Perceptions of business ethics: Students vs. business people

The purpose of this study was to assess the perceptions of business students and of business practitioners regarding ethics in business. A survey consisting of a series of brief ethical situations was completed by 537 senior business majors and 158 experienced business people. They responded to the situations, first, as they believed the typical business person would respond and, second, as they believed the ethical response would be.The results indicate that both students and business people perceived a significant gap between the ethical response to the given situations and the typical business person's response. Students were significantly more accepting than business people of questionable ethical responses, and they also had a more negative view of the ethics of business people than did the experienced business people.The male students were more accepting of questionable ethical responses and saw less difference between typical and ethical responses than did the female students. However, male and female business people appeared to think alike with regard to both typical and ethical responses.Some suggested implications included the idea that businesses need to increase their efforts to promote ethical conduct and to make ethics a well-known priority in all actions and policies. Barbara C. Cole teaches Business Education classes at Foothills Technical Institute in Searcy, Arkansas. Her research is in the areas of business ethics and cooperative learning. She has published in Journal of Education for Business.Dennie L. Smith is Professor of Education at the University of Memphis, formerly Memphis State University. His writing on creativity, teaching strategies, and simulation systems has appeared in numerous journals and books. He has been a consultant to businesses for over 15 years in the areas of organizational development and decision making.     

Required Rates of Return for Corporate Investment Appraisal in the Presence of Growth Opportunities

Traditional methods of estimating required rates of return overstate hurdle rates in the presence of growth opportunities. We attempt to quantify this effect by developing a simple model which: (i) identifies those companies that have valuable growth opportunities; (ii) splits the value of shares into ‘assets‐in‐place’ and ‘growth opportunities’; and (iii) splits the equity β into β for ‘assets‐in‐place’ and ‘growth opportunities’. We find growth opportunities for UK companies over the 1990–2004 period to average 33% of equity value. Incorporating the effect of growth opportunities, the average cost of capital for investment purposes falls by 1.1 percentage points.     

Induced innovation and land degradation in developing country agriculture

With few exceptions, induced innovation theories give little consideration either to the role of distortions as determinants of the factor biases of innovations, or to the influence of technical progress – with or without distortions – on the sectoral structure of production. This analysis identifies demand for innovations as a function of a specific policy setting which both conditions and is conditioned by the structure of production. In this context, when some sectors contribute more than others to environmental externalities, private and social optima in the allocation of research resources may diverge. In some circumstances it may be optimal to use research budget allocations as second-best substitutes for Pigouvian taxes.     

Corporate Strategy, Corporate Culture and Conversion; Adjustment in the Defence Industry

The recent decline in military demand has prompted calls for government aid to help the arms manufacturers convert to civil production. The authors examine the shock that UK defence firms faced, the constraints their defence culture imposed and how they responded. They conclude that while the market solution, closure of defence plants and redundancy, may appear wasteful, in the longer run it is likely to be more productive than trying to convert defence plants.     

Planning for electronic data interchange

There is an abundance of literature about the impact of the new electronic communications technologies and most of the authors attest to its value and theoretical benefits. Many organizations are working in this area and producing novel implementations, but for the general company there is little that is of help in planning for these systems. In order to overcome this deficiency, this article presents a detailed analysis of electronic data interchange (EDI) undertaken by a large number of U.S. companies. The results suggest a model of strategic implementation which illustrates how factors such as the nature of markets and distribution channels, organizational structure and process and buyer power influence the implementation of EDI with suppliers and customers. Five generic EDI strategies have been identified and the impact of market share and IT expertise on these are discussed. Finally, the authors give their views on some of the long–term issues and suggest some possible outcomes.     

Deregulation and privatization of Britain's local bus industry

In 1986,the British government deregulated the majority of the local bus industry, cut the amount of subsidy, and privatized many public bus companies. Unit costs have declined significantly, cross-subsidies have been reduced, and there has been innovation in operating practices. However, mergers have increased concentration, and demand has declined due to the turmoil of service changes and the loss of network integration. In London an alternative policy has been adopted whereby there is Demsetz competition for short-term monopoly rights. The paper argues that this regime will lead to greater benefits in the long run.     

Private equity and HRM in the British business system

Who owns the firm? Do changes in owner matter? Will change affect the operational and strategic role of the HR function? For some, the answer will be no precisely because mergers and acquisitions, takeovers, buyouts and privatisations are central activities for a British‐based business where short‐term value for shareholders and financial engineering are key management objectives that structure and inform the work of HR professionals. For other readers, the answer may well be yes; ownership and owner strategies do matter, particularly if a firm is acquired by a relatively new actor in the market for corporate control – the private equity firm.