Samanthala Hettihewa

Factors Affecting Ethical Management: Comparing a Developed and a Developing Economy

This paper compares a number of ethical management practices of firms in two different economies. The recent behaviour of firms, described in terms of industry, size, international involvement and ownership, in a developed, western economy (Australia) are contrasted with the behaviour of similar firms in an emerging, eastern economy (Sri Lanka). This paper extends an earlier empirical study by Batten, Hettihewa and Mellor (1997) on the relationship between key firm-specific variables and firm ethical management practices in Australia by drawing on similar survey data from Sri Lanka to facilitate an international comparison. The importance of this study is that it provides a valuable insight into the impact the level of economic development may have on ethical management behaviour and practice.

The Ethical Management Practices of Australian Firms

This paper addresses a number of important issues regarding the ethical practices and recent behaviour of large Australian firms in nine industries. These issues include whether firms have a written code of ethics, whether firms have a forum for the discussion of ethics, whether managers consider that their firms activities have an environmental impact and whether there are any statistical relationships between the size, industry class, ownership, international involvement and location of the firm and its ethical management practices. These questions are examined by using data collected from a sample of 136 large firms operating in Australia.

Risk Management and Derivatives Use in Australian Firms

Country‐specific information on risk management is increasingly important, not only for investors and decision makers in international markets but also, for those in national and regional markets. This study reports the results of a cross‐sectional survey of risk management practice and derivatives use by a sample of Australian firms. Overall, the results suggest that firm‐specific factors appear to have some influence on risk management practice with the industry of the respondent being the most important, while the degree of international exposure has the least. Larger and more internationally exposed firms are likely to have more frequent reporting of derivatives use, and are more likely to use swaps and options to manage risks than other types of firms. Issues and implications for international firms are discussed.

Is Corporate Ethical Practice Changing? Evidence from Sri-Lanka

This study undertakes a longitudinal analysis of the ethical management practices of Sri Lankan companies by comparing the results from a survey conducted in 2003. During this period regulatory developments have taken place within Sri Lanka and internationally aimed at improving the level of corporate governance. Based upon this survey data we conclude that progress has been made in ensuring that ethical management practices are more homogenous and standard practice across companies. Internationalized companies remain the ones that are more aware of the environmental consequences of their actions, although few companies, unfortunately, recognize this as an issue of concern.

Ethical Management Practice in Australia

This article replicates an earlier study on Australian ethical management practice by Batten et al. (1997) using an identical set of variables and methodology. While differences in the samples of the two studies limit the generalizability of the new findings this study confirms the presence of significant cross-sectional variation in ethical management practice. Overall, much still needs to be done in order for firms to comply with recent industry best practice recommendations.

Socio-Economic Differences and Deployment of the LDC Micro-Finance Bottom-up Approach in DCs

Microfinance MF, after showing great success in poverty-relief in less-developed countries LDCs, has experiencing rapid growth and interest in developed countries DCs. However, current DC MF literature gives the impression that survival concerns are diverting DC MF from its original poverty-relief intent. As e-technology evolves, further threats and opportunities are created for MF by changing cost structures and relationships. This study uses descriptive analysis to infer that DC MF needs redesigning for DC socio-economic conditions or it will continue gaining a reputation of being too poorly focused, ineffective, and inefficient for use in DCs. After showing that LDC poverty is harsher than DC poverty, this paper reviews current-performance concerns of DC MF, links those issues with the effect of regulatory and other socio-economic factors on micro-enterprise, discusses how MF can relieve poverty in DCs, and concludes that MF needs refocusing before DCs investing in further developing/adapting MF infrastructure.