This article discusses a recent interpretation of the Fair Credit Reporting Act by the Federal Trade Commission. Under this interpretation, a range of potentially onerous…
Abstract
This article discusses a recent interpretation of the Fair Credit Reporting Act by the Federal Trade Commission. Under this interpretation, a range of potentially onerous requirements may be triggered when third parties are used to investigate potential employee misconduct. This article particularly focuses on how this interpretation might conflict with a broker‐dealer's compliance obligations.
Alan E. Sorcher and George R. Kramer
In the midst of one of the most challenging periods in decades, the securities industry is relearning the meaning of the ancient Chinese curse – “may you live in interesting…
Abstract
In the midst of one of the most challenging periods in decades, the securities industry is relearning the meaning of the ancient Chinese curse – “may you live in interesting times”. The end of the 90’s bull market, September 11th and corporate wrongdoing have given rise to new rules and far‐reaching new statutes. At the same time, technological change and global consolidation of markets and regulations also continue to drive change, as they did throughout the 1990s. The authors highlight some of the crucial regulatory and legislative developments that will have significant consequences for the securities industry. Legislative proposals in response to the recent corporate scandals, analyst independence, anti‐money laundering rules, and the effectiveness of the Gramm‐Leach‐Bliley Act are among the issues examined.
Details
Keywords
George R. Kramer and Alan E. Sorcher
To examine whether the New York Stock Exchange (NYSE) in its recent rule changes has provided the appropriate separation between its supervisory authority and the management of…
Abstract
Purpose
To examine whether the New York Stock Exchange (NYSE) in its recent rule changes has provided the appropriate separation between its supervisory authority and the management of the Exchange.
Design/methodology/approach
Describes the regulatory and governance structure proposed by the NYSE in connection with its public offering; discusses policy objections the security industry has made to the proposal, reviews responses by the NYSE and the Securities and Exchange Commission (SEC) to those objections; and discusses what steps might be on the horizon to better rationalize the regulatory and business side of the new for‐profit NYSE.
Findings
The NYSE's proposal should provide for regulatory consolidation with the NASD. The proposal heightens the conflict between a for‐profit exchange and its regulatory function. The proposal governance structure ignores the fact that NYSE LLC is the Exchange and has plenary authority over NYSE regulation. The proposal does not provide fair representation for members. The proposal does not provide appropriate treatment of market data.
Originality/value
Provides a comprehensive view of recent changes to the NYSE's regulatory and governance structure and issues raised by the securities industry in response to those changes.
Details
Keywords
The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and…
Abstract
The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.
Details
Keywords
Shay S. Tzafrir and Simon L. Dolan
This study investigates the conceptual and psychometric properties of trust in organizations. Critical review of recent literature led to the conclusion that there is no single…
Abstract
This study investigates the conceptual and psychometric properties of trust in organizations. Critical review of recent literature led to the conclusion that there is no single agreed upon definition of trust and that controversy exists as to its construct validity. We present empirical results based on a complex procedure for scale development, which includes a design made up of four separate stages of research. The construct of trust in employment relationships was ultimately refined to entail three dimensions: harmony, reliability, and concern (HRC). The final results of this study led to the development of a standardized 16‐item instrument that can be used to measure trust in the context of employment relationships. Evidence of the scale’s reliability, factor structure, and validity is also presented.
Details
Keywords
A full and adequate Systematic Quantitative Literature Research Analysis of the academic literature and research on creating shared value (CSV) is long overdue. This chapter…
Abstract
A full and adequate Systematic Quantitative Literature Research Analysis of the academic literature and research on creating shared value (CSV) is long overdue. This chapter commences this process by introducing some of the academic literature currently on CSV and examining the strengths and weaknesses of this literature, while identifying gaps for future research. The chapter builds on current academic literature to include writing and research from the business community in an attempt to make this chapter both topical and accessible to anyone interested in CSV, including practitioners interested in implementing these types of projects as direct CSV projects or as part of already existing CSR strategy. It is expected that the inclusion of this type of business literature will add value to academic research going forward. The Appendix brings the chapter together by presenting examples of a variety of CSV case studies to provide ideas for future project implementation and opportunities for future research in both implementation and measurement.
Vanessa Campos-Climent and Joan Ramon Sanchis-Palacio
In downturns, social enterprises (SEs) arise as a resilience business model. The authors focus on knowledge absorptive capacity (KAC) as a key dynamic capability to create shared…
Abstract
Purpose
In downturns, social enterprises (SEs) arise as a resilience business model. The authors focus on knowledge absorptive capacity (KAC) as a key dynamic capability to create shared value (SHV). The purpose of this study is to analyze whether it exists a cause-effect relationship between KAC and SHV creation in SEs.
Design/methodology/approach
The research model relates KAC and SHV creation. SHV creation involves two components: economic value (EV) and social value (SV). The authors argue that KAC has a positive effect on EV and SV creation, considering SV as a mediator variable. The model is tested by means of PLS-SEM.
Findings
The results reveal the existence of a positive and significant relationship between KAC and SHV creation, as well as the mediating role of SV creation.
Research limitations/implications
The sample comprises 127 SEs from the Euro-Mediterranean region (euro-region comprising areas from France and Spain), it would be interesting to include other euro-regions in future research.
Practical implications
The authors confirm KAC as an important antecedent of SHV creation and also that SEs create EV by means of SV, pointing to the existence of direct and indirect effects. This way, confirming the existence of a mediating effect.
Originality/value
It points the importance of KAC in SEs, something that has not been addressed before by the literature. It also goes beyond performance by considering SHV creation as a measure of SEs’ outcomes, as well as the definition of the variable SHV including not only social related issues but also environmental (green) issues.
Details
Keywords
This study proposes a multilevel framework to test the mechanisms and boundary conditions of the relationships between positive group affective tone (PGAT) and individual/team…
Abstract
Purpose
This study proposes a multilevel framework to test the mechanisms and boundary conditions of the relationships between positive group affective tone (PGAT) and individual/team creativity.
Design/Methodology/Approach
Data are collected from 122 research and development (R&D) teams (including 305 members and 122 team leaders). Hierarchical linear modeling analyses and hierarchical regression analyses are performed to test hypotheses.
Findings
The results show that PGAT facilitates individual creativity via enhanced work engagement, and increases team creativity via team information exchange. Supporting the substituting perspective, we found that the positive indirect effects of PGAT on individual/team creativity were attenuated when supervisory support is high.
Research Limitations/Implications
Although all variables were collected at the same time and the individual-level variables were collected from the same source, our findings highlight the mechanisms explaining the beneficial effects of PGAT on individual/team creativity, and how supervisory support can substitute for such effects.
Practical Implications
In order to make the individuals and teams more creative, the organizations need to promote PGAT via the selection of appropriated leader and members or team social events. Moreover, supervisors support is particularly salient in enhancing team creativity when PGAT is low.
Originality/Value
This study is the one of the first study to test the motivational/social mechanisms linking the relationship between PGAT and individual/team creativity, and the competing theoretical perspectives regarding how supervisory support can moderate the PGAT–creativity linkage.