Reconciling Rules and Principles: An Ethics-Based Approach to Corporate Governance

In this paper, we consider the nature of recent corporate abuses both in the U.S. and in Europe, and how globalization has had an impact on amplifying their consequences. We discuss the rules-based and principles-based remedies that have been proposed in each region, respectively. With a focus on the U.S. Sarbanes-Oxley Act (SOA), we examine the principles forwarded by this act, and how it addresses those principles with specific rules and governance mechanisms. Invoking Integrative Social Contracts Theory (ISCT), we conclude with a reconciliation of the principles and rules-based approaches to corporate governance as suggested by theory.     

Trajectories of Russian manufacturing firms’ growth after the global financial crisis of 2008–2009: the role of restructuring efforts and regional institutional environment

The aim of this article is to conduct an empirical investigation and reveal which types of modernisation strategies and characteristics of regional institutional environment are likely to be associated with patterns of the performance of Russian manufacturing firms in 2007–2012. In addition to estimating the impact of ex-ante behaviour on the rate of sales growth, we use hierarchical cluster analysis to reveal the typical trajectories of firms’ sales growth. We find that the dynamic of sales for more than 90% of firms can be described by just two types of performance curve: (a) crisis decline with recovery and growth; and (b) crisis decline with weak recovery and stagnation. Firms that invested more prior to the crisis and implemented active restructuring were more likely to have positive post-crisis dynamics of sales. We find evidence that firms in the regions with lower levels of corruption (both administrative and everyday) were more likely to recover successfully after the crisis.     

An Economic Analysis of Targeting Soil Conservation Measures with Respect to Off-site Water Quality

This paper analyses the advantages and disadvantages of targeting soil conservation measures on the basis of off-site water quality goals. The Stratford Avon watershed in Perth County and the Big Creek watershed in Middlesex County, both located in southwestern Ontario, are used as case studies. Targeting criteria, used as proxies for measuring the contribution to off-farm damage from particular parcels of crop land, are based on the physical characteristics of the parcels. Alternative conservation tillage practices include fall chisel ploughing, ridge planting, no tillage and buffer strips. At each level of the targeting criteria, the reduction in off-farm damage is estimated using the Guelph Model for Evaluating the Effects of Agricultural Management Systems on Erosion and Sedimentation (GAMES). Economic targeting criteria are based on the value of improved water quality under a conservation practice minus the on-farm costs of adoption of that practice. Targeting conservation policies on the basis of reduction of off-farm damages can result in greater efficiency in public policy. The authors conclude that further efforts in targeting conservation policies have the potential to improve the cost effectiveness of soil conservation programs if technical and administrative problems can be overcome. L'article analyse le pour et le contre du ciblage des mesures de conservation des sols sous l'angle de la qualité de l'eau à l'aval. Le bassin versant Stratford Avon dans le comité de Perth et celui de Big Creek dans le comté de Middlesex, tous deux situés dans le sud-ouest de l'Ontario, sont utilisés comme études de cas. Les critères de ciblage utilisés comme valeurs d'approximation dans la détermination de la part des dégâts causés à l'aval qui est attribuable à des parcelles agricoles données, sont basés sur les caractères physiques des parcelles. Les diverses pratiques de travail de conservation comparées sont la labour au chisel, la culture sur billons, la culture sans labour et l'établissement de bandes riveraines. A chaque niveau des critères de ciblage, la réduction des dégâts infligés à l'aval des exploitations est estimée selon le Modèle d'évaluation des effets des systèmes d'exploitation agricole sur l'érosion et la sédimentation de l'Université de Guelph (GAMES). Les critères de ciblage économiques reposent sur la valeur attribuée à l'amélioration de la qualité de l'eau par une pratique de conservation donnée, moins les coûts réels d'adoption de l'exploitant à cette pratique. Le ciblage des politiques de conservation en fonction de la réduction des dégâts causés à l'aval de l'exploitation peut rendre plus efficientes les politiques du secteur public. Il ressort de ces études que les politiques de ciblage des mesures de conservation offrent la possibilité d'améliorer la rentabilité des programmes de conservation du sol, pour autant parvienne à surmonter les problèmes techniques et administratifs.     

The cheating culture: A global societal phenomenon

Today's future business leaders are confronted early in their academic careers with history-making events which have a profound impact on the global economic system. These students of business are being exposed to behaviors as they unfold and, as such, are possibly living in an age of the “cheating culture” whereby everybody cheats because everyone else does it. Business students from around the world completed a cheating culture scale as part of a much larger investigation examining college students’ attitudes toward capitalism and business ethics. Findings suggest that the cheating culture is not just a capitalistic phenomenon and that attitudinal differences are driven by gender, country corruption, and socioeconomic environment. Future business leaders worldwide, who are being shaped by news reports of scandal, are also being taught the fundamentals of operating in the business world. Unfortunately, they may be learning to inextricably combine the cheating culture with best business practices.     

The non‐professionally affiliated (NPA) worker as co‐producer of public services: how is the role experienced in UK mental health services?

Recent workforce reforms have led to the widespread expansion of non‐professionally affiliated (NPA) support and assistant roles within UK public services. Research into these roles has been confined to a limited range of settings, with a focus on the consequence of change for professional workers. This article explores the emergence of ‘co‐production’, whereby NPA workers contribute alongside the professional in a distinct, complementary way. Findings are drawn from semi‐structured interviews with frontline workers and managers within the context of mental health workforce reform. The results build a picture of NPA working life characterised in part by autonomy and responsibility. At the same time, NPA workers rely on colleagues for support and are subject to being used indirectly by professionals. Contextual influences are considered. The conceptual implications of the analysis are brought out, both for the NPA role itself and for the broader issues involved in front line service work.     

Managing culturally diverse buyer-seller relationships: The role of intercultural disposition and adaptive selling in developing intercultural communication competence

Given the increase in cultural diversity within marketing organizations as well as within current and potential customer bases, possessing the appropriate communication skills becomes crucial to success in managing culturally diverse relationships. Although marketing researchers have recognized the importance of adaptive selling behavior for successful buyer-seller relationships, the exploration of the intercultural aspects of these relationships has only recently begun. This article examines how adaptive selling behaviors and intercultural dispositions of marketing executives contribute to their perceived intercultural communication competence. Results show that in addition to being adaptive, the intercultural disposition of a marketer is of key importance in developing intercultural communication competence. Theoretical and practical implications for incorporating intercultural communication into the development of successful buyer-seller relationships are discussed. Victoria D. Bush (Ph.D., University of Memphis) is an associate professor of marketing at the University of Mississippi. Her research has appeared in such journals as theJournal of Advertising, theJournal of Advertising Research, Industrial Marketing Management, theJournal of Public Policy and Marketing, theJournal of Business Ethics, and theJournal of Services Marketing. Her research interests are in diversity, advertising, and ethics. Gregory M. Rose (Ph.D., University of Oregon) is an associate professor of marketing at the University of Mississippi. His research interests include consumer socialization and cross-cultural consumer behavior. He has published or has forthcoming articles in theJournal of Consumer Research, theJournal of the Academy of Marketing Science, theJournal of Business Research, theJournal of Consumer Psychology, theJournal of Advertising, theJournal of Marketing, and other journals and proceedings. Faye Gilbert (Ph.D., University of North Texas) is an associate professor of marketing at the University of Mississippi. She has published in theJournal of Business Research, Psychology and Marketing, theJournal of Health Care Marketing, theJournal of Research in Pharmaceutical Economics, theJournal of Applied Business Research, theJournal of Marketing Management, theJournal of Marketing Theory and Practice, and theJournal of Marketing Education, among others. Her work emphasizes the application of consumer behavior theory to health care and to channel relationships. Thomas N. Ingram (Ph.D., Georgia State University) is a professor of marketing at Colorado State University. He has been honored as the Marketing Educator of the Year by Sales and Marketing Executives International (SMEI) and as a recipient of the Mu Kappa Tau National Marketing Honor Society Recognition Award for Outstanding Scholarly Contributions to the Sales Discipline. He has served as the editor of theJournal of Personal Selling and Sales Management and is the current editor of theJournal of Marketing Theory and Practice. His primary research is in personal selling and sales management. His work has appeared in theJournal of Marketing, theJournal of Marketing Research, theJournal of Personal Selling and Sales Management, and theJournal of the Academy of Marketing Science, among others. He is the coauthor of three textbooks:Professional Selling: A Trust-Based Approach, Sales Management: Analysis and Decision Making, andMarketing: Principles and Perspectives.     

Can Rich Countries Become Pollution Havens?*

This paper bridges the gap between two‐country Ricardian trade models where differences in environmental policies create pollution havens in a poorer region with weaker pollution regulations, and 2 × 2 Heckscher–Ohlin models that predict under certain conditions that pollution havens may occur in a richer region with tighter regulations. By relaxing the Heckscher–Ohlin assumptions of factor price equalization and no specialization, we show how creation of pollution havens in either region is possible, due to the interplay of policy and factor‐endowment motives. We also analyze the conditions for creating pollution havens in the cases of exogenous and endogenous environmental policy.     

Priority patterns of acquisition of financial assets

Identification of the order in which households acquire financial assets has important market segmentation and sales forecasting strategy implications. Utilizing Guttman scalogram analysis, this study finds that for ten financial assets a systematic priority pattern is operative for a large sample of Canadian households. Results are compared with those of a similar study carried out in the United States.     

Forms of Opportunism Between Principals and Agents

The purpose of the paper is to discuss the development of the theoretical approach to a rating of the opportunism between the principals and agents within the framework of the neo-institutional theory. The matrix of the opportunistic forms between the principals and agents designed. On the basis of the carried out experimental research of firms of the Ural region of Russia, such opportunistic forms of the agents such as flubbing, negligence, and malversation were investigated. The experimental dependences of an opportunistic level of the agents from a level of wages, level of non-financial stimulus, effectiveness of punishment, share of creative element of labor, and degree of labor specificity are defined. Financial support for the grant from the Russian Humanitarian Scientific Fond, No. 05-02-83214a is acknowledged.     

An Empirical Investigation into the Failure of First RepublicBank: Is There a Contagion Effect?

This study examines the presence of contagion effects associated with the failure of First RepublicBank. Banks are segregated on the basis of whether their stock price reactions are likely due to industry-based information effects or contagion effects. Also considered are announcements during the same period of time associated with Third World loans. Results fail to substantiate the presence of contagion effects.