Fair trade new product development

Recently, there has been a significant increase in the market for fair trade products. However, there is a discrepancy between the stated purchase intention of consumers and their actual purchase behaviour with respect to fair trade. This article takes an operational and strategic view of this issue and argues that one significant reason for this lies in the limited range of fair trade products currently available. Next, a strategic framework for fair trade new product development is presented and explored. Finally, key operational criteria for fair trade product selection are discussed using a case study example to support the conclusions.     

Excellence Revisited

Tom Peters and Robert Waterman's 1982 best-seller, In Search of Excellence, ignited the business book market and altered the managerial debate in companies throughout the world. Twenty years on, the book's contribution to business thinking is being re-evaluated.     

Effects of cash flow statement reclassifications pursuant to the SEC’s one-time allowance

In February 2006, the Securities and Exchange Commission (SEC) announced a one-time opportunity for firms with misclassified cash flow items to correct these errors without issuing an official restatement. To assess the impact of these reclassifications, we determine the types of firms affected by this allowance and the types of reclassifications in the operating, investing, and financing categories of the cash flow statement. We find that, consistent with the SEC’s concerns, firms overstated net operating cash flows and understated net investing cash flows, thereby misrepresenting cash flows. In addition, the most frequent line-item reclassifications echo the SEC’s concerns about the presentation of discontinued operations and dealer floor plan financing arrangements. Insurance claim proceeds and beneficial interests in securitized loans, however, appear less problematic than the SEC expected. Overall, our findings indicate that the SEC’s plan was relatively successful and, for firms that took advantage of the allowance period, these cash flow restatements only exerted a marginally negative effect in the capital market.     

Determining the antecedents and consequences of donor‐perceived relationship quality—A dimensional qualitative research approach

It is generally accepted that an understanding of quality conceptualizations is instrumental in the design and development of customer care programs. This study applies the dimensional qualitative research approach to develop a conceptual model, which demonstrates the antecedents and consequences of donor‐perceived relationship quality. This model shows that relationship benefits, service quality, trust, commitment, and satisfaction are the key antecedents of donor‐perceived relationship quality. Relationship benefits, service quality, and trust are also modeled as cognitive in nature, whereas commitment and satisfaction are modeled as affective variables. The model also highlights donor loyalty and positive word‐of‐mouth communications as the central consequences of donor‐perceived quality. The model gives rise to a useful research agenda for fund‐raising professionals. © 2007 Wiley Periodicals, Inc.     

The impact of SEC investigations and accounting and auditing enforcement releases on firms’ cost of equity capital

I study the impact of an SEC investigation (as captured by accounting and auditing enforcement releases) on a firm’s cost of equity capital. AAERs are often used in accounting literature as a proxy for fraudulent financial reporting. Fraudulent financial reporting should lead to an increase in cost of equity capital as a firm’s future cash flows become less certain. Overall, this study provides evidence of changes in cost of equity capital for firms targeted by an SEC AAER on the date the investigation is first made public.     

Modelling the Accounting Information Requirements of Small Businesses

Studies in various locations have indicated that practising accountants are an important source of advice and information to the small business sector. However, prior research has concentrated on establishing a relationship between the two parties and in ascertaining the extent of services provided. This paper highlights the limited acquisition or preparation of detailed accounting information by Australian small business owner/managers. Operating and environmental variables which influence the preparation or acquisition of detailed accounting information are established and logistic regression techniques used to estimate an appropriate explanatory model, from which estimates of the probability that a firm, with particular attributes which are reflected in the explanatory variables in the model, will prepare or acquire a given level of accounting information.     

Franchisor Insolvency in Australia: Profiles,Factors, and Impacts

Franchisor failure is enduring and important in terms of cost, nationally and internationally. This article presents research into Australian franchisor firms that went into a form of bankruptcy protection known in Australia as “voluntary administration.” The research was driven by the commonality and divergence of the interests of franchisors and franchisees. The article provides an insight into franchisor failure and its effect on franchisees. It presents the substantial literature survey that was used to frame questions for franchisor administrators to understand issues associated with franchisors in administration. The limited data demonstrate diversity in the treatment of franchisees during the franchisor's administration. In Australia, franchisees remain a captive, financially committed counterparty during insolvency and potentially deliver a great financial benefit to the franchisor's creditors. The article concludes that administration of franchisors does not take into account the distinct relationship between franchisors and their franchisees and provides policy recommendations to address this matter.     

Sacred alliance or pact with the devil? How and why social enterprises collaborate with mainstream businesses in the fair trade sector*

Abstract

This paper uses institutional theory to highlight different patterns of cross-sector collaboration from the perspective of social enterprises. Specifically, it explores how and why social enterprises interact with mainstream businesses and to what extent their collaboration patterns reflect a vision of how their social mission should be implemented and institutionalized. The empirical analysis is derived from a qualitative study of ‘fair trade’ – a hybrid model created by social enterprises and using market mechanisms to support small-scale producers in developing countries and to advocate for changes in international trading practices. The findings highlight three strategies used by fair trade social enterprises to manage their interactions with mainstream businesses: sector solidarity, selective engagement, and active appropriation. This paper suggests that each strategy is motivated by a different vision of how best to articulate the social mission of fair trade via specific types of collaborations. It also notes how each vision has a distinct pattern of institutionalization at the field level. This paper adds to the emergent literatures on social enterprise and social entrepreneurship, fair trade, cross-sector collaboration and hybrid organizing.