Shopping for Human Rights. An Introduction to the Special Issue

Globalization, free trade, and individualization have opened up a worldwide marketplace for trading goods. The fair trade movement and other political consumerist endeavours view consumers as important active holders of responsibility for global welfare. Civil society and governments strive to teach consumers how political consumerism can be used as a push factor to change market capitalism. The market itself can also create an interest in political consumerism and, thereby, teach consumers about the political responsibility embedded in their shopping choices. When this happens, the market works as a pull factor for securing human rights. Questions can be raised about the significance of political consumers as a way to solve complex global problems. Political consumerism may be a fair-weather option that loses its attractiveness in times of downward private and corporate economic spirals. Parts of the fair trade movement believe that there are problems with sole reliance on voluntary consumer choice and using personal money and private capital to solve human rights problems by shopping them away. The exponential growth of voluntary codes of corporate conduct and labelling schemes has also created contradictory practices, incoherence in efforts, and superficial changes or what activists call “sweatwash.” Increasingly, many actors call on international law to create new standards that apply direct human rights obligations on corporations.     

Perceptions of Ethics Across Situations: A View Through Three Different Lenses

This paper examined three approaches for understanding perceptions of ethics: moral philosophies, cognitive moral development, and ethical value systems. First, the dimensionality of the moral philosophy approach was examined. Next, an attempt was made to integrate the models. Finally, each of the model's various components were used in a regression equation to isolate the best predictors of ethicality. Results indicated that the moral philosophies can be considered distinct entities, but the common underlying theme between the approaches was not as predicted. Also, individuals used a variety of approaches, not always the same ones, to determine the ethicalness of situations.     

A Reduced Rank Regression Approach to Tests of Asset Pricing

Both the Arbitrage Pricing Theory (APT) and the Capital Asset Pricing Model (CAPM) place restrictions of the cross-sectional variation of conditional expectations of asset returns and of macro indicators. We show that these restrictions imposed on the reference statistical models lead to special cases of the reduced rank regression model. The maximum likelihood problem is solved by canonical correlation analysis. Likelihood ratio tests about the number of factors underlying stock returns are straightforward to calculate, thus allowing discrimination between competing financial theories. Moreover LR tests on the relevance of each macroeconomic indicator within a chosen model can be implemented. Some of the tests are illustrated by an application to Italian stock market data.     

Random walk and monetary causality in five exchange markets

Time series behavior of monthly spot exchange rates for the French franc, the Deutsche mark, the Italian lira, the Japanese yen, and the UK pound, all priced in relation to the US dollar, shows the robustness of the random walk hypothesis. Incremental efficiency is investigated by a new test procedure, based on the reduction of the forecast error variance, which is a direct implementation of the definition of Granger causality. Exchange markets are found to be not only money efficient, but also monetary efficient in that they are efficient with respect to real income and market interest rates in addition to money stock.     

THE ORGANIZATION OF INNOVATION IN THE UNITED STATES AND JAPAN: NEOCLASSICAL AND RELATIONAL CONTRACTING*

This article discusses the role of intermediate governance structures between vertically related industries in the specific context of technological innovation. In the United States, relations between firms in vertically related industries correspond closely to the neoclassical contracting model, characterized by arms-length, spot contracting on the open market. In Japan, inter-firm relations are more likely to involve relational contracting, characterized by stable bonding mechanisms and a dense historical network of economic ties between the parties to the exchange. We focus upon the kinyu keiretsu type of relational contracting between firms of unequal size and power in vertically related industries, which is a special case of the more generally studied kigyo shudan, or inter-market financial group. For illustrative purposes, we compare the contractual arrangements used to manage the development of new technology by 46 US and 27 Japanese semiconductor equipment firms. We conclude by speculating that the organization of innovation in the Japanese semiconductor equipment industry has accelerated their development of new technology and led to their extraordinarily rapid worldwide market penetration.     

On Linking Business Ethics, Bioethics and Bioterrorism

The 20th century produced overwhelming advances in biomedicine with the 1990s introducing 148,000 patents as part of the mapping and sequencing of the human genome. Bioethical realities and debates of prenatal genetic testing, new reproductive technologies, stem cell research, human cloning and DNA data banks have obscured the less provocative public and social issues of gun control, immunization, employee leave programs to assist care for dying relatives, emergency room use as primary care sites by the uninsured, and medical care provision to the homeless. With the events of September 11, the focus has shifted to bioterrorism: an international and global concern that portends broad environmental consequences while requiring a local, community response of which the business enterprise is a part. The tension that results from a required local and global response to bioterrorism and biotechnology by the business community forms a dialectic and provides a venue for addressing business ethics in an international forum. This paper explores the relationship of events and its meaning for business. Part I provides the background of biotechnology and bioterrorism and how the two form a dialectic reality that shapes ethical debate. Part II presents provocations and questions for an emerging ethic based on the integrative response from the public health, medical, business and religious communities. Four areas for business contribution in shaping emerging ethics in the age of biotechnology—bioterrorism are suggested.     

Key aspects of organizational buying: conceptualization and measurement

Much research has been devoted to organizational buying. Unfortunately, few studies focus on the development of specific measures of organizational buying behavior. And although many concepts in the literature are useful for describing and discussing buying behavior, they often cut across other buying activities and therefore may not be empirically distinct. This research applies a combination of literature- and field-based approaches to develop four distinct constructs that underlie the numerous activities in which buyers engage: procedural control, proactive focusing, use of analysis techniques, and search for information. Measurement scales for these constructs are created and then evaluated through a survey of purchasing professionals. The procedure resulted in a set of constructs and measures that may be applied to several complex areas of organizational buying research. She received her B.A. and M.B.A. from Michigan State University and her Ph.D. from the University of North Carolina at Chapel Hill. Her research focuses on the use of information in various decision contexts. She has published several articles in journals such as theJournal of Marketing, Journal of Business to Business Marketing, andHealth Marketing Quarterly. Her research has also appeared in the proceedings of several national conferences.     

Trade and convergence between rich and developing countries: Some empirical evidence on macrodeterminants of specialization

Trade and Convergence Between Rich and Developing Countries: Some Empirical Evidence on Macrodeterminants of Specialization. —A case study is proposed considering trade of Italy with many groups of partners belonging to the EU, to the G-7, to the newly industrializing countries and to the newly exporting countries. Using panel estimation data, they reach the conclusion that standard of living convergence does not favour intraindustry trade among rich countries but it is IIT-biased when considering emerging countries like the NICs. A much more important role is played by country-relative size and price differentials and/or vertical differentiation.     

Wealth and sensibility. The historical outcome of better living conditions for all according to Adam Smith

In this paper, I argue that Smith's commercial society is characterised more by restraint of self-command than by restraint of emotions through self-command, as usually stated. According to Smith, the appropriate degree of self-command varies with historical circumstances: better living conditions for all favour relaxation of self-command and lead people to express their sentiments more freely. I thus highlight a crucial link in Smith's thought between variations in general economic conditions and variations in moral judgement on the expression of emotions, or, in other words, between The Theory of Moral Sentiments and the Wealth of Nations.     

Technology and labor regulations: theory and evidence

This paper shows that different labor market policies can lead to differences in technology across sectors in a model of labor saving technologies. Labor market regulations reduce the skill premium and as a result, if technologies are labor saving, countries with more stringent labor regulation, which bind more for low skilled workers, become less technologically advanced in their high skill sectors, but more technologically advanced in their low skill sectors. We then present data on capital-output ratios, on estimated productivity levels and on patent creation, which tend to support the predictions of our model.