scholarly journals Professionalism, agency, and market failures

2021 ◽  
Author(s):  
von Kriegstein Hasko
Keyword(s):  
State Regulation ◽  
Competitive Market ◽  
Institutional Setting ◽  
Regulatory Regime ◽  
Market Failures ◽  
Market Outcomes ◽  
Corporate Managers ◽  
Professional Duty ◽  
Market Failures Approach

ABSTRACT: According to the Market Failures Approach to business ethics, beyond-compliance duties can be derived by employing the same rationale and arguments that justify state regulation of economic conduct. Very roughly the idea is that managers have a duty to behave as if they were complying with an ideal regulatory regime ensuring Pareto-optimal market outcomes. Proponents of the approach argue that managers have a professional duty not to undermine the institutional setting that defines their role, namely the competitive market. This answer is inadequate, however, for it is the hierarchical firm, rather than the competitive market, that defines the role of corporate managers and shapes their professional obligations. Thus, if the obligations that the market failures approach generates are to apply to managers, they must do so in an indirect way. I suggest that the obligations the market failures approach generates directly apply to shareholders. Managers, in turn, inherit these obligations as part of their duties as loyal agents. <div><br><div>KEY WORDS: market failures approach; professionalism; professional ethics; agency ethics; Joseph Heath; Kenneth Goodpaster.</div></div>

scholarly journals Professionalism, agency, and market failures

2021 ◽  
Author(s):  
von Kriegstein Hasko
Keyword(s):  
State Regulation ◽  
Competitive Market ◽  
Institutional Setting ◽  
Regulatory Regime ◽  
Market Failures ◽  
Market Outcomes ◽  
Corporate Managers ◽  
Professional Duty ◽  
Market Failures Approach

ABSTRACT: According to the Market Failures Approach to business ethics, beyond-compliance duties can be derived by employing the same rationale and arguments that justify state regulation of economic conduct. Very roughly the idea is that managers have a duty to behave as if they were complying with an ideal regulatory regime ensuring Pareto-optimal market outcomes. Proponents of the approach argue that managers have a professional duty not to undermine the institutional setting that defines their role, namely the competitive market. This answer is inadequate, however, for it is the hierarchical firm, rather than the competitive market, that defines the role of corporate managers and shapes their professional obligations. Thus, if the obligations that the market failures approach generates are to apply to managers, they must do so in an indirect way. I suggest that the obligations the market failures approach generates directly apply to shareholders. Managers, in turn, inherit these obligations as part of their duties as loyal agents. <div><br><div>KEY WORDS: market failures approach; professionalism; professional ethics; agency ethics; Joseph Heath; Kenneth Goodpaster.</div></div>

scholarly journals Professionalism, Agency, and Market Failures

2016 ◽  
Vol 26 (4) ◽  
pp. 445-464 ◽  
Author(s):  
Hasko von Kriegstein
Keyword(s):  
State Regulation ◽  
Competitive Market ◽  
Institutional Setting ◽  
Regulatory Regime ◽  
Market Failures ◽  
Market Outcomes ◽  
Corporate Managers ◽  
Professional Duty ◽  
Market Failures Approach

ABSTRACT:According to themarket failures approachto business ethics, beyond-compliance duties can be derived by employing the same rationale and arguments that justify state regulation of economic conduct. Very roughly, the idea is that managers have a duty to behave as if they were complying with an ideal regulatory regime ensuring Pareto-optimal market outcomes. Proponents of the approach argue that managers have aprofessional dutynot to undermine the institutional setting that defines their role, namely the competitive market. This answer is inadequate, however, for it is the hierarchical firm, rather than the competitive market, that defines the role of corporate managers and shapes their professional obligations. Thus, if the obligations that the market failures approach generates are to apply to managers, they must do so in an indirect way. I suggest that the obligations the market failures approach generates directly apply to shareholders. Managers, in turn, inherit these obligations as part of their duties as loyal agents.

scholarly journals SOCIO-ECONOMIC POLICY OF UKRAINE: PROBLEMS AND SOLUTIONS

2021 ◽  
pp. 185-193
Author(s):  
О. О. Nikogosyan
Keyword(s):  
Economic Policy ◽  
Social Stratification ◽  
State Regulation ◽  
The State ◽  
Market Failures ◽  
Private Business ◽  
Present Stage ◽  
Role Of The State ◽  
The Social

The article defines the priorities of the social policy of Ukraine at the present stage. The socio-economic problems of Ukraine are analyzed, their causes and solutions are identified. It is shown that the main reason for the failures of the socio-economic policy of independent Ukraine is the uncritical attitude of Ukrainian reformers to the consequences of neoliberal policies in other countries, as a result of which foreign experience of socio-economic reforms began to be introduced without taking into account domestic specifics. The decline in the role of the state in socio-economic policy, the increase in the role of private business, the privatization of "everything and everyone" led to a sharp social stratification, an economic crisis, which became a trigger for crises in all spheres of Ukrainian society. One of the fundamental principles of neoliberal economics, deregulation, has also collapsed. It turned out that the market is not efficient in areas in which the business cannot make quick and large profits. The so-called "market failures" demonstrated the need for state regulation in the spheres of education, health care, ecology, etc. Conclusions of the study and prospects for further research in this direction. Thus, if the new government really wants to build a successful country of happy people, it must make social and economic policy its top priority. Its primary tasks at the present stage should be: reduction of tariffs for utilities by eliminating from them the corruption component and excess profits of suppliers; revision of the principles of granting subsidies for utility bills. Exclusion from the number of subsidies of those who do not need state aid, but have a formal right to receive it (they work unofficially); the fight against the shadow economy, with the concealment of income from taxation; reforming the system of wages and pensions; creation of jobs with decent wages; establishing interaction between the state and private business in order to increase the social responsibility of the latter.

STATE REGULATION OF THE FINANCIAL SERVICES MARKET IN UKRAINE

2018 ◽  
Vol 1 (11) ◽  
pp. 30-47
Author(s):  
Lyudmila Nikolayevna Akimova ◽  
Alla Vasilievna Lysachok
Keyword(s):  
Life Insurance ◽  
Financial Services ◽  
Credit Unions ◽  
State Regulation ◽  
The State ◽  
Existing Problems ◽  
Insurance Contracts ◽  
State Pension

The essence of such concepts is “financial service”, “financial ser- vices market”, and “participants of the financial services market”; determined the purpose of state regulation of the financial services market; forms of state regu- lation of the financial services market; financial services that are present in the financial services market; the structure of state regulation bodies of the financial services market in Ukraine is given; The role of state bodies in the regulation of the financial services market was studied; to characterize the regulatory le- gal regulation of the financial services market in Ukraine; the main problems of functioning of the domestic market of financial services are revealed; ways to solve existing problems. It is grounded that the state regulation of financial ser- vices markets consists in the state’s implementation of a set of measures aimed at regulating and overseeing financial services markets to protect the interests of financial services consumers and preventing crisis phenomena. It is concluded that the financial services market is an important element of the development of the economy as a whole, in particular, it concerns not only the state but also society. We must understand that when this market is settled, that is, all bodies that carry out state regulation are competent in their powers, only then will we make informed, effective decisions about the normal and effective functioning of the RFP. It is important that the data of the subjects of control do not overlap, their activities should be fixed at the legislative level. It is also worth bearing in mind that appropriate conditions must be created to create compensatory mecha- nisms in the financial services markets by developing a system for guarante- eing deposits and providing for payments under long-term life insurance contracts, non-state pension provisions, deposits with deposit accounts to credit unions, etс.

Networks

2020 ◽  
pp. 534-562
Author(s):  
Matthew O. Jackson ◽  
Brian W. Rogers ◽  
Yves Zenou
Keyword(s):  
Social Networks ◽  
Social Network ◽  
Statistical Analysis ◽  
Labor Markets ◽  
Network Formation ◽  
Labor Market Outcomes ◽  
Negative Consequences ◽  
Social Scientists ◽  
Market Outcomes

What is the role of social networks in driving persistent differences between races and genders in education and labor market outcomes? What is the role of homophily in such differences? Why is such homophily seen even if it ends up with negative consequences in terms of labor markets? This chapter discusses social network analysis from the perspective of economics. The chapter is organized around the theme of externalities: the effects that one’s behavior has on others’ welfare. Externalities underlie the interdependencies that make networks interesting to social scientists. This chapter discusses network formation, as well as interactions between people’s behaviors within a given network, and the implications in a variety of settings. Finally, the chapter highlights some empirical challenges inherent in the statistical analysis of network-based data.

scholarly journals Does Employee Care Trigger Innovation Under a Healthy and Safe Working Environment? Evidence from the Pharmaceutical Industry in China

Healthcare ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 194
Author(s):  
Minghui Yang ◽  
Qian Lin ◽  
Petra Maresova
Keyword(s):  
Safety Management ◽  
Positive Impact ◽  
Health And Safety ◽  
Working Environment ◽  
Firm Innovation ◽  
Corporate Managers ◽  
Pharmaceutical Firms ◽  
Corporate Ability ◽  
Safe Working

Sustainability of the workforce becomes a crucial issue, of which responsible care for employees can increase job satisfaction and human capital that impact corporate ability to absorb and generate new knowledge. Firms are obligated to provide a healthy and safe working environment for their employees, but it may in turn hinder innovation due to rigid and structured institutional regulations. Drawing on data of 308 China’s pharmaceutical firms from 2010 to 2017, we investigated whether employee care can trigger innovation under corporate adoption of the occupational health and safety management system (OHSMS). Our results suggest that both employee care and OHSMS adoption have a positive impact on innovation. Moreover, the positive relationship between employee care and innovation was more pronounced in firms that had adopted the OHSMS certification. These findings are valuable to policymakers and corporate managers in emerging economies through corroborating the important role of workforce sustainability in facilitating firm innovation.

scholarly journals Between Market Failures and Justice Failures: Trade-Offs Between Efficiency and Equality in Business Ethics

2021 ◽  
Author(s):  
Charlie Blunden
Keyword(s):  
Business Ethics ◽  
Private Firms ◽  
Market Failures ◽  
Costs And Benefits ◽  
Trade Offs ◽  
Efficiency Losses ◽  
Different Types ◽  
Hybrid Theory ◽  
Market Failures Approach ◽  
Ethical Obligations

AbstractThe Market Failures Approach (MFA) is one of the leading theories in contemporary business ethics. It generates a list of ethical obligations for the managers of private firms that states that they should not create or exploit market failures because doing so reduces the efficiency of the economy. Recently the MFA has been criticised by Abraham Singer on the basis that it unjustifiably does not assign private managers obligations based on egalitarian values. Singer proposes an extension to the MFA, the Justice Failures Approach (JFA), in which managers have duties to alleviate political, social, and distributive inequalities in addition to having obligations to not exploit market failures. In this paper I describe the MFA and JFA and situate them relative to each other. I then highlight a threefold distinction between different types of obligations that can be given to private managers in order to argue that a hybrid theory of business ethics, which I call the MFA + , can be generated by arguing that managers have obligations based on efficiency and duties based on equality to the extent that these latter obligations do not lead to efficiency losses. This argument suggests a novel theoretical option in business ethics, elucidates the issues that are at stake between the MFA and the JFA, and clarifies the costs and benefits of each theory.

scholarly journals The Role of Family and Friends in Return Migration and Its Labor Market Outcomes

2021 ◽  
Author(s):  
Brian Joseph Gillespie ◽  
Clara H. Mulder ◽  
Christiane von Reichert
Keyword(s):  
Labor Market ◽  
Survey Data ◽  
Significant Relationship ◽  
Return Migration ◽  
Labor Market Outcomes ◽  
Age Groups ◽  
Market Outcomes ◽  
Market Stability ◽  
Onward Migration

AbstractDrawing on survey data on individuals’ motives for migration in Sweden (N = 2172), we examine the importance of family and friends for return versus onward migration, including their importance for different age groups and in different communities on the rural–urban spectrum. The results point to a significant relationship between the importance of family and return versus onward migration, with family importance decreasing with age among returning migrants. At the same time, the importance of friends for returning increases with age. The findings did not suggest a significant relationship between urbanicity and returning versus migration elsewhere. Based on a subset of respondents who were employed prior to migrating (n = 1056), we further examined labor market outcomes for onward versus returning migrants. The results broadly indicate that return migrations are linked to lower likelihoods of labor market deterioration and improvement, suggesting greater labor market stability for return vis-à-vis onward migrations. However, the importance of family for returning (versus moving elsewhere) is associated with higher likelihoods of labor market deterioration and improvement compared with staying the same, indicating greater volatility in labor market outcomes when the importance of family is considered.

Prices: Market Mechanism and State Regulation

2011 ◽  
pp. 40-50
Author(s):  
E. Glazova ◽  
M. Stepanova
Keyword(s):  
State Regulation ◽  
Market Mechanism ◽  
Competitive Environment ◽  
Market Pricing ◽  
Pricing Mechanism

The article examines the role of state regulation of prices – indirect or direct – with the aim to create a competitive environment (if it is absent) or to strengthen competition with its imperfections in order to eliminate those violations of market pricing mechanism which the market itself cannot resolve.

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