The regulation of water services in the EU

The European Commission’s proposal for a Directive on the award of concession contracts has sparked vigorous public debate and intense opposition. This Directive is controversial because of the nature of the policy it proposes and because the sectors involved are highly sensitive. This Forum examines the weaknesses of the Commission’s proposal and presents an overview of the current issues in water regulation and the provision of water services. The authors analyse the regulation of natural monopolies, water efficiency and upstream competition in the water industry.     

Grid–group analysis and tourism: tipping as a cultural behavior

Cultural bias, or grid–group theory, was developed by Mary Douglas in the 1980s to explain individual behavior within a particular society. In this paper, grid–group theory is adapted to show how it may be used in a tourism context. The advantages of this approach are that the same typology can be used for both hosts and guests, not only in general terms, but also for given types of behavior. Grid–group theory shows how the same individual may exhibit different behavioral patterns in different situations. The example used to illustrate this approach is tipping. The literature on tipping provides mixed and conflicting results. By using grid–group theory, it is possible to explain why these mixed results may occur.     

Managers' perceptions of ethical codes: dialectics and dynamics

Codes of ethics and conduct have become common in UK organisations. This paper explores how such codes are understood and responded to by those whom the codes seek to influence. The study is an interpretative one, based on interview material, in which a dialectical pattern is seen in employees' reactions to codes. Initial contradictions are found in codes of ethics (which claim to give employees space in which to exercise their integrity, but simultaneously are seen as impugning employees' moral status) and in codes of conduct (which require a loyal adherence to rules that interferes with wider loyalties). These tensions create perceptions of a two-tier system in organisations in which core employees are subject to codes of ethics that are loosely applied, but non-core staff are subject to codes of conduct that are strictly applied. However, even core staff are aware of a dialectical contradiction in their position. They believe that loyalty to the organisation is the price they pay for being allowed freedom of integrity by their organisations, but that the price they have to pay for showing integrity may be breaking faith with their organisations. This chiasmus of integrity and loyalty represents a difficulty for the project of improving standards of corporate citizenship. The use of this trope and other rhetorical figures to exemplify processes of understanding and interpretation in organisations is discussed.     

Positive Law as an Ethic: Illustrations of the Ascent of Positive Law to Ethical Status in the Commercial Sector

This article begins with four situations, the first three of which are common to many businesspeople and persons in the United States today and the fourth, unfortunately, is growing: Setting the minimum level at which workers are paid; going bankrupt to avoid paying for credit card purchases, claiming a questionable deduction in calculating one's federal income tax liability, and violating the law in every state by a major U.S. corporation.These cases support the idea that positive law is the operative ethic for persons in a commercial setting. Reasons advanced for this phenomenon are ethical ambiguity, lack of personal responsibility, increasing technicality of contemporary society, and the fact that the law is now seen as the most that is expected of businesspersons. In arriving at the paper's conclusions, positive law theory is discussed. Data are presented to explain why these illustrations are not mere anecdotal examples but represent broad contemporary occurrences in the U.S.     

Auditor Independence,Current and Future NAS Fees and Audit Quality: Were European Regulators Right?

Abstract

European Union adopted the Regulation (EU) No 537/2014, which in practice prohibits the joint provision of audit and most types of non-audit services (NAS). Regulators presume that NAS fees weaken auditor independence and, as a result, impair audit quality. As the evidence at the European level does not support this view, the question of whether the new regulation will enhance auditor independence remains open. We examine the association between future NAS fees and audit quality by distinguishing among tax, audit-related and other services. We base the analysis on a sample of Spanish listed companies for the period between 2005 and 2016, finding a consistent negative association between future other NAS fees and audit quality. This suggests that the expectation of future purchases of this type of NAS may impair auditor independence. Conversely, for tax and audit-related services results are not significant. Taken together, results suggest that European regulators should seek for further evidence before banning NAS, as some of them may in fact enhance audit quality.     

Technological interdependence, labor production functions, and control systems

This study uses Thompson's Organizations in Action (New York: McGraw Hill, 1967) definition of internal interdependence in order to examine the potential link between technology and control. The internal interdependence of a firm implies a functional form of the group labor production function. The labor production function in turn defines the individuals that can affect group performance. This study hypothesizes that the control system should focus on these individuals. As an example of the interdependence-control link, implications for budget-based incentive contracts are analyzed.     

Management roles in the implementation of participative management systems

Although participative management supposedly cures the ills of low morale and productivity, managers in these organizations are often frustrated with their jobs. Part of this frustration may come from not understanding their changing roles in participative work systems. In this paper I introduce a model of the cycle of participative management which outlines the stages of organization maturity and the appropriate management roles for each stage. I also discuss how the manager acts as a Leader, Facilitator, Enabler, and Coach. My purpose is to help Human Resource Managers understand how management roles will change as the organization evolves to a mature participative work system and to show how they can support this challenging transformation.