A New Institutional Economics Perspective on Industry - download pdf or read online

By Jan Sammeck

ISBN-10: 3834935417

ISBN-13: 9783834935410

ISBN-10: 3834935425

ISBN-13: 9783834935427

The inspiration of self-regulation as an device in a position to mitigating socially bad practices in industries - equivalent to corruption, environmental degradation, or the violation of human rights - is receiving mammoth attention in idea and perform. via drawing close this phenomenon with the speculation of the recent Institutional Economics, Jan Sammeck develops an analytical method that issues out the severe mechanisms which come to a decision concerning the effectiveness of this software. by means of integrating idea with sensible examples of self-regulation, this research highlights the need to examine the institutional incentives of an undefined, so one can come to a valid judgement concerning the feasibility and effectiveness of this tool in a given situation.

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Example text

In this regard, compare Eisenegger (2005) and Fombrun and Shanley (1990). Although one may argue to divide social reputation into further subsystems, such as environmental issues, labor relations, human rights, and so forth, this differentiation is not productive for the further argumentation, thus any such subsystem-reputation may at this point be subsumed under social reputation. See in this regard also Davies (2002, pp59). 21 and negative) inasmuch as they act in public. Through publicly observable actions, a company displays whether or not it meets moral expectations.

Other, but similar maximization purposes mentioned in the literature, for example in Kaler (2000), such as revenue, growth rates, discounted cash flows, or sales figures ultimately relate to a maximization of private profits and do not constitute ultimate ends themselves. Jensen (2002) further argues that although temporal, partial deviations may be observed within the entirety of a firm’s action, this entirety will ultimately in some way be geared towards the maximization of private profits. Within the framework of new institutional economics, the firm as a profit maximizer is a premise and hence will not be discussed further.

One may consider these primary transactions of a firm, as they directly relate to its purpose, which is to generate profits. Primary transactions are, however,  81 See Greif (2006a, p46). For reasons of perspicuity, it shall be noted that this definition deviates from the classical one of Williamson (1985, p1) for transaction cost economics, namely that “transactions occur when a good or service is transferred across a technologically separable interface”.

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A New Institutional Economics Perspective on Industry Self-Regulation by Jan Sammeck

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