This paper presents an analysis of the opinions of U.K. Finance Directors – also known as Chief Financial Officers (CFOs) in North America – on factors which may effect the roles and responsibilities of the external auditor to the organization. A number of proposals have been put forward over the years to enhance auditor independence and these were treated as dependent variables in this study. A questionnaire was mailed to 3 000 named Finance Directors and 776 (...) useable replies were received. From the responses to the questionnaire, three independent variables were identified: opinions on the value of the audit in general; opinions on the impact of the audit on the organization; and the relationship between the Finance Director and the auditor. The results reveal that those Finance Directors concerned in general about the value of auditing favoured the banning of non-audit work and the rotation of auditors. In addition, those Finance Directors with good relationships with their external auditors preferred the banning of non-audit services and the rotation of external auditors. Those respondents favouring the separate regulation of auditors were also concerned about the impact of the audit on the organization. The results of this study shed some light on the sensitivity of U.K. Finance Directors to ethical issues regarding external auditor independence. (shrink)

Corporate governance and finance are dynamic academic fields that offer myriad opportunities for business ethics analysis. Within the corporate governance triad in recent years, shareholders have increased their power over boards of directors and executives through both regulation and movements to change corporate by-laws. The impact of board characteristics on firm performance has proven elusive, leading to questions concerning board processes and individual director beliefs and behaviors. At the same time, CEOs have lost considerable power, leaving many struggling (...) to regain their control and maintain their compensation levels, while others adopt a stewardship approach to their posts. In the field of finance, the recent financial debacle has led to a reexamination of financial regulation and of the fundamental nature and purpose of the industry. All of these issues provide business ethicists fodder for investigation and analysis. (shrink)

Whether corporate strategic Environmental, Social, and Governance (ESG) disclosure can be effectively screened by external markets still needs more empirical support. Despite numerous studies confirming the positive impact of ESG, the issue of strategic ESG disclosure has yet to receive sufficient attention. This study examines the impact of ESG greenwashing on the cost of debt financing and stock returns using panel data of Chinese A-share listed corporates from 2012 to 2021. The study finds that external markets fail to recognize ESG (...) greenwashing in the short term, leading to a temporary reduction in the cost of debt financing and an increase in stock returns, but these effects are not lasting. Mechanism analysis shows that ESG greenwashing enhances corporate reputation and reduces the cost of debt financing through the reputation effect, stimulates investor sentiment, and improves stock returns through the sentiment effect. The study identifies management myopia, excessive power, financial distress, and information asymmetry as the main drivers. However, strong oversight by independent directors, involvement of Big Four audit firms, investor site visits, and high industry competition can mitigate these misleading effects. This research expands the understanding of the causes and economic consequences of corporate ESG greenwashing and provides empirical evidence for managing this phenomenon. (shrink)

The church is called to be a tangible messenger of hope in society. Communities of poverty, especially, need a church that carries its mandate both through proclamation and through deed. This research is a case study of a team located in South Africa that is part of an international missional order called InnerCHANGE. The latter focuses on discipleship and the nurturing of local leaders who are community builders in areas of poverty. This focus is expressed through practical ministry initiatives. The (...) latter necessitates finances through the team does not always have. A desire to overcome its financial challenges led it to decide to get some training in financial literacy, so that it can improve its fundraising efforts. This training was provided by a finance broker. The latter started his teaching with personal finances before going into organisational finances. He believed that good personal financial stewardship leads to good corporate financial stewardship. The outcome of this training led ICSA staff and the board of directors to diversify their fundraising efforts and to set the target of saving 15% of its income. The work is still in progress for reaching this target. However, for 2 years in a row, ICSA has been making some good progress in increasing its income and savings. This article concludes by advising the body of Christ serving from below to pursue training in financial management so that it can strengthen its checks and balance system which could lead to sustainability.Contribution: This article contributes to the on-going discussions about financially sustainable models of the church from below in Africa so that the church can remain an important role player in serving local communities practically. It uses InnerCHANGE South Africa as a case study of such efforts. (shrink)

Building on the notion that organizations are congruence seeking systems, this study investigates the impact of green investing on corporate environmental violations (CEVs). The research sample consists of China's A-share-listed companies for the period 2009–2020. The study employs a robust analytical framework that integrates least squares dummy variable approach, different proxies for regressors and moderators, and instrumental variable technique. Based on the rigorous methods, empirical analysis reveals that green investing helps mitigate CEVs, aligning with the theoretical premise of environmental strategic (...) congruence. The moderating results indicate that elevated CEO ability and a higher proportion of female directors on boards enhances strategic congruence and amplifies the alleviating effects of green investing on CEVs. Furthermore, cross-sectional analysis suggests that the mitigating effect of green investing on CEVs is more pronounced for firms in sensitive sectors, state-owned, and lacking internal controls for environmental, health, and safety. This research contributes nuanced insights on the role of strategic congruence in sustainable finance and governance and presents practical implications for policymakers, managers, and corporate leaders navigating the intricate landscape of environmental responsibility within an emerging market. (shrink)

As an important corporate governance mechanism, directors’ and officers’ liability insurance is theoretically associated with corporate financialization because it directly affects incentive constraints and risk preference of enterprise managers. However, whether there is a causal relationship in fact has not been sufficiently empirically investigated. Using a sample of Chinese non-financial listed companies in Shanghai and Shenzhen A-shares from 2008 to 2020, this paper empirically analyzes how corporate subscription to directors’ and officers’ liability insurance affects corporate financialization and examines (...) the mediating role played by risk-taking, financing constraints, and audit quality. The study finds that corporate subscription to D&O insurance increases corporate financialization. In terms of the influential mechanism, subscription to D&O insurance promotes financialization by increasing risk-taking, alleviating financing constraints, and improving audit quality. In addition, the results in the heterogeneity analysis suggest that the promotion of financialization by subscribing to D&O insurance is more significant in state-owned enterprises, growth and decline stage enterprises, and non-dual-employment enterprises. (shrink)

We examine whether the behavior of institutional investors representatives on boards leads to observable differences in corporate finance. We find that directors representing pressure-sensitive investors prefer lower financial leverage whereas pressure-resistant directors show no particular preference. When analyzed separately, directors appointed by banks and insurance firms have different attitudes. Bank representatives on boards increase both the financial leverage and the banking debt. This result suggests that some types of institutional directors provide financial resources to the (...) firms on whose board they sit, supporting the view that boards manage the uncertainty associated with strategic decision making and provide firms with preferential access to resources and financial expertise. This research has interesting academic and policy implications for the debate over the proper degree of institutional involvement in corporate governance. Different institutional investors have different agendas and incentives for corporate governance, and, therefore, both researchers and policy makers should no longer consider institutional investors as a whole. In addition, our paper calls for new research on the causes and implications of institutional investor involvement in the corporate governance of nonfinancial firms. This new research could require new insights on the dynamics within the boards and on the interplay among the knowledge, incentives and attitudes of quite different directors. (shrink)

Does the board of directors influence cost of debt financing? This study of a sample of Spanish listed companies during the period 2004-2007 provides some evidence about the question. The results suggest that two board attributes - director ownership and board activity - appear to influence in the risk assessment of debtholders because of their ability to reduce agency cost and information asymmetry. We also find a non-linear relationship between board size and cost of debt, suggesting that from certain (...) levels the benefits of large boards may be outweighed by the cost of poorer communication and increased decision-making time. (shrink)

The article deals with the financing of investment projects by the World Bank, especially the rehabilitation of hydropower plants. It is noted that cooperation with Ukraine World Bank launched since 1992. The World Bank develops and finances projects at the request of the Government of Ukraine. After evaluating the project and the terms of the loan are following the negotiations, the approval of the Board of Directors and the signing of the agreement. The funds of the World Bank in (...) Ukraine are on the system of financing and investment projects. The content system projects is to change the conditions and rules of certain sectors of the public administration or industries. The aim of the investment projects is the technical reconstruction of some existing businesses a particular industry or region, creating new companies or provide funds to replenish the working capital of enterprises. This clearly defined list of goods, services and works to be procured through the World Bank loan. The paper conclusions on the results of the project of rehabilitation of hydropower plants. SuccessinitiatedenergyreforminUkraineislargelydeterminedbytheefficiencyoftheinvestmentpolicy, including attracting loans from international financial organizations. On receipt of credit, including the World Bank, depend on the possibility of upgrading technologically obsolete and worn-out fixed assets of the energy sector and problems olving reduce country's energy dependence, improve energy efficiency and reduce the impact on the environment. In turn Hydropower Rehabilitation project funding by the World Bank Ukraine will ensure uninterrupted operation of hydropower plants and have a positive impact on the environmental and energy security. (shrink)

In January 2010 the Director General of the World Health Organization called for an “informal consultation on the future of financing for WHO” and in her opening remarks expressed the need to make the WHO fit for purpose given the unique health challenges of the 21st century.Margaret Chan referred to the constitutional role that WHO has to “act as the directing and co-ordinating authority on international health work” and stated clearly that global health leadership today and for the future must (...) be earned through strategic and selective engagement. She said, “WHO can no longer aim to direct and coordinate all of the activities and policies in multiple sectors that influence public health today.” This is a clear challenge that she has put to the global health community in recognition that WHO’s role must be clarified in the face of major change. (shrink)

The natural instinct for members of the Committee on Publication Ethics, which now number almost 12,200, as well as academia, is to assume that this organization works under strict and clearly defined ethical parameters, with a solid vision, and an independent mandate that is not influenced by power, think tanks, or partisan interests. Naturally, whistle-blowing and science shaming are not practices that one would usually associate with an ethics organization like COPE, because they involve ethically and morally questionable practices. Despite (...) this, ethical borders have become blurred between the objectives of Retraction Watch and PubPeer, two self-moderated science watchdogs that rely heavily on these questionable practices, in their efforts to grow and survive, and the values espoused by COPE. A Retraction Watch post, in which the former COPE Chair, Virginia Barbour, made a claim of apparent harassment, is the most striking example of the dangers when collaboration may take place between science-shaming websites, and an ethics organization, COPE. These bonds appear to have been in development for a number of years already, with the inclusion of Elizabeth Wager, the former COPE Chair, as a director of The Center for Science Integrity Inc., Retraction Watch’s parent organization. Retraction Watch was financed by, among other groups, the Laura and John Arnold Foundation, whose leader, John Arnold, an ex-Enron trader, declared a “war on bad science”, which may naturally include the destruction of aspects of science as well. Retraction Watch embraces several infamous pseudonymous personas under the broad umbrella of freedom of speech, liaising thereby with PubPeer. There is no doubt that errors in the literature need correcting, but this apparent connection with COPE raises questions about the basic ethical foundation of this relationship. Are scientists to embrace this bond between COPE and science watchdogs and pseudonymous whistle-blowers as the new normal in the correction of the scientific literature? This opinion piece puts forward arguments why the author believes that the ethical compass of COPE has become skewed. (shrink)

The main purpose of this article is to analyse one aspect of Spanish business ethics: the role of the transparency and quality of the economic and financial information given to meet the demands and requirements of shareholders. To that end we concentrate firstly on analysing the Spanish capital market and the situation of shareholders prior to the publication in February 1988 of the Code of Best Practice for Spanish Companies, drawn up by a Special Committee created at the request of (...) the Ministry of Economy and Finance. We analyse the importance of the behaviour and actions of three groups which are fundamental to assuring quality and transparency of information: those who prepare financial statements, the Board of Directors (particularly the Audit Committee) and the external auditors. Finally, we look at the possible consequences of the Code of Best Practice on Spanish business ethics. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:The Patient Self-Determination ActElizabeth Leibold McCloskey (bio)What are the ethics of extending the length of life? We know that we cannot artificially end life (Thou Shalt not Kill), but how about artificially extending life? Is that always good, sometimes good?... In ethics, is keeping people alive the highest good? Should our priority be to keep people breathing?... What does basic religious ethics say about this?(John C. Danforth, letter to (...) the author, 19 August 1989)The Patient Self-Determination Act, signed into law as part of the Omnibus Budget Reconciliation Act of 1990 (OBRA '90) last November, marks the first time that Congress has passed legislation concerning the ethics of life-sustaining medical treatment. The bill was spearheaded by Senator John C. Danforth (RMO), who has a special interest in this area. An Episcopal priest, Danforth was formerly an assistant chaplain at New York's Memorial Sloan-Kettering Cancer Center and now sits as a senior member of the Senate Finance Committee, which oversees Medicare and Medicaid. Although Senator Danforth's legislative initiative was not a result of the Cruzan case, it was in his state of Missouri that the U.S. Supreme Court case involving removal of Nancy Cruzan's feeding tube arose (Cruzan v. Director of Missouri Department of Health, U.S. Supreme Court, 58 LW 4916, 26 June 1990). From his unique vantage point, he felt it was time to craft a legislative response to some of the difficult issues surrounding prolongation of life.The short answer to Senator Danforth's questions about when to artificially extend life is simple enough: people must be free to determine that for themselves. Common law and common sense dictate such a conclusion; living will and health care proxy statutes, enacted in almost every state, codify that right. The Catholic moral tradition teaches that one is not morally obligated to use extraordinary means to prolong life, a tradition shared both by the mainline Protestant and the reform and conservative Jewish community. Yet most people are unaware of their fundamental legal right to make such decisions, and as court cases from Quinlan (In re Quinlin, 137 N.J. Super. 227, 1975) to Cruzan demonstrate, few know [End Page 163] how to make arrangements for this right to be exercised if they become incapacitated.Meanwhile, health care practices are often driven by a denial of death. When Senator Danforth and Senator Daniel Patrick Moynihan (D-NY) introduced the bill on October 17, 1989, Senator Danforth said:More and more it is arguable that we play God by subjecting people to unwanted and sometimes unnecessary treatment, treatment that unnaturally prolongs the dying process. Our health care system has become obsessed with extending life, at times neglecting the caring component of medicine and trampling on the rights of patients.(Congressional Record 1989, 135:5.13566)The American Hospital Association estimates that 70 percent of deaths now occur after a determination to withhold or withdraw medical treatment. Many of those decisions are made without the benefit of an incapacitated patient's views, yet a Harvard study revealed that 95 percent of the population would like to prepare in advance for such decisions. Only 4 percent of hospitals have a systematic method of asking patients if they have an advance directive. Family members confront painful choices in the face of uncertainty about their loved one's wishes and it can be even more painful when a family knows the patient's desires but providers and the courts act otherwise because clear evidence is lacking.The Patient Self-Determination Act is rooted in the belief that people should be given information that enables them to specify the extent of medical treatment they wish to receive should they become incapacitated. The public should be educated about applicable state laws that protect the individual's right to make such choices through the use of an advance directive.The Act moves toward that goal by promoting knowledge of state laws. It requires every hospital, nursing home, home health agency, hospice, and health maintenance organization that participates in Medicaid or Medicare to routinely give all adult patients information about advance directives. Patients will also be given information on the... (shrink)

The healthcare crisis that has developed in the last two decades during China's economic reform has caused healthcare and hospital financing reforms to be largely experienced by patients as a crisis in the patient–healthcare professional relationship (PPR) at the bedside. The nature and magnitude of this crisis were epitomized by the "Harbin Scandal"—an incident that took place in August 2005 in a Harbin teaching hospital in which the family of an elderly patient hospitalized in the intensive care unit (ICU) for (...) 66 days paid over RMB ¥6 million. The news was publicized globally and ended in the firing of six top hospital administrators including the hospital president and the ICU director. This paper seeks to show that the Chinese healthcare crisis is ultimately linked to a conflict of interests between patients and healthcare professionals (HCPs), which is inherent in the reformed healthcare system of China. Hence the crisis is, at its core, a crisis of fidelity and confidence that must be restored to the PPR. At the "macro" level, it is simplistic to blame the crisis on the failure of the market system, and at the "micro" level, it is naïve to expect that a contractual understanding of the PPR will effectively restore the confidence of patients. This paper will show that the fiduciary relationship and medical professionalism share similar attributes, with fidelity being the core value of both. It concludes that the loss of medical fidelity implies the dissolution of the PPR and the demise of the medical profession and challenges Chinese HCPs to keep their fidelity as a means to both protect their patients’ interests and to preserve their profession's survival. (shrink)

It is not uncommon to hear that poor school performance, welfare dependancy, youth unemployment, and criminal activity result more from shortcomings in the personal makeup of individuals than from societal forces beyond their control. Are American values declining as so many suggest? And are those values at the root of many social problems today?Shaped by experience and public policies, people's values and social norms do change. What role can or should a democratic government play in shaping values? And how do (...) these values conditon the efficacy of public policy?In this book, six distinguished social scientists identify trends in America's values and their consequences, and consider public policy tools with which some of those values might be changed.Daniel Yankelovich begins with a discussion of how American values have shifted in the last half-century, and argues that affluence is the driving force behind these changes in values. James Q. Wilson argues that destructive habits which can lead to social pathologies, like crime and drug use, are set early in life; he examines how public policy might intervene when children are young to promote better values. David Popenoe maintains that America has veered too far towards industrialist values, and explores the resulting decline of families and many attendant social ills. Nathan Glazer describes the history and present status of the dispute over multicultural education. Jane Mansbridge examines the process of building cooperation, consensus, and public spirit. And George Akerlof and Janet L. Yellen discuss the problem of gang criminality.Inthe past, social scientists have often sidestepped questions about values as undefinable, unquantifiable, and somehow unscientific. The essays in this volume address these questions at last.Henry J. Aaron, director of the Economic Studies program at Brookings, is the authorof numerous books, including most recently Serious and Unstable Condition: Financing America's Health Care (1991), and coeditor of Setting Domestic Priorities (1992). Thomas E. Mann is director of the Brookings Governmental Studies program, coeditor of Media Polls in American Politics (1992), and coauthor of the Renewing Congress series (1993). Timothy Taylor is managing editor of the Journal of Economic Perspectives at Stanford University. (shrink)

We examine three characteristics of audit committees and their impact on the financial reporting quality for Singapore-listed companies. The main finding is that financial reporting quality will be higher if audit committees have mixed expertise in accounting, finance, and/or supervisory. In addition, we do not find evidence that incremental independence of audit committees enhances financial reporting quality because audit committees already consist of a majority of independent directors. Finally, we fail to find any impact of overlapping membership on (...) audit and remuneration committees on financial reporting quality. Overall, the results have policy implications on improving corporate governance effectiveness in terms of financial reporting quality. (shrink)

The widespread and elaborate use of new financial instruments among corporate entities and financial institutions requires justification. It faces the charge of increasing both the level and complexity of risk in the financial system under the pretext of reducing it. It is a prodigious user of management resources and IT. It obscures the integrity of the nature of the non-financial user.It is not mere academic argument to question the ethics of certain instruments. Both in the US and the UK certain (...) forms of financial instrument are deemed too risky to be used by all and sundry. Other forms of instrument may be banned outright, even though many financial professionals will be perfectly capable of measuring the risk involved. The force of this attack is recognized in the financial industry. One defence frequently put forward is similar to that of the National Rifle Association in the US about guns. It is the users, not the product, that are the problem. “One misconception is that derivatives are risky instruments that are used for speculation. It is more accurate to say that derivatives are instruments that can be used to alter risk profiles”. The mere fact of an instrument existing is no reason to use it. The biggest advocates of exotic options are bankers. Practising Treasurers spend much time seeking to distinguish between the fascinating idea which the bank’s rocket scientist wants to try, and the derivative that will genuinely benefit the company. The fact that many of these instruments are harmful or spurious does not mean they should be banned, but neither does the absence of a ban make them ethical.The ethical question to ask for the non-financial corporation has to do with the proper balance of courage and prudence. Will this instrument enable the company to carry out its proper task with more focus and self-awareness, or is it an attempt to neutralize the proper risks that we are paid to take? For financial corporations the inevitable presence of derivatives poses two issues. First, are they intrinsically valuable or simply so complicated that no client could use them and monitor the new exposures involved? Secondly, will the active management of our positions created by this activity result in a change in the nature of our business, and if so, has this been clearly communicated to the world around?On reading this again I am once more struck by a remark made to me by a clergyman long before I was ordained. “What is an ethical Treasurer?” One of the major challenges in the field of financial ethics is the development of an adequate, and clearly communicated, measure of the intrinsic ethics of finance.This paper is not arguing that derivatives are wrong, but that they are powerful, and power needs monitoring and controlling. The events of October 1987 are often referred to as the meltdown of the markets. My clear memory is of the whole executive board of directors standing in my office gazing in awe at a Topic Screen as waves of red chased across the screen. The use of nuclear metaphors was apt. A system that seemed safe had assumed a life of its own. There is little doubt that derivatives fuelled the reaction. (shrink)

Whistleblowing is a subject which seizes the media headlines from time to time, and nowhere is such a dilemma of conscience more sensitive than in the area of finance and internal auditing. Additionally, professional organisations are sometimes felt to be less than supportive of their members who occasionally resort to whistlelowing. But how does it look from inside the auditing profession? Professor Chambers is a director of The Institute of Internal Auditors Inc., and a member of the Internal Auditing (...) Standards Board. He is Professor of Audit & Control at the University of Hull, and since 1991 he has chaired the Professional Standards & Guidelines Committee of IIA . He is author of several books and a former Dean of the Business School of City University, London. In 1991 he established Management Audit Ltd., The Water Mill, Moat Lane, Old Bolingbroke, Spilsby, Lincolnshire PE23 4EU, which specialises in services to boards, audit committees and internal auditors. This article was originally presented to the 54e Conférence Internationale of The Institute of Internal Auditors, Inc., organised by the Institut Francais des Auditeurs Consultants Internes. Except where otherwise indicated, the views expressed in this article are those of the author. (shrink)

Examining the effect of hedge fund activism on gender diversity, we find that the number of female directors decreases after a firm is targeted by hedge fund activism. Using the employment history data from BoardEx, we find that activist hedge funds are more likely to appoint people with finance backgrounds to the boards of target firms. And the newly appointed finance background directors are almost all male because of the lack of diversity in the finance (...) industry. The lack of gender diversity of the hedge funds’ networks and the lack of qualified female directors in the local area also help explain the impact of hedge fund activism on gender diversity on the board. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:OSKAR PIEST, 1898-1987 Dr. Oskar Piest, who helped establish the Journal of the Historyof Philosophy, passed away at Sinsheim, Germany, in February 1987. He had studied theology and economics in pre-Hitler Germany, and became a banker in Hamburg. In 1934 he left because of his opposition to the Nazi government and went to Italy, then England, and finally in 1936 to the United States. After World War II he (...) organized and edited the Hafner Library of Classics. In 1949 he and his wife founded the Liberal Arts Press, publishing new, inexpensive, well-edited texts of works in the humanities. This grew into the Library of Liberal Arts which was purchased by Bobbs-Merrill in 1964. Dr. Piest then went to Brussels as a representative for various American banks in connection with the European Economic Community. He retired to Switzerland in 1971, and then to Germany, where he resumed his earlier theological studies, though his health and eyesight were failing. When I visited him in 1984, I found him deeply engrossed in researching pagan religions in the Near East in early Biblical times. He also established a foundation at Mesa College in Grand Junction, Colorado and gave much of his library to them. Dr. Piest worked closely with Herbert W. Schneider, and when the possibility of founding the Journal of the Historyof Philosophyoccurred in 196o and 1961, Dr. Piest was consulted. He met with some of us, gave us his advice, and joined our Board of Directors. He also generously assisted us for several years in financing the publication of the Journal--when such assistance was vital. Thereafter, he continued to be actively interested in the Journal and other projects in the history of philosophy. Although not a professional scholar, he greatly valued work in the history of philosophy to which he made a lasting contribution through his publishing ventures, and through helping to establish theJournal. On behalf of the Board of Directors, I want to express our gratitude to Oskar Piest, one of our first important benefactors. RICHARD H. POPKIN [345]... (shrink)

This paper explores a philosophical argument about the use of natural light in films. I argue that directors use sunlight as a visual metaphor to induce a sublime experience from the viewer to elevate the narrative. While it is more efficient in terms of time management and finances to use electric lights, sunlight creates a successful emotional effect on the viewer placing them in contemplation of the relationship between humanity, nature, and humility. Essentially, I am concerned with what it (...) is that the capturing of sunlight accomplishes in these works of art that a light bulb can’t. In this paper, I consider how natural light is used to guide the viewer’s eye and how natural light makes us feel. I believe motion pictures are the perfect artistic medium to explore our emotional understanding of the sun as it not only captures objects in motion in the light of the sun it also captures the sun itself in motion. My intention is to provide a better understanding of the powerful psychological effect that the use of sunlight has on the viewer of a film. (shrink)

This book examines transaction cost economics, the influential theoretical perspective on organizations and industry that was the subject of Oliver Williamson's seminal book,Markets and Hierarchies. Written by leading economists, sociologists, and political scientists, the essays collected here reflect the fruitful intellectual exchange that is occurring across the major social science disciplines. They examine transaction cost economics' general conceptual orientation, its specific theoretical propositions, its applications to policy, and its use in systematic empirical research. The chapters include classic texts, broad review (...) essays, reflective commentaries, and several new contributions to a wide range of topics, including organizations, regulations and law, institutions, strategic management, game theory, entrepreneurship, innovation, finance, and technical information. The book begins with an overview of theory and research on transaction cost economics, highlighting the specific accomplishments of scholars working within the perspective and emphasizing the enormous influence that transaction cost reasoning exerts on the social sciences. The following section covers conceptual uses for the transaction cost framework and major theoretical or methodological elements within it, such as bounded rationality. While advancing some interesting theoretical propositions, these chapters are in fact more ambitious: each examines a specific field, area, or research program and attempts to fashion a new way of thinking about research questions. In the section on industrial applications, contributors study the application of transaction cost theory to a range of problems in utilities, telecommunications, laser printing, and early international trade. The book closes with four microanalytical chapters that delve into the structures and behaviors of specific aspects of firms and organizations: boards of directors, equity structures, employment models, human resource policies and practices, technology strategies, and innovation events. Firms, Markets, and Hierarchies collects excellent social science work on transaction cost economics, taking stock of its status, charting its future development, and fostering its renewal and evolution. (shrink)

Corporate governance sits at the intersection of many disciplines, among them law, business, management, finance, and accounting. The point of departure for large portions of this literature concerns the ugliness of greed, ambition, misdemeanors, and malfeasance of corporations, their directors, and those actors who hold shares in them. This essay takes a rather different starting point. Drawing upon insights from a distant field, it uses the discussion of aesthetics in Dewey’s treatise on art to ask what motivates (...) class='Hi'>directors to act in ways that constitute the attention and engagement that we associate with the effectiveness of boards. Using Dewey’s thinking about aesthetic experience, this paper examines the experience of organization boards, both in the literature and in the personal experience of the author. These observations point to need to reflect on motivation when considering both the practice of corporate governance and the policy frameworks in which it operates. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:The Blossoming of Bioethics at NIHEzekiel J. Emanuel (bio)The establishment of the Department of Clinical Bioethics at the Warren G. Magnuson Clinical Center of the National Institutes of Health (NIH) has coincided with a burgeoning of interest and activity related to bioethical issues at NIH. The department has precipitated a reexamination and revitalization of existing bioethics activities in the Clinical Center and has launched new programs especially in the (...) areas of education and research. In addition, the department contributes to the work of others throughout NIH who address bioethical issues.The Organizational Location of the Department of Clinical BioethicsBefore describing the history and current activities of the Department of Clinical Bioethics, I will say something about it administrative location. Comprehension of the department’s organizational location is essential to understanding its history, role, and function. Prior to interviewing for the position of chair of the department, I did not—and, if truth be told, still do not fully—understand the details of the organizational structure of NIH. I therefore assume that many other bioethicists outside of the Institutes, especially those who do not regularly receive NIH funding, may not fully grasp its organizational intricacies.The Department of Clinical Bioethics is a department within the Warren G. Magnuson Clinical Center, which is NIH’s “hospital.” Hospital is in quotes because all of the patients at the Clinical Center must be enrolled in a research protocol and, therefore, are research subjects. The Clinical Center is where NIH’s clinical researchers admit their research subjects or see them in the out-patient setting. The Department of Clinical Bioethics reports directly to the Director of the Clinical Center, John I. Gallin, M.D., and receives its finances, space, and other resources from the Clinical Center.In this way, the department is part of NIH’s intramural (“inside”) program. People employed by NIH conduct intramural research, training, and other initiatives. The extramural program, which receives approximately 87 percent of NIH’s budget, funds research at institutions outside NIH. The extramural program awards grants and contracts for research, training, and conferences conducted [End Page 455] by investigators who are not affiliated with NIH. The National Human Genome Research Institute’s ELSI (Ethical, Legal, and Social Implications) program, for example, is part of NIH’s extramural program. As part of the NIH intramural program, the Department of Clinical Bioethics is not empowered to fund independent initiatives of people outside of NIH through grants and contracts. However, the department can collaborate with bioethicists and others on research, educational, and other programs outside of NIH and has some funds to support these collaborations.In addition, it is important for bioethicists to understand that NIH is a collection of 24 institutes and centers. Although there is coordination and collaboration between the institutes and centers, each is funded separately, and each has its own scope, programs, administrative structures, research agendas, training priorities, boards of advisors, and so forth. In this sense, NIH is more like a university that has many distinct schools, each with its own dean, faculty, budget, and fund raising office, than one that is tightly integrated and centrally-administered. Within NIH’s diffuse administrative structure, the Department of Clinical Bioethics is located within one of the centers (the Clinical Center) and has defined authority and responsibility only for bioethics within that center; in addition, because the Clinical Center’s mission is to support clinical research at other institutes, the department’ mission includes supporting the work of those institutes as well. Intellectual exchanges and relationships with other institutes and centers are neither pre-ordained nor administratively established; such relationships must be developed case-by-case, topic-by-topic, and initiative-by-initiative.The History and the Development of the Department of Clinical BioethicsThe Department of Clinical Bioethics was launched in late 1996. Although the department’s creation marked a major commitment to bioethics by the Clinical Center, and especially by its director, Dr. Gallin, it was formed on a pre-existing foundation of bioethics activities at NIH. 1In 1977, John Fletcher, Ph.D., was appointed by then Director Mortimer Lipsett as the bioethicist at the Clinical Center; his official title was Assistant for Bioethics... (shrink)

For over four decades, the topic of Chief Executive Officer (CEO) compensation has attracted considerable attention from the fields of economics, finance, management, public policy, law, and business ethics. As scholarly interest in CEO pay has increased, so has public concern about the ethics of high CEO pay. Despite growing interest and pressure among the public and government to reduce CEO pay, it has continued to increase. Using a multi-method design incorporating a pilot study, two online experiments, and an (...) event study, we investigate the impact of CEO pay on consumer purchase intent and find that this negative relationship is magnified under conditions of brand crisis. We also find that the negative interaction of high CEO pay and brand crisis on purchase intent is more negative when the brand has strong equity. Finally, when the CEO is awarded high pay while the firm they manage is undergoing a brand crisis, consumers lose trust in the firm’s brand which reduces consumer purchase intent. This research provides insight on how governance decisions can impact consumer perceptions of corporate brands and consumer behavior, with implications for public policy leaders, boards of directors, CEOs, and Chief Marketing Officers regarding how to manage and message CEO pay. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Justice Not GreedRichard A. HoehnJustice Not Greed Edited by Pamela Brubaker and Rogate Mshana Geneva: WCC Publications, 2010. 224 pp. $14.00The World Council of Churches (WCC) Advisory Group on Economic Matters (AGEM) advises the WCC and congregations on global economic issues. AGEM members from diverse backgrounds produced the papers in this volume. The introduction is by Rogate Mshana, WCC director for Peace, Justice, and Creation. Samuel Kobia, general (...) secretary of the WCC from 2004–9, introduces the rationale and role of AGEM in the global financial crisis. The book ends with a statement on just finance and the economy of life, adopted by the WCC Central Committee in September 2009. Justice Not Greed will be most useful in settings where there is interest in the intersection of ethics, the economic crisis, and Christianity in relation to the global economy, as well as among those who wish to follow the WCC. As expected [End Page 208] of conference papers, there is not a systematic development of an argument but overlapping ethical and economic analyses. All, however, are opposed to the status quo because of its manifest injustice, especially the impact on poor people.If one were to impose a thematic development, it might go something like this, allowing for individual differences among the authors. Decolonization has resulted in a lopsided, Western, capitalist economic system predicated on greed (Jan Pronk), described by other authors as a beast or a cancer (vivid but unhelpful metaphors since the crisis was caused by humans, not nature). The world lacks appropriate international structures. We need new global institutions, a new global financial architecture that is predicated on, or at least takes into account, justice. Congregations, the ecumenical movement, and the WCC could play a significant role in helping the United Nations move toward such a system.Several authors hope that the global crisis will provide a moment when such a change might become possible (e.g., Alexander Cobham’s “Blood-Stained Silver Lining”). Pamela K. Brubaker, Kim Yong-Bock, Roel Aalbersberg, Rienzie Perera, and Geevarghese Mor Coorilos examine questions related to the Bible, ethics, theology, a culture of “enough for all” (Musa Panti Filibus), the church as moral community, the ecumenical movement, and principles for an alternative economic system. Mariana Issa Zureikat argues for “econo-morals,” applying moral values to economic analyses. Thomas H. Kang advocates the capabilities approach of Amartya Sen and Martha Nussbaum. Marcos Arruda suggests an economy of world solidarity with the “gross happiness index” as a standard for measuring progress. While most chapters include economic analysis, John Dillon wades into some nitty-gritty causes of the current financial crisis, with a positive nod toward the (never adopted) Keynes plan for the Bretton Woods system of monetary management. Marie-Aimee Tourres lays out impacts on the developing world, as does Xiao Lian from a Chinese perspective. Most of these authors argue for such global solutions as a global reserve system and a global tax system.Justice Not Greed presents thoughtful, sometimes passionate papers that could form a basis for lively discussion. Yet real-world solutions often come down to the practice of democracy and political will. Unfortunately, it is not clear that the ecumenical movement possesses the will or the means to effect change because local organizing for political change is not a high priority at any level. [End Page 209]Richard A. HoehnChrist the Servant Lutheran ChurchCopyright © 2012 The Society of Christian Ethics... (shrink)

Human resource management (HRM) plays an important role for an organization’s sustainability endeavor. This paper attempts to provide a concise overview of the sustainability in HRM in Japanese overseas subsidiaries. The purpose of this paper is to examine two branches of business (finance and retail) from a major Japanese multinational corporation in Hong Kong and identify the nature of sustainability in HRM in these two operations. It draws on qualitative interview data from a sample of 20 Japanese and locally (...) hired employees and two HR directors working in these two case companies with a total of 80 stories and two company interviews. A conceptual framework of sustainable HRM based on the Respect Openness Continuity (ROC) model is used to examine sustainable HRM in the two Japanese subsidiaries. The results show that sustainability in HRM differs between these two case companies even though they are operated under the same Japanese headquarters. Distinctive stratified patterns of sustainability in HRM are found among the respondents in both case companies, and the nature of sustainability in HRM in these two case companies varies from each other to a large extent. The analysis of the interview data provides insight of how cultural, sectoral, and institutional factors have led to the different stratified pattern and nature of sustainability in HRM in these Japanese overseas subsidiaries. Further larger-scale research needs to be done on the case headquarters in Japan, and multinational corporations of other national origins to discover more about the patterns and nature of sustainability in HRM in a global context. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Feminist Studies 41, no. 3. © 2015 by Feminist Studies, Inc. 689 Susannah Bartlow White Fear in Universities: The Story of an Assata Shakur Mural No one is going to give you the education you need to overthrow them. No one will teach you your true history, teach you your true heroes if they know that knowledge will set you free. Theory without practice is just as incomplete as (...) practice without theory. The two have to go together. —Assata Shakur, quoted on a mural at Marquette University What does it mean to whitewash? To terminate? I have been tasting and retasting these words on my tongue after a mural of Assata Shakur at Marquette University was whitewashed, and I was fired—terminated —for having supported the mural, ending a fourteen-year career in feminist academia. As the founding director of the Gender and Sexuality Resource Center (GSRC), my job was to build an academic support office for women’s, gender, and LGBTQ+ education and empowerment. In the center’s third year, Amanda Smith (a Marquette senior) and Jeanette Martín (a community artist and program assistant at the center) envisioned, planned, and executed the Assata Shakur mural project as a way to invite greater community interest. In my role as director of the center, I supported the project, communicated it to senior leaders, and spread the word about the community-painting day in late March 2015. The mural was on display for six weeks at the GSRC before a storm of  Students fill in detail of the Assata Shakur mural at Marquette University’s Gender and Sexuality Resource Center. Photograph by Amanda T. Smith. News and Views 691 media coverage in mid-May prompted the university to cover the mural in white paint and fire me for my support of the project. My experience of this process was as rapid as it sounds: I received a few phone calls alerting me that the whitewashing of the mural was imminent and that there was a formal review of my leadership decisions, and I was fired twenty-four hours later. The idiomatic usage of “whitewash” tells us that something is shameful and that it has been, or ought to be, covered up. Whose cover-up was it—and whose shame? Over the six weeks it was on display at the center, the mural invited people into a quiet space off a hallway, and it had sparked discussion among staff, faculty, and students who used the space. The mural was one of very few images of a black woman anywhere on Marquette’s campus, and it contributed to a sense among many students of color that the GSRC was a space in which they were welcomed and safe and where they could be comfortable. Yet in the distortions of white supremacy, the mural looked like a threat, rather than an intellectual and community representation central to the university itself. Other recent cases of faculty repression, from Steven Salaita to Saida Grundy and Zandria Robinson, demonstrate how concerns about liability, finances, and public perception guide administrators ’ decisions about representation on campuses. Far from being liberal utopias, or even spaces that respect speech, universities remain testing grounds when students’ or educators’ actions present direct antiracist critique. What more clear or direct example of antiracist critique than the quotes we chose for the mural: Assata Shakur’s own words asserting the importance of street smarts and intellectual prowess, naming the power invested in knowledge systems and the importance of claiming that power for ourselves? Universities are, in our time, particularly responsive to pressure from the right. Private, nonprofit, advocacy organizations troll university websites looking for evidence of liberal bias; conservative media outlets publish student bloggers who feed the fantasy that the facts of United States history, presented without whitewashing, do not belong in classrooms. In particular, those who study the lives and knowledges of historically marginalized populations are in the crosshairs of right-wing attacks. In the case of the mural—and in each of the other cases cited above— it was either a right-wing news source or a powerful donor or decision 692 News and Views maker who raised concerns about leftist bias, civility, or... (shrink)

With 163 authoritative entries providing definitive explanations and critiques of the fundamental principles and practices of corporate governance, this timely Encyclopedia is a comprehensive overview of the economic, political, social, legal and environmental impacts of corporations across the globe. Bringing together almost 100 leading experts, the Encyclopedia addresses the meaning and purpose of corporate governance and how this term has evolved over time. Philosophical perspectives on corporate governance, as well as its origins and history are laid out, alongside critical theories (...) and methodologies on governance. The Encyclopedia then examines different aspects of governance related to governance regimes, neoliberalism, finance, accounting and corporate reporting, law and regulation, strategy and forms of governance. Board processes and performance, leadership in the boardroom, board directors and board diversity are explained. Focus is drawn to emerging societal problems and crises related to corporate governance and how these have been addressed by different institutions, such as digital era governance, corporate social responsibility and corporate sustainability and regeneration of the natural world. The Elgar Encyclopedia of Corporate Governance is an essential reference source for academics, researchers and students of business and management, economics and finance and environmental studies. Professionals and policymakers working in the sectors of corporate governance, corporate social responsibility, management and sustainability and strategic management will also find this to be an indispensable reference work. Key Features: 163 distinct entries structured by theme Combines empirical findings with real-world examples Adopts a comparative global analysis from leading academics Accessible explanations of fundamental concepts and principles. (shrink)

Research in the social sciences received generous patronage in the late 1960s and early 1970s. Research was widely perceived as providing solutions to emerging social problems. That generosity came under increased contest in the late 1970s. Although these trends held true for all of the social sciences, this essay explores the various ways by which economists in particular reacted to and resisted the patronage cuts that were proposed in the first budgets of the Reagan administration. Economists’ response was three fold: (...) to engage in joint lobbying with other social scientists, to tap into their authority as a respected policy player, and to influence the types of research financed by the patron. With interviews of the former lobbyist for the social scientists, the former director of the Economics program for the National Science Foundation, and a review of the archival records of economists and their scholarly society, we discuss how economists have claimed entitlement to patronage in the closing decades of the twentieth century. We observe a dynamic and productive relationship between politicians and researchers mediated by the National Science Foundation, where civil servants, lobbyist and public minded scientists, and self-serving grantees trade roles. (shrink)

Suppose that a patient is receiving treatment options from her doctor. In one case, the doctor says, “the surgery has a 90% survival rate.” Now, suppose the doctor instead said, “the procedure has a 10% mortality rate.” Predictably, the patient is more likely to consent on the first description and more likely to dissent on the second. This is an example of a framing effect. A framing effect occurs when “the description of [logically-equivalent] options in terms of gains (positive frame) (...) rather than losses (negative frame) elicits systematically different choices.” Framing effects are ubiquitous, but they are particularly troublesome in medicine. Many worry that there is tension between valuing informed consent and using framing effects in clinical settings. In this paper, I answer this question: if an individual is subject to a framing effect when she gives her consent, does this undermine the validity of her consent? I argue that framing effects do not undermine consent in general. (shrink)

In this paper, I examine the connections between bipolar disorder and consent. I defend the view that many (although far from all) individuals with bipolar disorder are competent to consent to a wide variety of things when they are in a manic state.

In response to the spread of COVID-19, governments across the world have, with very few exceptions, enacted sweeping restrictive lockdown policies that impede citizens’ freedom to move, work, and assemble. This paper critically responds to the central arguments for restrictive lockdown legislation. We build our critique on the following assumption: public policy that enjoys virtually unanimous support worldwide should be justified by uncontroversial moral principles. We argue that that the virtually unanimous support in favor of restrictive lockdowns is not adequately (...) justified by the arguments given in favor of them. Importantly, this is not to say that states ought not impose restrictive lockdown measures, but rather that the extent of the acceptance of these measures is not proportionate to the strength of the arguments for lockdowns. -/- We begin by exploring the case for restrictive lockdowns. We first argue that several of the principles that are used to justify the lockdowns yield unexpectedly revisionary implications for other political problems that many would be unwilling to accept. We then outline what we consider the strongest argument for a lockdown—namely, that its net welfare benefits are great enough to defeat the moral presumption against restricting citizens’ civil liberties to move, work, and assemble. However, we give a number of reasons for doubting that the lockdown’s net welfare benefits are, in fact, sufficiently high to defeat the presumption against it. (shrink)

In this paper, I examine global public reason as a method of justifying a global state. Ultimately, I conclude that global public reason fails to justify a global state. This is the case, because global public reason faces an unwinnable dilemma. The global public reason theorist must endorse either a hypothetical theory of consent or an actual theory of consent; if she endorses a theory of hypothetical consent, then she fails to justify her principles; and if she endorses a theory (...) of actual consent, her theory will lead to a highly unstable political system. On either side of the dilemma, global public reason faces untenable implications. Although similar criticisms have been advanced against domestic public reason, my argument is not repeating points made before me. My argument is new, in that it raises these objections specifically against global public reason, and in that it shows how, due to increased diversity of belief in the global arena, these problems are more pressing for global public reason than they are for domestic public reason. (shrink)

Jennifer Saul argues that the evidence from the literature on implicit biases entails a form of skepticism. In this paper, I argue that Saul faces a dilemma: her argument is either self-defeating, or it does not yield a skeptical conclusion. For Saul, both results are unacceptable; thus, her argument fails.

In general, it is morally wrong to joke about the suffering of a category of people while in front of a person who fits into this category. I argue that, when people play the game Cards Against Humanity, it is likely that they do this very action. Thus, I conclude that it is morally wrong to play Cards Against Humanity.

Philosophers have become newly interested in the ethics of sex. One promising feature of this new discussion is that it has been broadening our moral lens to include individuals whose sexual interests have historically been denied or ignored. One such group is the elderly. Contrary to popular belief, many elderly people want to have sex and see it as a regular part of their lives. If society harbors ignorance about or prejudice against elderly sexuality, it harbors stronger views against the (...) sexual expression of elderly people with dementia. People with dementia are often prohibited by nursing‐home staff, sometimes in extreme ways, from having sex with their partners. This prohibition is at least partly motivated by the goal of protecting the vulnerable. However, cutting people with dementia off from sex has negative health effects and is a needless restriction of their autonomy. In this article, I argue that the expanding moral lens in sexual ethics should include the sexual expression of elderly individuals with dementia and that their sexual expression should be respected. Specifically, I argue that many people with dementia are competent to consent to sexual activity with their long‐term partners. (shrink)

AUTHOR'S PREFATORY NOTE TO THE ENGLISH TRANSLATION In this English edition of Ethique generale (Rome, 1 967) the author has introduced some very slight ...

In this paper, I answer the following question: suppose that two individuals, C and D, have been in a long-term committed relationship, and D now has dementia, while C is competent; if D agrees to have sex with C, is it permissible for C to have sex with D? Ultimately, I defend the view that, under certain conditions, D can give valid consent to sex with C, rendering sex between them permissible. Specifically, I argue there is compelling reason to endorse (...) the following thesis: -/- Prior Consent Thesis: D, when competent, can give valid prior consent to sex with her competent partner (C) that will take place after she has dementia, assuming that D is the same person as she was when she gave prior consent, meaning that, if D, when competent, gave prior consent to sex with C, then C may permissibly have sex with D. In section I, I explain both the background and the existing literature on this issue. In section II, I outline relevant stipulations about the kinds of cases I will be examining. In section III, I defend the Prior Consent Thesis. And, in section IV, I address objections to the Prior Consent Thesis. (shrink)