Tendencies of organized crime in the context of economical crisis are dealt in the article. The author shows his own position about the economical crisis and how it influenced organized crime in Lithuania. The reasons of economical crisis, characteristics and peculiarities of crimes of organized groups, which operate in Lithuania, are discussed in the article. The author reveals specific features, which enable to evaluate the real influence of organized groups to the economical state of Lithuania.
The economiccrisis of 2008 led to a significant erosion of trust in the countries that were hit hardest. However, whether this fall can best be explained by external economic factors or by the lack of response on the part of the institutions to civic needs and demands is unclear. This study uses the extreme case of Spain to bring new insights to this debate. Its aim is to analyse, in comparison with perceived institutional performance and other (...) factors, the effect of increasing economic inequality and its polarisation on levels of social and institutional trust. The study examines the respective impact of these factors upon different social groups according to their degree of exposure to the effects of the crisis. It uses a simultaneous equations model to jointly examine interpersonal and institutional effects. Our results show that the social groups most severely affected by the recession lose a great deal of trust in others. We also find that polarisation of economic conditions has different effects depending on the institution. Institutional trust seems to vary according to the interest of different groups, but the economic position is an underlying factor, especially for specific segments of the population. Without calling into question the importance of institutional performance, our research sheds new light on the importance of economic polarisation and its joint impact on social and institutional trust. We suggest that, in severe economic recession scenarios, rising inequalities have a direct impact on the institutional trust of certain social groups and deteriorate a lot interpersonal confidence among the most disadvantaged. (shrink)
Does a board with greater gender diversity make better investment decisions? Drawing on Austrian economic cycle theory and work groups theory, we argue that such board openness will help male board members to overcome gender biases, discrimination, and conflicts; integrate different perspectives under the economic cycle and crisis; and foster an environment in which better decisions are made. The results of an empirical study of 14,609 firm-quarter observations from 1,555 listed firms in China between 2007 and 2009 (...) strongly support our arguments. We find that a Chinese board is more likely to accept female directorship during an economiccrisis than during an economic prosperity stage. Boards with greater gender diversity are more likely to make tough, counter-cyclical investments to improve firm performance during a crisis. Our study enriches the board decision-making literature by exploring the impacts of board gender diversity on firm performance within the context of an economiccrisis. The results of our study also carry significant managerial implications for overcoming gender stereotypes, biases, and prejudices on a board. (shrink)
This book examines the U.S economy from 1967 to 2011 and utilizes a new method to predict the future of the economy as far ahead as 2030. Projections using estimates from the U.S. Bureau of Census are used to further project personal income, personal income annual change, and disposable personal income to 2030.
The article underlines the significance of social rights as important constitutional rights of a human being and emphasises the peculiarities of their nature from the point of view of not only national, but also international law. The article presents an analysis of the constitutional doctrine of the protection of guarantees of social rights, which has been formulated by the Constitutional Court of the Republic of Lithuania in the course of considering the issues of reduction of social guarantees—pensions and remuneration, which (...) were determined by the economiccrisis. In the Constitutional Court’s jurisprudence the personal right to social security has been construed in the most broad and comprehensive terms. The human rights and freedoms enshrined in the Constitution have been treated as constituting an integrated and harmonious system, and social rights have been interpreted not only as certain obligations of the state to the public, which inter alia are determined by the social purpose of the state, but also as a person’s individual rights, for which judicial defence is guaranteed. Such concept of the said rights has also been influenced by international law, inter alia the jurisprudence of the European Court of Human Rights. Social rights, while being an object of regulation of international law, have been forming the European doctrine of guarantees of these rights and have influenced the concept of these rights in national law. The main attention in the article is devoted to the analysis of the doctrine formulated in the Constitutional Court’s jurisprudence in relation to the correction (limitation) of social rights (payment of pensions and remuneration) under the conditions of economiccrisis. In the article the period of formation of this doctrine is divided into two stages: the period of 2002–2006, when the Constitutional Court had to decide regarding the compliance of the legal acts whereby social guarantees had been constricted with the Constitution, and which was caused by the consequences of the so-called Russian economiccrisis for the economic development of the state of Lithuania; and the period from 2009 to date, during which the Constitutional Court has been forming the constitutional doctrine of limitation of social rights, which was conditioned by the outcomes of the global economiccrisis for the economy of the state of Lithuania. The article raises a question as to whether the constitutional doctrine being formed by the Constitutional Court in relation to the limitation of social rights under the conditions of economiccrisis may be assessed as an independent one or whether it still remains to be a separate case of limitation of rights within the general doctrine of limitation of human rights. On the basis of the analysis of the Constitutional Court’s jurisprudence, a conclusion is drawn that the criteria established in the Constitutional Court’s doctrine of limitation of social rights under the conditions of economiccrisis are even stricter than the universally recognised criteria for the limitation of human rights in the law of human rights, therefore, it is possible to assess the doctrine of limitation of social rights under the conditions of economiccrisis, as formulated by the Constitutional Court during 2009–2012, which is the continuation of the previous doctrine, as an independent doctrine, the basis of which, undoubtedly, remains to be formed by the general principles of limitation of human rights recognised in the law of human rights. The article is not only confined to the analysis of the jurisprudence of the Constitutional Court of the Republic of Lithuania, it also provides examples of construction of the doctrine of social rights (inter alia those influenced by the economiccrisis) by certain other constitutional courts. (shrink)
During the late 1960s, the long post-war economic boom which had characterised the advanced capitalist countries began to fade away. In its wake came an equally long era of stagnation, decline, and political and economic turbulence. Unemployment, inflation, falling profitability, business failures and bankruptcies were the new order of the day, and it became commonplace to see fearful headlines about the possible collapse of the global financial system or even of accumulation itself.
In this updated and revised version of his 2008 Society for Business Ethics presidential address, Richard Nielsen documents the characteristics and extent of the 2007–2009 economiccrisis and analyzes how the ethics issues of the economiccrisis are structurally related to a relatively new form of capitalism, high-leverage finance capitalism. Four types of high-leverage finance capitalism are considered: hedge funds; private equity-leveraged buyouts; high-leverage, subprime mortgage banking; and high-leverage banking.The structurally related problems with the four types (...) of high-leverage finance capitalism converged in something of a perfect economic storm. Explanations for the crisis are offered in the context of the type of the high-leverage finance capitalism system that permitted andfacilitated the economiccrisis. Ethics issues and potential reforms are considered that may be able to mitigate the destructive effects of what Schumpeter referred to as the “creative destructive” effects of evolutionary forms of capitalism while realizing the Aristotelianeconomic ideal of creating wealth in such a way as to make us better people and the world a better place. (shrink)
In this study, we explore the sincerity of the rhetorical tone of 664 annual letters to shareholders (CEO letters). Prior studies adopt Impression Management theory to predict that firms obfuscate failures and emphasize successes to unfairly enhance their image and maintain organizational legitimacy. Yuthas et al. (J Bus Ethics 41:141–157, 2002) challenged such a view, showing that firms reporting earnings surprises engage in ethical discourse with shareholders. We adopt the methodology of Yuthas et al. (J Bus Ethics 41:141–157, 2002) to (...) explore the association between firm performance and the rhetorical features of CEO letters in a large sample of Fortune 500 firms in the wake of the global economiccrisis. In contrast to most prior research, we find that optimistic tone is congruent with both past and future performance. We conclude that under tough macroeconomic conditions, incentives to distort public information strategically are low. Rather, firms tend to engage in communicative action aimed at dialoguing with shareholders through sincere disclosure. However, in our conclusions, we warn about the impact of accounting and rhetorical manipulation on the congruence between optimistic tone and financial performance. (shrink)
The recent financial and economiccrisis has spurred a lot of interest among scholars and public audience. Strangely enough, the impact of the crisis on innovation has been largely underestimated. This books can be regarded as a complementary reading for those interested in the effect of the crisis with a particular focus on Europe.
The aim of this paper is to determine how the economiccrisis, and the ad hoc attempts made by the authorities to counteract it, affected the Polish society and, above all, to prepare a multidimensional analysis of how the crisis impacted systemic changes in the Polish social policy. The author will examine both positive changes that followed the relevant global trends and also negative changes that resulted from the developmental lag, the country’s economic situation and especially (...) the generally low involvement of the state via public funding in activities that were part of the state’s social policy. Assessment of Polish social policy during the crisis must be ambiguous. On the one hand, systemic changes in social policy introduced as a result of the economic collapse can be clearly distinguished, on the other hand, however, the severity of the crisis visibly affected many activities of state and local governments in the social sphere. These activities posed unsuccessful attempts to rescue the situation in the labour market. Additionally, an effective response to deepening poverty was missing, amendments adopted to labour legislation were disadvantageous to employees, and finally fundamental sacrifices in terms of social policy were made as the lawmakers passed the Unification Act during the crisis. Polish social policy was unable, for a number of reasons, to essentially redefine its approach to addressing the numerous social issues it had to face. (shrink)
This paper analyses the role of external pressures, internal motivations and their interplay, with the intention of identifying whether they drive substantive or instead symbolic implementation of ISO 14001. The context is one of economiccrisis. We focus on Greece, where the economiccrisis has weakened the country’s institutional environment, and analyse qualitatively new interview data from 45 ISO 14001 certified firms. Our findings show that weak external pressures can lead to a symbolic implementation of ISO (...) 14001, as firms can defend their legitimacy without incurring the costs of internalization in the local market; weak external pressures can lead to substantive implementation of ISO 14001 when firms have strong internal motivations seeking to strategically differentiate from competitors in international markets. Firms internalize ISO 14001 so as to restore their legitimacy and reputation in foreign markets and stimulate their competitiveness; and strong internal motivations pave the way for companies to stimulate their competitiveness by enhancing their efficiency, as some companies might strengthen their position in the local market by implementing ISO 14001 substantively. The contribution of this paper to the literature on ISO 14001 internalization lies in refining existing theory on the importance of internal motivations for the substantive implementation of ISO 14001 in the context of economiccrisis. In addition, this paper extends current theory by challenging studies that dismiss the importance of external pressures. We argue that the intensity of external pressures influences the internalization of ISO 14001, but propose that this relationship might not be linear. (shrink)
Based on the Social Representation Theory, the purpose of this article is to explore how lay-people consider both the economiccrisis and risk, and to link these social representations to behavior. The article offers an original approach with the articulation of two studies about the social construction of risk and crises. It also contributes to the development of research methods for studying the connections between representations and practical implications. Based on this, the impact of the social representation of (...) the crisis on the perceived ability to act is approached. The first study focuses on free-association tasks, with two distinct target terms: ‘risk’ and ‘crisis’. The structural approach, with a prototypical analysis, allowed the identification of two different representations: for risk, ‘danger’ is the central element; for crisis, ‘economy’ and ‘money’ constitute the main components of the representation. The second study investigates the links between the two previously detected structures and their relations with the perceived ability to act in a financial crisis context. Some aspects of social knowledge were found to have an impact on perceived ability to act. (shrink)
On Sept 15, 2008, ‘‘Dark Monday,’’ the world witnessed a radical reshaping of Wall Street. Lehman Brothers fell toward bankruptcy; Merrill Lynch was sold to its rival, Bank of America; and AIG pleaded for $40 billion in government relief. Those calamities marched in step with a dismal parade including the US government takeover of Fannie Mae and Freddie Mac, the bailout of Bear Stearns, and the entire subprime debacle. We rightly blame Wall Street leaders for bungling business decisions, for misestimating (...) risk and overloading banks with single-strategy investments. We now are living with the aftermath of these business mistakes. But how about ethical mistakes? Were they, too, part of the crisis? (shrink)
This paper provides a criticism of the New Left’s discourse of legitimation of the globalization hypothesis based on the same understanding of it than contemporary Conservative Liberalism. According to the New Left’s basic epistemological-political standpoint, the economic globalization is a consolidated process which leads not only to the era of international economy, but also to the failure of a nationalist interventionist politics, as to the irreversible weakening of the Welfare State model of strong political institutions as the basis of (...)economic constitution and of social evolution. According to the New Left, only international political institutions can frame the international economy. We argue that the New Left does not seriously consider the notion of late capitalism, disregarding the political-economic dependence between central and peripheral countries as the fundamental characteristic of international politics and of global economic constitution. Here, international political institutions cannot tackle macroeconomic contradictions and pathologies due to the fact that the international economic order is grounded on political inequality and dependence of these central and peripheral countries. The important epistemological-political question is not primarily the economic globalization itself, but its political basis, that is, the international politics founded on the periphery’s dependence as the condition to central development. Therefore, only the recovery and the renewal of a nationalist and interventionist politics based on the strengthening of political institutions in general and of the Welfare State in particular can respond to problems of economic globalization, deconstructing the New Left’s globalization hypothesis. (shrink)
An exposition of Karl Marx’s argument in the Grundrisse for the logical development of money, this essay is divided into three parts. Since Marx is concerned to distinguish himself and his method from that of the seventeenth century political economists, I begin my paper with a brief reflection on “the scientifically correct method” or the “theoretical method” (Grundrisse 101 and 102). The second part of this paper considers how Marx justifies beginning his reflection with the concept of production in general. (...) To understand the importance that Marx attributes to production, one must also appreciate the way in which distribution, exchange, and consumption belong to the sphere of production. In the remaining pages of this section of my paper, then, I attempt to reconstruct Marx’s argument for the way in which these concepts (distribution, exchange, and consumption) are to be understood in relation to the sphere of production. (shrink)
This article identify catalysts of synthetic economiccrisis. These catalysts are the subject of transnational corporations, international financial, trade organizations, regional integration groupings. Generalized mechanism for the flow of synthetic economiccrisis and their types. This article also proves that the response of governments to the process flow of synthetic economiccrisis with the help of the classical fiscal, monetary and administrative-legislative instruments are not effective.
As Christians, we are called to think about the fundamental values that shape and guide our economic behavior and the economic structures of our society. This article focuses on the ways in which the problem of predatory lending, or usury, allows us to examine our most basic Christian values and principles and think about how they might serve as a moral foundation for reshaping our economic structures and transactions.
The authors of this article contend that traditional corruption, which was largely blamed for the current situation in the Icelandic economy, was perhaps not the most fundamental reason for the ensuing crisis. The weak business culture and a symbiosis of business and politics have actually allowed for the bulk of self-erving and unethical decisions made by the Icelandic business and political elite. In order to illustrate this point, 10 expert interviews have been conducted within the period of 6 months (...) in 2009 to support in-depth research carried out by the authors. The article also discloses questionable business practices that have recently come to the attention of the public both in Iceland and abroad and that ultimately facilitated the downfall of the Icelandic economy. While traditional corruption has probably played its role in this downfall, the measures currently employed to determine its level did not account for various peculiarities of Icelandic society. The article thus argues that there was a high level of corruption in Iceland, but it was outside of the traditional definition. This other corruption has ultimately prevented the government from acting appropriately upon the questionable business practices mentioned above. The article also offers some general recommendations which should be useful to both policy makers and business leaders wishing to engage in business activities in a transparent, ethical manner and learn from the tragic Icelandic experience. Among these recommendations are the necessity to recognize the limitations of current definitions of corruption, as well as a word of caution to commercial enterprises to pay a close attention not only to commonly accepted indices and mainstream reports but also to a country's history, culture, and political environment, prior to making any sort of investment decisions in that country. (shrink)
In this article, I carry out a critical analysis of the two predominant categories of metaphors used in Western media to report the 2008 economiccrisis: the metaphors representing the crisis as a disease and the ones depicting it as a natural disaster. First, I argue that these metaphors implicitly portray the markets as natural organisms, governed by their own laws and spontaneously tending toward equilibrium. Second, through reference to the philosophical concept of alienation, I show how (...) they can be used to communicate an alienated view of the economy. Far from being innocent journalistic simplifications of complex issues, these metaphors can be very effective in ideologically presenting the neoliberal perspective and its account of the crisis as the only possible ones. By specifically examining the metaphors of the economiccrisis as a disease and as a natural disaster, I also discuss how they convey a representation of the crisis which absolves some actors, blames others, and promotes as obvious the neoliberal account of the economy. (shrink)
An economiccrisis is an unexpected phenomenon with strong consequences for nations, institutions and people's wealth, habits, and behaviors. It departs from the ‘normal’ evolution of the affairs foreseen by economic theory. It makes the claim for new theoretical explanations. It surprises the economic agents that try to ascertain what kind of phenomenon they are facing in order to decide the appropriate actions to undertake. It calls for revisions of theory, plans and expectations. Overall, a (...) class='Hi'>crisis calls for an explanation which clarifies its causes. (shrink)
The most severe economiccrisis in post-revolutionary Cuba has forced the country to adopt an austere conservation program. Resource-wise measures have been instituted in the energy, transportation, housing, and agricultural sectors because of a rapid drop in Soviet aid, significant loss of trade with the Eastern Bloc, a halving of oil imports in a one-year period, and stepped-up U. S. sanctions. The economiccrisis is also causing negative environmental impacts, in part because pollution abatement projects have (...) been deferred and the tourism industry is being developed to bring in hard currency. However, it is anticipated that many environmentally-sound initiatives will help Cuba through the crisis and will remain in place. (shrink)
This article reflects on the philosophical implications of the crisis for the nation-state and culture in relation to business and management. The global triumph of the neo-liberal economic model in the 1990s and early 2000s brought with it an ontological re-conception of the nation-state in its relationship to business, the market and regulation: the nation was viewed as a ‘brand-state’ analogous to a company. Much of the successful appeal of the ‘brand-state’ was based on its annexation of the (...) Enlightenment discourse of ‘cosmopolitanism’: it appeared that a world consisting of interlinked economies represented a fulfilment of the Kantian utopian project of detachment and perpetual peace. The economiccrisis has brought this discourse into question. The article assesses whetherlessons learnt from the crisis contain prospects for a post-teleological re-conceptualisation of the nation-state beyond the ‘brand-state’ towards a ‘cosmopolitan solidarity’ in which nation-states co-operate to ameliorate its worst effects. (shrink)