The trouble with income trusts

This paper sketches broadly the efficiency and equity effects of income trusts that make their use as a substitute for the direct holding of shares of a corporation problematic for tax policy purposes. The paper also considers the potential effectiveness of an equity recharacterization rule applicable to the high-yield junk debt that is the common feature of the basic income trust structure. The author suggests that this type of narrowly focused rule would be more target-efficient than other possible responses to income trusts, such as fundamental reform of the corporate income tax or the restrictions on the holding of trust units proposed in the 2004 budget. However, a principal difficulty in designing an equity recharacterization rule is ensuring that it applies equally to structures that realize the same effect as the basic income trust structure but do not use high-yield junk debt.
The author argues that income trusts are examples of tax-driven financial innovation in the sense that they replicate an existing set of securities and therefore have no nontax rationale. These securities are essentially redundant, and the innovative process of which they are a product does not constitute “genuine” financial innovation. This essential characteristic of income trusts distinguishes them from real estate investment trusts, which arguably do not present a tax policy problem (or at least not the same one). More particularly, income trust transactions are redundant in the sense that they do not complete capital markets by providing investors with a risk and return payoff profile that is otherwise unavailable. In the absence of any efficiency gains or desirable distributional effects associated with income trusts, the available tax benefit is the subject of a defensible government response intended to eliminate it. But without any clear evidence that income trusts are substituted generally for the corporate form, any response can defensibly be limited to a narrowly targeted one that introduces a “taxlaw friction” by shifting the debt-equity boundary that is the focus of the basic income trust structure. Because the precise dividing points along this boundary lack any obvious normative content, the suggested policy focus should be the development of a legislative response that redraws the debt-equity boundary in a manner that minimizes perceived efficiency losses otherwise associated with the use of income trusts.

Leveraging the Commonwealth Games in Melbourne for community engagement: an examination of Equal First and the Adopt-a-Second-Team program

Event leverage provides information about what outcomes occur as a result of an event. Unlike event impact studies, event leverage analysis identifies why particular outcomes occurred, and the processes that can be used to optimise desired event outcomes. While research has been directed towards understanding how events can be leveraged to provide optimal economic outcomes for host communities, there is little research that examines social leverage within the context of events. The research presented in this paper is part of a larger study that investigated social leverage within the context of the 2006 Commonwealth Games, held in Melbourne, Australia. This paper presents preliminary results relating to two Victorian regions with regard to one the over-arching social policy, Equal First, and a subsidiary program called, Adopt-a-Second-Team. Participant observations and stakeholder interviews were employed to explore the development, operationalisation, implementation and outcomes of Equal First and Adopt-a-Second-Team. The results suggest that although each region achieved outcomes that were consistent with the directions of Equal First, each implemented the Adopt-a-Second-Team differently. The two case studies presented in this paper highlight that the model of implementation developed by the City of Port Phillip may provide a benchmark in social leverage of events. Implications for leveraging social impacts and managing social legacies of events through an approach that includes consideration of policy development and operationalisation from the event organising body and program implementation from the perspective of local community event organisers are discussed.

Content exploration for e-learning using XML Web services

Obtaining high quality content in an e-learning portal is critical to maximise the learning experience. For e-learning portals the content specialists are the publishers. Typically, publishers are nominated by portal administrators to make their content available to instructors. Instructors subsequently customise the portal by selecting content according to their requirements. The choice of content is limited to that provided by the publishers. This is a rigid system owing to the fact that instructors do not have access to an exhaustive range of content. We propose a system based on XML Web services which can be adopted by publishers in adherence with a number of emerging Web standards including SOAP and UDDI to disseminate their content. This system can be leveraged by portals to preview and subsequently acquire content which best suits the requirements as determined by instructors.

Building a corporate socially responsible brand : an investigation of organizational complexity

Past research has suggested that developing CSR linked brands is a complex activity that needs to consider the social issues being addressed as well as multiple facets of organisational activities. This paper proposes that organisational activities need to be considered at four different levels – corporate brand, product/line brands, location/functional activities and supply chain issues. The four activities are discussed and implications for developing CSR-leveraged brands are explored.

Building a corporate socially responsible brand : an investigation of issue complexity

Corporate social responsibility (CSR) is increasingly being leveraged in branding activities. This paper suggests that there are four types of issue complexity associated with defining what issues should be considered for CSR branding activities to be effective. These include the number of social issues considered, diversity of sub-issues, measurement difficulties and
determination of appropriate performance levels. Some implications for developing CSR leveraged brands are discussed.

Successful web-based IT support services : service provider perceptions of stakeholder-oriented challenges

Web-based self-service systems (WSSs) are increasingly leveraged for the delivery of after-sales information technology (IT) support services. Such services are offered by IT service providers to customer firms and increasingly involve business partners. However little is known of the challenges faced by IT service providers as a result of the involvement of the other firms and their employees (end-users). This paper reports related findings from an interpretive study of IT service provider perceptions in six multinational IT service provider firms (Cooper, 2007). The findings highlight that, for IT service providers, (1) it is important to consider and resolve the needs and concerns of other key stakeholders, and (2) significant challenges exist in doing so. The main contribution of the paper is the identification of the key challenges involved. Important implications for theory and practice are discussed.

Global branding and strategic CSR : an overview of three types of complexity

Purpose – There is general agreement that global brands should ensure that they incorporate social responsibility. To do this properly, organisations must understand what it means to be socially responsible and how they can leverage their actions. The paper proposes consideration of three distinct areas: the range of social responsibility issues, what the organisations actually do and how to leverage those corporate social responsibility (CSR) actions. This paper seeks to conceptually develop these three areas of complexity – Issue, Organisational and Communication – as it is only after organisations understand these three areas that they can effectively leverage socially responsible activities in their brands.

Design/methodology/approach – This research undertakes a review and synthesis of the academic, practitioner and industry literature examining CSR and the brand, addressing the three areas of complexity – issue, organisational and communication.

Findings – The research finds that within these three areas of complexity there are a number of sub-issues that must be addressed if CSR is to be strategically integrated into a global brand. This includes sub-issues associated with social issue complexity (identification, heterogeneity, measurement, and interpretation); organizational complexity (overall corporate brand, multiple products and brands, functional activities, and supply chain); and communication complexity (intensity of action/positioning, communicating action, types of programs utilised, and integration issues.) It thus provides an agenda for future research.

Research limitations/implications – There is limited academic literature examining how global organisations incorporate CSR activities into their brand and the research proposes the issues that need to be considered when integrating CSR into branding strategy. Future research needs to be undertaken to explore the internal processes that global firms use to develop their CSR positioning strategies and some research propositions for future research are proposed. Additionally further exploration of each of the issues (and sub-issues) identified in this paper is warranted, and some suggestions are made for this.

Practical implications – The results of this study show that developing a CSR leveraged brand in a consistent way that is salient to all stakeholders is no simple task for global organisations. By considering the three areas of complexity developed here organisations will be able to better understand and align their activities in line with CSR related issues. Being global means that organisations will likely need to ensure they address the highest set of global expectations, as any lower level may be criticised as being less than appropriate.

Originality/value – The paper develops the sub-issues of issue, organisational and communication complexity associated with global brands' CSR activities. This strategic perspective goes beyond focusing on the tactical activities undertaken or the philosophical issue of whether CSR should be undertaken. The work therefore allows global organisations to look at CSR more strategically as a branding issue.

Social policy for sport events : leveraging (relationships with) teams from other nations for community benefit

Recent work on sport events has argued that host governments should do more to leverage events in order to obtain and spread the benefits. This study uses ethnographic methods to compare two cities' implementation of a programme designed to leverage the presence of visiting teams training for the 2006 Commonwealth Games. Whereas one city formulated and implemented a detailed strategic plan to obtain benefits from its relationship with its adopted visiting team (Papua New Guinea), the other made no effort to benefit from adopting a visiting team (Wales). The city that leveraged its visiting team obtained new relationships, cultural insights, and improved organisational networks, whereas the city that did not leverage obtained no comparable benefits. The difference was due to the disparity in strategic vision by the two city governments and the vague mandate of the state programme which had caused each city to adopt its chosen team. Future work should explore factors that foster and that inhibit effective leverage before and during sport events.

Marketing research and customer analytics : interfunctional knowledge integration

The Customer Analytics (CA) function is increasingly leveraged for Customer Relationship Management (CRM), however it may lack the value of marketing knowledge available from the Marketing Research (MR) function due to inadequate interfunctional knowledge integration. This paper develops a set of sixteen propositions from a synthesis of the marketing and knowledge management literatures relating key organisational influences on the integration of knowledge between the MR and CA functions. A range of strategic, cultural, structural and technical influences is reflected by the propositions. It is planned to test the propositions in future empirical research.

Strategic vote manipulation in a simple democracy

In both the Employee Stock Ownership Plan (ESOP) and employee buyouts, the common and crucial phenomenon is that some workers have two sources of income, namely wages and shares of profit. We analyze that phenomenon in an economy where workers are nonunionized and wages are determined by voting. If the employers sell a certain amount of shares of the capital stock to some non-risk-loving workers, these workers vote for the lowest possible wage along with the employers. As a result, all workers become equally worse off because of the competition among workers to buy those shares.

A celebrity chef goes global : the business of eating

Purpose – This paper examines the internationalization strategy of Gordon Ramsay Holdings Ltd (GRH) from its base in London. While a substantial body of research on the strategic prerequisites for successful internationalization already exists, little attention has been given within this literature to the international growth of small, informally organized and entrepreneurially-driven firms. The discussion also identifies the challenges facing GRH as it strives to continue its international expansion.

Design/methodology/approach – The paper utilizes various published sources from the general press, business press and trade journals to examine the international expansion of GRH on the back of the personal brand the charismatic Gordon Ramsay has achieved in culinary and media circles. The growth of the GRH organization is interpreted through a theoretical framework of strategic capabilities and relationships.

Findings – The analysis illustrates how critical resources and capabilities, branded reputation, and strategic relationships established in GRH's home market have been leveraged effectively overseas. The most fundamental challenge facing GRH going forward is balancing the opportunities and pressures for growth against the need to maintain the highest levels of quality in existing establishments. This “balancing act” has to unfold within an empire in which the entrepreneur-emperor (Ramsay) has less and less time to devote to any particular activity or establishment.

Originality/value – The case illustrates the importance of developing and leveraging strategic capabilities and relationships in support of successful international expansion. Some of the unique challenges associated with the internationalization of small, informally organized and entrepreneurially-driven (and branded) firms are addressed in terms of both problems and solutions.

Deliberative educational planning : including educators’ deliberations in educational policy making.

The objective of this chapter is to argue a case for the need to include teachers and professional educators in the policy making and implementation processes of the World Bank's Education Sector Strategy 2020. By drawing on evidence from the Consultation Plan, the chapter investigates how communicative practices about teachers are embedded in the discourse of the plan and how these influence the rationalisation of the policy. In doing so, the chapter will examine the relationships between social actions, systems rationalisation and life world rationalisation. Much like commercial and entrepreneurial organisations focus on the voice of the customer (VOC), that is on satisfying the stakeholders and end users in their processes, in this chapter, the voice of the teacher (VOT) is highlighted. The skills and knowledge of key stakeholders need to be leveraged and engaged in order to ensure that the policy achieves its desired aims. In order to frame this argument, notions of Habermas’ communicative action theory is used to show how policy engages in systems steering. Rather than understanding education strategy and reform as a process of engaging only government and policy makers, this chapter suggests that by engaging the practitioners and listening to the practical discourse around reform, teachers can be leaders of reforms rather than obfuscated agents.

Exploring the use of enterprise content management systems in different types of Organisations

Researchers and practitioners are starting to realize that it is unlikely that the full advantage of Electronic Content Management Systems (ECMS) can be realized unless both the technology capabilities and organisational context are taken into consideration. This study explores ECMS use in Replication, Diversification, Unification and Coordination type of organisations. A framework of ECMS-use is proposed suggesting different ways of using ECMS to support diverse organisational needs. Following a qualitative case study research approach, interviews were conducted with IT and business managers and ECMS users from each of the four types of organisations. Results suggest that, depending on the organisation’s business needs, ECMS use in organisations can be categorized as 1) Minimal-use, 2) Standard Adoption-use, 3) Customized-use or 4) Leveraged-use. Findings suggest that managers can gain more realistic benefits from ECMS use by understanding why and how different types of ECMS-use can support the way in which their businesses operate.

Modelling skill acquisition in acquired brain injury

Acquired brain injury (ABI) is a debilitating condition often requiring extensive rehabilitation. Although cognitive rehabilitation is concerned with overcoming a skills deficit, the application of skill acquisition research in this context has been non-existent. Examining post-injury learning in terms of the qualitative variables associated with different phases of skill acquisition is likely to be beneficial in assessing patient status and monitoring progress, as well as identifying changing needs over the course of learning. However, current models of skill acquisition overlook the potential impact of variables such as emotion, implicit learning, metacognition, motivation, and strategies that can be leveraged to improve skill acquisition. The current paper attempts to lay the groundwork for modelling and improving skill acquisition in ABI.