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1 – 10 of over 9000The purpose of this article is to study how we may identify the link between rising externality costs and corporate social responsibility (CSR) by using a market‐centric approach…
Abstract
Purpose
The purpose of this article is to study how we may identify the link between rising externality costs and corporate social responsibility (CSR) by using a market‐centric approach to CSR.
Design/methodology/approach
The paper uses indicators measuring CSR performances triggered by rising externality costs due to EU legislation on electric and electronic equipment (EEE). The case study includes three leading companies in the global electric appliances industry.
Findings
The EU legislation on EEE has increased the externality costs of the electric appliances industry. Some companies only meet the minimum requirements of the legislation, while others go beyond what is required and engage in CSR. It is found that the strongest CSR impact is related to output externalities in the authors' sample in the EEE sector, while the strongest CSR impact in the clothing sector, in an earlier study, is related to input externalities.
Practical implications
The findings suggest that governments need to adapt their CSR policies not only to general sector‐specific features, but in addition to the potential for reducing negative externalities in different parts of the value chain in each sector.
Originality/value
This article contributes to a better understanding of how government policies raise the externality costs of industries, which in turn lead these industries to strengthen their CSR performance. The study also demonstrates the usefulness of a market centric approach to CSR.
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Cornelia Dascalu, Chirata Caraiani, Camelia Iuliana Lungu, Florian Colceag and Gina Raluca Guse
The purpose of this paper is to examine the externalities in social environmental accounting.
Abstract
Purpose
The purpose of this paper is to examine the externalities in social environmental accounting.
Design/methodology/approach
The paper is based on the fundamental research that is related to inductive accounting theory and uses scientific methods for identification of theoretical and practical difficulties of recognizing the externalities in social environmental accounting.
Findings
The main finding of the paper is that the information portfolio for the assessment of the externalities will contribute to the accurate estimation of the accounting offer and to the objective judgment of the requested information of this kind within the global performance management. This feat will allow construction of a pertinent informational base concerning the externalities, for integration of the external social costs into the conventional accounting model with a view to smoothly substantiating the socioeconomic and environmental policies.
Practical implications
This paper focuses on designing a social arrangement that, in the presence of externalities, can offer an optimal allocation of resources and thus a maximization of welfare for Romanian companies.
Originality/value
The paper helps put the organization in a stronger competitive position in relation to firms that apply only conventional accounting and is not extensively and creatively in using the outcomes of expanding social environmental accounting in its decision making.
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The post industrial revolution era, driven by an expansion of the global energy system (Jaccard, 2006), has witnessed an exponential increase in the consumption of finite and…
Abstract
The post industrial revolution era, driven by an expansion of the global energy system (Jaccard, 2006), has witnessed an exponential increase in the consumption of finite and non-renewable resources, coupled with substantial destruction of the natural environment. Weizsacker and Jesinghaus (1992) observed that the consequence of further growth in a conventional sense would not be worldwide prosperity, but rather lead to destruction, putting in jeopardy prosperity and indeed the very basis of life. It follows that the continuance of such economic growth, measured by traditional means is unsustainable and illogical in the long run.
South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies…
Abstract
Purpose
South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies. This paper aims to discuss these issues.
Design/methodology/approach
The research approach is quantitative, based on a gravity-orientated freight flow model, a road transport cost model, actual transport costs for other modes, a warehousing cost survey, an inventory delay calculation (to inform warehousing cost calculations and inventory financing costs) and an externality cost calculation.
Findings
Transport cost pressures are expected to deteriorate due to the increasingly negative outlook for the oil price and the internalisation of externality costs. The nature of these forces compels transport cost challenges to be addressed strategically through collaborative, industry-wide and even nationwide initiatives.
Research limitations/implications
Key limitations are inconsistent commodity classification schemes across information sources, and incomplete container content data. The researchers are collaborating with information providers to address these issues and refine model accuracy and forecasting.
Practical implications
The exogenous risks strengthen the argument for new approaches to South Africa's logistics cost challenges driven by the high densities of corridor freight flows.
Social implications
The inclusion of externality costs highlighted the negative environmental impact of the current modal configuration and provides impetus for change.
Originality/value
Major advancements to logistics cost modelling were made by incorporating externality costs and developing scenarios for risk mitigation. Freight flow data granularity (in excess of one million records) allows both aggregation to national-level intelligence to inform policies, large-scale infrastructure investments and industrial positioning, and disaggregation to enable practical application.
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Jan Hendrik Havenga and Zane Paul Simpson
The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the…
Abstract
Purpose
The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the modelling outputs to inform macrologistics policy.
Design/methodology/approach
Spatially and sectorally disaggregated supply and demand data are developed using the input-output (I-O) model of the economy as a platform, augmented by actual data. Supply and demand interaction is translated into freight flows via a gravity model. The logistics costs model is a bottom-up aggregation of logistics-related costs for these freight flows.
Findings
South Africa’s logistics costs are higher than in developed countries. Road freight volumes constitute 80 per cent of long-distance corridor freight, while road transport contributes more than 80 per cent to the country’s transport costs. These challenges raise concerns regarding the competitiveness of international trade, as well as the impact of transport externalities. The case studies highlight that domestic logistics costs are the biggest cost contributor to international trade logistics costs and can be reduced through inter alia modal shift. Modal shift can be induced through the internalisation of freight externality costs. Results show that externality cost internalisation can eradicate the societal cost of freight transport in South Africa without increasing macroeconomic freight costs.
Research limitations/implications
Systematic spatially disaggregated commodity-level data are limited. There is however a wealth of supply, demand and freight flow information collected by the public and private sector. Initiatives to create an appreciation of the intrinsic value of such information and to leverage data sources will improve freight demand modelling in emerging economies.
Originality/value
A spatially and sectorally disaggregated national freight demand model, and related logistics costs models, utilising actual and modelled data, balanced via the national I-O model, provides opportunities for increased accuracy of outputs and diverse application possibilities.
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Macro goals: To alert the telecommunications policy community to the emergence of persistent online worlds as a communications and policy issue. Also to provide game industry…
Abstract
Purpose
Macro goals: To alert the telecommunications policy community to the emergence of persistent online worlds as a communications and policy issue. Also to provide game industry decisionmakers with solid economic research on which to base policy decisions. Third, to connect these two communities to each other, for mutual benefit. Micro goals: to conduct a solid cost‐benefit analysis of a knotty problem in game economics: what to do about people who break the rules and use real money to buy game items (swords, wands, gold pieces, etc.)
Design/methodology/approach
Traditional cost‐benefit analysis. Consumer surplus analysis of externality effects, with a parameterized estimate of effects sizes.
Findings
Real‐money trading acts as a negative externality on the game subscription market. Seems likely to amount to several million dollars per 100,000 users per year.
Research limitations/implications
The effects sizes are simulated only. More data from the game industry are needed before one can put a solid dollar estimate on them. Also, much of the material in the paper had to be really elementary in order for the results to make sense for both policy economists and game industry analysts.
Practical implications
The analysis indicates a prima facie case for public policy intervention to help shield synthetic worlds from the deleterious effects of the global gold farming industry.
Originality/value
Interest in real‐money trade in gaming is growing, as indicated by the extent of online discussion by gaming scholars. Despite this, the literature on the economic and policy issues raised by the topic is limited. The article is an original piece of work that takes understanding forward.
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The purpose of this paper is to present a review of the literature on alcohol consumption, the externality cost of alcohol consumption, and the effectiveness of policy options.
Abstract
Purpose
The purpose of this paper is to present a review of the literature on alcohol consumption, the externality cost of alcohol consumption, and the effectiveness of policy options.
Design/methodology/approach
Evidence on the cost to society of alcohol consumption, the amount of excise tax collected, the demand response of consumers, and the effectiveness of alcohol‐control policies is reviewed.
Findings
Alcohol excise taxes generally, but not everywhere, fail to recover the externality costs placed on society that arise from alcohol consumption. Where externality costs are greater than excise revenue higher excise taxes are one effective and appropriate policy response. Complementary policies to higher excise taxes are likely to include: the provision of more information about harmful effects to consumers, especially the young; greater enforcement of drunk‐driving laws and zero tolerance drunk‐driving laws for young drivers. Restrictions on the opening hours of late night venues may have a modest impact on reducing costs, while advertising restrictions are unlikely to be effective.
Originality/value
Typically. articles on alcohol consider a single issue. This review paper brings together information from both the health stream of alcohol studies and the economics stream of alcohol studies and provides a useful survey and synthesis of the literature.
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The purpose of this paper is to propose a conceptual model of harm indicators of negative externality (NE) of organizational practices, to help practitioners and researchers…
Abstract
Purpose
The purpose of this paper is to propose a conceptual model of harm indicators of negative externality (NE) of organizational practices, to help practitioners and researchers identify the harmful aspects associated with the unsustainable internal efficiency focused organizational practices to achieve a sustainable society.
Design/methodology/approach
Initially, the harm indicators of NE of organizational practices are theoretically explored. Subsequently, the direct costs associated with the harm indicators of NE of work intensification, one of the strategic organizational practices, on employees and the community are examined using published information.
Findings
There are clear indications of direct costs for handling the psychological and social aspects of harm of organizational practices on employees, and the employee work‐related health treatment costs to the community.
Research limitations/implications
The published research used in estimating the direct costs of harm indicators on employees and the community in this paper are not originally designed to examine the NE of organizational practices. Therefore, future studies need to explore the costs of harm indicators of NE of organizational practices on society.
Social implications
An understanding of the costs of harm indicators of NE of organizational practices on society can help organizations to be proactive to introduce sustainable human resource management strategies, so as to minimize the harmful aspects of NE before it starts curbing employees making positive contributions to their families and the community.
Originality/value
The model of harm indicators of NE provides a new insight – that over‐utilization of human resources for an organization's internal efficiency purpose – has unsustainable impact on society.
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Gustavo Barboza, Valerien Pede and Sergio Madero
The purpose of this paper is to model the role that stakeholders, and especially social responsible consumers play in the process of finding a win–win solution to control…
Abstract
Purpose
The purpose of this paper is to model the role that stakeholders, and especially social responsible consumers play in the process of finding a win–win solution to control production related negative externalities. In this regard, when information asymmetries are present and consumers become knowledgeable about them, consumers with d-preferences for corporate social responsibility (CSR) type of products becomes the driver of the firm strategy.
Design/methodology/approach
To accomplish the goals of this paper, the authors proceed to develop a series of theoretical models wherein the social gains and costs of alternative modes of intervention are illustrated. The authors begin with a standard Pigouvian tax model and construct a stakeholder equivalent tax model and finalize the analysis with consumers acting in a shared social responsible behavior with firms as the optimal solution model.
Findings
The authors show that proactive disclosure of information asymmetries regarding negative externalities develops a shared social responsibility between consumers and firms. Market-based solutions to the externality problem are achieved under this setting. This solution is preferred to a Pigouvian tax and to a stakeholder equivalent tax. It is concluded that shared social responsibility is the result of the interaction of consumers with d-preferences and the reaction of a socially responsible “firm” willing, and the authors are able to incorporate these preferences as drivers for its strategy.
Research limitations/implications
The main limitation of this paper is in its theoretical nature and specific applications to one case, that of negative externalities in production processes. The implication of this is that the model herein developed needs to be put to the empirical test.
Social implications
The overall social implications indicate that active reduction of information asymmetries is welfare improving and preferred to government intervention.
Originality/value
This paper is original as it makes use of economic principles to develop a parsimonious model to demonstrate that proactive actions of a firm in response to consumers and stakeholders demands leads to an overall social welfare improvement when negative externalities deriving from production are incorporated into the decision making process of both consumers and firms. These decisions prove superior to government regulations.
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