinds of functional foods, willing to pay a premium for their purchase. They perceive that functional foods may contribute to easily follow a healthy and balanced diet and reduce the risk of health problems but appeared anxious about the health benefits these foods communicate in their labelling.     

Does R&D,human capital and FDI matter for TFP in OECD countries?

ABSTRACT

This study investigates the interplay between research and development (R&D), human capital (HC), foreign direct investment (FDI) and total factor productivity (TFP) in OECD countries. We divide the sample into two sub-groups; the European and the non-European states so as to account for underlying country heterogeneity. The analysis follows a panel data approach over the period 1995–2015, taking into account the modelling on non-stationarity, long-run relationships and short-run dynamics with a panel VAR. Both R&D and HC have a positive effect on TFP, whilst FDI has a positive and significant effect only in the case of non-European countries. Moreover, the contribution of R&D is higher than that of HC and FDI in all cases. Thus, based on these findings, policymakers should design and implement policies to increase resources invested in R&D, with a consistent ongoing spending review, to attract foreign direct investment, especially for the majority of the European and some of the non-European countries and to improve education system on a more productive innovation and research base.     

Corporate retained earnings and personal sector saving: a test of the life-cycle hypothesis of saving

The dynamic personal saving function proposed by Swamy (1968) nests in a common framework, the life-cycle hypothesis (LCH) and the Houthakker-Taylor (1970) model of saving. Having accounted for a limitation of the generality of the Swamy result, which regards the role of corporate retention in the two models, the Swamy framework is used to test the LCH implication of perfect substitutability between personal saving and corporate retained earnings using UK data for the 1951–83 period. The empirical results cast doubt on the perfect substitution hypothesis.     

Macroprudential regulations and bank profit efficiency: international evidence

This study examines the impact of macroprudential regulations on bank profit efficiency. The latter is being estimated with a production frontier function using a cross-country dataset of more than 3000 banks from over 130 countries during 2013–2018. The results show that macroprudential regulatory policies diminish bank efficiency. This finding applies to both borrower-targeted and financial institutions-targeted policies, and it is robust to the inclusion of controls for microprudential regulations, financial consumer protection policies, and other county-level characteristics in the regressions.

     

Green consumers and environmental policy

The present paper examines how improvements in consumers' environmental awareness influence the choice between output and emission taxes, within a framework of imperfect competition and endogenous choice of abatement level. We first show that in the absence of policy intervention, there exists a level of environmental awareness beyond which welfare is decreasing as market imperfections become more prominent relative to environmental concerns. We also confirm that both output and emission taxes are welfare superior to the free-market case. What is surprising, however, is that the welfare performance of an optimally chosen emissions tax is monotonically decreasing in consumers' environmental sensitivity, while the opposite is true for an output tax up to a certain level. At low levels of consumers' environmental awareness an emissions tax is welfare superior, but eventually, there is a level of environmental awareness beyond which an output-tax welfare dominates an emissions tax. Therefore, an emissions tax is better suited to societies that have not yet developed high levels of environmental awareness, while societies characterized by high levels of environmental awareness should prefer an output tax.     

EFFECTIVE DEMAND, OUTWARD INVESTMENT AND THE (THEORY OF THE) TRANSNATIONAL CORPORATION: AN EMPRICAL INVESTIGATION

That demand-side deficiencies can provide an inducement for outward investment by transnational corporations has never acquired much currency, despite its long history and the fact that existing theories ofter have implications supportive of it. Arguably a reason for this is that the idea has never been tested empirically. In this paper we provide the first such empirical test. First we critically survey and attempt to synthesize the mainstream microeconomic or supply-side theories of the TNC. Then we examine the case for a demand-side perspective, link this to the supply-side and discuss some existing indirect evidence in support of this perspective. Finally we provide a direct econometric test of the demand-side perspective, which provides clear support for it.     

Stock markets and terrorist attacks: Comparative evidence from a large and a small capitalization market

An expanding body of literature has investigated the economic impact of terrorist attacks. A part of this literature has focused on financial markets. We examine three research questions: whether markets' reactions to terrorism have changed through time; whether market size and maturity determine reactions, and whether reactions depends upon either the type of targets or the perpetrators of the attack. To this effect, a large – the London stock exchange – and a small – the Athens stock exchange – capitalization markets are used as the vehicles for the empirical investigation. Results from an event study methodology as well as from conditional volatility models suggest that size and maturity as well as specific attributes of terrorist incidents are possible determinants of markets' reactions.