The present book comprises thirteen chapters written by Nordic scholars in the human and social sciences, and developed out of conference papers presented at regular winter and summer symposia held by two research groups emanating from the Nordic Summer University. Born within and informed by this specific milieu, the chapters address significant sociopolitical implications for contemporary societies emerging from the ethical reflections of leading 20th century thinkers (e.g. Michel Foucault and Jürgen Habermas), important procedural as well as substantive aspects (...) of democracy, and pivotal ethico-political issues arising from the abstract logic and concrete manifestations of market economies. Though by no means devoid of their own economic, cultural and political problems, the Nordic countries are still paramount examples of humane prosperity, democratic civility, environmentally sound policy, and peaceful resolution of social and industrial conflicts. Year after year, if not decade after decade, they keep topping the international charts for socio-economic indicators about sostainable development, healthcare quality and accessibility, educational levels, crime control, preceived happiness and much else. As such, the scholarly and scientific reflections orginating within the Nordic Summer University might prove to be useful sources of insight for policy-makers, intellectuals and interested persons outside the Nordic context, and not solely inside it. (shrink)

The quest for freedom from hunger and repression has triggered in recent years a dramatic, worldwide reform of political and economic systems. Never have so many people enjoyed, or at least experimented with democratic institutions. However, many strategies for economic development in Eastern Europe and Latin America have failed with the result that entire economic systems on both continents are being transformed. This major book analyzes recent transitions to democracy and market-oriented economic reforms in Eastern Europe and Latin America. (...) Drawing in a quite distinctive way on models derived from political philosophy, economics, and game theory, Professor Przeworski also considers specific data on individual countries. Among the questions raised by the book are: What should we expect from these experiments in democracy and market economy? What new economic systems will emerge? Will these transitions result in new democracies or old dictatorships? (shrink)

ABSTRACTFrom its origins in antiquity to the emergence of neoliberalism, democracy had always been thought of as a fragile institutional construct, comprising two complementary dimensions: an objective dimension, and a subjective one. Appeared in the 1970s, the Law and economic doctrine has undermined this bases of democracy by assimilating the enactment of laws to negotiation on a market, and reducing democracy to a ‘market of ideas’. The specific status of speech in the democratic area fades out, paving the (...) way for ‘post-truth politics’ and ‘democratic dictatorships’. (shrink)

Democracy is valuable not only because it treats us equally but because it is intelligent. Democracies can make effective use of knowledge, engage in experimentation, utilise societal diversity, all the while motivating political leaders towards the common good. It is against the emergence of a new democratic scepticism, however, that this book defends the intelligence of democracy. Whether it be due to ignorant voters, irrational public debate, or disconnected politicians, a growing number now argue that democracies are destined (...) to make bad decisions. While these democratic sceptics see epistemic concerns as reasons for giving up on democracy, this book argues they are reasons to embrace it. Intelligent Democracy develops the first systemic account of democracy's epistemic value. Unlike approaches which focus on single institutions, this view conceptualises democracy as a network of actors which work together to produce epistemic benefits at the system level. While any one democratic body will be limited, this book analyses the divisions of labour within a broader deliberative system, and how best to combine inclusive elections, deliberative assemblies, random sortition, and the open public sphere. This systemic approach is shown to better explain democracy's epistemic value, while more adeptly responding to the challenges posed by the new democratic scepticism. It can demonstrate democracy's intelligence over regimes of epistocracy and political meritocracy which empower only the knowledgeable, but also overlooked proposals for granting greater powers to markets or polycentric governance. The result is a unique epistemic justification of democracy and a robust reply to democracy's critics. (shrink)

Western democracies have become neoliberal with all the disproportions of economic and political power that have emerged in capitalist society. The power acquired in the free market not only deforms the integrity of society and economic and political balance, but also it has become virtually impossible for democracy as a form of government to exist. As the scale of the free market became global, the economic entity has also gone global creating disproportions that have led Western (...) class='Hi'>democracies to be ruled by economic entities rather than political ones. However, proper education, the use of new economic decentralisation trends, changing the role of politicians and the activity of citizens, and emerging new possibilities of digital democracy give us a glimpse of how to use the opportunities of the free market for strengthening democracies. At the same time, the reforms that have taken place in China in recent years have paradoxically shown that neoliberalism can also have positive aspects for society, which, as a new balance of economic and political capital, can be applied in the West as well. (shrink)

ABSTRACT:In his 2018 presidential address to the Society of Business Ethics, Jeffery Smith claimed that political approaches to business ethics must be attentive to both the distinctive nature of commercial activity and, at the same time, the degree to which such commercial activity is structured by political decisions and choices. In what we take to be a friendly extension of the argument, we claim that Smith does not go far enough with this insight. Smith’s political approach to business ethics focuses (...) solely on the outcomes of political choices. But if we think of politics in terms of processes—as in, ongoing disagreement and contest—and not merely a series of legal, administrative, or institutional outcomes, a different view of business ethics emerges. In particular, we argue that such an emphasis points us toward seeing business actors as having a normative duty to preserve the integrity and functioning of democracy. (shrink)

Towards an Inclusive Democracy, it is argued, offers a powerful new interpretation of the history and destructive dynamics of the market and provides an inspiring new vision of the future in place of both neo-liberalism and existing forms of socialism. It is shown how this work synthesizes and develops Karl Polanyi’s characterization of the relationship between society and the market and Cornelius Castoriadis’ philosophy of autonomy. A central component of Fotopoulos’ argument is that social democracy can provide no (...) answer to neo-liberalism, so the only viable alternative to neo-liberalism is the form of inclusive democracy he elaborates. Reviewing Castoriadis’ concept of autonomy, it is argued that while Fotopoulos is certainly correct given the present deformed nature of social democracy, there is no reason to exclude social democracy as such from what Fotopoulos calls the tradition of autonomy. It is suggested that if the working class movement could free itself from the capitalist imaginary and return to its quest for autonomy, a synthesis of a radically reformed social democracy and inclusive democracy could greatly improve the prospects of each to successfully challenge not only neo-liberalism, but also the emerging liberal fascism of USA, Britain and Australia. (shrink)

This review study provides an opportunity to look at the level of organizational democracy that a large sample of private- and public-sector employees in an emerging market perceive. The focused systematic review includes empirical studies examining employees' level of OD and associated work and organizational psychological variables, using the Organizational Democracy Scale in Turkey. This paper includes studies published between January 2014 and April 2021 in the Google Academic, Dergipark, and Ulakbim databases and on the Turkish National Thesis (...) Center website. From a total of 1,778 records, 37 empirical studies meeting the inclusion criteria were included. Of these studies, 67.6% are published articles and manuscripts, 24% are unpublished dissertations, and 43.2% of the studies took place in the public sector. The results suggest that the level of employees' perceived OD was slightly above the medium level, and the scores of the private-sector employees are higher than those of the public employees. Further, empirical associations between OD and 21 different outcome variables are reported and discussed. To varying extents, significant positive correlations were found between the level of employees' perceived OD and positive organizational variables, such as organizational citizenship behavior, organizational commitment, psychological capital, and job satisfaction. On the other hand, negative significant relationships occurred between OD and negatively evaluated organizational variables, such as job stress and organizational depression. The results of this study support the importance of organizational democracy as a management approach. (shrink)

The following discussion highlights the sociological relevance of Maria Márkus’s work for the Budapest School’s concept of ‘radical democracy’. A brief historical sketch exhibits how the concept has emerged. It is in particular the ‘messy’ social conditions for equal and free forms of self-realisation in civil society that underpin radical democracy which are central in Maria Márkus’s critique of the neoliberal state, identity formation and a gendered achievement principle. Her approach, I argue, can be advanced as a prism for the (...) critical analysis of contemporary issues. To do so, I contend that late-modern societies are increasingly defined by a paradox with a pluralisation of identity claims in civil society on the one hand, and tendencies to homogenise identities on the other by concurring economic and political forces. A democratisation of everyday life, and with it diverse and plural forms of self-realisation, appears to be under homogenising pressures from governments and markets alike. This will be briefly demonstrated using Maria Márkus’s work, which also points toward possible departure points to advance a critical sociology of radical democracy. (shrink)

Globalization has been one of the most hotly contested phenomena of the past two decades. It has been a primary attractor of books, articles, and heated debate, just as postmodernism was the most fashionable and debated topic of the 1980s. A wide and diverse range of social theorists have argued that today's world is organized by accelerating globalization, which is strengthening the dominance of a world capitalist economic system, supplanting the primacy of the nation-state by transnational corporations and organizations, and (...) eroding local cultures and traditions through a global culture. Contemporary theorists from a wide range of political and theoretical positions are converging on the position that globalization is a distinguishing trend of the present moment, but there are hot debates concerning its nature, effects, and future.2 Moreover, advocates of a postmodern break in history argue that developments in transnational capitalism are producing a new global historical configuration of post- Fordism, or postmodernism as an emergent cultural logic of capitalism (Harvey 1989; Soja 1989; Jameson 1991; and Gottdiener 1995). Others define the emergent global economy and culture as a "network society" grounded in new communications and information technology (Castells 1996, 1997, and 1998). For its defenders, globalization marks the triumph of capitalism and its market economy (see apologists such as Fukuyama 1992 and Friedman 1999 who perceive this process as positive), while its critics portray globalization as negative (see, for example, Mander and Goldsmith 1996; Eisenstein 1998; and Robins and Webster 1999). Some theorists see the emergence of a new transnational ruling elite and the universalization of consumerism (Sklair 2001), while others stress global fragmentation of “the clash of civilizations” (Huntington 1996). Driving “post” discourses into novel realms of theory and politics, Hardt and Negri (2000) present the emergence of “Empire” as producing evolving forms of sovereignty, economy, culture, and political struggle that unleash an unforeseeable and unpredictable flow of novelties, surprises, and upheavals. Discourses of globalization initially were polarized into pro or con celebrations or attacks.. (shrink)

Can governments keep the pace of global markets? It is a defining characteristic of the present times, tested and measured within multiple studies, that we are living in an increasingly interconnected economy in which giant companies emerge and compete presenting new goods and products at a global scale. The competing environment of international markets produces quickly growing creatures that old nation-states struggle to understand, monitor and, consequently, regulate. In this regard, the selection process taking place in the market seems (...) to be far more effective and greedy than the selection process we apply to our governments. In this paper I discuss the basic theoretical mechanisms for the persistence of wealth concentration, introducing a general game-theoretical framework to connect governance, market economy, and wealth distribution, and to rethink democracy and fairness in policy-making, especially with the aim of global sustainability governance. (shrink)

Development cannot be left to the "magic wand" of market forces alone. This observation has been vindicated by the dismal failure of the IMF/World Bank policies in Africa since the 1970s/80s. That development needs an active state participation and some deliberately dirigiste policies brooks no controversy. Interestingly, even the World Bank has begrudgingly come to accept the centrality of the state in development after peddling policies premised on market fundamentalism for decades. Consensus is now emerging in development (...) discourses in Africa that both states and markets do play an important complimentary role in the development process. The idea that this article canvasses is that both democracy and development need a robust, capable, democratic developmental state. A democratic developmental state operates in such a way that it leaves ample room for other key non-state actors to make their critical input in the development agenda and the democratization process. The article revisits the debate on the post-colonial state; interrogates challenges for democratic governance and sustainable human development; revisits the nexus between democracy and development in the context of Southern Africa. It further investigates the impact of the current process of accelerated globalization on the state, democratization, and development project in the SADC region. (shrink)

The transformation of universities from public institutions to transnational business enterprises has met with less resistance in Australia than elsewhere. Yet this transformation undermines the founding principles of Australian democracy. This democracy emerged in opposition to the classical form of free market liberalism that the neo-liberals have revived. The logical unfolding of social liberalism in Australia underpinned the development of both the system of wage fixing and the idea of public education as conditions for democracy. The lack of resistance (...) to the destruction of democracy, as it was originally understood in Australia, by successive neoliberal governments has been due largely to the decadent state of Australian universities. These had come to be dominated by a crude form of empiricist utilitarianism, making Australia peculiarly vulnerable to the ideologues of global free markets and the power of transnational corporations who have sought to transform language to equate the dominance of all facets of life by markets as a defence of democracy. Only through a recovery of the philosophical tradition upon which Australia was founded and the development of this tradition through process metaphysics, it is argued, can genuine democracy and Australia’s public institutions, be defended. (shrink)

This article presents a conceptual investigation of the intellectual debates on the normative destination of China, which have intensified since the mid-1990s when both liberalism and the New Left emerged under the Chinese backgrounds of the spreading of marketization and the maintaining of political authoritarianism.1 The investigation, however, is not an attempt to systematically examine those debates, which, as usual in the Chinese intellectual style of the twentieth century, often freely and arbitrarily cross various issue-areas and mix very different concepts. (...) Instead, this article interprets and criticizes the debates with its own political and academic concerns , which are reflected in two questions: First, how does liberty originate from a society that traditionally and practically has had little liberty? Second, how can such liberty be, whereas it has been given to birth or substantial growth from whatever soils and by whatever paths, sustained, expanded, and institutionalized in the society? (shrink)

The literature presents a broad approach to Corporate Social Responsibility, which aggregates a diversity of issues, such as the environment, labor conditions, and human rights. We addressed the impact of increasing CSR demands during the internationalization of emerging market multinationals on one particular subject, animal welfare. This subject raises important ethical concerns, especially as we understand that animals are sentient beings. Through content analysis of annual reports, we tracked the evolution of AW-CSR activities throughout the internationalization of two (...) large Brazilian meat-processing multinationals as they accessed markets with complex AW regulations. We also synthetized findings on broiler chicken on-farm AW research in Brazil and conducted interviews to gauge the impact of CSR standards on animals. Our findings show that, although EMNs that enter developed markets engage with various standards, the impacts of standard enforcement on actual welfare are not straightforward and call for broader AW and animal ethics developments. Uneven results among AW criteria indicate that some aspects are prioritized over others. Furthermore, some actions of actors such as EMNs and low-tier suppliers seem to counterbalance the expected impact of normative pressures to change the lives of animals for the better. We conclude that AW standards may improve AW in emerging markets; but these standards do not appear to be sufficiently stringent, and require improvements to have a more significant positive impact. A major signal emerging from this research is the fundamental need to broaden the animal ethics debate regarding the use of animals to produce meat. (shrink)

This paper expounds and defends a relational egalitarian account of the moral wrongfulness of vote markets according to which such markets are incompatible with our relating to one another as equals qua people with views on what we should collectively decide. Two features of this account are especially interesting. First, it shows why vote markets are objectionable even in cases where standard objections to them, such as the complaint that they result in inequality in opportunity for political influence across rich (...) and poor people, are inapplicable. Second, it specifies the sense in which, politically speaking, we should relate as equals, and in doing provides a richer version of recent relational egalitarian accounts of the ideal of democracy. (shrink)

One of the challenges facing AI governance is the need for multiple scales. Universal human rights require a global scale. If someone asks AI if education is harmful to women, the answer should be “no” regardless of their location. But economic democratization requires local control: if AI’s power over an economy is dictated by corporate giants or authoritarian states, it may degrade democracy’s social and environmental foundations. AI democratization, in other words, needs to operate across multiple scales. Nature allows the (...) multiscale flourishing of biological systems through fractal distributions. In this paper, we show that key elements of the fractal scaling found in nature can be applied to the AI democratization process. We begin by looking at fractal trees in nature and applying similar analytics to tree representations of online conversations. We first examine this application in the context of OpenAI’s “Democratic Inputs” projects for globally acceptable policies. We then look at the advantages of independent AI ownership at local micro-levels, reporting on initial outcomes for experiments with AI and related technologies in community-based systems. Finally, we offer a synthesis of the two, micro and macro, in a multifractal model. Just as nature allows multifractal systems to maximize biodiverse flourishing, we propose a combination of community-owned AI at the micro-level, and globally democratized AI policies at the macro-level, for a more egalitarian and sustainable future. (shrink)

This article links three rarely considered dimensions related to the implementation of artificial intelligence (AI)-based technologies in the form of predictive policing and discusses them in relation to liberal democratic societies. The three dimensions are the theoretical embedding and the workings of AI within anomic conditions (1), potential normative disorders emerging from them in the form of thinking errors and discriminatory practices (2) as well as the consequences of these disorders on the psychosocial, and emotional level (3). Against this (...) background, AI-induced anomie is conceptualized as a field of tension that refers to a systematic deterioration of democratic norms that are supposed to create ‘normative orders’, but which, when implemented through AI-supported measures, can reproduce existing discriminations, and establish new kinds of discriminatory relations. In future, these AI-based measures have the potential to lead to opposing normative disorders by emerging in the form of false social norms to an equally false Second Nature. They deprive persons involved of the possibility of individual appropriation of social norms and the specific emotional development associated with it. (shrink)

Although interest in Corporate Social Responsibility (CSR) in emerging markets has increased in recent years, most research still focuses on developed countries. The scant literature on the topic, which traditionally suggested that CSR was relatively underdeveloped in emerging markets, has recently explored the context specificity, suggesting that it is different and reflects the specific social and political background. This would particularly apply to local companies, not so much to foreign subsidiaries of multinationals active in emerging markets. Thus (...) far, empirical research that systematically documents a range of CSR activities of local companies and their performance has been scarce. This paper reports the results of a survey conducted among companies in the Mexican auto industry. CSR performance was investigated across three dimensions: environmental, labor, and community, using measures from existing research and global, ' Western' standards of practice, to identify the type of CSR activities and the level of CSR performance that exists, if at all, in the emerging-market context. Results show that local companies do engage in the type of CSR activities commonly associated with CSR in developed countries. To the extent that comparisons could be made, our findings also indicate that CSR activities and levels among the sample are comparable to what is known about CSR in developed-country settings. Moreover, six of the nine CSR dimensions are intercorrelated, which suggests that CSR in the Mexican auto parts industry is more structural than incidental. (shrink)

Daily returns of stock markets in 27 emerging markets in Asia, Africa, South America, and Eastern Europe from the early 1990s through 2006 are analyzed for the possible presence of nonlinear speculative bubbles. The absence of these is tested for by studying residuals of VAR-based fundamentals, using the Hamilton regime-switching model and the rescaled range analysis of Hurst. For the first test absence of bubbles is rejected for 24 countries (except Mexico, Sri Lanka, and Taiwan), and for the second (...) it is rejected for 26 (except Malaysia). BDS testing on residuals after ARCH effects are removed fails to reject further nonlinearity in the residual series for all countries. (shrink)

It is widely held that the cure for such profound social maladies is within reach. The hopes have foundation. The past few years have seen the fall of brutal tyrannies, the growth of scientific understanding that offers great promise, and many other reasons to look forward to a brighter future. The discourse of the privileged is marked by confidence and triumphalism: the way forward is known, and there is no other. The basic theme, articulated with force and clarity, is that (...) "America's victory in the Cold War was a victory for a set of political and economic principles: democracy and the free market." These principles are "the wave of the future - a future for which America is both the gatekeeper and the model." I am quoting the chief political commentator of the New York Times , but the picture is conventional, widely repeated throughout much of the world, and accepted as generally accurate even by critics. It was also enunciated as the "Clinton Doctrine," which declared that our new mission is to "consolidate the victory of democracy and open markets" that had just been won. There remains a range of disagreement: at one extreme "Wilsonian idealists" urge continued dedication to the traditional mission of benevolence; at the other, "realists" counter that we may lack the means to conduct these crusades of "global meliorism," and should not neglect our own interests in the service of others.[2] Within this range lies the path to a better world. (shrink)

John Tomasi argues that aggressively pro-market, capitalist regimes can secure fair equality of opportunity—a level playing field—even as they honor people's thick economic liberties. The trick is to rely on markets to spread prosperity and high-quality healthcare and education to all. That done, each person will have fair opportunity. Or will she? In truth, Tomasi's “market-democratic” plan cannot bring genuinely fair opportunity to all, even at the level of ideal theory. Nor can it plausibly promise to increase the (...) “quality” of opportunity: the supply, that is, of intrinsically desirable work. (shrink)

Democratic theorists, especially since the advent of the deliberative democracy paradigm in the 1980s, have focused primarily on relationships involving citizens and their political representatives, and have thus paid scant attention to the bureaucratic agencies within the modern state that are presumed merely to “flesh out,” implement, and enforce the decisions made by elected officials. This undertheorized space between markets and democratic decision making, in brief, is where corporations and other interested parties inter- act with regulatory agencies, their bureaucrats, and (...) the elected officials who are accountable for what governments do on their watch. How and why ought democratic governments to facilitate, regulate, or get out of the way of, markets and corporations in a so-called market democracy? We cannot possibly provide or defend a detailed answer to this question here. What we will attempt to do, however, is to make the case for why the question is too normatively and conceptually rich for political philosophers to continue to outsource it almost entirely to scholars in law and the social sciences. Although the tensions between lawmaking by bureaucrats and the ideals of representative democracy rarely merit more than a few sentences of abstract reflection by democratic theorists, we have tried to reconstruct the implicit assumptions that might explain this neglect. (shrink)

BackgroundUser selection is an important guarantee for the sustainable development of mobile medical businesses. Under the background of increasingly fierce competition, the decision-making behavior of mobile medical businesses will directly affect the choice of the behavior of users.MethodsThe study constructs the decision-making behavior model of mobile medical business based on the user choice and adds the role of people in government. It uses the game method to explore the relationship between the government, mobile medical business, and users. Finally, it makes (...) an example analysis. Empirical research is conducted to demonstrate the influence of different parameter changes on the results.ResultsThe results show that in the absence of government intervention, users’ choice of filtering information will create a bad environment for mobile medical businesses, and further will be reduced, and the expected utility of businesses will not be affected causing a reduction in expected utility of companies. Similarly, government regulations can effectively improve the mobile medical environment and enhance the expected utility of mobile medical companies.ConclusionThe government needs to formulate relevant laws and regulations to ensure the orderly operation of the mobile medical market and strengthen government supervision. It is necessary to conduct publicity and education to protect the fundamental interests of users and businesses. (shrink)

This book fills the gap between theories and practices of corporate governance in emerging markets by providing the reader with an in-depth understanding of governance mechanisms, practices and cases in these markets. It is an invaluable resource not only for academic researchers and graduate students in law, economics, management and finance, but also for people practicing governance such as lawmakers, policymakers and international organizations promoting best governance practices in emerging countries. Investors can benefit from this book to better (...) understand of these markets and to make judicious investment decisions. (shrink)

Prior research suggests that corporate credibility is associated with firm financial performance in developed countries. This article examines whether corporate credibility is related to firm performance using Economic Observer's rating of corporate credibility in China, the largest emerging market in the world. Based on a four-stage valuation model, we find that more reputable and credible firms outperform those with low ratings by almost 20% in 3-year stock returns and have better 3-year net profit margins, return on equity, and (...) sales growth. This study is the first to directly examine the relationship between corporate credibility and firm performance in emerging markets such as China, and our results confirm that firms with high credibility exhibit better financial and market performance at least in the following 3 years. (shrink)

This paper analyzes the interlink among managerial experience, capabilities, and social capital in relation to corporate social responsibility (CSR) activities of multinational enterprises' (MNEs) subsidiaries in an emerging market context. Based on the empirical sample of 104 subsidiaries of 28 Italian MNEs operating in India, we found that CEO managerial capabilities are positively associated with CSR activities. However, interestingly, our findings also show that subsidiary CEO (managerial) experience is negatively associated with CSR activities in emerging markets. Therefore, (...) our study is one of the few that highlights the negative repercussions of experience in the context of CSR activities in emerging markets. Moreover, our findings show that while social capital alleviates the negative influences of CEO experience on CSR activities, it does not enhance the role of CEO managerial capabilities in CSR activities. As such, our study contributes to research on business ethics with a focus on sustainable development in business. (shrink)

Emerging markets are a growing force, and the resulting increase in wealth—especially among the middle class—promotes conspicuous consumption with potentially negative impacts for societal and environmental well-being. Efforts to encourage ethical consumer behavior in emerging markets often meet various forms of consumer resistance. One reason that ethical consumption may suffer in emerging markets is because consumers have difficulty considering ethical other-focused attributes, such as Fair Trade or eco-friendly options, especially if those attributes do not directly benefit the (...) self. Our research demonstrates a simple way to encourage more ethical consumption in emerging markets, without economic incentives. In particular, when consumers see narrow (vs. broad) product categories, they are more likely to incorporate both salient (self-focused) and non-salient (other-focused) attributes into their decision. Thus, narrow product categories encourage consumers to consider ethical attributes to a greater extent than they normally would. This finding holds in private settings, across various product categories (i.e., coffee, tea, juice) and contexts (i.e., online and in the field), and in different emerging markets (e.g., India, South Africa, and Iran). (shrink)

This paper posits that differences in corporate governance structure partly result from differences in institutional arrangements linked to business systems. We developed a new international triad of business systems: the Anglo-American, the Communitarian and the Emerging system, building on the frameworks of Choi et al. (British Academy of Management (Kynoch Birmingham) 1996, Management International Review 39, 257–279, 1999). A common factor determining the success of a corporate governance structure is the extent to which it is transparent to market (...) forces. Such transparency is more than pure financial transparency; as it can also be based on factors such as governmental, banking and other types of institutional transparency mechanism. There may also be a choice for firms to adopt voluntary corporate disclosure in situations where mandatory disclosure is not established. The Asian financial crisis of 1997–1999 and the more recent corporate governance scandals such as Enron, Andersen and Worldcom in the United States and Ahold and Parmalat in Europe show that corporate governance and business ethics issues exist throughout the world. As an illustration we focus on Asia’s emerging1 markets, as, both in view of the pressure of globalization and taking into account the institutional arrangements peculiar to the emerging business system, these issues are important there. Particularly for those who have to find an accommodation between the corporate governance structures and disclosure standards of the Emerging system and those of the Anglo-American and Communitarian systems. (shrink)

Why do multinational corporations frequently encounter corporate social responsibility crises in leading emerging markets in the new century? Existing research about institutional impacts on MNC CSR has developed a void-based account about how the flawed institutional system allows misdeeds to happen. But the fact that such misdeeds have turned into increasing CSR crises in the new century along with institutional change is rarely taken into account. This paper combines studies of institutional voids, institutional entrepreneurship, and stakeholder theory to develop (...) a concept of institutional sophistication, which refers to both the top-down maturation of the regulatory system that standardizes firm behavior and the bottom-up diversification and intensification of grassroots initiatives that redefine stakeholder membership. Based on this concept, we developed a framework to comprehensively demonstrate how both institutional voids and sophistication drive the MNC CSR crisis in leading emerging markets. Empirically, we established an original database that includes 309 publicized CSR crises encountered by major foreign MNCs in China, India, and Russia, 2000–2011. Through a content analysis, the paper reveals six common sophistication processes that drive the MNC crisis across contexts and also specifies stakeholder strategies that make these processes happen and vary by social problems and national contexts. We also discussed the value of studying corporate social irresponsible behavior in understanding the institution–MNC relationship. (shrink)

This study attempts to fill in two research gaps in the extant literature concerning the ecosystem for social innovation in the context of emerging market economies such as India. The study first attempts to assess the potential of corporate social responsibility (CSR) in not-for-profit entities such as technology business incubators (TBIs) to stimulate social innovations in the prevalent ecosystems in emerging markets. Further, using a random-effects Tobit model, the study examines the characteristics of firms that spend higher (...) percentages of CSR expenditure on not-for-profit TBIs/societies/trusts in India. The study provides policy suggestions to create an entrepreneurial ecosystem for promoting social innovation in emerging markets such as India. (shrink)

For three decades, scholars have investigated the phenomena of organizational misconduct (OM) in the fields of business ethics, management, and organization studies. In recent years, the construct has gained increased attention due to widely reported corruption, bribery, crime, violations, and other acts of immorality undertaken by organizations, especially in emerging markets. Despite its popularity, review studies on OM are sparse, and no systematic review of research on OM in the context of emerging markets exists. This article attempts to (...) fill this void by analyzing the literature on OM in the specific context of emerging markets based on a systematic review methodology and integration approach. Based on the findings of our literature review, we develop an integrative model of the antecedents and consequences of OM in emerging markets and discuss important moderators that may curtail the development of OM and alleviate its consequences. In doing so, we provide scholars with a conceptual model and overview of the current knowledge and findings on the topic. We further discuss important gaps in the literature and provide fruitful avenues for future work that we believe are promising to advance our understanding of OM in the context of emerging markets. (shrink)

This study investigates the antecedents of human rights infringements by emerging market firms. We used fuzzy set qualitative comparative analysis to examine HRIs in 245 firms based in eight emerging markets, between 2003 and 2012. Our findings disclose three equifinal configurations of high levels of HRIs, all involving EFs that have expanded to a high number of foreign markets: large, old, low performing state-owned enterprises operating in high quality institutions’ home and host markets, small, young, over-performing EFs (...) operating in low quality institutions’ home and host markets, and finally large, old, high performing SOEs, operating in low quality institutions’ home and host markets. We contribute to the literature by examining a novel dataset on HRIs by EFs, and by building a configurational explanation of HRIs that bridges the arguments of the institutional theory and strain theory literatures on corporate wrongdoing. (shrink)

This study addresses the question whether corporate social responsibility (CSR) matters in Asian Emerging Markets. Based on CSR scores compiled by Credit Lyonnais Securities (Asia), we assess the CSR performance of major Asian firms over a period of 3 years, from 2001 to 2004. The results show that there is a positive and significant relation between CSR and market valuation among Asian firms. We further find that CSR is positively related to the market valuation of the subsequent (...) year. More importantly, Asian firms are rewarded by the market for improving their CSR practice. (shrink)

Corruption devours profits, people, and the planet. Ethical leaders promote ethical behaviors. We develop a first-stage moderated mediation theoretical model, explore the intricate relationships between ethical leadership and employee ethical behaviors, and treat ethical climate and organizational justice as dual mediators and leaders’ moral attentiveness as a moderator. We investigate leadership from two perspectives—leaders’ self-evaluation of moral attentiveness and members’ perceptions of ethical leadership. We theorize: These dual mediation mechanisms are more robust for high moral leaders than low moral leaders. (...) Our three-wave data collected from multiple sources, 236 members and 98 immediate supervisors in the Republic of Iraq, support our theory. Specifically, ethical leadership robustly impacts organizational justice’s intensity and magnitude, leading to high employee ethical behaviors when leaders’ moral attentiveness is high than low. However, ethical leadership only influences the ethical climate’s intensity but has no impact on the magnitude when leaders’ moral attentiveness is high than low. Therefore, organizational justice is a more robust mediator than the ethical climate in the omnibus context of leader moral attentiveness. Our findings support Western theory and constructs, demonstrating a new theory for Muslims in Arabic’s emerging markets. Individual decision-makers apply their values as a lens to frame their concerns in the immediate and omnibus contexts to maximize their expected utility and ultimate serenity-happiness. Ethical leadership trickles down to employee ethical behaviors, providing practical implications for improving the ethical environment, corporate social responsibility, leader-member exchange, business ethics, and economic potentials in the global competitive markets. (shrink)

Corporate governance has come to be recognised as a cornerstone of economic reforms seeking to promote stability and growth in developing countries. The Asian crisis of the 1997 was viewed as having roots in poor governance and hence national governments as well as international organisations have sought to promote a strengthening of governance mechanisms. This article investigates governance reforms in India over the last decade. The paper reviews changes in Indian governance codes that indicate a preference of adoption of Anglo-American (...) governance models. A survey of ownership structures of Indian listed companies reveals a mixture of governance mechanisms and a persistence of the "business house model" of governance. The paper concludes that despite external pressures towards an "Anglo-Americanisation" of governance practice, the outcomes thus far reveal the emergence of a diversity of governance mechanisms arising in a path-dependent fashion. (shrink)

In a recent contribution to this journal, Arjaliès (J Bus Ethics 92:57—78, 2010) suggests that the emergence of socially responsible investment (SRI) in France can be best described as a social movement with a collective identity that aimed to challenge the dominant logic of the financial market. Such an account is at odds with a body of empirical studies that approaches SRI in the French context as a process of market creation led by loosely coordinated actors with contradictory (...) and conflicting interests and values, who have mainly complied with—rather than opposed—the existing dominant financial logic of the asset-management field. In this comment, we build on this prior research to contest Arjaliès' perspective on both theoretical and empirical grounds, with the aim of highlighting the shortcomings of conflating social movements and other forms of collective actions in understanding the building of new markets in organization theory and SRI studies. We contend that in mistaking for social movement forms of collective actions that underpin the emergence of markets, scholars of organization theory may confuse distinct mechanisms in their explanation of SRI emergence across countries, overlook the complex dynamics and interactions of markets and social movements, and, most importantly, fail to evaluate the real political significance of SRI as an empirical phenomenon. We propose that future research on SRI distinguishes carefully "social-movement research as a theoretical framework" from "social movement as an empirical phenomenon" in order to avoid such drawbacks while benefiting from recent advances in social-movement research. (shrink)

With the expansion of multinational corporations, the alarming upsurge in widely publicized and notable corporate scandals involving MNCs in emerging markets has begun to draw both academic and managerial attention to look beyond home market practices to the pressing concern of CSR in emerging markets. Previous studies on CSR have focused primarily on Western markets, reserving limited discussions in addressing the issue of MNC attitudes and CSR practices in their emerging host markets abroad. Despite this incongruity (...) in academic response to CSR in emerging markets, managers of multinational companies continue to face mounting and most often conflicting pressures to weigh among multiple strategic CSR responses in emerging markets. Such a task is often further complicated by the complexity of varying business norms and standards, regulatory environments, and stakeholder demands for CSR across national boundaries. With such a challenge in mind, I attempt to examine the explanatory factors in leading MNCs, otherwise recognized for accountability and integrity in their home markets, to employ inconsistent or negligent practices under CSR pressure in Chinese emerging economy. Preliminary findings reveal that discrepancies exist in how MNCs perform in CSR in home countries versus in host countries. While MNCs do have much to improve, the institutional environment in the emerging market, including the legal framework and the ethical culture, also needs to be improved by the host country governments, the industry associations, and local firms. Meanwhile, media interest and journalists, NGOs, third party monitors, industry stakeholders as well as consumer advocacy groups can raise the visibility of MNC’s contradictory practices between their origin nations and countries with emerging economies and offer the pressures and incentives for MNCs to amend their ethical shortcomings. This article also suggests implications for both theory and practice. (shrink)

ABSTRACTClassical liberals and libertarians assign fundamental importance to economic liberties and champion bottom-up approaches to social welfare. They point to the significance, even superiority, of philanthropy in providing for society's most disadvantaged citizens, and they defend rights of inheritance and intergenerational transmission of wealth. So one might think that John Tomasi's “market democracy” would defend gift giving and philanthropy. But market democracy leaves far less room than might be thought for an enthusiastic defense of gift giving and philanthropy, (...) and this distances market democracy more than we might expect from the territory of classical liberalism and libertarianism. (shrink)

Entry of new organizations, including multinational enterprises from emerging markets, raises the ethical question of will they benefit society. The concept of legitimacy answers this question because it is the overall assessment of the appropriateness of organizational ends and means. Moreover, gaining legitimacy enables EMNEs to succeed in new host countries. Past work examined collective level indicators of the legitimacy of MNEs, but recent research recognizes the importance of individuals’ perceptions as the micro-foundation of legitimacy. This study first uses (...) new pragmatism, deontology, and utilitarianism to demonstrate that legitimacy is fundamentally an ethical concept—a perspective that has been overlooked in management research. Second, this study uses a seven-step procedure to develop and validate a measure of individuals’ perceptions of the legitimacy of Chinese EMNEs operating in The Netherlands, a developed country. Six dimensions of legitimacy were identified. The study also finds support for this legitimacy judgment process linking the dimensions: validating knowledge → propriety judgments → generalized judgment. This work provides additional micro-foundations to research on legitimacy and contributes to the ongoing process of construct validation. Future research could use the validated measure in other settings and use specific ethical theories in depth to refine the concept of legitimacy. (shrink)

This article explores the substitution and complementary effects between political and social strategies on firm performance in the context of an emerging market (EM). Using in‐depth, historical case‐study approach, the article investigates how companies integrate political and social resources in this market. Corporate performance includes traditional measures, such as accounting performance and nonfinancial measures like the ease of doing business. The study finds that social strategies are stronger enablers of firm long‐term performance than political strategies. The latter (...) have a short‐term impact on performance, but their success over time is limited. The main drawback of reliance on political resources in EMs is the lack of political stability, fragmented polity, and weak political coalitions. We identify rather limited evidence of firms using these two strategies as complements. Thus, we suggest that firms should employ both these strategies in the EM. (shrink)

We examine the role of socio-demographic factors on consumers’ pro-environmental behavior (PEB)–a subset of ethical behavior and analyze its implications in an emerging market, with a sample study from India. Multivariate analysis of variance (MANOVA) was performed as research method. Results show that males display higher PEB than their female counterparts. Married consumers score more on PEB than single. Mid-age consumers (36–50) also score high on PEB than young and old-age consumers. Furthermore, highly educated consumers are more pro-environmentalist (...) than graduates and post-graduates. The novelty of this study is that centers on the use of demographic variables interactively in order to form microsegments. For instance, married men score more on PEB scale than unmarried men and women and prefer green channels even more (i.e., public transportation). On the contrary, unmarried women display no hesitation in paying more for energy-efficient goods compared to married men and unmarried men. Marketers may aim in setting such PEBs as the moral standards among consumers being an easily identifiable segment as their prime target. (shrink)

Using an institutional perspective, this paper investigates how consumers in Western developed and Southeast Asian emerging markets respond to fashion brands’ moral transgressions and how consumers’ moral rationalization tendencies vary across the two markets. The study employs multimethod analyses, including cross-national secondary data from 12 countries and experimental data from 940 German and Vietnamese consumers. In a non-transgression context, the multivariate analyses show that Western developed-market consumers embrace higher ethical standards (Study 1A), tend to seek collective action against (...) prevalent immoral behaviors in society (Study 1B), and are more critical in evaluating fashion brand ethicality than Southeast Asian emerging-market consumers (Study 2). However, in a transgression context, the moderated mediation analyses reveal that consumers largely do not differ in their direct devaluation of fashion brand ethicality and subsequent price considerations (Study 3) across six transgression scenarios (i.e., worker abuse, child labor, racist advertising, weight discrimination, climate change, and environmental pollution). Interestingly, moral rationalization processes appear to be more frequent and consequential in the Southeast Asian emerging market, while they either do not occur or are significantly weaker in the Western developed market. The results provide theoretical and practical implications for ethical business practices in the fashion industry based on market differences in regulatory frameworks, cognitive considerations, and social norms. (shrink)