Corporate Social Responsibility (CSR): Models and Theories in Stakeholder Dialogue

The pharmaceutical sector, an industry already facing stiff challenges in the form of intensified competition and strategic consolidation, has increasingly become subject to a range of pressures. Crucially, in common with other large-scale businesses, pharmaceutical firms find themselves ‹invited’ to respond positively to the corporate ‹social’ responsibility (CSR) expectations of their stakeholders. Consequently, individual managers will almost certainly be obliged to engage in some form of stakeholder dialogue and this, in turn, means that they will have to make difficult choices about which practices to adopt. This real-world management predicament runs parallel to an academic interest in CSR stakeholder dialogue theory and models. Accordingly, the approach of this paper is to focus primarily on the academic debate surrounding stakeholder dialogue, by reviewing past attempts to research and theorise the subject, by identifying gaps and weaknesses in the literature, and by proposing a new analytical model. The central aim of the proposed new model is to offer a unified, structured, systematic, and comprehensive approach to CSR decision making whilst simultaneously providing a practical framework for CSR executives who face the challenge of responding in an effective manner to stakeholders. The model outlined here is currently being employed to conduct international comparative empirical research into stakeholder dialogue practices amongst UK and German pharmaceutical firms. In the longer term the intention is to use the model to undertake international comparative research encompassing a broader range of countries and industries.     

An International Perspective of Online Disclosure Presentation: A Comparison of Banner Ad Disclosures from United States, United Kingdom, and Singapore Web Sites

Effective online disclosure presentation is an important feature in banner advertising worldwide. The U.S. Federal Trade Commission (FTC) is viewed as the leader in providing guidance for making disclosures clear and conspicuous. This study examines the extent to which banner ads in the top 100 web sites in three countries with a shared language and intertwining legal and self-regulatory systems—the United States, United Kingdom, and Singapore—adhere to FTC guidance. The lack of systematic differences across countries suggests the need for disclosure research from a global perspective that takes cultural and linguistic differences into account.     

The influence of firm,industry and network on the corporate social performance of Japanese firms

We develop and test the thesis that corporate social performance (CSP) constitutes a socially constructed and shared strategic asset, which is not only influenced by factors specific to a firm, but also by the social performance of firms in its industry and inter-corporate network. Using variance decomposition, we analyze data from 130 large Japanese firms and find that both firm-specific and industry-level factors account for significant variance in CSP, but network-level factors do not.

New public management and the rule of economic incentives: Australian welfare-to-work from job market signalling perspective

Australia’s welfare-to-work system has undergone radical changes since the 1990s, with service delivery fully privatized in 2003 and incentives of various kinds introduced to underpin jobseeker and employment consultant activation. Informed by New Public Management (NPM), the reforms are intended to improve effectiveness and efficiency by addressing the problems of information asymmetry at different levels of the system. However, operationalizing NPM principles generated technical and regulatory challenges, and in this case, the incentive framework undermines some of the reform’s basic assumptions. This can trigger jobseekers’ and consultants’ rational decision-making behaviours which run contrary to programme expectations, hence generating suboptimal performance.     

Global Airline Networks: Comparative Nodal Access Measures

One strategy for making sense of airline network complexity is to assess the empirical network against an appropriate benchmark. The purpose of this paper is to develop and use well known measurements of betweenness and to deploy them in the context of airline transportation nets. The paper demonstrates some structural differences that emerge in larger networks. Selected extreme values are computed, as benchmarks, from a hypothetical ideal hub network. Actual values are shown to largely comport with these expectations, but there are numerous and interesting exceptions.     

Investment of venture capital in Russia as an important element of transitioning to an innovative economy under sanctions

Features of the development of venture capital markets and factors that affect the venture capital industry in Russia have been analyzed. The main causes of the venture capital market crisis have been examined. Its expected development under the conditions of sanctions and economic decline has been estimated. The role of regional venture funds and imbalances in the innovative development of Russian regions has been considered.     

Delayed Expected Loss Recognition and the Risk Profile of Banks

This paper investigates the extent to which delayed expected loan loss recognition (DELR) is associated with greater vulnerability of banks to three distinct dimensions of risk: (1) stock market liquidity risk, (2) downside tail risk of individual banks, and (3) codependence of downside tail risk among banks. We hypothesize that DELR increases vulnerability to downside risk by creating expected loss overhangs that threaten future capital adequacy and by degrading bank transparency, which increases financing frictions and opportunities for risk‐shifting. We find that DELR is associated with higher correlations between bank‐level illiquidity and both aggregate banking sector illiquidity and market returns (i.e., higher liquidity risks) during recessions, suggesting that high DELR banks as a group may simultaneously face elevated financing frictions and enhanced opportunities for risk‐shifting behavior in crisis periods. With respect to downside risk, we find that during recessions DELR is associated with significantly higher risk of individual banks suffering severe drops in their equity values, where this association is magnified for banks with low capital levels. Consistent with increased systemic risk, we find that DELR is associated with significantly higher codependence between downside risk of individual banks and downside risk of the banking sector. We theorize that downside risk vulnerability at the individual bank level can translate into systemic risk by virtue of DELR creating a common source of risk vulnerability across high DELR banks simultaneously, which leads to risk codependence among banks and systemic effects from banks acting as part of a herd.     

Money Doctors

We present a new model of investors delegating portfolio management to professionals based on trust. Trust in the manager reduces an investor's perception of the riskiness of a given investment, and allows managers to charge fees. Money managers compete for investor funds by setting fees, but because of trust, fees do not fall to costs. In equilibrium, fees are higher for assets with higher expected return, managers on average underperform the market net of fees, but investors nevertheless prefer to hire managers to investing on their own. When investors hold biased expectations, trust causes managers to pander to investor beliefs.