Tone at the Top: An Ethics Code for Directors?

Recent corporate scandals have focused the attention of a broad set of constituencies on reforming corporate governance. Boards of directors play a leading role in corporate governance and any significant reforms must encompass their role. To date, most reform proposals have targeted the legal, rather than the ethical obligations of directors. Legal reforms without proper attention to ethical obligations will likely prove ineffectual. The ethical role of directors is critical. Directors have overall responsibility for the ethics and compliance programs of the corporation. The tone at the top that they set by example and action is central to the overall ethical environment of their firms. This role is reinforced by their legal responsibilities to provide oversight of the financial performance of the firm. Underlying this analysis is the critical assumption that ethical behavior, especially on the part of corporate leaders, leads to the best long-term interests of the corporation. We describe key components of a framework for a code of ethics for corporate boards and individual directors. The proposed code framework is based on six universal core ethical values: (1) honesty; (2) integrity; (3) loyalty; (4) responsibility; (5) fairness; and (6) citizenship. The paper concludes by suggesting critical issues that need to be dealt with in firm-based codes of ethics for directors.     

Leaning on lean: the reception of a management fashion in Germany

The 'fashionable' concept of lean production has been discussed more intensively in Germany than elsewhere in Europe but has resulted not only in rationalisation measures such as downsizing and delayering but also in implementing 'Gruppenarbeit'. Through interpretation processes at different levels, the outcomes of action undertaken in the name of a concept can become loose-coupled to its original meanings. Fashion's 'interpretive viability' allows for this.     

Prospects for food demand and supply in Central Asia

Central Asia has experienced massive economic and social shocks during the past decade following the dissolution of the former Soviet Union. Demand for cereals, particularly for staple cereals and meats, has fallen significantly even as production and productivity have plummeted. Although agricultural reforms were launched in 1991, the performance of the agricultural sector has been weak across the region. Prospects for food security in Central Asia appear mixed. Projections indicate that a growing and urbanizing population in Central Asia with rising incomes will increase demand for cereals by 32% between 1995 and 2020 to reach 24 million tons, and for meat by 47% to reach 2.9 million tons. Improvements in crop productivity will be essential to meet the increases in demand projected for the region. Cereal production is forecast to keep pace with demand such that Central Asia will be virtually self-sufficient in cereals. However, national food self-sufficiency or food security does not necessarily translate into household or individual food security. Moreover, self-sufficiency comes with a high price-tag of opportunities foregone and inappropriate use made of resources. Given the growing enthusiasm for food self-sufficiency in Central Asia, it is imperative that research be undertaken to assess the full costs and benefits of such a policy.     

Long-run Effects on China of APEC Trade Liberalization

Plans for trade liberalization within the Asia–Pacific Economic Co-operation (APEC) Forum include the elimination of all tariffs between member states. The study in this paper uses two computable general equilibrium models to examine the effects of these plans, focusing on China. The modelling shows that liberalization increases China's capital stock and real GDP. The implication for Chinese industries depends on the extent to which liberalization exposes them to additional import competition. Industries strongly stimulated include textiles and communications equipment. Transport equipment is the most adversely affected. Chinese regional results follow from the industrial compositions of the regions, with Zhejiang the most favourably affected and Jilin the least.     

Equilibrium play in matches: Binary Markov games

We study two-person extensive form games, or “matches,” in which the only possible outcomes (if the game terminates) are that one player or the other is declared the winner. The winner of the match is determined by the winning of points, in “point games.” We call these matches binary Markov games. We show that if a simple monotonicity condition is satisfied, then (a) it is a Nash equilibrium of the match for the players, at each point, to play a Nash equilibrium of the point game; (b) it is a minimax behavior strategy in the match for a player to play minimax in each point game; and (c) when the point games all have unique Nash equilibria, the only Nash equilibrium of the binary Markov game consists of minimax play at each point. An application to tennis is provided.     

Knowledge-intensive Services and International Competitiveness: A Four Country Comparison

The nature and consequences of services innovation remains a woefully under-researched topic. The paper calls into question two statements that are frequently repeated in the political-economic discourse on services. The first concerns the suggestion that Germany is a 'services laggard' that needs to restructure its domestic economy if it is to remain internationally competitive. By contrast, the UK is frequently held up as an example of a successfully restructured 'services economy'. The paper draws an important distinction between the quantity of services in a domestic economy and the degree of connectivity between services and other economic activities. The latter, it is argued, is far more important in determining the size of spill-overs from services innovation enjoyed within a domestic economy and, hence, to international competitiveness. Particular attention is paid to the role and impact of knowledge-intensive service sectors in this regard. In addition to the UK and Germany, data is drawn from the Netherlands and Japan. Using these four comparative cases we explore the distinction between a high representation of services in the domestic economy, and the innovation spill-overs facilitated by a high degree of connectivity between services and other economic sectors within a domestic economy.