This manuscript offers a qualitative exploration aimed at proposing effective strategies for enhancing compliance with and enforcement of labor laws in Bangladesh by diminishing the incentives for non-compliance. The study relies on primary data obtained from statutes, legal decisions, and secondary data sourced from scholarly articles, books, and book chapters, among others. Employing a cost-benefit analysis approach from the employers’ perspective, the study contends that showcasing the superior costs associated with violating labor laws, in comparison to the (...) benefits gained, will incentivize employers to prioritize compliance to safeguard their interests. To this end, the research puts forth eight distinct techniques or mechanisms to curtail the benefits derived from disregarding labor laws. These strategies are thoughtfully organized into two categories, namely “increasing the likelihood of self-enforcement” and “supporting by other actors.” The proposed techniques for enhancing compliance with and enforcement of labor laws in Bangladesh hold significant potential in benefiting key stakeholders, policymakers, and practitioners in the field. Furthermore, the study’s findings carry valuable implications for other developing countries in the South Asian region, given their similar socio-economic and cultural contexts. (shrink)

Tax compliance has been extensively researched. Yet, the classic question ‘why do people pay taxes?’ remains unanswered. In Jordan, tax evasion is widespread. The state and citizens have been trapped in a continuous hide-and-seek game, which has taken the form of a virtuous cycle. This paper investigates tax evasion along with the most noticeable features of the Jordanian tax system. It also highlights how the virtuous cycle of tax evasion has been established and what could possibly be a way (...) out of it. We argue that sociocultural values are the most prominent cause for tax evasion. That is, the procedures of state formation and functionality in Jordan have created mutual distrust between the state and its citizens. Having been raised in a community characterized by deep distrust, tax evasion is no longer considered immoral by substantial numbers of the Jordanian population. We argue that successive governments need to create a high-trust-based culture and formulate strategies that serve to acquire normative ethical values in order to enhance voluntary compliance. The way to accomplish this necessity is through enforcing the state’s transparency and accountability. The taxation system needs to concentrate on income tax rather than raise tax rates on essential commodities to collect substantial tax revenues. Thus, further reform of the taxation system along with a reduction in tax incentives need to be considered. Moreover, lowering the exceptionally high personal income tax threshold would bring Jordan in line with its peers, expand the base, and introduce more progressivity. There would also be a scope to introduce a minimum tax based on sales as a tool to address tax evasion. (shrink)

At the present stage, it is becoming more and more important for large companies to maintain their own impeccable reputation. Western companies have been introducing and developing compliance systems for quite a long time, and now Russian companies are also concerned about the development of such systems. Compliance strengthens the company’s reputation, which gives it another competitive advantage in the market. The purpose of the article is to study trends and prospects for the development of compliance in (...) Russia, the problems of its implementation in Russian companies. The paper provides a theoretical analysis of the concept and essence of compliance in the activities of companies, the features and components of compliance systems. Compliance systems and the work of compliance services were studied on the example of 50 large companies that were surveyed in March 2020. It was determined that less than half of the companies have such services; the full independence of such services is not always fully ensured; the capabilities of these services to perform compliance functions are not fully used and the most popular area of compliance is anti-corruption compliance. Prospects for further research are related to the study of the development of compliance in Russia, including the introduction of advanced foreign experience in Russian companies. The applied value of the material lies in the systematisation of information on the trends in the development of compliance in Russia at the present stage. (shrink)

In response to rapidly rising health care costs in the United States, federal and state governments and private industry are instituting numerous and diverse cost-containment plans. As devices for coping with a scarcity of resources, such plans present serious challenges to physicians' traditional single-minded devotion to patient welfare. Those which contain costs by directly limiting medical options or by controlling physicians' daily clinical decisions can threaten the quality of medical care by allowing economic authorities to make essentially medical (...) judgments. In contrast, other plans coax compliance by arranging incentives, e.g., offering financial rewards for successful cost containment. While they allow for clinical freedom, these plans create conflicts between physicians' fiduciary obligations to their patients and the competing interests of the payers. Such conflicts arise as physicians try to work within governmental or corporate cost containment policies, and also as they attempt to streamline clinical efficiency. Throughout, issues of justice emerge as physicians seek to reconcile their own patients' claims upon limited common resources with others' equally legitimate claims. (shrink)

The problem of non-compliance with treatment and its repercussions on the clinical evolution of different conditions has been widely investigated.1–4 Non-compliance has also been shown to have significant economic implications, not only as a result of product loss but also indirectly through the complication of disease management and its subsequent healthcare and social costs.5–7Non-compliance as a health problemThe term “non-compliance” might be taken to refer both to the failure to follow a drug regimen and to (...) the failure to adopt other measures that contribute to improvement in health—for example, changes in lifestyle or diet. This letter focuses on the former.Non-compliance with a drug regimen can be the result of a number of different factors9–11 and a variety of techniques have been developed in an attempt to control it.12,13 Of these, the few techniques that have been shown to be effective have only managed to solve the problem in specific situations over short periods of time. The use of such techniques to control non-compliance, particularly where these are effective, raises interesting ethical questions about the extent to which their application constitutes an infringement of the patient’s right to decide on how to manage their own health.8 Here we suggest that in some cases one factor that leads to non-compliance is the tendency to provide extensive and exhaustive information on side effects in …. (shrink)

The article examines the record of compliance with the UN Committee against Torture’s decisions in individual complaints cases. Theoretically, I expect that compliance will be the outcome of a combination of normative and rationalist factors: States committed to human rights protection will comply even in the absence of enforcement but only as long as compliance costs remain relatively low. Using a data set covering all adverse decisions issued until 2018 and information on their compliance status, (...) I employ fuzzy-set qualitative comparative analysis to identify necessary and sufficient conditions for the outcomes of compliance and noncompliance. The analysis reveals that the conditions tested—liberal democracy, nonuse of political terror, violation type, and strong civil society—are in part individually (near-)necessary and jointly sufficient for compliance, while the presence of their complements is consistent with noncompliance. The Committee against Torture thus appears to be able to elicit (some) state compliance with its decisions, if mostly only with respect to certain kinds of states and select types of violations. (shrink)

On site monitoring of research is one of the most effective ways to ensure compliance during research conduct. However, it is least carried out primarily for two reasons: presumed high costs both in terms of human resources and finances; and the lack of a clear framework for undertaking site monitoring. In this paper we discuss a model for research site monitoring that may be cost effective and feasible in low resource settings.

Many companies offer their customers voluntary carbon ‘offset’ certificates to compensate for greenhouse gas emissions. Voluntary offset certificates are cheap because the demand for them is low, allowing consumers to compensate for their emissions without significant sacrifices. Regarding the distribution of emission reduction responsibilities I argue that excess emissions are permissible if they are offset properly. However, if individuals buy offsets only because they are cheap, they fail to be robustly motivated to choose a permissible course of action.This suspected lack (...) of robust motivation raises both pragmatic questions about the functioning of offsetting schemes and moral questions about the worth of such unstable motives. The analysis provided here also has wider implications for the normative analysis of partial compliance and ‘many hands’ problems, especially for those cases where compliance levels and costs interact. (shrink)

An important part of responsible business practices is compliance with the law. This article details what actually happens when the laws of the host country fail to ensure adequate protection. The focus here is on land dispossession and loss of livelihood in relation to a gold mine project in central Ghana. How is it that a well‐known international company—Newmont—with its own corporate social responsibility (CSR) statements sets up a project in the year 2003 that displaces subsistence farmers from their (...) land without compensating in cash or with replacement land? The analysis identifies the factors that lead the company to not compensate farmers for their lost land: cost‐cutting, strict adherence to the law, CSR commitment that was new and not internalized, complexities of the Ghanaian land tenure system, peer pressure to preserve the status quo, selection of an “old‐school” CSR manager, and the inadequacy of Ghanaian mining law to account for relatively novel, “open‐pit” mining techniques. However, the specter of famine raised by civil society activism, the involvement of the International Financial Corporation, and a better qualified CSR team constitute another set of factors that lead to a comprehensive package of livelihood improvement measures. There is a contrast between the complexity, long‐term, and advanced type of assistance Newmont currently envisages and the backward, short‐term, formalism, and brutality of denying compensation for land back in 2003. This research is based on the extensive documentation Newmont makes available on its web site, interviews conducted in Ghana, and literature research. (shrink)

In managing the Covid-16 pandemic, policy makers took actions which require the cooperation of individual citizens to succeed while the actions partially come at remarkable costs for individuals. The brief paper employs a thought experiment to identify factors which affect individuals’ propensity to cooperate in the public goods game. These factors reasonably comprise, for example, risk perception and attitude towards risk, embeddedness in a social network or the desire for social approval and may differ remarkably among the individuals of (...) a collective. The paper adopts a management control perspective which appears to be particularly helpful to identify how to implement policy makers’ actions with respect to the diverse individuals in a collective. In order to predict the overall outcome of “unpleasant” actions, an approach is required which allows to capture the heterogeneity of individuals within a collective which makes agent-based modelling a promising candidate. (shrink)

Emergency situations require individuals to make important changes in their behavior. In the case of the COVID-19 pandemic, official recommendations to avoid the spread of the virus include costly behaviors such as self-quarantining or drastically diminishing social contacts. Compliance (or lack thereof) with these recommendations is a controversial and divisive topic, and lay hypotheses abound regarding what underlies this divide. This paper investigates which cognitive, moral, and emotional traits separate people who comply with official recommendations from those who don't. (...) In four studies (three pre-registered) on both U.S. and French samples, we found that individuals' self-reported compliance with official recommendations during the COVID-19 pandemic was partly driven by individual differences in moral values, disgust sensitivity, and psychological reactance. We discuss the limitations of our studies and suggest possible applications in the context of health communication. (shrink)

To ensure the protection and promotion of human rights at the African regional level, the African human rights system was established and has been in existence for over three decades. In realisation of its mandates, three supervisory mechanisms have been established to adjudicate human rights cases and issue decisions accordingly. To enhance compliance with these decisions, human rights non-governmental organisations, civil society organisations and the supervisory bodies themselves often act as sources of pressure by exploring different follow-up mechanisms. However, (...) despite their best efforts, the attitude of member states towards compliance with the decisions of the supervisory bodies has been relatively poor. Against this background, this article argues that in improving compliance, civil society—particularly the electorates—in member states can equally be engaged to act as a complementary domestic source of pressure with the aim of raising domestic costs in pressuring member states towards compliance. (shrink)

Three main motivations can explain compliance with social norms: fear of peer punishment, the desire for others' esteem and the desire to meet others' expectations. Though all play a role, only the desire to meet others' expectations can sustain compliance when neither public nor private monitoring is possible. Theoretical models have shown that such desire can indeed sustain social norms, but empirical evidence is lacking. Moreover it is unclear whether this desire ranges over others' “empirical” or “normative” expectations. (...) We propose a new experimental design to isolate this motivation and to investigate what kind of expectations people are inclined to meet. Results indicate that, when nobody can assign either material or immaterial sanctions, the perceived legitimacy of others' normative expectations can motivate a significant number of people to comply with costly social norms. (shrink)

Friendly persuasion, in contrast to deterrent measures like tax audits and penalties on underreported taxes, is a positive and possibly a cost effective method of increasing taxpayer compliance. However, prior studies have failed to show that friendly persuasion has a significant impact on compliance (Blumenthal et al., 2001; McGraw and Scholz, 1991). In our study, in contrast to prior studies, we examine the impact of generating and reading reasons supporting compliance as friendly persuasion on individuals' income reporting (...) behavior as well as control for gender effects. Specifically, we predict an interaction effect between friendly persuasion and gender on compliance behavior. We carried out a 2 (friendly persuasion and control) × 2 (men and women) full factorial experiment, where participants earned $30 by completing two questionnaires. Participants in the friendly persuasion group were required first to generate and second to read a list of reasons why they should comply fully. Afterwards, participants in both groups were asked to report the income they earned and pay tax on the reported income. The results show a significant main effect for gender as well as a significant interaction effect between gender and friendly persuasion on income reported. Women in the friendly persuasion group reported significantly higher income compared to men in that group. Other comparisons were not significant. Policy implications for increasing taxpayers' ethics and compliance are highlighted. (shrink)

The One Health approach to antimicrobial resistance (AMR) requires stakeholders to contribute to cross-sectoral efforts to improve antimicrobial stewardship (AMS). One Health AMR policy implementation is challenging in livestock farming because of the infrastructural role of antibiotics in production systems. Mitigating AMR may require the development of more stringent stewardship obligations and the future limitation of established entitlements. Drawing on Amatai Etzioni’s compliance theory, regulatory analyses and qualitative studies with stakeholder groups we examine the structural and socio-cultural dimension of (...) antibiotic use and AMS compliance in Australian beef and dairy production. We found a disconnect between how antibiotic use is conceptualised by farmers and the way in which AMS policies construe agricultural AMR risks. Under the umbrella of food safety standards and national-level prescribing restrictions, farmers and veterinarians interact around antibiotic use with different operating logics and compliance mechanisms. These parallel regimes service distinct and sometimes competing common goods of food security and antibiotic preservation. Further reforms to mitigate AMR need to account for the value orientations of different groups and the embeddedness of the constraints imposed by existing systems. Advocacy for greater AMR precaution in agriculture should acknowledge and compensate for erosions in competing common goods and the cost of proposed interventions. (shrink)

Background Following passage of the Patient Self Determination Act in 1990, health care institutions that receive Medicare and Medicaid funding are required to inform patients of their right to make their health care preferences known through execution of a living will and/or to appoint a surrogate-decision maker. We evaluated the impact of external factors and perceived patient preferences on physicians’ decisions to honor or forgo previously established advance directives (ADs). In addition, physician views regarding legal risk, patients’ ability to comprehend (...) complexities involved with their care, and impact of medical costs related to end-of-life care decisions were explored. Methods Attendees of two Mayo Clinic continuing medical education courses were surveyed. Three scenarios based in part on previously court-litigated matters assessed impact of external factors and perceived patient preferences on physician compliance with patient-articulated wishes regarding resuscitation. General questions measured respondents’ perception of legal risk, concerns over patient knowledge of idiosyncrasies involved with their care, and impact medical costs may have on compliance with patient preferences. Responses indicating strength of agreement or disagreement with statements were treated as ordinal data and analyzed using the Cochran Armitage trend test. Results Three hundred eighty-eight of 951 surveys were completed (41% response rate). Eighty percent reported they were likely to honor a patient’s AD despite its 5 year age. Fewer than half (41%) would honor the AD of a patient in ventricular fibrillation who had expressed a desire to “pass away in peace.” Few (17%) would forgo an AD following a family’s request for continued resuscitative treatment. A majority (52%) considered risk of liability to be lower when maintaining someone alive against their wishes than mistakenly failing to provide resuscitative efforts. A large percentage (74%) disagreed that patients could not appreciate complexities surrounding their care while 69% agreed that costs should never impact a physician’s decision as to whether to comply with a patient’s AD. Conclusions Our findings highlight the impact, albeit small, external factors have on physician AD compliance. Most respondents based their decision on the clinical situation at hand and interpretation of the patient’s initial wishes and preferences expressed by the AD. (shrink)

It is often assumed that in order to avoid the most severe consequences of global anthropogenic climate change we have to preserve our existing carbon sinks, such as for instance tropical forests. Global carbon sink conservation raises a host of normative issues, though, since it is debatable who should pay the costs of carbon sink conservation, who has the duty to protect which sinks, and how far the duty to conserve one’s carbon sinks actually extends, especially if it conflicts (...) with other duties one might have. According to some, forested states like Ecuador have a duty to preserve their tropical forests while the rich states of the global North have a duty of fairness to compensate states like Ecuador for the costs they incur. My aim in this paper is to critically analyse this standard line of argument and to criticise its validity both internally and externally. As I will argue, the duty to conserve one’s forests is only a particular instantiation of a wider, more general duty to contribute towards global climate justice for which the context in which one operates matters significantly. (shrink)

Since 1986, we have seen a rise in the occurrence of tuberculosis in the United States. Long considered defeated in this country, the disease is returning with distressing vigor. Outbreaks of MDR-TB, tuberculosis resistant to more than one medication, have been reported around the country. This article analyzes the Centers for Disease Control and Prevention's National Action Plan to Combat Multidrug-Resistant Tuberculosis, with particular focus on the moral dimensions of mandatory directly observed treatment (DOT) and involuntary quarantine. It is proposed (...) that a moral response to the control of tuberculosis must be one which is sustainable and which can effectively curtail the spread of the disease at a minimal cost to individual rights. (shrink)

A simplified relationship between setting of a norm and an individual’s compliance can be characterized by three distinct stages: norm comprehension and processing; the deliberate compliance decision of the individual; and non-deliberate decision-making. On each stage, there is insight from social sciences, experimental psychology and behavioural law and economics making different predictions about individual compliance behaviour. We study the implications of extra-juridical insight as well as normative constitutional requirements on the optimal design of norms. We find considerable (...) variance in norm designs for improving compliance depending on the respective empirical insight. Regarding norm comprehension, there is ambiguity in the relationship between individual’s limited cognitive processing capacity and the constitutional law imperative for norm specificity. The stage of deliberate decision-making relates to the rationality model of human behaviour allowing for economic, reciprocal, communicative human dispositions, each of which requires different law designs to induce individual’s compliance. Homo oeconomicus responds to law design using costs as steering tool. Homo reciprocans can be directed through decentralized self-regulation, governance of small political units and belief management. And compliance of homo communicans can be induced when procedures are perceived as being fair and inclusive. Finally, the existence of non-deliberate decision-making may justify paternalistic legal measures. The findings may inform lawmakers in how to design and draft laws to optimize norm compliance. (shrink)

Cooperation for the public good is vulnerable to exploitation by free-riders because it always pays individuals to exploit the social contract for their own benefit. This problem can be resolved if free-riders are punished, but punishment is itself a public good subject to free-riding. The fear of supernatural punishment hypothesis (FSPH) proposes that belief in supernatural punishment might offer a solution to this problem by deflecting the cost of punishment onto supernatural forces and thereby incentivizing cooperation. FSPH is supported empirically (...) by ethnographic data, but this work has so far focused on (1) institutional cooperative traits which may not reflect individual choices on how to behave in everyday social interactions and (2) threat of punishment from all-powerful moralizing high gods rather than other agents capable of supernatural punishment. Here, we consider the FSPH using variables which are linked to individual interaction and expand the number of variables measuring belief in different forms of supernatural punishment. Our findings do not fit these more general FSPH predictions. We suggest there may be something special about the link between moralizing high gods and institutional enforcement of cooperation that is not captured by these other variables. (shrink)

Medical devices have been long used for odiagnostic, therapeutic or rehabilitation purposes. Currently, they can range from a low-cost portable device that is often used for personal health monitoring to high-end sophisticated equipment that can only be operated by trained professionals. Depending on the functional purposes, there are different certification or compliance markings on the device when it is sold. One common certification marking is the Conformité Européenne affixation but this has a range of certification mark numbering for a (...) variety of functional purposes. While the regulators and medical device manufacturers understand the associated significance and clinical implications, these may not be apparent to the professionals and the general public. With portable healthcare devices and mobile applications gaining popularity, better awareness of certification marking will be needed. Particularly, there are differences in the allowed functional purposes and the associated cost derivations of devices with a seemingly similar nature. A preferred approach such as an easy-to-understand notation next to any certification marking on a device can aid in differentiation without the need to digest mountainous regulatory details. (shrink)

Regulation of gatekeepers of taxation has been so controversial and important that a review of ethical standards, professional responsibility and industry guidelines is examined. This paper explores whether gatekeepers of taxation need more ethics and enforcement to increase the compliance rate. In this paper we argue that an effective mixture of professional ethics and enforcement of gatekeepers can increase tax compliance. However, we question how much is optimal or reasonable? We theorize that ethics and enforcement should be proportionate (...) to the ecosystem because too much of it can lead to unintended consequences such as increase costs and higher noncompliance. A friendlier tax authority with less complex laws can enhance the compliance process. This strategy, in amalgamation with professional ethics, enforcement policies, and effective reporting systems, could increase the compliance rate. (shrink)

Occupational health and safety (OHS), as a fundamental human right, forms the basis of the obligation of employers to employees, requiring employers to do what is right. Responsible management practices encompass cognisance of sustainability, responsibility as well as legal, financial and moral aspects related to OHS compliance. As point of departure, an overview of core OHS criteria for small businesses is provided, with reference to awareness of these criteria in the G20 countries. This article utilises quantitative and qualitative data (...) analysis to examine the reasons why small business owners/managers comply with occupational health and safety directives, such as the Occupational Health and Safety Act (OHS Act) and the Compensation for Occupational Injuries and Diseases Act (COIDA) in South Africa, determine if such reasons for compliance culminate in actual compliance, and determine the perceived effect of direct and indirect costs of OHS incidents. A total of 350 small business owners/managers took part in this study. The findings indicate that whilst small business owners/managers realise the rationale behind OHS compliance in terms of moral, legal and financial components, moral aspects related to OHS compliance are deemed most important. Small business owners/managers thus seem to realise the importance of OHS compliance. However, when it comes to adhering to their responsibility in terms of general safety regulations of the OHS Act and registration with the Compensation Fund as specified in the COIDA (as examples of actual compliance), small business owners/managers’ compliance does not reflect such realisation. A model to enhance OHS standards in small businesses, encompassing legal, moral and financial rationales, is proposed. (shrink)

One way to enhance rule compliance is to provide people with arguments explaining why the desired behavior is important. We argue that there might be another, potentially more effective way to enhance rule compliance: ask people to generate arguments in favor of the rule themselves, which can trigger a process of self-persuasion. We compared the effects of providing arguments, asking respondents to generate arguments themselves, and a combination of both approaches on rule compliance and the perceived importance (...) of the rule. A field experiment revealed that rule compliance was higher in all experimental conditions compared to a control condition, with the highest level of rule compliance in the conditions that either presented the arguments or asked people to generate arguments themselves. Yet the rule was only evaluated as more important compared to the control condition, when people generated arguments themselves. This study suggests that rule compliance and perceived importance of this rule can be enhanced by easy low-cost interventions. (shrink)

The World Health Organization defined COVID-19 as a pandemic on March 11, due to the spread of the new SARS-CoV-2 coronavirus in all continents. Italy had already witnessed a very fast spread that brought the Government to place the entire country under quarantine on March 11, reaching more than 30,700 fatalities in 2 months. We hypothesized that the pandemic and related compulsory quarantine would lead to an increase of anxiety state and protective behaviors to avoid infections. We aimed to investigate (...) whether protective behaviors might have been enhanced or limited by anxiety and emotional reactions to previous experience of stressful conditions. We collected data from 618 Italian participants, by means of an online survey. Participants were asked to rate their level of worry for the pandemic, and to complete two questionnaires measuring the anxiety level: the state-trait anxiety inventory and the Pre-traumatic stress reaction checklist. Finally, the respondents were also asked to report about their compliance with protective behaviors suggested to avoid the spread of the virus. Results show that respondents with higher levels of worry reported higher levels of anxiety and pre-traumatic reactions, with positive correlations among the three measurements, and that higher frequency of the three protective behaviors were put in place by respondents with higher levels of worry. Moreover, regression analysis showed that worry for COVID-19 was most predicted by age, anxiety levels, and Pre-traumatic stress. These results could be interpreted in an evolutionary framework, in which the level of worry leads persons to become more cautious maximizing long-term survival at the cost of short-term dysregulation. (shrink)

Although previous studies primarily claim that government-dependent firms can actively engage in compliance activities in order to achieve political legitimacy, access government resources, and build competitive advantages, these studies largely ignore how firms react when firm-dependent governments exert coercive pressures. We thus introduce institutional theory and the behavioral theory of social performance to develop a model of modest imitation, and we propose that the more governments depend on privately owned firms, the more firms demonstrate average social performance in order (...) to balance efficiency concerns with political legitimacy threats. Meanwhile, whether firms imitate peers’ social performance depends on the magnitude of institutional rigidity. In turn, issue salience and spatial proximity undermine modest imitation, and political connections strengthen modest imitation. We study how all listed, privately owned firms react to the Chinese government’s call for social engagement in poverty alleviation initiated in 2015. This study uses a two-stage Heckman selection model to correct for sample-selection bias, and the results provide strong support for our arguments. This research thus extends our understanding of modest imitation in response to coercive pressure from-dependent governments. (shrink)

Developing countries often rely on consumption taxes, because these are broad, easy to administer, and harder to evade. However, the taxation system becomes inherently regressive. To counter this problem of the regressive nature of consumption taxes, there is a temptation among policymakers to address equity concerns through a multiplicity of rates, making the consumption tax system complex. Here, complexity is considered the by-product, or companion, to pursuing goals of equity. Complex tax systems, however, pose a different problem relating to equity. (...) Assuming a minimum fixed cost of compliance imposed by a complex tax system, smaller firms and individuals face a much higher cost of compliance relative to larger firms and richer individuals. Oligarchic sectors dominated by a few large firms also find it easier to organize and lobby to get favorable rates compared to competitive sectors with small firms. Though complexity is considered a by-product of several equity-enhancing measures, the Indian experience with its Goods and Services Tax reform serves demonstrates the opposite, that there is a trade-off between equity and complexity. (shrink)

In their role as political actors and lobbyists, corporations have responsibilities to help determine the existence and content of global regulations of pollutants. The ethical nature of those responsibilities is highly sensitive to the assumed normative framework. This paper compares several frameworks by modeling them as differently weighted versions of utilitarianism. Under a strict neoclassical approach, corporations have a narrow obligation to maximize profits, which generally entails opposing emission regulations. In contrast, a stakeholder approach as well as Marxian and common (...) ethics approaches suggest that firms have an obligation to actively support sustainable emission regulations with the following properties • major restrictions would be global rather than local• global restrictions would apply in all cases of persistent emissions• global restrictions would apply to non-persistent emissions as well, unless they have been affirmatively shown to be safe using reasonably persuasive scientific evidence• safety thresholds would be set fairly restrictively, based on administrative models and rules of thumb, in light of existing scientific knowledge but without requiring full scientific justification• long-run goals would include zero emission of persistent unsafe substances.However, the stakeholder approach supports phase-in rules to mitigate short-run compliance costs. (shrink)

From 2010 to 2020, Indonesia’s tax-to-gross domestic product (GDP) ratio has been declining. A tax-to-GDP ratio trend of this magnitude indicates that the tax authority lacks the capacity to collect taxes. The tax administration system’s modernization utilizing information technology is thus deemed necessary. Artificial intelligence (AI) technology may serve as a solution to this issue. Using the theoretical frameworks of innovations in tax compliance, the cost of taxation, success factors for information technology governance (SFITG), and AI readiness, this study (...) aims to analyze the costs and benefits, the enablers and inhibitors, and the readiness of the government and related parties to apply AI to modernize the tax administration system in Indonesia. This study used qualitative approaches for the data’s collection and analysis. The data were obtained through a literature study and in-depth interviews. The findings show that AI application in the field of taxation can assist tax authorities in enforcing the law, provide taxpayers with convenience in fulfilling their tax obligations, improve justice for all taxpayers, and reduce tax compliance costs. The openness of Indonesia to technological developments, as evidenced by the AI National Strategy, is a supporting factor in the application of AI in Indonesia, particularly for the modernization of the tax administration system. The absence of specific regulations governing AI adoption, as well as a lack of human resources that can help the tax administration process, data, and infrastructure already support, are the impediments to implementing AI for the modernization of the tax administration system in Indonesia. (shrink)

In the past decade, a few countries have created a third gender category to legally recognize gender-nonconforming individuals. However, we know relatively little about the response of the gender-nonconforming individuals toward the legal third gender category. To address this gap, this article analyzes the different social, religious, and institutional discourses that have emerged around the recently created third gender category in Pakistan and their influence on the legal consciousness of the Khawaja Sira community, a marginalized gender-nonconforming group. Even though the (...) third gender category was created to address the unique gender identity of the Khawaja Sira community, most continue to legally register as men. My research indicates that the patriarchal stigma, high compliance costs, and limited material benefits associated with the legal third gender category dissuade the Khawaja Sira community from choosing to register. My findings point to the limitations of a legal third gender category within a patriarchal sociolegal order where important benefits associated with the masculine identity are forfeited by registering. In doing so, I caution against over emphasizing the symbolic value of legal recognition for gender-nonconforming groups. (shrink)

The extraction of natural resources is a controversial business practice that has profound ethical and economic risk implications for both firms involved in extractive activities and society at large. In response to these implications, the Dodd–Frank Act of 2010 directed the Securities and Exchange Commission to create the first ever rules requiring annual corporate responsibility disclosures. The two proposed rules, requiring disclosure of the source of “conflict minerals” and of payments to foreign governments by extractive firms, conjured intense debate among (...) stakeholders, largely related to the risks of firms providing the information. These risks span from required disclosures increasing compliance costs for firms to non-disclosure threatening human rights. In this study, we seek to understand the way in which stakeholders perceive the risks associated with corporate responsibility disclosures. We analyze comment letters submitted to the SEC related to the two disclosure rules through the lens of Douglas’s cultural perspectives of risk. We find consistencies across the two proposed disclosures with regard to the presence of three risk perspectives within the comment letter discourse for each proposal. We find inconsistencies, however, in the underlying nature of risk perceived across the two rules, which we argue reveals an aspect of risk that incorporates ethicality and is ultimately linked to reputational considerations. We complement these insights by analyzing the market reaction to the proposed regulations. Overall, our analysis suggests that stakeholders’ perceptions of risk have consequences for how risk is perceived and acted upon in the market. (shrink)

The establishment of the African Court on Human and Peoples’ Rights was a pivotal moment for the African human rights system. To date, 30 of the African Union’s 55 member states have accepted the Court’s jurisdiction by ratifying the Protocol to the African Charter on Human and Peoples’ Rights on the Establishment of an African Court on Human and Peoples’ Rights. This article uses statistical analysis of state action on the Protocol to shed light upon the factors that have led (...) some states to accept the Court’s jurisdiction and other states to thus far decline to do so. The results provide strong support for accounts of the origins of international human rights regimes that emphasize transitional states’ desire to “lock in” new commitments to democracy and human rights. Potential compliance costs, regimes’ ideological orientations, domestic legal traditions, and regional dynamics have also exerted significant effects upon the likelihood of ratification. (shrink)

While corporate fiduciary duties in many jurisdictions are generally understood to be owed to shareholders, recent Canadian Supreme Court cases have held that directors owe their duties to the corporation, period, not to shareholders or any other stakeholders. This development has introduced significant indeterminacy to the law since it is not clear what such a conception of the duty requires. The Supreme Court did, however, make one clear statement: it held that directors owe a fiduciary duty to ensure that their (...) corporations obey statutory law. Such a duty encourages compliance with law, but may over-encourage compliance: individual directors do not necessarily gain personally from legal breaches, but may lose personally from them because of fiduciary liability, so they will have excessively strong incentives to avoid such breaches. The Article connects the fiduciary duty to obey law with recent developments in financial regulation that have increased the obligations on directors of financial institutions to oversee risk. By requiring directors to be engaged with risk at a governance level, regulators have enhanced the probability that directors will face liability under their fiduciary duties if their institutions do not comply with financial regulations. As the Article explains, the policy tradeoff between enhanced compliance benefits and over-compliance costs of fiduciary liability is different in the context of financial regulation from that in other settings. For example, significant corporate penalties, as opposed to penalties borne by individual directors, may be inconsistent with the prudential goals of regulation, perhaps because of toobig- to-fail concerns. The fiduciary duty to cause the corporation to obey financial regulation, and a stricter application of this duty than the highly deferential standard that exists in Delaware law, has advantages that do not exist in other legal and regulatory contexts. (shrink)

Acting morally comes at a price. The fewer people act morally, the dearer moral acts will be to those who perform them. Even if it could be proven that a certain moral norm were valid, the question might still be open whether, under certain circumstances, the demand to follow it meant asking too much. The validity of a moral norm is independent from actual compliance. In that regard, moral norms differ from legal rules. A law that nobody obeys has (...) eroded and thus lost validity; a moral norm that nobody keeps, however, may still be valid. Yet the latter point does not render the question obsolete whether demanding obedience to a specific moral norm, under certain circumstances, could mean asking too much. The costs incurred might be, on the one hand, individual costs. But there may, on the other hand, also be moral costs of obeying a certain moral norm. For an individual might also have responsibilities towards others near her, e.g., her family or peers; acting in accordance with the strict moral standard, then, could do harm not just to her but also to those who rely, and must rely upon her. Yet to define moral limits to following moral rules appears to be self-defeating. (shrink)

Ordered social life requires rules of conduct that help generate and preserve peaceful and cooperative interactions among individuals. The problem is that these social rules impose costs. They prohibit us from doing some things we might see as important and they require us to do other things that we might otherwise not do. The question for the contractarian is whether the costs of these social rules can be rationally justified. I argue that traditional contract theories have tended to (...) underestimate the importance of evaluating the cost of enforcement and compliance in the contract procedure. In addition, the social contract has been understood narrowly as a method of justifying specifically moral or political rules. I defend a broader version of contractarianism as a justificatory model that can be used to evaluate any set of social rules or institutions that impose costson agents. In so doing, I argue that contractarianism is a general method of evaluating and justifying the rules that order the structure of social life. (shrink)

The U.S. government embraces the concepts of privatization and market competition, but the realm of contracting shows that it has not always been able to put its principles into practice. Although the contracting system is supposed to be open and competitive, in recent years the government has often awarded contracts with little or no competitive bidding, has chosen to award mostly cost-plus type contracts that force the government to assume more of the risk, and lacked efficiency in monitoring and overseeing (...) private contractors. While the number and value of contracts have increased, the workforce to oversee these contracts has been reduced, preventing the government from adequately enforcing compliance with the contractors, and the government has not made use of past performance evaluations in its contracting system. Private contractors that do business with the U.S. government are for the most part well-established firms with ample resources and inside contacts; many contracts are still being awarded on preferential treatment and to the larger and well-established contractors. (shrink)

Acting morally comes at a price. The fewer people act morally, the dearer moral acts will be to those who perform them. Even if it could be proven that a certain moral norm were valid, the question might still be open whether, under certain circumstances, the demand to follow it meant asking too much. The validity of a moral norm is independent from actual compliance. In that regard, moral norms differ from legal rules. A law that nobody obeys has (...) eroded and thus lost validity; a moral norm that nobody keeps, however, may still be valid. Yet the latter point does not render the question obsolete whether demanding obedience to a specific moral norm, under certain circumstances, could mean asking too much. The costs incurred might be, on the one hand, individual costs. But there may, on the other hand, also be moral costs of obeying a certain moral norm. For an individual might also have responsibilities towards others near her, e.g., her family or peers; acting in accordance with the strict moral standard, then, could do harm not just to her but also to those who rely, and must rely upon her. Yet to define moral limits to following moral rules appears to be self-defeating. (shrink)

Mandatory vaccination, including for COVID-19, can be ethically justified if the threat to public health is grave, the confidence in safety and effectiveness is high, the expected utility of mandatory vaccination is greater than the alternatives, and the penalties or costs for non-compliance are proportionate. I describe an algorithm for justified mandatory vaccination. Penalties or costs could include withholding of benefits, imposition of fines, provision of community service or loss of freedoms. I argue that under conditions of (...) risk or perceived risk of a novel vaccination, a system of payment for risk in vaccination may be superior. I defend a payment model against various objections, including that it constitutes coercion and undermines solidarity. I argue that payment can be in cash or in kind, and opportunity for altruistic vaccinations can be preserved by offering people who have been vaccinated the opportunity to donate any cash payment back to the health service. (shrink)

Environmental degradation and extractive industry are inextricably linked, and the industry’s adverse impact on air, water, and ground resources has been exacerbated with increased demand for raw materials and their location in some of the more environmentally fragile areas of the world. Historically, companies have managed to control calls for regulation and improved, i.e., more expensive, mining technologies by (a) their importance in economic growth and job creation or (b) through adroit use of their economic power and bargaining leverage against (...) weak national governments, regional and international regulatory bodies. More recently, the industry has had to contend with another set of challenges that involved treatment of indigenous people and their traditional land rights, fair treatment of workers, human rights abuses, and bribery and corruption involving local officials and political leaders. These challenges currently fall outside the traditional areas of regulation and control. Nevertheless, they pose serious threat to the industry’s business practices because of their global scope, threat to company’s reputation, and long-term risks of political instability leading to increasing cost of capital. Industry has responded to these challenges by creating voluntary codes of conduct that would signify their intent to comply with higher standards of conduct, and assuage public opinion that no further action is called for. These codes, however, lack any monitoring mechanism and reporting integrity to assure the public that the industry members are indeed meeting their commitments. Consequently, pressure on the industry continues unabated and with ever increasing calls for mandatory regulation and oversight. This article examines the activities of one mining company, Freeport-McMoRan Copper & Gold, Inc., which has taken a radically different approach in responding to these challenges at its mining operations in West Papua, Indonesia. While cooperating with industry-based efforts of voluntary codes of conduct, Freeport also initiated a radically different response through its own voluntary code that would directly focus on issues of human rights, treatment of indigenous people on whose traditional land its mine was located; economic development and job creation and, improvements in health, education, and housing facilities, to name a few. Additionally, the company earmarked large sums of money and involved representatives of the indigenous people in their management and disbursement. The company took an even more radical action when it committed itself to independent external audits of the company’s compliance with the code, and that these findings and company’s responses would be made public without prior censorship by the company. We analyze the nature of corporate culture, vision and risk-taking propensities of its management that would impel the company to embark on a high risk strategy whose outcomes could not be predicted with any degree of certainty before the fact. The parent company also had to confront discontent among the management ranks at the mine site because of cultural differences and management styles of expatriates and local (Indonesian) managers. Finally, we discuss in some detail the extensive and intensive character of a two phase audit conducted by the outside monitors, their findings, and the process by which they were implemented and reported to general public. We also evaluate the strengths and challenges posed by such audits, their importance to the company’s future, and how such projects might be undertaken by other companies. (shrink)

In this article, we shift the usual analytical attention of the GPN framework from lead firms to suppliers in the network and from production to IT services. Our focus is on how Indian IT suppliers embed in the Netherlands along the threefold characterization of societal, territorial and network embeddedness. We argue that Indian IT suppliers attempt to display societal embeddedness when they move to The Netherlands. Our findings reveal that the endeavour by Indian IT suppliers to territorially dis-embed from the (...) Dutch context is reinforced by their peripheral position in the network and their ability to offshore work in a bid to contain costs, in addition to the influence of client domination. Therefore, territorial embeddedness is considered to be secondary to societal embeddedness which is intertwined with client interest while neglecting the interest of other network members. Nonetheless, the inter-firm relationship is complex, given the tension between societal, territorial and network embeddedness. While preferring Indian IT suppliers because of their low pricing, Dutch clients also insist on compliance with the institutional context of the Netherlands especially when it comes to Dutch employees. This results in hybridization which means that Indian IT suppliers find ways to adhere to the institutional framework for Dutch nationals while simultaneously insulating Indian employees from the same. Consequently, a highly unfair segmented internal labour market develops, with Dutch nationals being treated more favourably as compared to Indian nationals. Nonetheless, to address these violations, Indian employees prefer individual strategies of resilience and rework rather than a collectivization response. (shrink)

With complex buyer-driven global production networks and a labour-intensive manufacturing process, the fashion industry has become a focal point for debates on the social responsibility of business. Utilising an interview methodology with influential actors from seven export garment manufacturers in Sri Lanka, we explore the situated knowledge at one nodal point of the production network. We conceptualise factory management perspectives on the implementation of corporate social responsibility in terms of the strategic balancing of ethical considerations against the commercial pressures of (...) cost and lead time. Factory managers framed CSR in terms of compliance, rather than going above and beyond regulatory requirements; seeing it as a strategic competitive imperative and less a developmental mechanism. Sri Lankan manufacturers maintain that they have benefitted from a unique combination of factors, including strict national labour laws, an educated workforce, the characteristics of the garments produced, industrial upgrading, and long-term non-adversarial buyer–supplier relationships, which they argue has supported the establishment and maintenance of CSR practices. The paper thus provides managerial implications that relate CSR activities to CSR outcomes which include both reputational and production benefits. Such insights will be of strategic relevance for lead retail buyers as well as apparel producers keen to invest in CSR to partly mitigate against increasing price-based competition. (shrink)

Increasing the tax compliance of self-employed business owners—particularly of trade-specific service providers such as those involved in construction and repair work—remains an ongoing challenge for tax authorities. From a compliance point of view, cash transactions are particularly problematic when services are paid for on the spot, as these exchanges are difficult to audit. We present experimental evidence testing ten different policy strategies rooted in the enforcement, service, and trust/social paradigms, in a setting that allows payment either via a (...) transaction that directly reports income for tax collection purposes or in cash, where taxes are only collected on reported income. Our sample includes both a typical subject pool of students, as used in most previous studies, and non-students who are active within service industries characterised by the opportunity to engage in cash transactions. While our comparative results show that, for both student and non-student participants, interventions that rely on greater enforcement by the tax authority have the greatest effect on compliance in our cash economy setting, treatments involving cooperative elements may be similarly effective in enhancing tax compliance. Given their effectiveness, cooperative approaches should therefore be considered for addition to the policy mix if implemented at relatively low costs, making both carrot and stick approaches promising to increase compliance in an environment where cash-for-service payments offer a common benefit for small businesses and their customers from implicit collusion that enables tax evasion. (shrink)

The nature and effectiveness of any international legal agreement is heavily shaped by the forum in which it is negotiated and implemented. This includes both the substantive content that global policymakers agree upon and the subsequent state compliance with those provisions. Forums differ in their institutional characteristics, thereby providing unique opportunities and costs for participating actors. Forums may have different mandates, capacities, cultures, members, and legal processes — all of which ultimately affect distributions of power and influence. These (...) differences then shape how issues are framed, the content of agreements as they are negotiated, and the incentives states have to comply with any obligations. (shrink)

Objective : Pre-implantation genetic diagnosis (PGD) has been utilized by assisted reproductive technology (ART) to genetically screen embryos before placement in the uterus. However, many objections have been raised against the genetic screening of embryos, giving the practice an uncertain ethical, legal, and social status. Our aim was, therefore, to survey the possible presence and compliance to any legislation for PGD in the existing 60 in vitro fertilization (IVF) centres in the Gulf Cooperative Council (GCC) countries as well as (...) the availability of such a technological service. Methods : The study was performed in the department of biochemistry at King Faisal University between the periods Mar 2006 to Nov 2007. A questionnaire, in the form of a table, was sent to responsible persons of all 60 IVF centres and health authorities in the GCC countries. The collected data about the regulations and guidelines for the PGD program was analyzed using SPSS software package version 12.0 and the level of significance was set at P Results: 18 respondents, 16 IVF centres and 2 health authorities (26.87% of total) participated in the survey. The PGD techniques, mainly FISH analyses, were practiced in three centres in Saudi Arabia and one centre in the UAE. The major provider of PGD was King Faisal Specialist Hospital and Research Centre in Riyadh where more than 300 PGD tests had been performed. Whilst some regulations and guidelines have been introduced to IVF centres in all GCC countries, their implementations were left to the discretion of the treating centre. Conclusions : PGD services in the GCC countries were under-utilized due to the high cost of tests, the sophisticated technology involved and the poor returns of the investment. As a result of some deficiencies in the legislations which regulated PGD, the medical teams involved often faced difficulties on what rights to exercise in various PGD cases. (shrink)

Under conditions of growing interconnectedness of the global economy, more and more stakeholders are exposed to risks and costs resulting from business activities that are neither regulated nor compensated for by means of national governance. The changing distribution of risks poses a threat to the legitimacy of business firms that normally derive their legitimacy from operating in compliance with the legal rules of democratic nation states. However, during the process of globalization, the regulatory power of nation states has (...) been weakened and many production processes have been shifted to states with weak regulatory frameworks where businesses operate outside the reach of the democratic nation state. As a result, business firms have to address the various legitimacy challenges of their operations directly and cannot rely upon the legitimacy of their regulatory environment. These developments challenge the dominant approach to corporate governance that regards shareholders as the only stakeholder group in need of special protection due to risks not covered by contracts and legal regulations. On the basis of these considerations, we argue for a democratization of corporate governance structures in order to compensate for the governance deficits in their regulatory environment and to cope with the changing allocation of risks and costs. By way of democratic involvement of various stakeholders, business firms may be able to mitigate the redistribution of individual risk and address the resulting legitimacy deficits even when operating under conditions of regulatory gaps and governance failure. (shrink)

Large mining projects can generate highly inequitable outcomes, with affected communities bearing the burden of social and environmental costs while economic benefits accrue largely to domestic and foreign metropolitan centres. This raises important ethical and social justice issues, as does the finite nature of mineral resources, which can mean that current generations enjoy the benefits of mining while future generations bear the costs of environmental and social impacts that can continue long after mining ends. During recent decades two (...) broad approaches, voluntary industry initiatives and government regulation, have been employed in attempts to achieve a more equitable distribution of mining’s positive and negative effects. Both have serious drawbacks. Industry initiatives are ultimately voluntary and may be abandoned in tough economic times; they can be highly variable across companies and projects; and they suffer from serious compliance issues. Public regulation can be inflexible, is subject to industry capture, and in many major mineral producing nations a ‘retreat from regulation’ is reducing its relevance. This article considers whether, and under what conditions, a third and emergent instrument, community development agreements, can help overcome the shortcomings associated with industry initiatives and public regulation. It argues that CDAs have considerable potential in this regard, but that communities can encounter significant practical challenges in their negotiation and implementation. In addition, disparities in negotiation power between communities and project developers can result in inequitable agreements, indicating a continued need for government involvement to create a more level ‘negotiation terrain’. (shrink)

With the existing commitments to climate change mitigation, global warming is likely to exceed 2°C and to trigger irreversible and harmful threshold effects. The difference between the reductions necessary to keep the 2°C limit and those reductions countries have currently committed to is called the ‘emissions gap’. I argue that capable states not only have a moral duty to make voluntary contributions to bridge that gap, but that complying states ought to make up for the failures of some other states (...) to comply with this duty. While defecting or doing less than one’s fair share can be a good move in certain circumstances, it would be morally wrong in this situation. In order to bridge the emissions gap, willing states ought to take up the slack left by others. The paper will reject the unfairness-objection, namely that it is wrong to require agents to take on additional costs to discharge duties that are not primarily theirs. Sometimes what is morally right is simply unfair. (shrink)

The strongest arguments for the permissibility of geoengineering (also known as climate engineering) rely implicitly on non-ideal theory—roughly, the theory of justice as applied to situations of partial compliance with principles of ideal justice. In an ideally just world, such arguments acknowledge, humanity should not deploy geoengineering; but in our imperfect world, society may need to complement mitigation and adaptation with geoengineering to reduce injustices associated with anthropogenic climate change. We interpret research proponents’ arguments as an application of a (...) particular branch of non-ideal theory known as “clinical theory.” Clinical theory aims to identify politically feasible institutions or policies that would address existing (or impending) injustice without violating certain kinds of moral permissibility constraints. We argue for three implications of clinical theory: First, conditional on falling costs and feasibility, clinical theory provides strong support for some geoengineering techniques that aim to remove carbon dioxide from the atmosphere. Second, if some kinds of carbon dioxide removal technologies are supported by clinical theory, then clinical theory further supports using those technologies to enable “overshoot” scenarios in which developing countries exceed the cumulative emissions caps that would apply in ideal circumstances. Third, because of tensions between political feasibility and moral permissibility, clinical theory provides only weak support for geoengineering techniques that aim to manage incoming solar radiation. (shrink)

Fines and monetary damages account for the majority of legal sanctions across the whole spectrum of legal governance. Money is, in key respects, the primary tool law has to achieve compliance. Yet money has largely been ignored by social analyses of law, and especially by social theory. _The Currency of Justice_ examines the differing rationalities, aims and assumptions built into money’s deployment in diverse legal fields and sanctions. This raises major questions about the extent to which money appears as (...) an abstract universal or whether it takes on more particular meanings when deployed in various areas of law. Indeed, money may be unique in that it can take on the meanings of punishment, compensation, denunciation or regulation. _The Currency of Justice_ examines the implications of the ‘monetization of justice’ as life is increasingly regulated through this single medium. Money not only links diverse domains of law; it also links legal sanctions to other monetary techniques which govern everyday life. Like these, the concern with monetary sanctions is not who pays, but that money is paid. Money is perhaps the only form of legal sanction where the burden need not be borne by the wrongdoer. In this respect, this book explores the view that contemporary governance is less concerned with disciplining individuals and more concerned with regulating distributions and flows of behaviours and the harms and costs linked with these. (shrink)