Corporate Social Responsibility in SMEs: A Shift from Philanthropy to Institutional Works?

For Aristotle, virtues are neither transcendent nor universal, but socially interdependent; they need to be understood chronologically and with respect to character and context. This paper uses an Aristotelian lens to analyse an especially interesting context in which to study virtue—the state’s response when social order breaks down. During such periods, questions relating to right action by citizens, the state, and state agents are pronounced. To study this, we analyse data from interviews, observation, and documents gathered during a 3-year study of riot policing in the U.K. In doing so, we contribute by joining a number of other conversations within JBE, suggesting detailed empirical examination of this context is useful in opening up considerations relevant to ‘virtue’ elsewhere. This extreme context helps us raise interesting and empirically informed questions that can encourage future theoretical and empirical contributions to virtue in business ethics. One such question is on the role of habituation in virtue, which is not just the inculcation of a reflex or automaticity, but can also refer to a trained and developed tendency to behave in the right way, for the right reasons, at the right time. Whilst we stop short of a simplistic alignment of habituation and virtue, we show ways in which it can inform understanding of both courage and phronēsis.     

Impeding corporate social responsibility: Revisiting the role of government in shaping business — Marginalized local community relations

This paper is based on a case study of the European space industry as it is organized in the postcolonial setting of French Guiana. It brings the state back into political corporate social responsibility (CSR) by showing how government shapes interactions between business and local communities, more specifically around CSR issues. The paper opens new research avenues in political CSR by making two significant contributions. First, it identifies postcolonial contexts as instances in which government, rather than stepping back, gets actively involved to impede the emergence of CSR. This demonstration is made by building on a conceptualization of the marginalized local community as comprising citizens—rather than mere stakeholders—who expect their government to defend their rights vis-à-vis business. Second, by using a longitudinal approach that provides access to dynamics of interactions over time, the paper develops a typology of mechanisms that support a government’s changing role in CSR. Over a 50-year period, such government is shown to have played the roles of impeding the emergence of CSR, partnering for CSR, symbolically mandating CSR, and finally, disengaging from CSR.     

Contractual Completeness: A Comparison of Two Heterogeneous Emerging Markets

ABSTRACT

Interfirm contractual relations form an essential part of firms' survival. Such relations will likely differ across markets due to country-specific factors. Despite this understanding, there are few studies that examine interfirm contractual relations across markets. This article examines determinants of contractual completeness in two heterogeneous emerging markets (Tanzania and Poland). The terms “advanced” (Poland) and “less advanced” (Tanzania) are used to distinguish these two emerging markets and in the development of the hypotheses. The findings indicate that the dimensions involving weaker relational ties among firms have a stronger positive effect on contractual completeness in the relatively advanced emerging market than in the less advanced one, while stronger relational dimensions had a stronger positive effect in the less advanced emerging market.     

A note on ‘trade pattern reversals’

Samuelson's 1975 paper investigating the possibilities of immiserizing trade reversals stemming from autonomous variations of the rate of profit strongly criticizes Emmanuel's Unequal Exchange treatment of that issue. The author of the present note believes that the Samuelson theorems are both inconsistent in themselves and irrelevant to his treatment. This note, however, is confined to the second contention: showing the main points of misrepresentation of the Emmanuel analysis.     

Contribution Ceilings and the Incidence of Payroll Taxes

Social security contributions (SSCs) are typically formally split between employers and employees as payroll taxes, levied on earnings at a constant tax rate that applies only up to a ceiling, above which the marginal tax rate falls to a reduced rate, often 0. Such contribution ceilings create a concave kink point in the budget set of workers and hence should generate a dip in the distribution of earnings around the ceiling through labour supply responses (the reverse of bunching expected at convex kink points) but such a dip is not observed empirically. This paper sets out a new approach to infer the incidence of SSCs that exploits the absence of this dip and the fact that (mechanically) the distributions of labour cost (earnings inclusive of all payroll taxes), gross earnings (net of employer payroll taxes) and net earnings (net of both employer and employee payroll taxes) cannot all be smooth around a kink. The other papers in this special issue apply the method to data for Germany, France, the Netherlands and the UK and all find that distribution of gross earnings is smooth around kinks (implying that the distributions of labour costs and net-of-tax earnings are not) even though the concept of gross earnings is irrelevant in the standard static model of labour supply and demand that dominates the public economics literature. This suggests that other features of the labour market, such as wage bargaining based on the gross earnings concept, are relevant for determining the incidence of SSCs.     

Do binding agreements solve the social dilemma?

We investigate experimentally whether “binding agreements” can provide a solution to the social dilemma that arises in the presence of pure public goods. Signing a binding agreement can prevent players from free riding on the contributions to the public good. However, a well known theoretical result is that the outcome of the endogenous formation of agreements is not necessarily efficient. Our setting is a bargaining game in which agreements form sequentially. The individual level of contribution to the public good increases with the size of the coalition reaching an agreement and the global agreement is always the socially optimal structure. There are two equilibrium outcomes, the global agreement and an asymmetric structure, which consists of two coalitions of different sizes, the small one free riding on the contributions of the larger one. We run an experiment which lends force to the theoretical result that outcomes may be inefficient. However, subjects do not play Nash and the experimental outcome is, on average, even more inefficient than the theory predicts. Our analysis leads to the conclusion that different types of behaviour co-exist.     

R&D Subsidies versus R&D Cooperation in a Duopoly with Spillovers and Pollution

We introduce pollution, as a by‐product of production, into a non‐tournament model of R&D with spillovers. Technology policy takes the form of either R&D subsidisation or pre‐competitive R&D cooperation. We show that, when the emissions tax is exogenous, the optimal R&D subsidy can be negative, i.e. there should be a tax on R&D, depending on the extent of the appropriability problem and the degree of environmental damage. In a wide class of cases, depending on the parameter values, welfare in the case of R&D cooperation, is lower than welfare in the case of R&D subsidisation.     

The Motives for Joint Ventures: A Transaction Costs Analysis of Japanese MNES in the UK

What factors determine the choice of Japanese companies between part and full ownership of their UK subsidiaries? In seeking to answer this question, this study employs data of Japanese foreign direct investment (FDI), through joint ventures, in the UK, not previously used. The main findings of the econometric work presented is that transaction costs are the principal consideration when Japanese firms choose between part and full ownership of their UK subsidiaries{softhyphen}. Variables that have featured prominently in studies relating to either US parents or for subsidiaries in the US do not appear to play a significant role. The European Union (EU) market appears to be the target of Japanese foreign direct investment in the UK.     

Eco-efficient choice of cropping system for reducing nitrate-N leaching in an agricultural watershed

Eco-efficiency analysis framework was used to evaluate joint economic and environmentally optimal N application rates for alternative cropping systems managed in a watershed in Atlantic Canada. Eco-efficiency indexes were estimated as the ratio of economic returns from N fertilizer application to groundwater-N leaching associated with crop production. Trade-offs between crop yield and associated reduction in groundwater-N leaching were also estimated. Data for the analysis were generated using the soil and water analysis tool modeling, and allowed for evaluating crop yield and groundwater-N leaching effects for a given crop in rotations assumed to be managed at varying N fertilizer application rates. The cropping systems evaluated included: (i) corn-based cropping systems involving corn–corn–alfalfa–alfalfa–alfalfa (CCAAA, and CCCAA) rotations; (ii) potato-based cropping systems involving potato–corn–barley–potato–corn (PCBPC and PBWPC); and (iii) vegetable-horticulture cropping system involving potato–winter wheat–carrot–corn. Cropping systems were compared under conventional tillage (CT) and no-till (NT) systems. Estimated eco-efficient N fertilizer rates were substantially lower than current provincial nutrient management plan (NMP)-recommended rates, and estimated maximum economic rate of nitrogen fertilizer. However, the actual amounts depended on the crop and rotation system. CCAAA-CT was the eco-efficient choice of rotation system among the corn-based cropping systems considered. Similarly, PCBPC-CT was the eco-efficient choice among the potato-based production systems. In addition, when the NMP-recommended N rate was replaced by the eco-efficient rate for the vegetable horticulture cropping system, the eco-efficient cropping system shifted from a rotation involving CT to a NT system.