Hi,
That is an interesting discussion. In Africa (South Africa) the field is
indeed very different. The majority of activity is in the so called
informal economy. Talking about ethics in that arena has a strong flip
side of the coin. How ethical is it from a society (and who is the
society: government ? the taxpayers ? the successful companies) not to
take care of a majority of the population in assisting them to create
jobs, and income and by doing so, giving them dignity. I would support
the suggestion that there might be a "rich world" bias in this ethics
discussion.
As a business school we got a big grant to launch the Bertha Centre for
Social Innovation and Entrepreneurship, and the title probably explains
the purpose. Talking about responsibility, sustainability and ethics, I
think we should be careful not to exclude what happens in emerging
markets.
For what it is worth.
Bye
Walter Baets
Director of the GSB
Graduate School of Business
University of Cape Town
Mobile/Cell: +27 82 678 6900
Office Telephone: +27 21 406 1418
Office Fax:+27 21 421 0266
Email:
walter.baets@gsb.uct.ac.za
Website:www.gsb.uct.ac.za
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-----Original Message-----
From: Social Issues in Management Listserv
[mailto:
SIM@AOMLISTS.PACE.EDU] On Behalf Of Amy J. Guerber
Sent: 30 August 2011 03:42 PM
To:
SIM@AOMLISTS.PACE.EDU
Subject: Re: [SIM] The Academy 2012 Theme and RE: [SIM] CALL FOR CHAPTER
PROPOSALS (abstract by September 15, 2011)
I do think that there are parts of the world in which informal business
activities are critical to survival (and in my mind ethical). For
example, in many parts of Africa and the Middle East women are prevented
from owning property and often cannot enter into legal contracts. In
these places, it is basically impossible for a woman to run a business
legitimately, yet many women are in the position of being sole providers
for themselves and their children.
In some cases it may be worth asking whether it is businesses that are
illegitimate or the laws and customs that are illegitimate. The answer
will of course depend on your definition of legitimacy, but I find it
difficult to believe that laws which do not afford basic property or
contracting rights to half of a country's adult population can actually
be in line with the social values of the people of those countries.
They may be in line with the values of the ruling classes, but not the
values of the impoverished masses.
Further information is available from the United Nations Centre for
Human settlements:
http://www.un.org/Conferences/habitat/unchs/press/women.htm
Amy J. Guerber
Management PhD Candidate
Sam M. Walton College of Business
University of Arkansas
479-575-6105
aguerber@uark.edu
-----Original Message-----
From: Social Issues in Management Listserv
[mailto:
SIM@AOMLISTS.PACE.EDU] On Behalf Of Martin Herrndorf
Sent: Monday, August 29, 2011 3:28 PM
To:
SIM@AOMLISTS.PACE.EDU
Subject: Re: [SIM] The Academy 2012 Theme and RE: [SIM] CALL FOR CHAPTER
PROPOSALS (abstract by September 15, 2011)
Dear Jeanne,
To take up your example: "Microfinance" is formal in that most credit-
giving institutions are formal, pay taxes and comply with regulations
(more or less, as other business organisations). The living situations
as well as the business activities of their clients, however, will
mostly be informal - with housing property or business not registered,
electricity illegally obtained and taxes not paid.
As a key reference, Hernando de Soto has gathered evidence in "The
Mystery of Capital" why small entrepreneurs might prefer informality
despite all its burdens (e.g., making business vulnerable to corruption
demands by officials, lacking access to formal credit), and what could
be done on a policy level.
Webb et al's AMR article (reference below) would be an obvious starting
point for writing in-depth studies on the issue for next year...
Regards,
Martin
ps: Maybe not a US, but a developed country bias?
Webb, J.W., L. Tihanyi, R.D. Ireland, and D.G. Sirmon. 2009. "You Say
Illegal, I Say Legitimate: Entrepreneurship in the Informal Economy".
Academy of Management Review 34:492-510.
--
Martin Herrndorf
martin.herrndorf@oikos-international.org
mobil +41 (0) 76 263 2601
skype herrndorf
www.oikos-international.org
On 29.08.2011, at 21:25, Jeanne Logsdon wrote:
> Dear SIMians --
>
> What strikes me about the Academy theme for next year and associated
> opportunities for publications such as the message below is this
> question: Given that what makes a business "informal" is not paying
> taxes and complying with regulations, when is it ethical and socially
> responsible to participate in the "informal" economy, rather than the
> "formal" economy? What ethical principles would justify such a choice?
> I hope that some of you write papers about this topic for the Academy
> next year.
>
> As you may suspect, I find this a troubling theme because it seems to
> imply that the informal economy is perfectly OK to participate in.
> Perhaps I am not interpreting the theme and the word "informal"
> correctly. If so, please enlighten me. For example, I do not take the
> position that microfinance and typical entrepreneurial start-ups are
> "informal." Is this a US bias perhaps?
>
> -- Jeanne (Logsdon)
> U of New Mexico
>
> -----Original Message-----
> From: Social Issues in Management Listserv
> [mailto:
SIM@AOMLISTS.PACE.EDU ] On Behalf Of Mai Thai
> Sent: Sunday, August 28, 2011 8:58 AM
> To:
SIM@AOMLISTS.PACE.EDU
> Subject: [SIM] CALL FOR CHAPTER PROPOSALS (abstract by September 15,
> 2011)
>
> ENTREPRENEURSHIP IN THE INFORMAL ECONOMY: MODELS, APPROACHES AND
> PERSPECTIVES FOR ECONOMIC DEVELOPMENT
>
> Editors: Mai Thi Thanh Thai and Ekaterina Turkina, Department of
> International Business, HEC Montreal
>
> We are working with Routledge Publisher to edit a book on
> entrepreneurship in the informal economy and we would like to seek
> your contributions. The book will provide insights into the activities
> carried out by entrepreneurs in the informal economic sector in
> different countries and regions, causes and effects of
> entrepreneurship in the informal economy, and the types of
> interventions needed. The book will also discuss the linkages between
> informal entrepreneurship and economic development and provide
> recommendations for policymakers on how and when informal economy can
> be formalized, what sectors should be formalized and what can stay
> informal.
>
> The book consists of three parts. The first part will serve as an
> introduction and present a cross-country analysis of the informal
> entrepreneurship including socio-economic, politico-administrative,
> cultural and institutional effects on informal entrepreneurship. The
> second part will contain in-depth country or region studies of
> informal entrepreneurship.
> Chapters in this section must be empirical studies that can be either
> qualitative or quantitative. And the third part will focus on policy
> implications.
>
> The book is targeted to policy makers, educators and students in
> Public Administration and Entrepreneurship programs, NGOs,
> international organizations, and general public who are interested in
> informal entrepreneurship. We are planning to have the book completed
> before the next Academy of Management meeting so that we can make
> grand publicity for the book since the theme of the next AOM meeting
> is informal economy.
>
> If you are interested in contributing a chapter to this book, please
> provide us with the information requested below by September 15, 2011.
> Thank you.
>
> AUTHOR(S ) FULL NAME :
> AFFILIATION:
> CONTACT INFORMATION: (Phone and email address) BRIEF BIO OF
> AUTHOR(S): (One paragraph description will do) POTENTIAL TITLE OF BOOK
> CHAPTER:
> DESCRIPTION OF BOOK CHAPTER CONTENT: (Please describe the phenomenon
> covered in your potential chapter, geographical focus, and your study
> approach. We strongly encourage submissions for the second part of the
> book)
> VALUE: (Briefly describe how your chapter's contents contribute to a
> heightened understanding or appreciation of entrepreneurship in the
> informal
> economy)
>
> PUBLICATION SCHEDULE:
> Book chapter proposals received: September 15, 2011 Notification of
> accepted chapter proposals: October 15, 2011 Receipt of full book
> chapters: January 15, 2012 Chapter authors receive reviews with
> feedback: February 15, 2012 Final revisions due: April 15, 2012 Book
> release: Summer 2012
>
> Please send proposals and inquiries to both:
> Mai Thi Thanh Thai:
mai.thai@hec.ca
> Ekaterina Turkina:
ekaterina.turkina@hec.ca
>
> DETAILED OUTLINE OF THE BOOK
> Part I: Introduction
> Importance of informal economy; determinants of informal
> entrepreneurship; challenges of managing the informal economy Part
> II: Informal entrepreneurship around the world Country/region studies
> (qualitative or quantitative papers). We aim to have balanced coverage
> of country examples from five continents. (We aim to get committed
> authors for at least 10 chapters).
> Part III: Implications
> Lessons learned; conditions under which the benefits of informal
> entrepreneurial activity outweigh the disadvantages; perspectives for
> formalization of informal sectors; policy recommendations, etc.
>
> ______________________________________________________________________
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