The serendipity of leadership effectiveness in management and business practices

Purpose – The objective of this paper is to conceptualize the serendipity of leadership effectiveness in management and business practices. The term “serendipity” is defined as the mix of leadership effectiveness by accident and sagacity in management and business practices.
Design/methodology/approach – The paper provides a conceptual discussion of the serendipity of leadership effectiveness in management and business practices.
Findings – This paper contributes a number of models and a matrix that are introduced to address the underlying criteria of the cause-effect relationship between leadership effectiveness and organizational achievements.
Research limitations/implications – This paper challenges the idealistic picture that flourishes in the management literature and in management practice of the direct, positive impact of leadership on prosperous management and business practices. In fact, it reinforces and underpins the critical or sceptical views of leadership effectiveness raised in the literature.
Practical implications – Normally, views of organizational achievements are based on the assumption that contextual, timely and skilful precisions in leadership effectiveness are high. Shareholders and stakeholders may benefit from a thorough examination of these issues in organizational achievements. It would not be surprising to find that leadership effectiveness in management and business practices to a minor or major extent is derived from pure luck and coincidence in contextual and timely precisions: right place, right time. This means that such leadership effectiveness may be based on serendipity rather than skilfulness in terms of organizational achievements.
Originality/value – The authors contend that the term “serendipity” contributes to enhance the ongoing discussion in the literature of the link between leadership effectiveness and organizational achievements. It also provides a fundament of understanding, explanation and prediction of leadership effectiveness in management and business practices.

Corporate ethics in TQM: management versus employee expectations and perceptions

Purpose – The objective of this research is to develop and describe a conceptual framework of corporate ethics in total quality management (TQM).

Design/methodology/approach – The research is based on a summarised in-depth and longitudinal case illustration. The summarised case describes corporate ethics in an intra-corporate relationship.

Findings – TQM requires human resources and failing to care for them will affect accordingly the success of TQM. The case description illustrates the evolution of management versus employee expectations and perceptions of corporate ethics. It has an emphasis on the human resources of a company that strives towards TQM. As the quality of corporate ethics decreases the outcome of TQM is also affected (i.e. directly or indirectly). The case is initialised in an atmosphere of management and employee optimism and positivism of corporate ethics, which is a requisite from both parties in order to ensure prosperous TQM. The successive change towards pessimism and negativism of corporate ethics in the intra-corporate relationship concludes the in-depth case description.

Research limitations/implications – Four parameters of corporate ethics are used to incorporate corporate ethics into TQM, namely management versus employee expectations and perceptions. Internal corporate quality management should always be regarded as dependent upon the achieved equilibrium between management and employee perceptions. It is also dependent upon the derived equilibrium between management and employee previous expectations.

Practical implications – An important insight of this research is that TQM requires the continuous attention to the management versus employee expectations and perceptions inherent in corporate ethics of internal business operations. Furthermore, corporate ethics is complementary to business ethics.

Originality/value – The case description has shown that TQM may be running well and accomplishing the hard goals. However, TQM is not only about figures, profits and costs. It is also a business approach that should penetrate all activities inside and outside that are related to the company, including the soft issues.

Projections of the future path of the gender wage gap in Great Britain

Purpose – The paper attempts to project the future trend of the gender wage gap in Great Britain up to 2031.
Design/methodology/approach – The empirical analysis utilises the British Household Panel Study Wave F together with Office for National Statistics (ONS) demographic projections. The methodology combines the ONS projections with assumptions relating to the evolution of educational attainment in order to project the future distribution of human capital skills and consequently the future size of the gender wage gap.
Findings – The analysis suggests that gender wage convergence will be slow, with little female progress by 2031 unless there is a large rise in returns to female experience.
Originality/value – The paper has projected the pattern of male and female skill acquisition together with the associated trend in wages up to 2031.

Cultural impact on Chinese corporate disclosure-a corporate governance perspective

Purpose – The purpose of this preliminary study is to explore the impact of changed cultural environment on the voluntary disclosure behaviour of Chinese listed companies.
Design/methodology/approach – A theoretical framework of the relationship between corporate disclosure and governance forms the basis of the research. A composite checklist of corporate disclosure was developed using relevant corporate governance indices and analyses were carried out on the 2003 financial reports of 120 Chinese listed companies. Six areas of voluntary disclosure of the sample companies were analysed and reported. These areas are: board structure and functioning, employees related issues, director remuneration, audit committee, related party transactions and stakeholder interest.
Findings – The results suggest that as China's cultural and social norms change, there was willingness of Chinese listed companies to provide voluntary information in addition to the disclosure requirements. Information relating to stakeholder interest and employees issues are found more frequently disclosed by listed companies than those which were regarded as sensitive. This is an exploratory study which shows that further research may provide more concrete evidence of the changing corporate disclosure environment in China.
Research limitations/implications – This study based on one year's results and as such has limitation in the interpretation of the results. Further research is necessary to demonstrate the impact of culture in corporate disclosure.
Practical implications – The results have practical implications for professional accountants and auditors to understand further the trend of voluntary disclosure in China. The paper provides some evidence of the changing scene of Chinese corporate governance practice.
Originality/value – This study fulfils a gap in prior research by examining the effect of cultural implications in corporate governance, in an emerging economy. The composite voluntary disclosure checklist will serve a good basis of measurement in corporate disclosure.

The effects of accounting students` ethical reasoning and personal factors on their ethical sensitivity

Purpose – Rest posited that to behave morally, an individual must have performed at least four basic psychological processes: moral sensitivity; moral judgment; moral motivation; and moral character. Though much ethics research in accounting has been focused on component two, ethical judgment, less research has been undertaken on the other three components. The purpose of this study is to focus on component one, ethical sensitivity, of Rest's four-component model.
Design/methodology/approach – A sample of 156 accounting undergraduates was employed to investigate the ethical sensitivity of accounting students and the effects of their ethical reasoning and personal factors on their ethical sensitivity.
Findings – Results of this study show that accounting students vary in their ability to detect the presence of ethical issues in a professional scenario. There is no significant relationship between accounting students' ethical sensitivity and their ethical reasoning (P-score). Accounting students characterized as “internals” are more likely to show an ability to recognize ethical issues than those characterized as “externals.” The results also indicate that an accounting ethics intervention may have positive effect on accounting students' ethical sensitivity development. Hence, an individual who possesses the ability to determine what is ethically right or wrong (high ethical reasoning) may fail to behave ethically due to a deficiency in identifying ethical issues (low ethical sensitivity) in a situation.
Originality/value – Whilst much research has concentrated on ethical reasoning and ethics education to enhance the ethical conduct of accountants, it is important that the profession and researchers also direct their attention and efforts to cultivating the ethical sensitivity of accountants. The findings of this study provide additional evidence to support Rest's theory of a more comprehensive cognitive model of ethical decision-making and suggest a more balanced research effort in evaluating the ethical development of individuals.

Green products and corporate strategy : an empirical investigation

Purpose – The purpose of the study is to examine the influence of multiple factors on the green purchase intention of customers in Australia.

Design/methodology/approach – A conceptual model is proposed and was subjected to empirical verification with the use of a survey of metropolitan and regional households in Victoria, Australia. The data were analyzed using both descriptive measures and exploratory factor analysis to identify and validate the items contributing to each component in the model. AMOS structural modeling was used to estimate the measure of respondents' overall perception of green products and their intention to purchase.

Findings – The results indicate that customers' corporate perception with respect to companies placing higher priority on profitability than on reducing pollution and regulatory protection were the significant predictors of customers' negative overall perception toward green products. The only positive contribution to customers' perception was their past experience with the product. Other factors including the perception of green products, product labels, packaging, and product ingredients did not appear to influence customers' perception. The results also indicate that customers are not tolerant of lower quality and higher prices of green products.

Research limitations/implications – The knowledge of the overall perception formation about green products and its predictors provides management with the facility to identify and implement strategies that may better influence the change of attitude by customers. Corporations can also benefit from the identification of the types of information required to enable management to influence this process of perception formation.

Originality/value – The present findings contributes to an understanding of the antecedents of green purchasing and highlight that green customers rely more on personal experience with the product than the information provided by the marketer.

An empirical study on the influence of environmental labels on consumers

Purpose - Despite research studies indicating strong support for labelling information, uncertainty remains with respect to how labels influence consumers. This paper attempts to empirically investigate how consumers who differ in terms of environmentalism respond to labels.

Design/methodology/approach - The data were collected on an Australian sample using a structured questionnaire administered on the phone using quantum research (CATI) data collection services. A total of 155 questionnaires were completed and used for data analysis. The data were analysed using both descriptive measures and correlations between variables.

Findings - There appears to be a proportion of consumers that find product labels hard to understand. The research found that there are consumers who will buy green products even if they are lower in quality in comparison to alternative products, but would look for environmental information on labels. With respect to price sensitive green consumers, there appears to be a relationship between price sensitivity and 'always' reading labels as well as indicating that there is 'sufficient' information on product labels to make informed purchase decisions.

Research limitations/implications - It was beyond the scope of the research to account for some of the utilitarian approaches to interpretation or in-depth comprehension of label information. The sample size of 155, although selected using a probability method, may, to some extent, limit the overall accuracy of the results.

Practical implications - Offers some important information on different green consumer segments that would alert managers on how best to position environmental labels. Findings such as 'Satisfied with labels' correlates with 'Labels are accurate', which suggests that businesses need to provide a clear, accurate and easily legible label design to encourage satisfaction with the accuracy of content and the communication aspects of a label.

Originality/value - Contributes to better understanding of green customers purchase intentions and the usefulness of ecological product labels. It offers some insights and assistance to businesses in planning their green product/labelling strategies.

Sustainable components of leadership effectiveness in organizational performance

Purpose – The objective is to describe a selection of sustainability components of leadership effectiveness in organizational performance.
Design/methodology/approach – The paper is based on a conceptual discussion. Findings – The paper contributes to descriptive models that address sustainability components of leadership effectiveness in organizational performance. The study highlights some common views that exist in the management literature and in prosperous management practice related to the direct impact of the relationship in organizational performance between leadership and effectiveness. In fact, it also highlights the critical or sceptical views of leadership effectiveness in organizational performance raised in the literature. Research limitations/implications – The paper contends that the actual leadership effectiveness in organizational performance varies over time and across contexts. At times, the achievement in organizational performance is the outcome of prosperous and conscious leadership, while it at other times may be the outcome of poor and deficient leadership. The topic at hand is positioned and limited to the interface that may describe and explain the connection between these two views. Furthermore, it is limited to corporate decision making and business behaviour in relation to leadership effectiveness and organizational performance. Practical implications – The leadership of an organization need not only to be successful today, but they also need to be successful tomorrow to stay in control and to flourish. Quality control and quality assurance are no longer enough for most organizations. They need to build an awareness of the sustainability components into processes of their management and business practices (i.e. internal and external ones) in order to be judged as successful in corporate decision-making and business behaviour in organizational performance in the long term. Originality/value – The principal contributions of the study are a model of timely leadership effectiveness, a model of contextual leadership effectiveness, and a typology of leadership effectiveness in corporate decision-making and business behaviour. These contributions provide theoretical and managerial ideas and insights into the sustainability components of leadership effectiveness in organizational performance.

An experimental study on fabric softness evaluation

Purpose – To examine a simple testing method of measuring the force to pull a fabric through a series of parallel pins to determine the fabric softness property.

Design/methodology/approach – A testing system was setup for fabric pulling force measurements and the testing parameters were experimentally determined. The specific pulling forces were compared with the fabric assurance by simple testing (FAST) parameters and subjective softness ranking. Their correlations were also statistically analyzed.

Findings – The fabric pulling force reflects the physical and surface properties of the fabrics measured by the FAST instrument and its ability to rank fabric softness appears to be close to the human hand response on fabric softness. The pulling force method can also distinguish the difference of fabrics knitted with different wool fiber contents.

Research limitations/implications – Only 21 woven and three knitted fabrics were used for this investigation. More fabrics with different structures and finishes may be evaluated before the testing method can be put in practice.

Practical implications – The testing method could be used for objective assessment of fabric softness.

Originality/value – The testing method reported in this paper is a new concept in fabric softness measurement. It can provide objective specifications for fabric softness, thus should be valuable to fabric community.

The Asia Pacific literature review on internal auditing

Purpose – By conducting the 2006 global Common Body of Knowledge (CBOK) study, The Institute of Internal Auditors (IIA) attempts to better understand the expanding scope of internal auditing practice throughout the world. The purpose of this review of recent internal auditing literature in Asia Pacific is to document how the internal audit function is changing in response to the shifts in global business practices.
Design/methodology/approach – The literature in Asia Pacific is reviewed with a focus on developments that have implications for the expanded scope of internal auditing and the changing skill sets of internal auditors. This focus has implications for CBOK 2006.
Findings – The literature indicates a paradigm shift in the activities performed by internal auditors. The increasing complexity of business transactions, a more dynamic regulatory environment in Asia Pacific, and significant advances in information technology have resulted in opportunities and challenges for internal auditors. Although in 2004, The IIA responded to the changing organizational environment by updating the professional practices framework, more work needs to be done to prepare internal auditors for the expanded set of skills and knowledge required to perform audits of the future.
Originality/value – By presenting an overview of past literature in Asia Pacific and discussing the shifting demands on internal audit services, the researchers hope to motivate further research in the field.

Codes of ethics in corporate Sweden

Purpose – The purpose of the study is to examine and describe the use of codes of ethics in the top 100 companies operating in the Swedish corporate sector. This paper reports on the responses of those companies that possessed a code of ethics.

Design/methodology/approach – A three-stage research procedure was used. First, a questionnaire was sent to the public relations managers of the top 100 companies operating in the Swedish corporate sector (based on revenue). Companies were asked to answer up to 29 questions and to supply a copy of their code of ethics. The second stage involved content analysis of the codes of ethics supplied by survey respondents. The third stage involved a more detailed follow-up of a smaller group of firms that appeared to be close to best practice. Findings for Stage 1 of the research are reported in this paper. The areas of questioning were: how common are codes of ethics? Who was involved in the development of these codes? What are the reasons for the codes? How are they implemented? Do companies inform internal and external publics of the codes? What are the prescribed benefits of the codes?

Findings – It would appear that business ethics has only recently become a topic of interest in corporate Sweden and that many companies are in the early stages of code development and assimilation into company policies. The incidence of codes in the population (of 100) suggested by this survey (56 per cent) is lower than a US study finding (in 1995) that over 84 per cent of comparable US companies had codes of ethics. It would appear that Sweden today lags behind the US situation of 1995. When one investigates the special measures to support the inculcation of ethical values at the organizational level, there appears to be some shortfall. The supporting measures of ethics committees, ethics training committees, ethics training, ombudsman, an ethical audit and procedures to protect whistleblowers appear to be under-utilized in companies that possess codes. This lack of utilization tends to suggest that companies in Sweden, as yet, either have not developed a high commitment to supporting business ethics in their corporations, or they may have developed other methods to support their codes in their organizations that they view are as beneficial as the traditional methods practised in other western industrial democracies.

Research limitations/implications – This research was limited to internal ethical expectations. The commitment to business ethics is usually explored in terms of internal ethical expectations, but the simultaneous consideration of the external ethical expectations in the marketplace (e.g. among suppliers and customers or other publics) is desirable. A dyadic approach considering a company's internal ethical expectations and the external ethical expectations of a company's business activities may give a more balanced and in-depth approach.

Practical implications – Evidence is now available to show that codes of ethics are well developed in many of Sweden's largest corporations: organizations that, from their responses, appear to see a diverse range of benefits in developing the area of business ethics. Companies are beginning to implement not only a code of ethics, but other complementary initiatives that reinforce the need for the culture of the organization to be ethical. Codes of ethics are perceived by organizations to have assisted them in their dealings in the marketplace and many companies use their ethical values to underpin their strategic planning process. It appears that many companies now see the formalisation of business ethics as an integral part of their commercial practices.

Originality/value – This study is the first one of its kind on codes of ethics in corporate Sweden. It will enable all sectors of Swedish business to benchmark their efforts against the major companies in the Swedish corporate sector.

The Pareto plus syndrome in top marketing journals: research and journal criteria

Purpose – Pareto’s Law often refers to the theory that a small percentage of a total is responsible for a large proportion of the total outcome. It is commonly known as the 80/20 law or principle. The objective is to review and debate whether there is a “Pareto syndrome” in the distribution of crucial research and journal criteria in top marketing journals.

Design/methodology/approach – The authors provide a review and a debate based upon previous research on top marketing journals. For this purpose, the Pareto syndrome concept is introduced, based upon a set of research and journal criteria. Their distribution is examined.

Findings – The review of research and journal criteria in top marketing journals generated an extremely skewed outcome. When it comes to the criteria, the top journals in marketing tend to be governed by narrow concerns of research rather than broad ones.

Research limitations/implications – The research and journal criteria that have a skewed outcome may reinforce the rigidity and the lack of innovativeness of the marketing discipline. The evolutionary speed of the discipline may at best be reduced or it may at worst grind to a halt. The authors argue that there are a number of serious concerns to be addressed in the future review and debate of top journals in marketing.

Practical implications – Editors and editorial boards need seriously to address the concerns reviewed and debated, namely the skewed distribution of criteria, such as affiliation, data and methodology.

Originality/value – The authors debate that there is evidence that confirms the existence of a Pareto plus syndrome in key research and journal criteria of top marketing journals.

Masochistic marketing : Volvo Australia's not "so safe" strategy

Purpose – The objective is to describe a marketing approach used by Volvo in the Australian marketplace. It appears to be a rare approach and could be perceived to some extent as being “masochistic”.

Design/methodology/approach – The research is based upon a case study. The term “masochistic marketing” is introduced.

Findings – The “masochistic marketing” approach applied by Volvo in Australia should be seen as a process. It is dependent upon the outcome of a series of cause and effect relationships.

Research limitations/implications – The masochistic marketing approach may be divided into four cause-related phases, all of which create a dualistic outcome of either positive or negative effect-chains in respect to the corporate image in the marketplace and society.

Practical implications – A masochistic marketing approach is a high-risk venture. It is a challenging and demanding marketing process, because it plays on the humiliation of the corporate image itself. The core idea of the masochistic marketing approach violates, or at least appears to oppose, the fundaments of marketing.

Originality/value – Masochistic marketing is not recommended to be used as a common approach, unless a series of events has turned the corporate image in the marketplace into something that is highly undesirable and a stigma.

Improving the quality of school evaluations

Purpose – To highlight the challenges and identify options to improve school health evaluations.

Design/methodology/approach – This editorial draws on recent international and national meta-evaluations and the experiences of the author.

Findings – A simple set of questions is needed for discussion between those commissioning evaluations and those conducting them to make school health evaluations more effective and relevant to stakeholders.

Originality/value – The paper identifies important steps which need to be considered in undertaking evaluations of school health interventions.

Outsourcing in the Australian health sector : the interplay of economics and politics

Purpose – The paper discusses the reasons and approaches used at three health organisations in introducing outsourcing. It specifically answers the question: why have managers of health organisations outsourced some functions in preference to others?

Design/methodology/approach – This research employs a case study method making use of qualitative analysis. The health organisations were chosen first as representatives of their type, and secondly due to the nature of the outsourcing decisions made. The first health organisation operates in the rural sector; the second is a metropolitan network; and the third is a large metropolitan hospital, which, in contrast to the other two case study organisations, had made only one decision to outsource, producing the largest outsourcing contract in health in Australia. Furthermore, this situation was distinctive as the contract was terminated and re-issued to another private sector organisation.

Findings – The reasons for outsourcing varied within and between health organisations. Although generally they were made on the bases of the characteristics of the labour market, employee skill levels and the nature of industrial relations, the perception of what was core, the level of internal management skills, the ability of internal teams to implement change and the relationship between management and staff. Even though cost savings and a downsized labour force resulted, generally these occurred even when services were not outsourced, through the use of other change processes, such as introducing new technology, changing structures and promoting workforce flexibility. The interplay of political reasons and economic effects was evident along with the political nature of the decision-making and processes used. The paper concludes that the power of managers was a moderating factor between the desire for outsourcing and whether outsourcing actually occurred.

Research limitations/implications – Although this research was conducted solely within the health sector it has implications for other public sector bodies and the private sector.

Practical implications – Managerial decision making can be enhanced with the exploration of the full complement of reasons for the outsourcing decision.

Originality/value – The paper has value to both academics researching in the public sector and public sector managers.