The transnational corporation and new corporate citizenship theory : a critical analysis

A recent conceptualisation of corporate citizenship by Matten and Crane (2005) shifts focus onto the corporation's role in providing individuals with the rights they are entitled to as citizens. This expanded corporate role is depicted as filling an institutional vacuum resulting from the withdrawal of the state. Marking an innovation to the corporate citizenship literature, we devise a three-part analytical framework from political institutionalism to question the concept's ideological and empirical groundings. Incorporating a constrained game theory perspective, we use an example of the provision of Western corporate services by low-labour-cost nation-states to argue that the concept as strategy would in some circumstances exacerbate the implications of globalisation on individual citizenship rights. The analytical framework has application for research directed toward proposals to extend the reach of corporations in traditional public services and, more generally, for studies of corporate responsibilities. Future research on corporate citizenship would be strengthened in recognising, as we do, institutional incentives, constraints, decision-making modes and resources as used by the transnational corporation.

Understanding the economic dynamics behind growth-inequality relationships

In this paper, a dynamic general equilibrium (DGE) model of growth–inequality relationships, with missing credit markets, knowledge spillover and self-employed agents, is calibrated to New Zealand data. The model explains how two distinct policy shocks involving redistribution and immigration imply, subsequently, two completely opposite outcomes. Agents’ inability to borrow aggravates a negative macroeconomic effect of heterogeneity on growth. Redistribution mitigates that effect but creates microeconomic disincentives on saving and work-effort. Consequently, immigration shocks that perturb variance of efficiency induce a negative growth–inequality relationship, while redistribution shocks, in New Zealand’s case, produce larger fluctuations in incentives than in macro benefits, implying a positive growth–inequality relationship.

Sui Generis protection for plant varieties and traditional knowledge in biodiversity and agriculture : the international framework and national approaches in the Philippines and India

The so-called ‘biotechnology clause’ of Article 27.3(b) of the WTO-TRIPS Agreement requires from member states protection for plant varieties either via the patent system or via an ‘effective sui generis system’ or by a combination of the two. Many developing countries prefer forms of sui generis protection, which allow them to include exceptions and protection measures for traditional agricultural practices and the traditional knowledge of farmers and local communities. However, ‘traditional knowledge’ remains a vaguely defined term. Its extension to biodiversity has brought a diffusion of the previously clearer link between protected subject matter, intellectual property and potential beneficiaries. The Philippine legislation attempts a ‘bottom-up’ approach focusing on the holistic perceptions of indigenous communities, whereas national economic interests thus far receive priority in India’s more centralist approach. Administrative decentralisation, recognition of customary rights, disclosure requirements, registers of landraces and geographical indications are discussed as additional measures, but their implementation is equally challenging. The article concludes that many of the concepts remain contested and that governments have to balance the new commercial incentives with the biodiversity considerations that led to their introduction, so that the system can be made sufficiently attractive for both knowledge holders and potential users of the knowledge.

The role of traditional knowledge and access to genetic resources in biodiversity conservation in Southeast Asia

The article examines international treaties linking trade and environment, their governance models and implementation in the context of Southeast Asia. Particular attention is being paid to the role of intellectual property concepts, customary law and traditional knowledge as incentives for biodiversity conservation and to difficulties in defining the subject matter and communities of knowledge holders. Indonesia’s regulation of traditional knowledge and access to biodiversity is discussed as example. The article concludes that national development goals and interests in royalty collection frequently dominate the discussion and that key concepts are still insufficiently defined to avoid overlaps and conflicts. Genuine local support for the conservationist aims of the models will depend on whether a benefit flow to communities can be ensured and their original role to act as incentives can be realised. International collaboration is important to avoid disputes concerning biodiversity related knowledge held across borders.

Intellectual property, creativity and innovation : IP models and the political economy of developing Asia

In advanced capitalist societies, intellectual property laws protecting such subject matter as copyright and patents are justified by a combination of theories, which include the provision of economic incentives to foster creativity and innovation and the prevention of unfair competition. IP academics and policy makers have differing views about the appropriate balance between these objectives and public interest considerations such as health, education and the protection of the environment. These different views entered the policy debate in Asian developing countries in connection with an unprecedented introduction and expansion of IP laws over the last 25 years. This paper will use case studies of law reform from Asia, in particular Southeast Asia, to show that the policy considerations of governments in reforming their laws were often quite different from the standard rationale mentioned above. As much of the IP was, at least initially, held by foreigners and introduced to attract foreign investment, national development considerations were joined with the more commonly quoted objectives to promote the rights, creativity and innovation of individuals. Such national development objectives at times coincided and at other times collided with official explanations and received wisdom about the effects of stronger IP rights.

Especially in the early postcolonial period, copyright laws and other IP laws were frequently restricted or simply not implemented, if they conflicted with development policies in areas such as education or public health. Such policies were slowly changing in the wake of WTO-TRIPS and other international agreements. Nevertheless, the implementation and enforcement of the IP laws has been uneven. Specialised institutions such as courts and IP administering agencies compete with other branches of government and administration for limited funding and a rich repertoire of informal dispute settlement procedures has kept the number of court cases relatively low. In some countries, censorship laws have influenced freedom of expression and led to quite idiosyncratic interpretations of intellectual property laws. Governments often also retain a role in the assessment of licensing and technology transfer contracts. And while there are many programs to foster individual creativity, in most cases R & D activities are still largely taking place in government institutions and this has influenced the thinking about intellectual property rights and creativity in the context of employment.

The paper uses a few case studies to examine the implementation of IP laws in selected Asian developing countries to point to the quite different institutional setting for IP law reform in comparison to European or American models. It reaches some tentative conclusions as to the likely effects on creativity and innovation under these different circumstances.

The integration substitute : the role of controls in managing human asset specificity

As the integration solution to the problem of specific assets cannot be replicated on human asset specificity because slavery is illegal, economic theory states that control systems substitute for integration through a balanced structure to help align diverse interests. To understand the intricate design features of the balance, we examine a case-study firm. For low human asset specificity, the restriction and segregation of usable decision rights link with standards. However, incentives are traced to individuals only to the extent task deviations do not create relevant future costs that are difficult to be self-corrected. For high specificity, incentives are related to outputs rather than outcomes, because outcome variations reduce the attractiveness of maintaining the balance. Subjective assessment is used as an efficient alternate ‘balancing’ solution and decision control is shared when available subjective data are inadequate.

Breath and the truths of youth at risk : allegory and the social scientific imagination

The ways that we have invented for knowing young people are governmentalised. This governmentalisation produces powerful incentives to conform to the rule-bound and institutionalised knowledge practices that institutions, government departments, corporations, and NGOs understand as being capable of telling truths about young people and about risk. I argue that knowledge practices in the social sciences should trouble what counts as truth, as evidence, and the ways in which these truths can be produced.

These interests will be examined through a discussion of the ways in which Tim Winton's novel Breath can be read as an allegorical tale about the terror of being ordinary: and of the teenage years as being a time in a life in which the fear of being ordinary compels Winton's key characters to seek out, sometimes stumble upon that which promises to make their's a life less ordinary. Here risk is something that breathes energy and purpose into lifeworlds that are dominated by the institutionalised ordinariness of family, school, and work. As an allegorical tale told from the vantage point of hindsight, Breath unsettles what it is that the social sciences can tell us about youth (as becoming) and risk (as mitigated by prudential foresight).

Go8 warning on equity

Universities could exploit the Rudd government's multimillion-dollar equity push by enrolling underprepared students, the Group of Eight universities has warned.

With $503 million available, incentives are high to quickly increase the number of low socioeconomic status students "without regard for likelihood of success", the Go8 has told the government.

Commonising the enclosure : online games and reforming intellectual property regimes

Online computer gamers are a creative bunch, from the mayhem of first-person shooters (FPS) to the more social experiences of massive multiplayer online role-playing games (MMORPG), gamers are producing new content for their favourite titles at an amazing rate. This paper explores the rewriting of the boundaries in the production and ownership of intellectual property in the computer games industry. The purpose is to examine the potential for computer game studies to contribute to an understanding of an alternative intellectual property regime known as the commons. This paper will explore how computer games users establish commons-like formations, specific to the digital environment, that extend the confines of current intellectual property rights. It will argue that the productive activities of online gamers are not motivated by the traditional logic of market-based incentives. This represents a new condition which may contribute to a reformation of the privatising enclosure of the intellectual property system.
Keywords: massive multiplayer online

Cost effectiveness of a general practice chronic disease management plan for coronary heart disease in Australia

Background. The cost effectiveness of a general practice-based program for managing coronary heart disease (CHD) patients in Australia remains uncertain. We have explored this through an economic model.

Methods. A secondary prevention program based on initial clinical assessment and 3 monthly review, optimising of pharmacotherapies and lifestyle modification, supported by a disease registry and financial incentives for quality of care and outcomes achieved was assessed in terms of incremental cost effectiveness ratio (ICER), in Australian dollars per disability adjusted life year (DALY) prevented.

Results. Based on 2006 estimates, 263 487 DALYs were attributable to CHD in Australia. The proposed program would add $115 650 000 to the annual national heath expenditure. Using an estimated 15% reduction in death and disability and a 40% estimated program uptake, the program’s ICER is $8081 per DALY prevented. With more conservative estimates of effectiveness and uptake, estimates of up to $38 316 per DALY are observed in sensitivity analysis.

Conclusions. Although innovation in CHD management promises improved future patient outcomes, many therapies and strategies proven to reduce morbidity and mortality are available today. A general practice-based program for the optimal application of current therapies is likely to be cost-effective and provide substantial and sustainable benefits to the Australian community.

What is known about this topic? Chronic disease management programs are known to provide gains with respect to reductions in death and disability among patients with coronary heart disease. The cost effectiveness of such programs in the Australian context is not known.

What does this paper add? This paper suggests that implementing a coronary heart disease program in Australia is highly cost-effective across a broad range of assumptions of uptake and effectiveness.

What are the implications for practitioners? These data provide the economic rationale for the implementation of a chronic disease management program with a disease registry and regular review in Australia.

Physical activity initiatives for male factory workers : gatekeepers' perceptions of potential motivators and barriers

Objective: Worksites have been argued to be a key setting for physical activity promotion, particularly for lower-paid, less-skilled workers. These occupational groups are at increased risk of cardiovascular disease. There is no strong evidence in support of the efficacy of worksite fitness and physical activity interventions. This study assessed potential motivators and barriers to worksite physical activity initiatives for less-skilled workers.

Method: We conducted telephone interviews with 13 Victorian WorkCover insurance providers and 30 manufacturing industry worksite managers. The manufacturing industry was selected as it contains a substantial portion of workers from this high-risk occupational group.

Results: Most insurers incorporated physical activity elements into injury-prevention programs. Few worksite managers reported programs to encourage workers to be more active; they identified reduced premiums and lower-cost programs through insurers as possible motivators. Both groups identified workers' reluctance to participate in physical activity, lack of awareness of potential benefits and program cost as major barriers for worksite physical activity. Other barriers included potential adverse effects on productivity and increased injury risk.

Conclusions: Broader occupational health and safety policies and joint initiatives between insurers and worksite managers may have the potential to provide more opportunities for workers to be more active. However, the barriers identified outweighed the perceived benefits.

Implications: Without structural and regulatory changes or new incentives, the adoption of physical activity initiatives in Australian manufacturing-industry workplaces is unlikely.

The rural practicum : preparing a quality teacher workforce for rural and regional Australia

Communities play a critical role in supporting pre-service teachers during rural and regional professional experience. This support, coupled with access to teacher educators and university resources, appears to positively influence graduate attitudes toward taking up a rural appointment. These are among the key findings to emerge from open-ended responses within 263 surveys completed for the Rethinking Teacher Education for Rural and Regional Sustainability—Renewing Teacher Education for Rural and Regional Australia project (TERRAnova). The national surveys, collected annually from 2008-2010, monitored the impact of state-based financial incentives designed to promote rural and regional professional experience. Findings discussed in this article have implications for teacher educators and rural school leaders as they work in partnership with communities to support pre-service teachers on rural and regional practicum.

The value of executive director share ownership and discretionary accruals

Purpose – The purpose of this paper is to investigate the relation between the value of executive director share ownership and discretionary accruals.

Design/methodology/approach – This study uses a dataset of 1,173 firm-year observations drawn from 188 Australian listed companies for the period 2000-2006. The analysis is based on multivariate regression analysis and ordinary least square models were used to investigate the relation between the value of managerial ownership and discretionary accruals. The issue of potential endogeneity is addressed by using a simultaneous equation system.

Findings – A negative relation is found between value of managerial share ownership and discretionary accruals at lower levels of value of ownership, which is consistent with the theorised incentive alignment that as the managers commit more resources to their firms, stakeholders impose less contractual constraints specified in terms of accounting numbers and managers make lower accrual adjustments. After a certain level of value of ownership is attained, a positive relations seen, consistent with increased discretionary accrual adjustments associated with stakeholders anticipating managerial entrenchment. Also, it is found that these results are driven by firms with income increasing, as opposed to income decreasing, discretionary accruals.

Practical implications – Shares and options are forming an increasing proportion of executive remuneration that continues to be the subject of much debate amongst regulators and in the media. Showing that the value of share ownership may be an effective internal governance mechanism to help align incentives adds to the debate and has policy implications.

Originality/value – The paper's primary contribution is finding that the value (as opposed to proportion) of share ownership, typically representing a sizeable proportion of managers' undiversified wealth, is a potentially direct driver of theorised incentive alignment and entrenchment effects associated with share ownership.

Expansion of congested railway capacity using triple-track line operation based on hourly passenger demand

This paper proposes a method of improving level of service in congested urban railways by means of a triple-track line operation for a highly dense urban area with special travel demand characteristics. Where the future travel demand forecasts show sluggish growth or no growth at all, there is little to no incentives for heavy railway investments like quadruple-track extension and construction of new railway routes to alleviate current railway congestion problems. In such a situation, triple-track line operation can be the best alternative due to its moderate investment cost and ease in land acquisition for just an additional single track along the existing tracks. Our simulation investigation in one of the congested railway lines in Tokyo showed that triple track line operation increases railway capacity by 26% and shortens travel time by 38% in peak direction during morning peak hours. These results are encouraging and are useful for removing current railways problems in Tokyo and in similar urban situations elsewhere.