market wide attention trading and stock returns abstract market wide attention grabbing events record levels for the dow and front page articles about the stock market predict the trading behavior of investors and in turn market returns both aggregate and household level data reveal that high market wide attention events lead investors to sell their stock holdings dramatically when the level of the stock market is high such aggressive selling has a negative impact on market prices reducing market returns by 19 basis points on days following attention grabbing events

management of social issues in supply chains a literature review exploring social issues actions and performance outcomes the social dimension of sustainable development and its impact on supply chains have so far received less attention than the environmental dimension the aim of the research is to explore the intersection between social issues corporate social responsibility csr actions and performance outcomes a structured literature review of social issues in supply chains is presented analysing the research published so far in peer reviewed publications linking csr and supply chain management allows the exploration of strategies and performance outcomes with a focus on social issues the corresponding responsible supply chain actions adopted by firms to address these issues are grouped into communication compliance and supplier development strategies social and economic as well as buyer and supplier performance are identified as the key outcomes but the interactions among these constructs would require further research this paper contributes to the understanding of managing social issues in supply chains by linking social issues responsible supply chain actions and performance outcomes the paper consolidates related research by offering an overarching conceptual framework and points to future research directions and simultaneously provides insights into the management of social issues in supply chains

should we pay attention to investor attention in forex futures market we investigate whether forex futures dynamics is responsive to change in investor attention the currencies used in the study are the aud australian dollar cad canadian dollar eur euro gbp

exchange rate return predictability and the adaptive markets hypothesis evidence from major foreign exchange rates this study examines return predictability of major foreign exchange rates by testing for martingale difference hypothesis mdh using daily and weekly nominal exchange rates from 1975 to 2009 we use alternative mdh tests for linear and nonlinear dependence which include wild bootstrap automatic variance ratio test generalized spectral test and consistent tests we evaluate time varying return predictability by applying these tests with fixed length moving sub sample windows of two years while exchange rate returns are found to be unpredictable most of times we do observe episodes of statistically significant return predictability they are associated with coordinated central bank interventions and the subprime mortgage crisis in 2007 this finding suggests that return predictability of foreign exchange rates occurs from time to time depending on changing market conditions which is consistent with the implications of the adaptive markets hypothesis

multinationality and corporate ethics codes of conduct in the sporting goods industry the international operations of firms have substantial impact on the formulation and implementation of business ethical principles such as codes of conduct the international sporting goods industry has been a pioneer in setting up codes and thus provides much relevant experience different sourcing strategies degrees of multinationality and national backgrounds affect the contents of codes moreover international non governmental organizations prove equally effective in triggering sophisticated codes

child labor and multinational conduct a comparison of international business andstakeholder codes increasing attention to the issue of child labor has been reflected in codes of conduct that emerged in the past decade in particular this paper examines the way in which multinationals business associations governmental and non governmental organizations deal with child labor in their codes with a standardized framework it analyzes 55 codes drawn up by these different actors to influence firms external societal behavior the exploratory study helps to identify the main issues related to child labor and the use of voluntary instruments such as codes of conduct apart from a specific indication of the topics covered by the code especially minimum age requirements this also includes monitoring systems and monitoring parties most important to company codes are the sanctions imposed on business partners in case of non compliance severe measures may be counterproductive as they do not change the underlying causes of child labor and can worsen the situation of the child workers by driving them to more hazardous work in the informal sector this underlines the importance of a broad rather than a restrictive approach to child labor in codes of conduct the paper discusses the implications of this study offering suggestions for future research

promoting sustainable palm oil viewed from a global networks and flows perspective abstract global demand for palm oil is increasing to fulfil worldwide needs for cooking oil food ingredients biofuels soap and other chemicals in response palm oil production is rapidly expanding which promotes economic growth in producing countries but also leads to serious environmental and social problems such as destruction of tropical forests climate change and threats to small holder livelihoods for these reasons palm oil production and use have become highly controversial however the global character of palm oil production and consumption the number of different actors involved and its multiple uses makes promotion its sustainability highly complex individual nation states can no longer control and regulate a global flow like palm oil and alternative governing networks appear involving private companies and ngos acknowledging the roles of such governance networks with different forms of power means that relying only on economic and political power to explain current dynamics in the palm oil sector is inadequate in global networks like palm oil supply encompassing transnational material flows and multiple actors the relevance of each actor relates to his position in the network power in global palm oil supply is therefore not only related to their position in the vertical supply chains but also to their role in the horizontal networks new forms of power in networks arise from steering the networks programming and from connecting different networks switching in the multiple networks that compose global palm oil provision today different programmers and switchers play critical roles this is briefly illustrated in this paper on the basis of different cases of active steering in global palm oil provision

separating the wheat from the chaff a disaggregate analysis of the effects of public spending in the us in this paper we undertake a systematic disaggregate analysis of the effects of government spending on economic activity in the us the level of disaggregation we consider is the highest available and is unprecedented in the empirical literature more specifically public consumption and public investment are decomposed into various subcategories which are measured at the levels of the federal defence and non defence and state and local governments for each subcategory we estimate a structural vector autoregression that identifies public spending shocks through the conditional heteroskedasticity of the structural disturbances thus relaxing the identifying restrictions commonly used in the literature our analysis reveals significant heterogeneity in the effects of public spending shocks on output both across subcategories and government levels shocks to spending on durables and structures are found to have the largest and most persistent effect on aggregate output with a peak multiplier that exceeds 1 our results also suggest that there is little association between the size of a given category of public expenditures and the magnitude of its effect on output resume separer le bon grain de l ivraie une analyse desagregee des effets des depenses publiques aux etats unis dans ce texte on entreprend une analyse desagregee des effets des depenses gouvernementales sur l activite economique aux etats unis le niveau de desagregation considere est le plus grand possible et est sans precedent dans la litterature empirique plus specifiquement la consommation et l investissement publics sont decomposes en diverses sous categories qui sont mesurees pour le gouvernement federal defense et non defense ainsi que pour les gouvernements des etats et locaux pour chaque sous categorie on estime un vecteur autoregressif structurel qui identifie les chocs de depenses publiques a travers l heteroscedastictite conditionnelle des perturbations structurelles pour ainsi rel cher les restrictions d identification communement utilisees dans la litterature l analyse revele une heterogeneite significative dans les effets des chocs de depenses publiques sur la production agregee selon les sous categories et les niveaux de gouvernement les chocs dans les depenses sur les biens durables et les structures tendent a avoir les effets les plus grands et les plus persistants sur la production agregee avec un effet multiplicateur qui excede 1 les resultats suggerent qu il y a peu de rapport entre la taille d une categorie donnee dans les depenses publiques et l ampleur de l effet sur la production agregee

the impact of macroeconomic news on quote adjustments noise and informational volatility we study the impact of the arrival of macroeconomic news on the informational and noise driven components in high frequency quote processes and their conditional variances bid and ask returns are decomposed into a common efficient return factor and two market side specific components capturing market microstructure effects the corresponding variance components reflect information driven and noise induced volatilities we find that all volatility components reveal distinct dynamics and are positively influenced by news the proportion of noise induced variances is highest before announcements and significantly declines thereafter moreover news affected responses in all volatility components are influenced by order flow imbalances

investor attention overconfidence and category learning abstract motivated by psychological evidence that attention is a scarce cognitive resource we model investors attention allocation in learning and study the effects of this on asset price dynamics we show that limited investor attention leads to category learning behavior i e investors tend to process more market and sector wide information than firm specific information this endogenous structure of information when combined with investor overconfidence generates important features observed in return comovement that are otherwise difficult to explain with standard rational expectations models our model also demonstrates new cross sectional implications for return predictability

new directions for stochastic open economy models the paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages explicit solution of the wage setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare expected output and the expected terms of trade despite the potential interplay between imperfections due to sticky wages and monopoly the optimal monetary policy rule has a closed form solution to motivate our model we show that observed correlations between terms of trade and exchange rates are more consistent with our traditional assumptions about nominal rigidities than with a popular alternative based on local currency pricing 2000 elsevier science b v all rights reserved

exploring the effects of union ngo relationships on corporate responsibility the case of the swedish clean clothes campaign in the current era governments are playing smaller roles in regulating workers rights internationally and transnational corporations tncs non governmental organisations ngos involved in the struggle for workers rights and labour trade unions have started to fill this governance gap this paper focuses on the least researched of the relationships among these three actors the union ngo relationship by analysing the ways in which it affects definitions of tnc responsibility for workers rights at their suppliers factories based on a qualitative study of the union ngo relationship in the swedish garment industry between 1996 and 2005 we propose that there are six main configurations of union ngo relationships by linking these configurations to their effects on tnc responsibility we propose that co ordination relationships between unions and ngos particularly high commitment co ordination relationships are likely to result in a broadening of the definition of tnc responsibility while conflictual relationships both high and low commitment result in a narrowing of the definition of tnc responsibility the study indicates that co operation is generally more beneficial for both unions and ngos than is any form of conflictual relationship in terms of broadening the definition of tnc responsibility

supply chain specific understanding the patchy success of ethical sourcing initiatives as a number of high profile companies have found to their cost corporate reputations can be significantly affected by firms management of sustainability issue including those that are outside their direct control such as the environmental and social impacts of their supply networks this paper begins by examining the relationship between corporate social responsibility reputation and supply network conditions it then looks at the effectiveness of one tool for managing supply network sustainability issues ethical sourcing codes of conduct by examining how the characteristics of three supply networks branded clothes diy wood products and branded confectionary affects the implementation ethical sourcing codes of conduct it ends by setting out conclusions on why implementation of such codes has been so much more successful in some sectors than others and recommendations on effective approaches to managing sustainability issues in supply networks

nonlinear exchange rate predictability abstract we study whether the nonlinear behavior of the real exchange rate can help us account for the lack of predictability of the nominal exchange rate we construct a smooth nonlinear error correction model that allows us to test the hypotheses of nonlinear predictability of the nominal exchange rate and nonlinear behavior on the real exchange rate in the context of a fully specified cointegrated system using a panel of 19 countries and three numeraires we find evidence of nonlinear predictability of the nominal exchange rate and of nonlinear mean reversion of the real exchange rate out of sample theil s u statistics show a higher forecast precision of the nonlinear model than the one obtained with a random walk specification although the robustness of the out of sample results over different forecast windows is somewhat limited we are able to obtain significant predictability gains from a parsimonious structural model with ppp fundamentals even at short run horizons

do codes of conduct improve worker rights in supply chains a study of fair wear foundation the rise of private regulation of sustainability in global production networks has led to intensive debates about the impact of this regulation at the point of production yet few empirical studies have systematically examined this impact in practice based on multiple factory audits of 43 garment factories conducted by the multi stakeholder initiative fair wear foundation we show that codes of conduct improve although marginally worker rights on an overall level but that few significant results are found for specific worker rights our findings also lend support to the widespread argument that codes have uneven impact furthermore we show that even rigorous multi stakeholder factory audits seldom are able to identify process rights violations such as those affecting freedom of association and discrimination and that auditing is thus is more fundamentally flawed than assumed in previous research given companies extensive investments in private regulation of worker rights the findings have important implications for both scholars and managers

constructing sustainable palm oil how actors define sustainability abstract biofuels as a renewable source of energy have gained considerable importance in recent years the use of biofuels is expected to rise since national governments of developed nations like the us and european countries see it as one of the ways to fulfill climate targets and increase the security in their energy supply production of biofuels is also expected to rise as developing nations see in biofuels the opportunity for connecting to international markets through supplying a new demand in the energy market several studies report on the environmental social and economic gains and detriments that can arise from increased biofuel production and consumption however research that provides insight into the way in which such issues are defined by actors within the product chain is scarce in this article we analyse how the strategies and value definitions of actors involved in the production and consumption of biofuels lead to specific definitions of sustainability the empirical material concerns the chain of palm oil production in colombia and electricity generation in the netherlands it is analysed using the method of action in context which allows us to uncover the level and source of diversity of sustainability definitions in the product chain while the current growth in production of palm oil is definitely buyer driven the analysis of various activities in the chain shows that several aspects of sustainability are defined in more complex actor fields throughout the product chain

measuring the effects of fiscal policy measuring the effects of discretionary fiscal policy is both difficult and controversial as some explicit or implicit identifying assumptions need to be made to isolate exogenous and unanticipated changes in taxes and government spending studies based on structural vector autoregressions typically achieve identification by restricting the contemporaneous interaction of fiscal and non fiscal variables in a rather arbitrary way in this paper we relax those restrictions and identify fiscal policy shocks by exploiting the conditional heteroscedasticity of the structural disturbances we use this methodology to evaluate the macroeconomic effects of fiscal policy shocks in the u s before and after 1979 our results show substantive differences in the economy s response to government spending and tax shocks across the two periods importantly we find that increases in public spending are in general more effective than tax cuts in stimulating economic activity a key contribution of this study is to provide a formal test of the identifying restrictions commonly used in the literature

using stock returns to identify government spending shocks this article explores a new approach to identifying government spending shocks which avoids many of the shortcomings of existing approaches the new approach is to identify government spending shocks with statistical innovations to the accumulated excess returns of large us military contractors this strategy is used to estimate the dynamic responses of output hours consumption and real wages to a government spending shock we find that positive government spending shocks are associated with increases in output hours and consumption real wages initially decline after a government spending shock and then rise after a year we estimate the government spending multiplier associated with increases in military spending to be about 1 5 over a horizon of 5 years

suppliers compliance with mncs codes of conduct behind the scenes at chinese toy suppliers despite increased academic and practitioner interest in codes of conduct there has been little research into the actual compliance of suppliers in developing countries with the codes of conduct of multinational corporations mncs this paper addresses this lack by analysing chinese suppliers level of compliance with swedish toy retailers codes of conduct based on unannounced and unofficial interviews with employees of chinese suppliers the study shows that all of the nine studied suppliers breached some of the standards in the toy retailers codes with over two thirds of the suppliers not complying with the majority of the studied standards while there are different explanations of this lack of compliance the main explanation seems to be that chinese suppliers successfully deceive toy retailers monitoring organisations by decoupling the formal monitored part of their organisation from the actual operational part of their organisation the paper concludes with a discussion of how to increase compliance with mncs codes of conduct

competition among trading venues information and trading on electronic communications networks this paper explores the competition between two trading venues electronic communication networks ecns and nasdaq market makers ecns oier the advantages of anonymity and speed of execution which attract informed traders thus trades are more likely to occur on ecns when information asymmetry is greater and when trading volume and stock return volatility are high ecn trades have greater permanent price impacts and more private information is revealed through ecn trades than though market maker trades however ecn trades have higher ex ante trading costs because market makers can preference or internalize the less informed trades and oier them better executions technological innovations that enable high speed low cost electronic trading systems are dramatically changing the structure of nancial markets exchanges and markets around the world are merging or forming alliances to improve liquidity and reduce costs in the face of increased competition from each other and from these computerized trading systems trading volume on electronic communications networks ecns has grown rapidly over the past several years ecns are now involved in more than a third of nasdaq trading volume and are attempting to increase their market share in nyse listed

the effects of fiscal shocks on employment and the real wage we study the transmission of fiscal shocks in the labor market we employ a structural var and base identification on the restrictions that shocks to government consumption investment and employment must raise output and deficits these restrictions hold in both prototype real business cycle rbc and new keynesian models shocks to government consumption and investment increase real wages and employment contemporaneously both at state level and in the aggregate the dynamics in response to employment shocks are mixed increases in government employment raise the real wage and total employment in the aggregate however in one third of the states they reduce total employment

the effects of public spending shocks on trade balances and budget deficits in the european union we investigate the consequences of an increase in public spending for trade balances and budget deficits in the european union using a panel var approach whereas the literature tends to treat the trade balance gdp ratio as a single variable we include exports and imports as separate variables this allows us to track in more detail the sources of trade balance movements further we use annual rather than quarterly data this facilitates the interpretation of the shocks and reduces potential anticipation effects of fiscal policy changes however the identification assumptions become stronger and we extensively check their validity according to our baseline estimate a 1 gdp increase in public spending produces a 1 2 on impact with a 1 6 peak rise in gdp rising imports and falling exports are responsible for a fall of the trade balance by 0 5 of gdp on impact and a peak fall of 0 8 in addition the spending increase produces a 0 7 impact and peak budget deficit thereby pointing to the potential relevance of the twin deficits hypothesis for the european union jel e62 h60

impacts of corporate code of conduct on labor standards a case study of reebok s athletic footwear supplier factory in china this study examines the social impacts of labor related corporate social responsibility csr policies or corporate codes of conduct on upholding labor standards through a case study of csr discourses and codes implementation of reebok a leading branded company enjoying a high profiled image for its human rights achievement in a large taiwanese invested athletic footwear factory located in south china i find although implementation of reebok labor related codes has resulted in a race to ethical and legal minimum labor standards when notoriously inhumane and seriously illegal labor rights abuses were curbed chinese workers were forced to work harder and faster but earned less payment and the employee elected trade union installed through codes implementation operated more like a company union rather than an autonomous workers organization representing worker interests in order to explain the paradoxical effects of reebok labor related codes on labor standards i argue the result is determined by both structural forces and agency related factors embedded in industrial national and local contexts to put it shortly i find the effectiveness of reebok labor related codes is constrained not only by unsolved tension between reebok s impetus for profit maximization and commitment to workers human rights but also by hard nosed competition realities at marketplace and chinese government s insufficient protection of labor rights despite drawing merely from a single case study these findings illuminate key determinants inhibiting the effectiveness of labor related csr policies or codes in upholding labor standards and hence two possible way outs of the deadlock 1 sharing cost for improving labor standards among key players in global supply chain and 2 combining regulatory power of voluntary codes and compulsory state legislations

on the short term predictability of exchange rates a bvar time varying parameters approach abstract in this paper we propose a bayesian vector autoregressive model with time varying parameters bvar tvp to examine the short term predictability of exchange rates an important contribution of the paper is the application of the bvar tvp model for the first time to daily data using information from financial markets another contribution is the production of forecasts in real time at the very short horizon of one trading day ahead typically used by traders and investors in financial markets we employ financial criteria and recently developed statistical tests to assess the exchange rate predictability we find that the bvar tvp model outperforms the random walk for all exchange rates these forecast gains are due primarily to the time variation of coefficients and secondly to information from other financial markets it is shown that international investors could have made statistically significant excess profits if they had followed an inter day trading strategy based on the buy sell signals generated by the model s one day ahead exchange rate forecasts even after allowing for transaction costs and risk factors

role of multiple stakeholders and the critical success factor theory for the sustainable supplier selection process abstract the concept of sustainability has become an essential theme for many industries and organisations due to a heightened sensitivity towards environmental protection and social responsibility at the same time firms still need to achieve economic viability and retain their competitive advantage because suppliers are the first entity and the initial source of any supply chain organisations should select their suppliers by a careful evaluation of their critical success factors csf achieving a successful sustainable supply chain management sscm strategy requires a firm to consider its stakeholders views based on the csf theory and by considering the multi stakeholders view in a sustainability perspective this work provides a decision support system for the sustainable supplier selection sss problem in a real world textile industry located in the emerging economy of india through a three phase methodology this study examines indian suppliers by considering the sustainability views of various stakeholders including employees customers researchers shareholders and a government environmental officer the csf priorities show that the first four influential csfs are categorized as social concerns i e maintaining long term relationships and alliances stakeholder empowerment equity labour sources and individual human rights the fifth factor is an environmental issue i e production of polluting agents among the five suppliers being evaluated in this work supplier 4 receives the top ranking specifically the results show that the supplier rankings are highly influenced by csf s social dimensions hence to validate the influence of csf s social dimensions in relation to the sss process a sensitivity analysis has been done by varying the respective weights the study concludes with the relevant managerial implications and limitations

some evidence of random walk behavior of euro exchange rates using ranks and signs abstract this study utilises recently developed tests based on ranks and signs in addition to the traditional variance ratio test to examine the behavior of euro exchange rates we show that adjustments for multiple tests must be employed in order to avoid size distortions overall such adjustments provide evidence consistent with random walk behavior of euro exchange rates

trade spill overs of fiscal policy in the european union a panel analysis we explore the international spillovers from fiscal policy shocks via trade in europe a fiscal expansion stimulates domestic activity which leads to more foreign exports and hence higher foreign output to quantify this we combine a panel var model in government spending net taxes and gdp with a panel trade model on average a public spending increase equal to 1 of gdp implies 2 3 more foreign exports over the first two years the corresponding figure for an equal size net tax reduction is 0 6 both estimates are statistically significant as far as the effect on foreign activity is concerned a 1 of gdp spending increase net tax reduction in germany on average raises gdp of trading partners by 0 23 0 06 over the first two years these figures are likely to form lower bounds for the actual effects and suggest that it may be worthwhile to further investigate the benefits from coordinated fiscal expansions contractions in response to european wide cyclical downturns upswings

the importance of composition of fiscal policy evidence from different exchange rate regimes abstract we study the macroeconomic effects of fiscal policies in an open economy we emphasize two transmission mechanisms the cost channel by which wage government spending and labor taxes raise the real wage firms must pay and the exchange rate channel by which the nominal exchange rate shifts induced by fiscal policy have real effects if some prices and wages are sticky the latter channel implies that changes in wage government spending or in labor taxation should have different effects under flexible than under fixed exchange rates in a 1964 93 panel of oecd countries we find significant evidence for both channels moreover we find that the real product wage and profitability are more responsive than quantities employment and output to fiscal policy innovations

what are the effects of fiscal policy shocks we propose and apply a new approach for analyzing the effects of fiscal policy using vector autoregressions specifically we use sign restrictions to identify a government revenue shock as well as a government spending shock while controlling for a generic business cycle shock and a monetary policy shock we explicitly allow for the possibility of announcement effects i e that a current fiscal policy shock changes fiscal policy variables in the future but not at present we construct the impulse responses to three linear combinations of these fiscal shocks corresponding to the three scenarios of deficit spending deficit financed tax cuts and a balanced budget spending expansion we apply the method to us quarterly data from 1955 to 2000 we find that deficit financed tax cuts work best among these three scenarios to improve gdp with a maximal present value multiplier of five dollars of total additional gdp per each dollar of the total cut in government revenue 5 years after the shock copyright 2009 john wiley sons ltd

a game theoretic approach for green and non green product pricing in chain to chain competitive sustainable and regular dual channel supply chains abstract nowadays sustainable supply chain has become an exciting concept during the academic societies this paper considers environmental and economic aspect of sustainability due to environmental concerns the entry of green products into today s markets is on the rise how to compete for the production of green products with non green products is essential in these markets therefore this research focuses on the pricing and determination of the degree of greenness of a product in competition with a non green product this study for the first time investigates the pricing of two substitute products a green product produced by one manufacturer and a non green product produced by a second manufacturer under two dual channel supply chains including retail and internet channels the decision variables for one manufacturer are the price and degrees of eco friendliness of the green product for the other the decision variable is the price of the non green product this problem is solved under two different scenarios centralized and decentralized in the decentralized scenario a stackelberg competition is considered between the retailer level and the manufacturer level of the total supply chains in which the manufacturers are assumed to be the leader and the retailers are the followers in the centralized scenario players in each of their related supply chain are integrated the problem is solved and compared under two scenarios finally both parametric and numerical analyses are presented and some managerial insights are provided and some of which are as follows the centralized scenario cause to achieve high the green degree comparing with the decentralized scenario

supply chain and logistics issues of bio energy production abstract within the concert of renewable energy technologies bio energy can play a decisive role during the next decades when smartly designed and applied under favorable conditions in this respect efficient and effective supply chain and logistics management represent one key parameter this paper presents a literature review of articles published in english speaking peer reviewed journals from 2000 to 2009 which cover the interface of bio energy production and issues of logistics and supply chain management first the articles are assessed according to descriptive criteria such as journal year of publication and research design applied then issues and challenges of designing and operating biomass chains that secure stable and competitively priced feedstock supply for bio energy plants have been classified 1 into the operations harvesting and collection storage transport and pre treatment techniques as well as 2 into overall supply system design although biomass supply chains for energy use are manifold in terms of size design and functioning most relevant issues regarding supply chain management and logistics of bio energy production are identified the findings are discussed against the backdrop of bio energy as sustainable renewable energy option

contesting legitimacy of voluntary sustainability certification schemes valuation languages and power asymmetries in the roundtable on sustainable palm oil in colombia voluntary certification schemes aimed at assuring producer compliance with a set of sustainability criteria have emerged as market based instruments mbis of sustainability governance however the impacts they tackle can be part of a complex arena of socio environmental conflict where values and powers of business and local actors compete legitimacy of these schemes not only results from compliance by business actors but also depends on acceptance by local actors affected by or resisting the industries that these mechanisms aim to govern this paper explores the influence of different local actors values and powers on legitimacy granting or contestation by local actors during national processes of sustainability criteria development we analyse the case of the roundtable on sustainable palm oil rspo in colombia using an approach that combines concepts of ecological economics and political ecology with the legitimacy literature based on critical sociology in colombia the palm oil industry led the initiative to implement certification under national interpretation of rspo principles and criteria however the national interpretation process revealed power asymmetries among stakeholders and clashes between their different values this resulted in strong contestation of rspo legitimacy by local actors who resist expansion of oil palm cultivation

do codes make a difference the case of bank lending and the environment codes of conduct are a conspicuous feature of modern business organization but doubts have been raised regarding their efficacy in ensuring high standards of behavior although some of the issues involved have been discussed at some length in the business ethics literature the amount of systematic empirical evidence on the impact of codes is very limited this paper seeks to make a contribution to that body of knowledge by studying the policies and procedures of a sample of banks which have signed a statement on banking and the environment promulgated by the united nations development programme although some differences are found when compared with a sample of banks which did not sign the statement they are not extensive the implications of the findings for codes of conduct and for future empirical studies are then discussed

non linear granger causality in the currency futures returns abstract this paper examines the relationship between currency futures returns by employing a test for non linear causality the results indicate evidence of unidirectional non linear causality relationship in four cases however after filtering the returns using a garch 1 1 model we find insignificant and statistically weaker non linear causality relationships

sustainable supply chain management when focal firms are complex a network perspective the purpose of the paper is to generate an understanding of the prerequisites for sustainable supply chain management a common tendency in the literature is to see sustainable supply chain management as something that is undertaken by a focal firm at the end of the chain even though many scholars point to the need for cooperative approaches focal firms are still considered to manage supply chains from one fixed and coherent vantage point the managerial outlook of the focal firm itself understood as a structurally coherent top down controlled unit through an illustration from the swedish retail sector we argue that such a vantage point is problematic we suggest a deeper analysis of focal firms and sustainable supply chain management in terms of a network perspective employed mainly in the industrial marketing and purchasing imp literature the adopted network perspective recognizes both internal and external complexity of sustainable supply chain management implying for example difficulties to control entire organizations and the existence of multiple supply chains to manage it is also suggested that sustainable supply networks may be a viable concept to use when dealing with sustainability issues related to production since it relates sustainability in the supply chain to the more general responsibility context of firms

business codes of multinational firms what do they say business codes are an oft cited management instrument but how common are codes among multinationals and what is their content in an unprecedented study the codes of the largest corporations in the world have been collected and thoroughly analyzed this paper presents the results of that study of the 200 largest companies in the world 52 5 have a code more than half f these codes describe company responsibilities regarding quality of products and services 67 adherence to local laws and regulations 57 and the protection of the natural environment 56 many codes make reference to principles governing stake holder relations e g transparency 55 honesty 50 and fairness 45 corporate core values e g teamwork 43 appropriate conduct among employees e g discrimination 44 and intimidation 43 and treatment of company property by employees e g conflict of interests 52 corruption 46 and fraud 45 monitoring compliance with the code is addressed in 52 of the codes based on this content study three types of codes are distinguished the stakeholder statute 72 the values statement 49 and the code of conduct 46 the results of this inquiry present a benchmark for the evaluation and development of both individual and international business codes

green business and blue angels this paper presents a model of a monopolist svoluntary overcompliance with legal environmentalstandards under asymmetric information about thefirm s environmental impacts the key assumptions are the existence of quality premia for environmentalsoundness a positive but imperfect degree ofmonitoring and adaptive consumer expectations conditions necessary for overcompliance to arise in aprofit maximizing equilibrium are derived the effectsof a third party eco labeling system are analyzed itis shown that the existence of an independent labelingauthority increases the likelihood of overcomplianceto be profit maximizing moreover firms might have anincentive to lobby for the introduction of such asystem the effect of consumers risk preferences andan instrument for preventing greenwash companieslying about their environmental performance is alsodiscussed

asian transnational corporations and labor rights vietnamese trade unions in taiwan invested companies according to the reports in the past decade some asian subcontractors mainly taiwan hong kong and korea transnational corporations tend to be labor abusive in their overseas investment destinations like china or southeast asia taking vietnam as an example this paper raises questions as to why taiwanese transnational companies can control workplace unions in a trade union supportive regime given the government s constraint of political rights and the individualized workplace unions the function of trade unions in vietnam is destined to be limited the trade unions turn out be an arm of management rather than representing workers interests in these transnational companies this article also explores the influence of the newly developed codes of conducts from western buyers in the survey of three companies which are required to follow the codes of conduct by buyers trade unions had no more freedom than those in companies without codes of conduct the paper discusses the implications of this research offering strategies for labor rights improvements

sustainable and responsible supply chain governance challenges and opportunities this paper introduces the special volume on sustainable and responsible supply chain governance as globalized supply chains cross multiple regulatory borders the firms involved in these chains come under increasing pressure from consumers ngos and governments to accept responsibility for social and environmental matters beyond their immediate organizational boundaries governance arrangements for global supply chains are therefore increasingly faced with sustainability requirements of production and consumption our primary objectives for this introductory paper are to explore the governance challenges that globalized supply chains and networks face in becoming sustainable and responsible and thence to identify opportunities for promoting sustainable and responsible governance in doing so we draw on 16 articles published in this special volume of the journal of cleaner production as well as upon the broader sustainable supply chain governance literature we argue that the border crossing nature of global supply chains comes with six major challenges or gaps in sustainability governance and that firms and others attempt to address these using a range of tools including eco labels codes of conduct auditing procedures product information systems procurement guidelines and eco branding however these tools are not sufficient by themselves to bridge the geographical informational communication compliance power and legitimacy gaps that challenge sustainable global chains what else is required the articles in this special volume suggest that coalition and institution building on a broader scale is essential through for example the development of inclusive multi stakeholder coalitions flexibility to adapt global governance arrangements to local social and ecological contexts of production and consumption supplementing effective monitoring and enforcement mechanisms with education and other programs to build compliance capacity and integration of reflexive learning to improve governance arrangements over time

the emergence of southern standards in agricultural value chains a new trend in sustainability governance abstract the objective of this paper is to understand and trace the emergence of southern standards in global agricultural value chains while the trend towards private standards established by developed country or northern actors has received significant attention in the literature recently an emergent counter trend can be observed which manifests in the development of standards by southern producer country actors this may be attributed to the perceived lack of legitimacy of global standards especially from a southern perspective the paper therefore applies a legitimacy perspective to analyse the emergence of new southern standards in indonesian and malaysian palm oil brazilian soy and south african fruit production the analysis reveals that southern standards both target different audiences to obtain legitimacy and rely on different sources of legitimacy as compared to established northern standards this is done explicitly in order to create cognitive and moral distance to northern standards and ultimately to reclaim the issue areas occupied by northern standards the paper discusses and reflects on the implications of the emergence of southern standards for sustainability governance and concludes with the identification of future research opportunities on southern standards

the contribution of economic fundamentals to movements in exchange rates starting from the asset pricing approach of engel and west we examine the degree to which fundamentals can explain exchange rate fluctuations we show that it is not possible to obtain sharp inferences about the relative contribution of fundamentals using only data on observed monetary fundamentals money minus output differentials across countries and exchange rates we use additional data on interest rate and price differentials along with the implications of the monetary model of exchange rates to decompose exchange rate fluctuations in general we find that money demand shifts along with observed monetary fundamentals are an important contributor to exchange rate fluctuations

institutional emergence in an era of globalization the rise of transnational private regulation of labor and environmental conditions1 why have systems of transnational private regulation recently emerged to certify corporate social and environmental performance different conceptions of institutional emergence underlie different answers to this question many scholars argue that firms create certification systems to solve problems in the market a view rooted in a conception of institutions as solutions to collective action problems the author develops a different account by viewing institutions as the outcome of political contestation and by analyzing conflict and institutional entrepreneurship among a wide array of actors using a comparative case study design the analysis shows how these arguments explain the formation of social and environmental certification associations both theoretical approaches are needed but strong versions of the market based approach overlook an important set of dynamics that the author calls the political construction of market institutions the analysis shows how both problem solving in markets and

market based governance for sustainability in value chains conditions for successful standard setting in the palm oil sector abstract current production and consumption patterns remain unsustainable global economic growth reaches planetary boundaries and puts increasing pressure on the world s natural resources whereas most economic actors just react to environmental pressures proactive market actors and other non governmental organisations e g greentec firms or fair trade organisations turn them into market opportunities or even create standards or certification schemes as promising problem solving market instruments in global value chains however how legitimate are standards and certification schemes developed by collaborating non state actors for sustainability in global value chains what are conditions for the success of those market based governance mechanisms this paper discusses the legitimacy and effectiveness of standard setting in the case of palm oil and focuses on the roundtable of sustainable palm oil rspo as the first global standard setting initiative in this respect conditions for the success of sustainability standard setting in global value chains are identified based on the concept of non state market driven nsmd governance based on literature review and expert interviews on standard setting results from the case study on rspo highlight strengths and weaknesses of its standard setting process in the light of increasing market demand for palm oil

implications of rational inattention abstract a constraint that actions can depend on observations only through a communication channel with finite shannon capacity is shown to be able to play a role very similar to that of a signal extraction problem or an adjustment cost in standard control problems the resulting theory looks enough like familiar dynamic rational expectations theories to suggest that it might be useful and practical while the implications for policy are different enough to be interesting

sine qua nons of sustainable biofuels distilling implications of under performance for national biofuel programs biofuels have been promoted worldwide under the assumption that they can support several strategic policy goals while mitigating associated risks drawing on published evidence on performance contributing papers to this special section question assumptions commonly attributed to biofuels their carbon neutrality their positive effect on rural livelihoods and policymakers ability to effectively govern for sustainability this paper takes these findings as its starting point and asks what next for countries wishing to advance biofuels as one option for the necessary divestment from fossil fuels deriving recommendations for national biofuel programs from past performance is no easy task context complexity power dynamics and scaling pose significant challenges to achieving policy aims we are nevertheless able to distill a set of sine qua nons indispensables for sustainable biofuel governance from the evidence and change management literatures they are put forward not as recipes for success but minimum conditions and best bet approaches requiring testing deliberation and refinement perhaps the most fundamental sine qua non is to pursue options that downscale global demand as current levels of global energy consumption if only in the transport sector cannot be met by biomass derived agrofuels in a way that meets social and environmental sustainability goals