Emerald | Society and Business Review | Table of Contents

Equity and the hidden factor land: A hypothesis

literatinetwork@emeraldinsight.com (Dirk Loehr) — Fri, 28 Jun 2013 00:00:00 +0100

Abstract

Purpose - The article tries to develop a research hypothesis: Although individual companies deviate, in an average observation equity seems to reflect the value of land, and profits appear to reflect the land rent-earning capacity of the company’s assets.Design/methodology/approach - This hypothesis is based on a broad interpretation of the almost forgotten production factor land, as an exclusive real option. The article substantiates the connection between equity and key assets preliminarily by considering samples of balance sheets of Germany and the UK. Findings - The land rent (in a wide sense) is hidden in many cases and diffusing on assets with similar features as land. Access to land (in a broad sense) and the foundation of the profits on rents appear to be an essential base for sustainable performance of companies. Originality/value - If the hypothesis holds true, equity is nothing other than indirect participation in land (in a broad sense), with impacts on many concepts. For instance, investment policy of pension funds had to be revised, since old-age provision in stocks would be an indirect investment in land – but an economy as a whole cannot build its savings on land. A consequent taxation on land and other natural resources could replace business taxation. Only a sound endowment with equity opens the access to land and similar assets, which is a challenge for small and medium sized companies.

Social Business and Grameen Danone Foods Limited

literatinetwork@emeraldinsight.com (GD Sardana) — Fri, 28 Jun 2013 00:00:00 +0100

Abstract

Purpose - Capitalism as a concept is founded on ‘free economy’ guided by free price system and a free access to markets. Many of the ills facing the present day society as unemployment, poverty, rising disparities of income, malnutrition, high polluted environment are getting increasingly linked to this corporate philosophy. Alternates such as social business enterprises have been suggested and practiced by some of the enlightened entrepreneurs. This paper examines the tenets of social business, which advocates enhancing values to society, and the social benefit to all the stakeholders. Design/methodology/approach - This is an exploratory study and presents the origin, the rationale of the development of the strategic business model and its implementation . The model based on the philosophy of social business has been developed and practiced by Grameen Danone Foods Limited. The study has been conducted entirely on the basis of information and data available in the public domain. Findings - The findings project encouraging contribution towards enhancing social benefits to the society. These are visible in meeting the needs of the children suffering from malnutrition, in generation of the employment and providing a rare dignity to the poor of the poorest. The shortfall in business results is traced to missing economy of scale of operations. Originality/value - Social Business is a new and a bold concept. It has faced many hurdles in its journey to meet objectives. The solutions it has discovered are sure to benefit many researchers, entrepreneurs, social-welfare oriented societies, non-profit organizations, national planners, regulators and society-leaders.

Classification of CSR standards in the light of ISO 26000

literatinetwork@emeraldinsight.com (karen Delchet-Cochet, Linh-Chi Vo) — Fri, 28 Jun 2013 00:00:00 +0100

Abstract

Purpose - The proliferation of reference documents related to corporate social responsibility, CSR, intensifies the debate but renders the topic more complex. Many views coexist through standards with varying objectives and legitimacy. In this article we will analyze the different classifications of existing reference documents related to CSR and propose a complementary approach of this subject in regards with the ISO26000. Design/methodology/approach - The publication of ISO 26000 in November 2010, an International Standard providing guidelines for CSR, seems to have modified the landscape of reference documents by bringing up the issue of legitimacy in the overview of the standards. We will analyze 4 different classifications of existing reference documents related to CSR in order to understand their approach. Findings - The issue of the purpose and legitimacy of tools evoked by ISO 26000 experts enables us to propose a complementary approach to existing classifications, by positioning the main tools related to CSR in relation to each other. Originality/value - This article presents a comparison of existing classification of CSR standards in regards with the ISO26000.

Motives behind white-collar crime. Results of a quantitative and qualitative study in Germany.

Fri, 28 Jun 2013 00:00:00 +0100

Abstract

Purpose - Knowledge on corporate crime still lags behind its far-reaching economic significance. In order to learn more about the motives of corporate criminals, qualitative psychological interviews were conducted with convicted offenders to identify the critical motives behind the crimes. In a quantitative analysis the offender profiles were then systematically compared and validated with the help of court records from public prosecutors’ offices in Germany. The aim was to gain insights into the complex interaction of emotional, motivational and cognitive processes leading up to the crime in order to draw possible conclusions for how best to prevent and combat white-collar crime.Design/methodology/approach - In order to learn more about the motives of corporate criminals, thirteen qualitative psychological interviews were conducted with convicted delinquents in various penitentiaries. The focus was on fraud, embezzlement, breach of trust and corruption. In addition, the court files of sixty corporate criminals from eleven German public prosecutors’ offices were analysed systematically in order to evaluate pivotal motives and propitious conditions for criminal behaviour along with characteristic personality traits of the perpetrators. Findings - Five different criminal psychological profiles were identified that enable a better understanding of the motives behind white-collar crime. The key point is to gain insight into the complex interaction of emotional, motivational and cognitive processes that lead to a criminal act in order to derive possible consequences for preventing and combating white-collar crime. The results of the study in fact reveal extremely disparate delinquent types that demand a mix of preventive measures and an adequate compliance management framework.Research limitations/implications - This area of research in fact opens up a large field of potential empirical work on Behavioral Business Ethics. Such a behaviour-oriented business ethics can achieve highly promising prevention results.Practical implications - In our study we discovered differences in criminal psychological profiles that demand a differentiated approach. Controls and a strengthening of compliance systems are expedient measures, but by no means answer to the problems posed by all offender profiles; rather, they must be complemented by a more far-reaching, comprehensive ethics and value management that takes into account the disparity in criminal profiles and hence promises more effective prevention. Originality/value - The key point is to gain insight into the complex interaction of emotional, motivational and cognitive processes that lead to a criminal act in order to derive possible consequences for preventing and combating white-collar crime. The results of the study in fact reveal extremely disparate delinquent types that demand a mix of preventive measures and an adequate compliance management framework.

Informal economy as a "good" "bad practice"? Informal sale of medicines in Lomé

literatinetwork@emeraldinsight.com (Rosaline Dado WOROU, Yvon PESQUEUX) — Fri, 28 Jun 2013 00:00:00 +0100

Abstract

Purpose - The argument of this research is based on the observation that informal economy is a situation just as "conforming" as the formal economy. It should be mentioned that in Economics, grassroots collective and non-institutionalized action is referred to as "informal economy". It is regarded as inseparable from the formal economy - as evidenced in the case of Togo’s reform of public health policy following the Bamako Initiative and its consequences as studied in this paper - but receives less attention despite numerous studies. Can this informal economy be reconciled with public policy beyond the theme of accident and "monstrosity"? Does it question it and provide any lessons to learn from? Is it viewed as an tolerated transgression? Let’s bear in mind that the economy is based on the premise that collective action, unorganized or unrecognized, is a manifestation of recognized and thus institutionalized organized action. And the situation studied here is a different development model based on proximity and affinity networks against a backdrop of poverty. Developed countries confine informal economy to economic and commercial activities allegedly performed by people only, thus outside the scope of organizations. It any dimension is accorded to them, it stems from an inclusive use of the notion of social network and in relation to a more or less tolerated illegality. In many so-called emerging countries, this economy is ignored despite its significance. For example, no one can genuinely talk about the significance, let alone organization of the illegal drug trade. We only know that it is global, or presumably handled by multi-national networks with sophisticated logistics at a physical level (including the use of cargo aircrafts), at a security level ("private" armies) and at a financial level (is there any CSR report from an international bank addressing the issue of this type of origin for its cash flows?) If there is any domain where Africa cannot be reduced to an adjunct and has something important to tell us, it is the study of all things related to informal economy. After defining the scope of informal and informal economy, we propose to expound on the idea that informal economy is a "conforming" situation, based on the informal sale of medicines in Lomé. Design/methodology/approach - Case study based on interviewsFindings - The case makes possible to understand that the quality-price ratio mainly explains the existing practices, inducing an immediate satisfaction of the purchasers. Indeed, the average income in developing countries is very low and consumers are inclined to buy these products because of their low prices (ie. ‘Bottom of the Pyramid’ issues – BOP). Research limitations/implications - To say that the informal economy "conforms to the rules" is to assert its institutional dimension and suggest it should be considered within the categories of institutionalization. It is also a scathing criticism of the logic of international organizations and CSR, one that is unlikely to crop up in the so-called audited reports. Practical implications - Informal economy seems to be defined by how it "eludes" institutions at a legal and social level, which is somewhat of an admission of ignorance coupled with security-oriented prescriptions. As the thinking goes, implementing a police state should help control and reduce the informal economy and transform it into a formal economy, supposedly the normal situation. It is thus viewed as an abnormal phenomenon. Informal economy gives rise to innovations and the development of a kind of entrepreneurship dissimilar to that of business schools and the very honorable "social entrepreneurs". Concepts such as leadership, motivation, negotiation power, organizational learning, strategy, competitive advantage, diversity and the like have coherent materializations, albeit structurally different in origin from the received wisdom about them.Originality/value - A real field study The interviews were carried out near all the categories of actors implied in the drugs sales: wholesalers and retailers and customers (primary wholesalers, local dealers, retailers, patients). The interviews proceeded through discussions during which the person interviewed expressed openly. We privileged the listening of interviewed people, because our field study imposed to be careful.

Telling the privatization story: a study of the President's letter

literatinetwork@emeraldinsight.com (Denis Gendron, Gaetan Breton) — Fri, 28 Jun 2013 00:00:00 +0100

Abstract

Purpose - Every period has its grand narrative or dominant ideology. Elimination of the State economic implication is one of the main feature of the ideology of our time. This paper aims to explore the use of narrative instruments, mainly storytelling, to sell the privatization of State-owned firms (SOE) to the general public by their CEO. Design/methodology/approach - We privilege a semiotic analysis approach. We use specific semiotic analysis instruments: Greimas’ actantial model and Propp-Bremond function model. These main instruments can be backed on time by other devices. Our analysis will be centered on the president’s letters in the pre-privatization period of Canadian SOEs.Findings - We find evidence of the use, by the CEO, of discourse in general and specifically accounting discourse to advocate for the privatization. We also find the general structure of storytelling in the presidents’ letters studied implying the use of narrative instrument to surreptitiously convey specific messages in accordance with the surrounding ideology.Research limitations/implications - This paper studies only SOE that had been privatized. However, top managers of every SOE are facing the same legitimating problematic. Our context is strictly Canadian. Therefore, further research may examine Canadian non-privatize SOEs or foreign SOE, privatized or not.Practical implications - – Privatization is a political decision, i.e., being decided ultimately by citizens. Therefore CEOs of SOEs don’t have to intervene in the debate using their privilege standpoint. Moreover, they will not do it except if backed by politicians promoting the same interests, although tacitly. Citizens must be aware of the manoeuvres done to orientate them toward the "good" decision.Originality/value - Our paper shows that the apparent objectivity of the financial results can be used to promote political agendas. It says, after a few ones, that accounting is not a pure reflection of reality but a language used to promote specific interests. It also shows that accounting is telling stories that are used in other parts of the annual report like the president’s letter.

Business Ethics and Continental Philosophy - Book Review by Yoann Bazin

literatinetwork@emeraldinsight.com (Yoann Bazin) — Fri, 28 Jun 2013 00:00:00 +0100

Abstract

Not available.

Editorial

literatinetwork@emeraldinsight.com (Yvon Pesqueux) — Fri, 28 Jun 2013 00:00:00 +0100

Abstract

Not available.