Business Ethics in Western and Northern Europe: A Search for Effective Alliances

Business ethics in Westenr and Northern Europe has acquired a certain momentum during the last fifteen years, both as an academic discipline and as a point of reference in business policies. The article reports about developments in academia in various countries, and the founding of national and Europe-wide networks and organizations bringing together representatives from business as well as from universities. It presents sources of information on the state of affairs, and proposes some parameters by which the national varieties of posssible alliances between ethical thinking and business policies can be depicted more adequately. The thesis of the report is that, in order to be operational, business ethics in Western and Northern Europe has to become part of the total configuration of economic, historical and ideological components that shape the social fabric on a national level.     

Teaching management accounting in a competencies-based fashion

Traditionally, management accounting has been regarded as a monodisciplinary field of study that mainly focuses on calculating costs and prices. Today, it is seen that the field encompasses an ever-increasing number of knowledge domains including, for example, economics, sociology, psychology, and ethics. Modern-day management accountants have to be able to apply elements from all of these domains when solving concrete, real-life problems. The Open University of the Netherlands has therefore tried to construct a competencies-based management accounting curriculum that uses the well-known case method and integrates issues from various knowledge domains. In the curriculum, a unique problem-solving strategy is introduced that helps students to tackle as management accountants problems they may encounter during their studies, as well as the decision-making in their daily practice. This paper aims to give an overview of one of the courses in this curriculum, highlighting the use of the aforementioned problem-solving strategy.     

The association between qualitative management earnings forecasts and discretionary accounting in the Netherlands

This paper examines whether there is an association between discretionary accounting and the accuracy of long-run forecasts of annual earnings disclosed voluntarily by Dutch companies in the directors’ report. In particular, investigations were made of the consistency in the sign and direction of discretionary accounting techniques and qualitative earnings forecasts. Long-run forecasts are defined, for the purposes of this paper, as forecasts made at least seven months before the year-end. Although not mandatory, qualitative forecasts are released by well over 60% of the listed companies in the Netherlands. Empirical results indicate that there is consistency in the sign and direction of qualitative earnings forecasts and discretionary accounting. After adopting discretionary accounting, the forecast errors are reduced if the company can reach the management earnings forecast (target). In the event that reserves are insufficient to accomplish this goal, managers choose their next best option and take an earnings bath in order to maximize reserves available for future use. By partitioning the sample in various sub-sets it is shown that earnings management and forecast errors occur most in the extreme ranges of financial performance. Overall, the study shows that management engages in discretionary accounting to present results in line with the disclosed qualitative earnings forecasts in their directors’ reports. Whilst discretionary accounting may clearly improve the consistency of companies’ earnings forecasts released via the directors’ reports and the actual earnings, managers’ earnings forecasts are sometimes disclosed in anticipation of planned discretionary accounting actions.     

Informal Spaces: The Geography of Informal Economic Activities in Brussels

This paper unravels the relations between different categories of the informal economy and their spatial distribution in the geographical setting of Brussels. Micro perspectives (households as economic agents) and macro perspectives (the informal economy related to economic recession) are combined in order to deal with categories of informal activities which are homogenous in terms of their spatial logic. In the first part we review several classifications of informal economic activities and assess them in terms of their congruence with the distinctions of economic actors and spatial logic. The second part elaborates on the raisons d’être of three large categories of informal economic activities in relation to urban development and on the production environments of these activities in Brussels: the domestic sector and suburban development; economic recession and survival strategies in the inner city; and, finally, flexibility and informalization in urban light industry. Polanyi’s concept of modes of economic integration (market, redistribution and reciprocity) offers a powerful tool to understand informal economic activities as a set of interrelations between households and other economic actors in order to gain access to their living resources — Ce texte analyse les relations entre différentes catégories d’activités économiques informelles et leur répartition spatiale à Bruxelles. Les perspectives micro (les ménages en tant qu’agents économiques) et macro (l’économie informelle liée à la récession économique) sont combinées pour aboutir à des catégories d’activit’és’économiques informelles homogènes en termes de logique spatiale. Dans une première partie nous considérons plusieurs classifications des activités économiques informelles pour évaluer au niveau théorique leur congruence avec les types d’acteurs et les logiques spatiales. La seconde partie décrit les raisons d’? tre de trois grandes catégories d’activités économiques informelles et les met en relation avec le développement urbain et leurs milieux de production à Bruxelles. On distingue ainsi le secteur domestique liéà la péri-urbanisation, les stratégies de survie liées à la récession dans le centre-ville et la flexibilité et l’informalisation de l’industrie urbaine. Le concept de modes d’intégration économique de Polanyi (échange marchand, redistribution et réciprocité) constitue un outil d’analyse efficace pour comprendre ces activités économiques informelles en tant que combinaisons précises d’interrelations entre ménages et autres acteurs économiques permettant aux premiers d’accéder à leurs moyens d’existence.     

Agenda for the Housing Market

The housing market is the theme of the Reports to the 2008 Annual Meeting of the Royal Netherlands Economic Association. Current housing market policies in the Netherlands generate substantial welfare losses. The direct and indirect subsidies on housing distort the housing market, house moving behaviour, the labour market and the asset portfolio of households. The welfare loss is estimated at more than 6 billion euro per year. In addition, physical planning restrictions cost at least 3 billion euro per year, a price which is paid for the conservation of open space and nature, especially in the Green Heart of the Randstad. Developments on the housing market over the last fifteen years and the sizeable welfare losses from current policies are sufficient reason to develop an agenda for reform. The Reports suggest several elements for such an agenda, including a gradual reduction of housing subsidies in the owner–occupier sector as well as in the rental sector, an easier land policy to better meet the qualitative housing needs of the population, and an extension of the social tasks for the housing societies.      

Innovations in meta-analysis and social impact analysis relevant for tech mining

In the social sciences, non-utilization of knowledge is a major problem. Many publications stored in libraries or available on the Internet should be used more than they are now. Conventional approaches like providing abstracts and lists of keywords have proven to be insufficient. For more than thirty years already, meta-analysis is available for the accumulation and dissemination of scientific knowledge. In the social sciences, meta-analysis has been used on a limited scale only, mainly because there still remains a gap between the knowledge available and its application in policymaking. Recently, value transfer has been introduced as an additional method to bridge the gap between available knowledge and the demands for knowledge in new problem areas. Not only in the social sciences but also in the information sciences non-utilization of information is a major problem. It is the mission of tech mining to contribute to a mitigation of this non-utilization. In this article, we will show how tech mining could profit from innovations in meta-analysis and social impact assessment. Special attention will be paid to research on technology generations, research on social change in cohesive social systems showing solidarity at work, and tech mining in support of the Lisbon Strategy of the European Commission.     

Paradox of authenticity versus standardization: Expansion strategies of restaurant groups in China

Restaurant customers demand both personalized innovative, yet, affordable service delivery. Accordingly, restaurant groups that seek expansion must consider how to respond effectively to the standardization–authenticity paradox. This paper addresses two questions: what is the relationship between standardization and authenticity? How can restaurant managers use these concepts for the strategic positioning of their restaurant group? Typically, researchers present the two dimensions as a binary. In contrast, this paper first presents a theoretical model and analyzes the variations in the standardization–authenticity relationship. Subsequently, it classifies restaurant group expansion strategies into four categories: standardization of authenticity, authentic alliance, standardized chains and heterogeneity, and examines their respective level of competence required to increase performance. It concludes by presenting suggestions to position restaurants in terms of the extent of standardization and the extent of flexibility.