Corporate Social Responsibility als Integrationsherausforderung

The increasing debate on Corporate Social Responsibility (CSR) in science as well as in practice reflects the relevance of ethical questions for management. However, it is still unclear which responsibilities can be ascribed to corporations and how they can deal with such attributions on an operational level. The blurring and ambivalence in the discussion about CSR indicate a need for a theoretical clarification which is traced back to a not yet satisfactorily resolved integration of the constructs “profits” and “ethics”. The aim of the article is to provide a theoretical structure which is tailored to offer reliable focal points for a sophisticated handling of conflicts between profits and ethics.     

The medical device payment controversy rages on

Who will pay for investigational research? This seemingly endless debate assumes different guises as different aspects of the health care industry come under scrutiny. The latest wrinkle in the debate involves reimbursement for devices that are not FDA approved. My September column discussed the issue of funding investigational cancer therapies, specifically high-dose therapy and bone marrow transplant, as treatments for various malignancies. That controversy was centered on the use of FDA-approved drugs in settings beyond the labeled indications. However, the issue with medical devices is different. It involves implantable devices that the FDA says have not proven to be safe and effective.     

Impairment or amortization of goodwill? An analysis of CFO perceptions of goodwill accounting

Given the ongoing controversy around the accounting treatment of goodwill and the search by the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) for improvements to goodwill accounting, this study surveys a global sample of 352 chief financial officers (CFOs) to understand their perceptions of adopting a goodwill impairment-only approach compared to an amortization model. More than half of the respondents agree that alternative accounting treatments of impairment testing might provide more useful information. However, almost two thirds still prefer goodwill impairment testing to the amortization process. Theoretically, the study shows that the impairment-only model preference is associated with characteristics on an individual, firm and country level. The results indicate that more expert CFOs and overall CFO perceptions of firms’ economic conditions and the role of external auditors affect preference for the goodwill accounting model. Further, there is evidence that dominant ownership structures and accounting culture affect CFO preferences. The study investigates several areas in which regulators and standard setters can intervene, thereby contributing to the debate on whether to reintroduce the amortization of goodwill.     

ABMT and breast cancer: what have we learned?

The debate regarding the efficacy of and insurance coverage for ABMT for breast cancer has been raging since the widespread dissemination of ABMT in the early 1990s. Underlying the debate was the expectation that the results of randomized clinical trials would finally provide scientific data to resolve the frequently emotional controversy. Unfortunately, the results of these eagerly awaited trials failed to show a significant impact in patients with either metastatic breast cancer or those at high risk for metastatic disease. ABMT, as it is now offered, will not provide the breakthrough that was anticipated or a substantial benefit to the majority of patients. Research on ABMT may have evolved from the initial expectation that the trials would confirm a positive to more modest expectations that trials will disprove a negative. The promising results of early trials still require confirmation through randomized controlled trials, and participation in such clinical trials is vitally important.     

Practice guidelines. Cookbook medicine

A large measure of the confusion and doubt currently being sowed in the ongoing debate over the advisability and effectiveness of practice guidelines is a matter of terminology. In deference to the wishes and fears of physicians, the term "requirements" is not used. But requirements they are. Their quality and the degree to which they are useful will depend on their level of detail and the degree to which they are based on positive outcomes. Regardless, attorneys and others will always view and use them as requirements.     

Health Claims and Methodological Controversy in Nutrition Science

This article analyzes the debate about data acquisition and assessment in health claims regulation by identifying the underlying controversies on methodological choice. Regulation in the European Union imposes the need for a scientific substantiation of all health claims (claims about a relationship between consumption of certain food ingredients and positive health effects). Randomized controlled trials (RCTs) are the method that generally is considered to provide the highest quality data for decision making in claims regulation because they allow for establishing cause–effect relationships. The latter are demanded in European regulatory practice for authorization of a claim. This requirement has contributed to a debate about the advantages and limitations of the RCT methodology in nutrition research and regulation. Our analysis identifies five types of tensions that underlie the controversy, with respect to evidence, cognitive values, standards of proof, future lines of research, as well as expert judgment. We conclude that there is a direct and mutual interaction between methodological decisions in nutrition science, and different strategies in health claims regulation. The latter have social and public health consequences because not only may they affect the European market for functional foods, as well as concomitant consumption patterns, but also the generation of future regulation‐relevant evidence in nutrition.     

Does leadership still not need emotional intelligence? Continuing “The Great EI Debate”

The study of emotional intelligence (EI) in the field of leadership, and in the organizational sciences in general, has often been characterized by controversy and criticism. But the study of EI has nonetheless persisted by developing new measures and models to address these concerns. In a prior letter exchange by Antonakis, Ashkanasy, and Dasborough (2009), two author teams debated the role of EI in the leadership literature, but also set an agenda for research and reconciliation for the future. The present exchange revisits these arguments using evidence accumulated over the past decade. Specifically, the authors debate not only the evidence for the predictive power of EI for workplace outcomes, but also the validity of EI as a construct, the measurement of EI, and the appropriateness of analytical tests for establishing the value of EI. Although the author teams agree on the value of the study of emotions and the need for rigorous research in this area, they nonetheless propose alternative agendas and priorities for the future. Further, they conclude that the issues identified in this exchange are not unique to the study of EI; but should also serve to inform the study of other personality factors and leadership more broadly.     

Narcissus Revisited: The Values of Management Academics and their RoleinBusiness School Strategies in the UK and Canada*

The myth of Narcissus provides an appropriate metaphor for the continuing debate over the relationship between academics, business and other stakeholders; most recently expressed in terms of Mode 1 and Mode 2 knowledge and academic entrepreneurialism. Both myth and debate are based partly on conflicts over identity. However, surprisingly little empirical work has been conducted on the identity of management academics. A step towards this is made here by exploring the role of embedded and enduring values as a primary element of academic identity in business schools. Contextualized in the Mode/entrepreneuralism debate, a layered metaphor of academic organization is adopted, in which values are located among deep‐set constructs and a comparative and longitudinal perspective employed. A value‐ranking instrument is devised, applied and retested over five years in two business schools in Britain and Canada. This reveals values that are widely held by management academics and those that are more pervasive in each institution. Understanding such values helps provide insight into the strategic role of academic identity, grounded in ontological and epistemological frameworks.     

The consumer choice model: a humane reconstruction of the U.S. health care system

"Consumer choice," "defined contribution health programs," "voucher systems," and "health marts" are variations on a theme: employees buying their own health care. This new approach to health care purchasing, which is designed to minimize the role of employers, is being proposed by an array of economists and by both Republican and Democratic legislators as the best way to address the nation's health care ills. Although enabling national legislation is unlikely to pass soon, the debate will nevertheless change the face of health care in America. The prospect is reminiscent of the debate over "Clinton Care" in 1993--although legislation was never passed, managed care rapidly came to dominate the U.S. health care system. As this reform takes hold, beneficiaries will make their own health plan selections but will have more responsibility and may bear more cost. Providers will have to adapt to new, customer-driven requirements for performance, accountability, and communications but will also find opportunities in a marketplace that they will have a major role in shaping. Physicians, health plans, and insurers should understand how these proposals will transform their role in health care.     

Plurality of Worlds, Plurality of Risks

Risk management decisions are not made only on the basis of expert risk assessment. In numerous instances, public controversy erupts, questioning the results of previous risk assessment procedures and shaping the development of risk management episodes. This article presents a case study of risk management in the context of a 1980s controversy over aerial spraying against a spruce budworm epidemic in Quebec and draws some general conclusions concerning the relationship between risk analysis and public controversies. Actors in public controversies define risks more broadly than risk assessment experts. Moreover, public controversies only partly concern issues of risk. They are first and foremost debates about social choices in which actors carry with them a multidimensional social experience of technology, trust, credibility and decision-making institutions. This experience contributes to the construction of a plurality of emergent representations of what is at stake in a controversy, referred to in this paper as "worlds of relevance." Analysis shows that in any given public controversy, there are not just two parties arguing against each other. Rather, several "worlds of relevance" can be found that link, in a variety of ways, a variety of entities not necessarily shared by all these worlds. Each "world of relevance" presents a different definition of what the issues and the stakes of the controversy are. Risks are only part of the picture, and they are embedded in "worlds of relevance" from which they take their significance. The successful management of a controversy entails the association of entities from different worlds.     

The ethics of health care system reform

The United States is now engaged in a momentous national debate about health care. How can we provide the best care possible while simultaneously containing cost (to promote the general economic integrity of society) and somehow maintain a semblance of a free health care marketplace. This is not just a political question; it is also a question of ethics. It is an ethical consideration because the current debate is not just about designing or promoting health care systems that can best address our concerns for costs, quality, and accessibility. It appears that at least some participants in the debate would not stop at arguing their beliefs as valid; they would make their beliefs law. Some urge the creation of the right to health care as a matter of law. There are significant differences between beliefs and rights, however, and they need to be considered carefully in the ongoing debate over the future of this country's health care delivery and financing system.     

A note on accounting during inflation

The paper suggests that the extensive debate over the question of whether to use a consumer price index or a specific index (or replacement costs) to adjust historic accounts is approaching the problem in the wrong way. There are several relevant concepts of income which should be reported and the relevant index differs according to the income concept reported. It is proposed that companies should publish figures for four different concepts of income and that, where specific indices are required, these should be specific to each company.     

How The Europeans Got a Head Start on Policies to Promote Global Corporate Responsibility

This article considers the debate over public policies to promote global corporate responsibility in the United States and in Europe. The debate and the response of policymakers is compared along with an explanation of how Europeans are developing a policy response encouraging corporate social responsibility. Finally, recommendations are made for U.S. policymakers based on encouraging ethical behavior around the world.     

Using Surveys in Public Participation Processes for Risk Decision Making: The Case of the 2003 British GM Nation? Public Debate

This article takes as its case study the “GM Nation?” public debate, a major participation process on the commercialization of agricultural biotechnology, which occurred in Britain during the summer of 2003. We investigate possible self‐selection biases in over 36,000 open questionnaire responses on the risks and benefits of genetically modified crops and food obtained during GM Nation? A comparison sample of equivalent responses from a statistically representative sample (n= 1,363) of the British general public obtained shortly after the conclusion of the debate is reported. This comparison shows that the GM Nation? open responses were indeed not fully representative of British “public opinion” regarding agricultural biotechnology. Rather, such opinion is not a unitary whole, but fragmented, with considerable ambivalence coexisting alongside outright opposition to GM agriculture. The methodological implications for multistage participation processes are discussed: in particular, the need to anticipate outcomes of complex design decisions, and to include representative public surveys as standard where measures of broader public attitudes to risk are an important objective.     

The power of mediation

There is a range of intervention strategies and procedures designed to assist parties in reaching agreement, from negotiation, over which parties have complete control, to arbitration, the process over which they have the least control. In the middle of this spectrum is mediation. Simply put, mediation is assisted negotiation. A mediator is an impartial person (or team) that works with the parties, mostly together and sometimes separately, to help them reach an agreement to resolve a dispute. The cornerstones of mediation are impartiality and confidentiality. The logic of mediation is that disputants can easily fall into many pitfalls trying to resolve a dispute without help. This article explores these common barriers to effective direct negotiations--such as overestimating the likelihood of prevailing through power, litigation, or arbitration--and presents a case study describing how a complex set of problems was resolved through mediation.     

Public expenditure and public accountability

Within a parliamentary democracy, both the Executive and Legislature have key roles in ensuring public accountability for budgetary decisions. The internal budgetary processes of the United Kingdom Government have developed the PESC system of planning public expenditure over a rolling five year period at constant prices. At the same time, the effectiveness of parliamentary financial procedures, far removed from the decision processes, has further declined. The key weaknesses are identified as: (1) the almost complete divorce between parliamentary discussion of expenditure and that of taxation; (2) the manner in which the Government's survival might be imperilled by defeat even on minor items, which limits the activities of Government backbenchers; (3) the unequal knowledge and resources of Government and Parliament, accentuated by British traditions of official secrecy; and (4) the failure of Parliament to seize those opportunities which are available (e.g. debates on the annual Public Expenditure White Paper). Proposals have been made for reform of financial procedures and for a new system of select committees by the Expenditure and Procedure Committees. These are evaluated and given a cautious approval. The emphasis is on the aim of integrating parliamentary debate of the expenditure and revenue sides of the public budget. A single budgetary document is proposed. Multi-year tax forecasts, and the underlying medium term economic assessment, should be published. ‘Tax expenditures’ should be carefully costed and linked to the relevant expenditure programmes. These reforms would provide a more coherent and comprehensive framework for public debate of budgetary decisions.     

Enhancing efficiency: step by step

The debate over which mechanism for health care delivery will provide the widest, most efficient access has reached a crescendo. While the debate on the macro level accelerates, many significant approaches continue to be discussed and implemented on a micro level. Among these activities are imminent release of the final rule on "Criteria and Procedures for Making Medical Services Coverage Decisions that Relate to Health Care Technology--Medicare," implementation of the Safe Medical Devices Act of 1990 by the FDA, and a proposal that payers establish a cooperative national technology assessment program.     

Breast implants, Hippocrates, and burden of proof

The author argues that the burden of proof for the safety and efficacy of some medical devices properly lies with the manufacturers of the devices and with the providers who use them. The controversy over breast implants is used as a case for this shift in the burden of proof of safety and effectiveness.     

Regional strategy and the demise of globalization

The controversy over globalization and its implications for strategies of multinational enterprises (MNEs) would disappear if authors would look at the evidence. Both aggregate data and firm-level data indicate that globalization is a myth however defined. Instead, the world's business is mainly conducted within the triad economic blocks of the European Union (EU), North America, and Asia. MNEs perform internationally, but the vast majority has an average of 80% of their sales within their home region of the triad. Professors of international business need to refocus from global strategy towards new thinking about triad strategy.