An agency theory approach towards bribery

2019 ◽  
Vol 27 (2) ◽  
pp. 160-168
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Agency Theory ◽  
Multinational Corporations ◽  
Theory Approach ◽  
Content Type ◽  
Compliance Officers ◽  
Improve Compliance ◽  
The Right ◽  
Larger Sample ◽  
Practical Implications

Purpose This paper aims to discuss the role of agency theory in combatting bribery in multinational corporations. It is shown how a combination of bonus and malus payments could help to create the right incentives for agency. Design/methodology/approach Based on the analysis of 15 formal and 15 informal expert interviews with both prevention experts and corrupt individuals, concrete ways of more effectively combatting bribery have been developed. Findings As a result, it is suggested that matrix systems could help to adjust incentives systems to take compliance issues into account. It is found that multinational corporations should eliminate. Research limitations/implications This study’s findings are limited to the perspectives of 30 interviewees. Hence, it is possible that a study with a larger sample conducted in different countries or at a different time would have led to different results. Practical implications The identification of the potential role of incentive systems in compliance mechanisms is meant to provide compliance officers and legislators with valuable insights into why the current prevention schemes are ineffective. This can help to both improve compliance mechanisms. Originality/value While the empirical findings are based in Europe, the results could be applied globally.

Anti-bribery compliance incentives

2018 ◽  
Vol 25 (4) ◽  
pp. 1105-1110 ◽  
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Multinational Corporations ◽  
Design Methodology ◽  
Expert Interviews ◽  
Incentive Systems ◽  
Content Type ◽  
Performance Matrix ◽  
Compliance Officers ◽  
The Right ◽  
Larger Sample ◽  
Practical Implications

Purpose This paper aims to discuss an innovative approach to eliminating bribery in multinational corporations. In particular, the concept of using incentive systems to fight corruption is assessed. Design/methodology/approach Based on the analysis of ten formal and ten informal expert interviews with both prevention experts and corrupt employees, a combination of bonus-malus payments is developed. Findings A performance matrix could be used to incentivize both compliance and productivity. Research limitations/implications This study’s findings are limited to the perspectives of 20 interviewees. Hence, it is possible that a study with a larger sample conducted in different countries or at a different time would have led to different results. Practical implications The identification of gaps in existing anti-bribery compliance mechanisms is meant to provide compliance officers and legislators with valuable insights into how undesirable behavior could be prevented. Originality/value It is found that eliminating the wrong incentives and establishing the right ones could make significant strides in advancing the fight against bribery.

How effective are financial sanctions against individuals?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Qualitative Content Analysis ◽  
Content Type ◽  
Political Processes ◽  
Compliance Officers ◽  
Improve Compliance ◽  
Larger Sample ◽  
Practical Implications

Purpose The purpose of this paper is to discuss the role of money laundering methods in circumventing sanctions against individuals. In particular, it shows how politically exposed persons can circumvent sanctions through money laundering mechanisms. Design/methodology/approach A total of 70 expert interviews were conducted, comprising 35 formal interviews with prevention experts and 35 informal interviews with money launderers. By subjecting their responses to qualitative content analysis, concrete ways of circumventing sanctions are identified. Findings Financial sanctions against individuals are highly ineffective, as they can be easily circumvented. To successfully influence political processes, alternative mechanisms are necessary. Research limitations/implications This study’s findings are limited to the perspectives of 70 interviewees. Hence, it is possible that a study with a larger sample conducted in different countries or at a different time could have yielded different results. Practical implications Identifying the gaps in anti-money-laundering mechanisms should provide compliance officers and legislators with valuable insights into why the current prevention schemes are ineffective and how sanctions against individuals can be circumvented. The findings, thus, highlight the scope to improve compliance mechanisms and the need for other tools to influence political processes. Originality/value The current sanctions against individuals are found to be ineffective means of influencing politics, as they can be easily circumvented. Hence, alternative mechanisms and tools are needed.

Methods of bribery in multinational corporations

2019 ◽  
Vol 26 (4) ◽  
pp. 1078-1084
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Multinational Corporations ◽  
Design Methodology ◽  
White Collar Crime ◽  
Qualitative Content Analysis ◽  
Criminal Activity ◽  
Content Type ◽  
Compliance Officers ◽  
Prior Literature ◽  
Larger Sample ◽  
Practical Implications

Purpose This paper aims to investigate how bribery is conducted in multinational corporations. In particular, sources of funding and methods of transferring bribes are investigated. Design/methodology/approach In all, 100 interviews were conducted with criminals and white-collar crime prevention experts, and responses were subjected to qualitative content analysis. Findings The interviews and survey revealed concrete techniques for creating funds for bribery and transferring bribes to counterparties. The results indicate that the compliance mechanisms aimed at preventing bribery in multinational corporations can be easily circumvented. Research limitations/implications This study’s findings were limited to the perspectives of 100 interviewees. Hence, it is possible that a study with a larger sample conducted in different countries or at a different time could have yielded different results. Practical implications Identifying the concrete methods of funding and transferring bribes should provide both compliance officers and legislators with valuable insights into criminal activity. By better understanding the specific steps taken by criminals, compliance officers should be able to more effectively combat bribery. Originality/value Whereas the prior literature has focused on the organizations and mechanisms involved in combating bribery, this paper instead explores how criminals avoid detection by taking into account existing compliance mechanisms and criminal perspectives.

How useful are anti-money-laundering efforts in combating bribery?

2020 ◽  
Vol 23 (2) ◽  
pp. 309-314
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Expert Interviews ◽  
Content Type ◽  
Compliance Officers ◽  
Larger Sample ◽  
Practical Implications

Purpose The purpose of this paper is to discuss the role of anti-money-laundering mechanisms in combating bribery. In particular, it shows how parties receiving bribes can circumvent the mechanisms currently in place to launder the money they receive for their services. Design/methodology/approach Through analysis of 25 formal expert interviews with prevention experts and 25 informal expert interviews with money launderers from Europe, concrete ways of laundering bribes were found. Consequently, it is suggested that alternative mechanisms are necessary to successfully fight corruption. Findings A combination of more severe punishments and anti-bribery incentives could help to eliminate corruption. Research limitations/implications This study’s findings are limited to the perspectives of 50 interviewees. Hence, a study with a larger sample conducted in different countries or at a different time could yield different results. Practical implications By identifying gaps in existing anti-money-laundering mechanisms, this paper aims to provide compliance officers and legislators with valuable insights into why the current prevention schemes are ineffective and how corruption could be more effectively tackled. Originality/value The findings demonstrate that current anti-money-laundering mechanisms are unhelpful in fighting bribery. Hence, alternative anti-bribery mechanisms are needed.

scholarly journals Stewardship theory: is board accountability necessary?

2017 ◽  
Vol 59 (6) ◽  
pp. 1292-1314 ◽  
Author(s):  
Andrew Keay
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Design Methodology ◽  
Agency Problems ◽  
Stewardship Theory ◽  
Content Type ◽  
General Terms ◽  
Practical Implications

Purpose The purpose of the paper is to demonstrate that notwithstanding the fact that stewardship theory embraces things like trust of directors, their professionalism, loyalty and willingness to be concerned for the interests of others, as well as rejecting the foundations of classic agency problems that are asserted by agency theory, board accountability is as relevant to stewardship theory as it is to agency theory. Design/methodology/approach The paper applies the theory underlying board accountability in corporate governance, which is so often applied both in the corporate governance literature and in practice with agency theory in mind, to stewardship theory. Findings While the idea of accountability of boards is generally associated with an explanation and conceptualisation of the role and behaviour of directors as agents within classic agency theory, the paper demonstrates that board accountability is a necessary part of board life even if the role of directors is explained and conceptualised in terms of stewardship theory. Practical implications The paper suggests some accountability mechanisms that might be employed in a stewardship approach. Originality/value While many authors have talked in general terms about board accountability and its importance, this is the first paper that has engaged in a substantial study that links board accountability directly with stewardship theory, and to establish that accountability is necessary.

Drivers for voluntary intellectual capital reporting based on agency theory

2019 ◽  
Vol 20 (2) ◽  
pp. 264-281 ◽  
Author(s):  
Viktoria Goebel
Keyword(s):  
Propensity Score ◽  
Agency Theory ◽  
Propensity Score Matching ◽  
Intellectual Capital ◽  
Integrated Reporting ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications ◽  
Management Report

PurposeThe purpose of this paper is to investigate the drivers for voluntary intellectual capital (IC) reporting based on agency theory. This study responds to calls for critical investigations of IC reporting utilising Goebel’s (2015a) IC measuring approach to investigate the role of IC value and mispricing for IC reporting.Design/methodology/approachA mandatory management report offers a unique research setting in Germany. The content analysis results of 428 German management reports are used in a regression analysis with leverage, ownership diffusion, IC value and mispricing. Additionally, a propensity score matching approach examines the relationship between IC reporting and IC value.FindingsThe regression results show that companies use voluntary IC reporting to encounter mispricing. IC reporting is negatively associated with leverage, whereas ownership diffusion and IC value show no significant results. The propensity score matching approach is also not significant.Research limitations/implicationsThis study contributes to strengthening and testing agency theory for IC reporting. As mispricing is identified to play an important role for IC reporting, IC research should account for mispricing.Practical implicationsThe findings suggest to reopen a discussion on the declared aims of the German management report and the international integrated reporting model to provide information on value creation, as IC value shows no link to IC reporting.Originality/valueThis study innovatively links IC reporting to IC value and mispricing to investigate drivers for voluntary IC reporting.

The generative principles of lifestyle enterprising: dialectic entanglements of capital-habitus-field

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stuart Reid
Keyword(s):  
Grounded Theory ◽  
Cultural Capital ◽  
Pierre Bourdieu ◽  
Theory Approach ◽  
Content Type ◽  
Study Materials ◽  
The Social ◽  
The Right ◽  
Study Context

PurposeThe study seeks to shed light on the generative principles of enterprising by examining the practices of enterprisers in six lifestyle enterprises in Sweden. It presents a fresh approach to the study of lifestyle enterprises, resolving a nuanced treatment of the concepts of capital and habitus as often drawn upon in studies using the social theory of Pierre Bourdieu.Design/methodology/approachThis study uses a grounded theory approach to examine enterprising practices in six lifestyle enterprises in Sweden. Study materials are derived principally from ethnographic observations and active interviews. The analytical procedure follows that of grounded theory, the analysis proceeding from the first field contacts and developing iteratively as the corpus expanded, with empirical themes giving way to formative concepts and sensitizing to the theoretical architecture of Pierre Bourdieu.FindingsThe findings offer insights into lifestyle enterprising, revealing how resourcing practices of capital deployment give shape to its practice. The findings reveal that capital deployment practices are not simply about conversion but may also involve practices, without substantive change to capital forms. Furthermore, the findings highlight that habitus significantly influences capital deployment practices.Research limitations/implicationsAlthough the findings are limited to the study context, the study offers theoretical implications for study of enterprising. One is to highlight the importance of cultural capital in enterprising practices. Another is to highlight the variable construction of capitals, arising in connection to habitus. In pointing to the central generative role of habitus, the study suggests that cultural capital may underpin the formation of social capital. Overall, the findings indicate that researchers need to consider the mediating effects of habitus when investigating enterprising practices. More widely, this study responds and lends weight to, recent calls for more holistic and integrated treatments using Bourdieu's theory to further understandings of entrepreneurship as practice.Practical implicationsThis study offers implications for policy relating to enterprising practice. In particular, findings suggest that it might be wise to consider the alignment of habitus between those who provide and receive support, or in other words, having providers with the right cultural competence to offer useful help. It may be important for policy agents to be able to relate to the worldviews of those they seek to support.Originality/valueThe study directly responds to recent calls for more holistic and integrated approaches to the nascent line of inquiry using Bourdieu’s theory to gain insight into entrepreneurship as a practice, particularly in relation to the undertheorized phenomenon of lifestyle entrepreneurship. In doing so, the study serves to advance the practice-oriented conceptualization of lifestyle entrepreneurship as lifestyle entrepreneuring. The paper also offers a conceptual framework to assist researchers investigating enterprising practice.

Pricing to market: market value – the enigma of misunderstanding

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nick French ◽  
Neil Crosby ◽  
Chris Thorne
Keyword(s):  
Market Value ◽  
Property Market ◽  
Content Type ◽  
Market Participants ◽  
Valuation Process ◽  
Definition Of ◽  
The Right ◽  
Practical Implications ◽  
Is Value

PurposeMarket value is an estimation of price in the market. It is value in exchange. The valuer's role is to determine the appropriate approach, the method and use the right model to achieve this aim as best as possible. However, underpinning all valuations and property analysis are valuation standards and definitions. This paper looks at the definition of market value and how some market participants may misunderstand or even misrepresent it. This is particularly true when there is a downturn in the market.Design/methodology/approachThis practice briefing is an overview of the role of market value as a definition of price and how it is often misused by stakeholders in the property market.FindingsThis briefing is a review of the valuation definitions clarifying what they mean and what they do not mean.Practical implicationsThe role of the valuer in practice is to use the appropriate definition for the task in hand. The understanding of those definitions is central to the valuation process.Originality/valueThis provides guidance on how valuation definitions can be presented to the client in accordance with the International Valuation Standards.

Political advertising and voting behaviour in a nascent democracy

2019 ◽  
Vol 10 (3) ◽  
pp. 827-847
Author(s):  
Raef Abdennadher ◽  
Lazhar Ayed ◽  
Bronwyn P. Wood
Keyword(s):  
Sampling Technique ◽  
Political Advertising ◽  
Advertising Agencies ◽  
Content Type ◽  
Mediating Role ◽  
Democratic Experience ◽  
The Right ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to investigate the impact of political advertising on voter attitude and the processes of decision-making in the specific context of the inaugural democratic experience of post-revolutionary Tunisia. Design/methodology/approach The study was conducted in Tunisia, where the target respondents included Tunisian’s eligible to vote during the presidential campaign of October 2014. The study uses questionnaires for data collection using a convenience sampling technique. Findings The major findings of the study are that the persuasion power of advertising has a direct impact on voter involvement, trust and attitude towards voting. Specifically, involvement significantly influences a voter’s attitude. The hypothesis on the impact of trust on attitude, and the hypothesis related to the mediating role of trust and involvement were rejected. Research limitations/implications The study recommends specialists in political advertising and politicians themselves give consideration to the trust and involvement considerations of the Tunisian voter, to enhance and optimize the quality and credibility of political advertising in the future. Practical implications The research offers some interesting findings for professionals in political advertising, for companies operating in political research, or advertising agencies. In this context, advertising agencies need to give prescient consideration to the trust of the voter by developing a credible and believable discourse. Social implications In the context of a nascent democracy, it is very important to educate people so they become familiarized with the practices of democracy, and to give them the ability to make the right choice. The study recommends specialists in political advertising and also politicians give consideration to the trust and involvement considerations of the Tunisian voter, to enhance and optimize the quality and credibility of political advertising. Originality/value This research paper related to political advertising can be used to formulate appropriate political advertising strategies and to ameliorate and optimize the advertising discourse in the context of a nascent democracy.

Novartis Pharmaceuticals Corporation has the right prescription for diversity

2014 ◽  
Vol 22 (6) ◽  
pp. 15-17
Keyword(s):  
Executive Leadership ◽  
Leadership Positions ◽  
Content Type ◽  
Diversity And Inclusion ◽  
The Us ◽  
Employee Resource Groups ◽  
The Right ◽  
A Company ◽  
Practical Implications

Purpose – This paper aims to describe the actions that have helped Novartis Pharmaceuticals Corporation to reach No. 1 in this year’s DiversityInc top 50 companies for diversity. Design/methodology/approach – It examines the roles of the company’s executive diversity and inclusion council, diversity and inclusion councils, the diversity and inclusion department and employee-resource groups. Findings – It reveals that the number of women in top-level jobs at the company has more than doubled in the past five years. Today, women account for more than 50 per cent of executive-leadership positions. Practical implications – It advances the view that getting strategic about diversity and inclusion – and making these elements a natural part of the way a company does business – drives innovation and moves the business and people forward. Social implications – It demonstrates that, as the US workforce becomes more diverse, all companies face the challenge of creating new and better ways of recruiting and retaining talent from all segments of the workforce – and creating an inclusive culture where all perspectives are valued. Originality/value – It highlights the key role of diversity at a US affiliate of a multinational pharmaceutical company.

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