The Journal of American Business Review, Cambridge

Vol. 5* Number 1 * December 2016

The Library of Congress, Washington, DC   *   ISSN 2167-0803

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United States Remains Greedy for Taxes

Dr. Denise de la Rosa, Grand Valley State University, MI

Dennis C. Stovall, Grand Valley State University, MI



Over recent years, the United States has made its way to the top of the list for the highest corporate tax rate among all Organization for Economic Cooperation and Development (OECD) countries. Competition for corporate tax dollars has continued to increase, especially after the economic recession in 2008. Countries are now competing with each other to have the lowest corporate tax rate so they can attract companies to move their headquarters there. This paper shows the shift of corporate tax rates amongst the OECD countries from 2006 to 2015 and discusses the reasons why select countries decreased their corporate tax rate so dramatically. New ideas have been introduced throughout the years in the United States but nothing has been done to change the high tax rate. The United States should soon join other OECD countries and lower its corporate tax rate so companies can become a world leader in investment and growth. Competition has continued to increase over the years and not just between companies, but between countries. Countries are marketing themselves as location options for corporation’s headquarters. Different tax structures appeal to corporations of a particular industry. Different regulations and taxation policies give companies reasons to move production facilities to the country that has the best tax structure for them.  See Exhibit 1.1, below: The United States has the third highest general top marginal corporate income tax rate in the world at 39 percent, which is the same as Puerto Rico and is exceeded only by Chad and the United Arab Emirates.  The worldwide average top corporate income tax rate (accounting for 173 countries and tax jurisdictions) is 22.9 percent, 29.8 percent weighted by GDP.  By region, Europe has the lowest average corporate tax rate at 18.7 percent (26.1 percent weighted by GDP). Africa has the highest simple average at 28.77 percent.  Larger, more industrialized countries tend to have higher corporate income tax rates than developing countries.  The worldwide average corporate tax rate has declined since 2003 from 30 percent to 22.9 percent. Every region in the world has seen a decline in its average corporate tax rate in the past twelve years. There has been a shift in taxation rates over the last 25 years but especially in the last 15 years. Corporate tax rates have fallen across countries like Ireland, the United Kingdom, and Japan, just to name a few. However, unlike so many other countries in the world, the United States has not seen a substantial decrease. The first European country to cut its rate was the United Kingdom in the mid 1980’s. The government of Margaret Thatcher lowered the corporate tax rate from 52 percent to 35 percent between 1982 and 1986 (Hickey 2006). The idea behind it was that that drop in tax rates will attract more investment which, in turn, would increase tax revenue. This mindset is still being used by governments today.  The United Kingdom has had a reduction in corporate income tax since 2006, going from 30% to 20% in the nine-year span. The Conservative-Liberal-Democrat coalition government has proposed a policy change from 2010 to 2015. The policies implemented are expected to reduce corporate tax revenues by around £8 billion. Tax receipts as a percentage of national income have decreased from 3.2% to 2.3% since 2008. This decreasing percentage will continue for a couple more years as the losses that the financial sector had in previous years were accumulated and not being used to offset tax liabilities (Miller and Pope 2015).  Between 2006 and 2015 only four countries in the Organization for Economic Cooperation and Development (OECD) increased their corporate income tax. Those countries are Portugal, Slovak Republic, Iceland, and Hungary. All other countries and can be seen in the chart below (Table II.1. Corporate income tax rate).  1. Rates for 2006 and 2015 are combined central and sub-central tax rates. Where sub-central income tax is deductible against central government tax, this is reflected in the net rate of the central government. 2. The sub-central tax rate for the U.S. is calculated as a weighted average of state corporate income marginal income tax rates, 6.6 percent in 2006 and 6.15 percent in 2015, deductible in both years from federal taxable income.  3. Un-weighted average.   The average drop in corporate tax rates for OECD countries was 10.6%. Also, average tax rates fell from 28.7% to 21.8% supporting the idea that lower corporate income tax rates will lead to higher investing.  The United States has not followed this trend. Their income tax did decrease 0.8% since 2006 but they moved up to the number 1 highest corporate income tax country in the OECD. Congress has investigated what a drop in corporate taxes would do. Since there are constraints on capital flows, an estimated rate cut on the marginal income tax from 35% to 25% would only increase output by less than two-tenths of 1%. A lot of the output gain is not an increase in national income due to imported capital, which actually belongs to foreign countries (Corporate Research Service 2014). This decrease of 10% would project a loss in revenue to Uncle Sam of about $100 billion a year. This tax reduction would let companies invest and would increase capital formation (Sullivan 2011). Japan’s parliament approved a corporate tax cut in early 2015 that would cut taxes by 3.29 percentage points over two years which will bring the corporate tax from around 33% to just under 30%. Part of the cut is seen in the table above with the tax sitting around 32% for the end of 2015. There are a few reasons why that proposition got approved. Japan wants to encourage companies to increase investment and raise wages of their employers (Iwamoto and Shimodoi 2015). Another reason for the cut is because in April of 2014, Japan raised their sales tax to address national debt. As seen below, Japan’s investment spending has increased 16% since the financial collapse of 2008. Sadayuki Sakakibara, chairman of the Japan Business Federation, believes corporate capital spending would increase by 10 trillion yen by fiscal 2018 if corporate taxes continue to be reduced (Jiji Press English News 2015). To make up for the tax cut, the government is looking into increasing the size-based tax. The heavier size-based tax burden is expected to be neglected by midsize companies because the tax is levied on companies that show a loss. Canada has reduced its corporate tax 27% since 2006. As shown in the following graph, their corporate tax revenue has increased to an average of 3.3% of GDP since 2000. While from 1988 to 2000, it averaged only 2.9% of GDP (McBride 2014a). This corporate tax base increased because companies in the U.S. are attracted to Canada’s tax regime and the simple tax code in Canada grows corporations through low start-up costs and reinvestment of after-tax earnings. The theory behind the decrease in Canada’s taxes is primarily economic efficiency. Taxes can reduce economic output and create distortions. Another reason for the reduction is international competitiveness. Canada is looking to have U.S. companies move their headquarters to their country so they can see more corporate spending and higher GDP overall (Carroll, Richardson, and Wagner-Rundell).  The United Kingdom has also seen a large drop in corporate taxes. Since 2006, their corporate income tax has dropped from 30% to 20% in 2015. A big reason for this is the United Kingdom started seeing companies move their headquarters to different countries. In 2009, the Financial Times reported that more than half of companies had considered leaving the UK (McBride 2014b).


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Organization and Use of Executive Advisory Boards in Business Schools: Best Practices

Dr. Jan Duggar, University of North Florida, FL

Dr. Julius Demps II, Jacksonville University, FL

Dr. Russell Baker, Jacksonville University, FL



The purpose of this paper is to assist deans and business schools in developing effective advisory boards that add value to the schools’ activities and programs along with assisting in achieving the schools’ mission. The paper addresses the following steps involved in establishing an advisory board: (a) mission statement for the advisory board; (b) statement of purpose for the advisory board; (c) selecting board members; (d) appointing members; (e) adopting charter documents; (f) forming committees, (g) setting agendas for meetings; (h) using the board; (i) raising funds; (j) developing school and program advocacy; (k) providing publicity for members; and (l) evolving member responsibilities. Business school advisory boards in the United States include an array of benefits that help the school to grow, sustain, and compete. Advisory board proliferation and implementation appears to become somewhat mandatory if these institutions wish to remain relevant.  Indeed the role boards play within business schools are too large for a singular dean to facilitate or faculty members to carry out with their duties of conducting research, teaching, and university service.  Various functions that boards assist with include curriculum issues and ideas for new business programs, accreditation, community image and outreach, and fundraising.  Nagai & Nehls (2014) state “Advisory boards typically offer guidance, support, social, and financial capital to academic units within colleges and universities. They are generally comprised of prominent volunteers from the community and appropriate industries or businesses.”  Further illustration of the benefits of colleges and universities exercising community outreach is articulated when Conroy & LeFever (1996) offer the following regarding the importance of advisory boards and image: A well-chosen advisory board that comprises industry-leaders is a visible sign that program’s administration is seriously interested in maintaining its connection with the industry.  In this sense, the concept of image goes far beyond mere window dressing.  While most programs have mechanisms for determining and responding to industry concerns, by empaneling an advisory board administrators give a concrete and clear signal that they will methodically and intentionally seek out the input of industry leaders.  Students benefit from this input, and the program’s reputation consequentially is strengthened.  (p. 87)  Kaupins & Coco (2002) conducted research, which strengthens the position of benefits and implementation of business college advisory boards. Their research displayed the following: (a) 53% of business schools surveyed had departmental advisory boards; (b) 90% of the boards have private sector company representatives; (c) the main role of the board was to analyze curriculum issues; (d) developing new programs was second; (e) publicizing the school was third; and (f) developing the organizational mission was fourth.  The research also noted that other board functions included fundraising, alumni relations, internship and job placement support, and accreditation support. The study of business, unlike many college majors, changes rapidly.  In order for business schools to remain competitive, some have elected to go through the process of adhering to standards set forth by the Association to Advance Collegiate Schools of Business or (AACSB Accreditation).  As such, advisory board participation in these particular institutions is critical.  Ellingson, Elbert, & Moser, (2010) explains the following regarding the value AACSB places on advisory boards to business schools: That value connect lies in advisory boards.  These groups of executives work closely with school leadership to help bring relevance to the curriculum and to the classroom and to champion the school to prospective donors and students to business colleagues and the community.  (p. 1). Furthermore, the AACSB has championed the use of advisory boards through the offering of seminars regarding the effective use of these boards (Association to Advance Collegiate Schools of Business, 2015). Not all board participation is viewed highly in colleges and universities.  More specifically by that of college of business faculty members.  There are communication issues that have surfaced in some schools since these participants are not serving as professors of the college or university.  Kilcrease’s (2011) study found the following: Board members come from both profit and nonprofit environments and are typically representative of upper management. Consequently, the broad purpose of the board is the utilization of their experiences to address strategy and planning within specific academic areas of the institution.  (p. 1) Kilcrease (2011) discovered that faculty members viewed advisory board participants as fair and would like to see an increase in post advisory board meeting communication.  Inevitably, one of the goals of any successful business school is the daunting task of fundraising.  This is a job in which a dean of a college of business or university president can always use assistance.  Business leaders who possess the time, relationships, and experience to serve as advisors could potentially or readily serve as a primary source of fundraising for the college.  Conroy & LeFever (1996) believe “Resource development is a key advisory board function, which involves identifying and soliciting individual and corporate gifts for the support of the program’s academic and student service activities.”  The authors also believe this particular activity is enhanced if the board members are alumni.  Research clearly illustrates that best practices utilized by successful colleges and universities are to reach outside of the university walls to attract seasoned, experienced individuals who are best suited to help business schools accomplish the aforementioned functions.  Inviting business leaders to serve on advisory boards also allow institutions to help create a product they can endorse, thus providing public and private organizations with a potential steady stream of qualified job candidates.  The purpose of this paper is to assist deans and business schools in developing effective advisory boards that add value to the schools’ activities and programs along with assisting in achieving the schools’ mission. The paper addresses the following steps involved in establishing an advisory board: (a) mission statement for the advisory board; (b) statement of purpose for the advisory board; (c) selecting board members; (d) appointing members; (e) adopting charter documents; (f) forming committees, (g) setting agendas for meetings; (h) using the board; (i) raising funds; (j) developing school and program advocacy; (k) providing publicity for members; and (l) evolving member responsibilities. Each of these items is discussed in the sections below. Examples from various schools of business that have executive advisory boards are utilized to clarify the individual concepts.


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Re-positioning Negotiating Styles within a Values Framework

Dr. David A Robinson, RMIT Asia Graduate Centre, RMIT University, Vietnam

Dr. Trung Quang Nguyen, RMIT Asia Graduate Centre, RMIT University, Vietnam



Management theories may be an essential tool used by many professional managers in an attempt to improve their understanding of what works in relation to leadership and management in organizations. Yet, with the proliferation of management theory and the sheer volume of literature on the subject of management, there is a risk that managers will be unable to absorb all the necessary theories that could be useful to them. Furthermore, theories may appear to contradict each other. For that reason, the authors believe there is a pivotal role for the meta-model, i.e. ‘a model that combines and embraces established models or theories to facilitate a deeper, richer application of each in its own right’ (Robinson, Morgan & Nguyen, 2016). A previous paper by the same authors (2016) integrated four traditional management theories into a single meta-model known as the Values Journey. The use of a meta-model increases the likelihood of the contingent being practically applied in workplaces. This paper expands the same concept by integrating negotiation styles into the Values Journey meta-model.  It has already been shown that the Values Journey meta-model has been used to integrate Maslow’s Hierarchy of Needs, Herzberg and McGregor’s motivational theories, Tuckman’s model of team effectiveness and Belbin’s Team Roles (Robinson, Morgan and Nguyen, 2016). This paper further explores the usefulness of the Values Journey as a meta-model that incorporates negotiating styles and enhances our understanding of negotiating positions. Furthermore it introduces a model to facilitate successful collaborative negotiations. “The psychology of the mature human being is an unfolding, emergent, oscillating, spiralling process marked by progressive subordination of older, lower-order behaviour systems to newer, higher-order systems as man’s existential problems change” Graves, 1970 With its origin in Graves’s (1970) Model of Bio-Psycho-Social Behaviour, in which he asserted that developing people experience continuing emotional and intellectual between two opposing developmental forces.  One force compels them to act ever more responsibly by fitting in with the world; the other to exert their innate power of self-determination in pursuit of ultimate autonomy. This dualistic intention sets up a model for the portrayal of the journey of life and may be illustrated as a two dimensional model (Robinson, Morgan and Nguyen, 2016); [please see Figure 1].  On the horizontal axis of the Values Journey model is plotted humankind’s capacity for rational and considerate conduct in society, whilst on the vertical axis is plotted humankind’s capacity for autonomous thinking and actions. The journey is divided into three stages labelled as follows: stage 1 pre-orderly, stage 2 orderly, stage 3 post-orderly. Stage 1 is characterized by chaos, as at this stage the so-called ‘rules of right living’ have yet to be discovered. The chaos is therefore accidental or unintentional. Stage 2 is characterized by control, as it is during this stage of development that the ‘rules of right living’ are applied in a purposeful way. Stage 3 brings a return to chaos, but of a different kind to that of stage 1, as by now the ‘rules of right living’ have been not only mastered but, in a sense, transcended, thus the departure from order is intentional or purposeful. There are two value stations within each stage, thus the overall values journey may be seen as consisting of six steps. Throughout the values journey, a tension exists where the forces of the X axis (intended toward fitting in with society) and the forces of the Y axis (intended toward autonomy) are at play. The creative tension between these opposing forces causes us to re-evaluate existing ways of coping with the problems of existence we experience. Mismatches between existential stimuli and responses manifest as dissonance, which becomes a trigger for change. Movement between stages is along the horizontal axis.  (Insert Figure 1 here: The Values Journey Meta-Model) Moving from stage 1 (i.e. steps 1 and 2) to stage 2 (steps 3 and 4) requires the adoption of a disciplined code or ethos, hence the transition is known as crossing the ethics divide. Moving from stage 2 (steps 3 and 4) to stage 3 (steps 5 and 6) demands a more holistic or systemic worldview, hence it is known as crossing the holism divide. Thus, the ethics divide is traversed as people decide to become less power-seeking and more duty-compliant. Similarly, the holism divide is crossed when people place greater value on harmonious-living than on success-thriving. Within each stage the shift in values is in the vertical direction, typically from the submissive version of that stage to a more expressive version of it. Thus, in stage 1 of the journey people become less-inclined to a state of safe-bonding and move into a state of power-seeking; in stage 2 of the journey the change is from duty-compliant to success-thriving; and in stage 3 of the journey the change is from harmonious-living to synergy-seeking.  Graves’s (1970) theory defined values-shifts as alternately vertical and horizontal when plotted on this Values Journey model. Pertinently though, by conditioning or choice, individuals and groups may prefer to remain on a submissive or expressive track, as the case may be. In that case, their developmental potential is naturally constrained. In particular, a person seeking to cross the ethics divide by moving directly from the expressive power-seeking station to the expressive success-thriving station, without paying their dues (so to speak) in the submissive duty-compliant value station, is unlikely to be equipped to later cross the holism divide. Therefore, they will suffer arrested development. Furthermore, their mastery of the expressive success-thriving station will be limited as a consequence of the attempted leap-frogging of duty-compliance. Correspondingly, those who cross a divide on the submissive track without first adapting vertically/expressively within a stage will be ill-equipped to advance vertically in the subsequent stage. The void will evoke arrested development as they will be unable to advance beyond the value-station thus reached. Significantly also, under pressure their values-base will revert to the previously-held station, resulting in the void becoming obvious to others. Negotiation style theory comprises five negotiation styles. The particular style employed depends on a combination of assertiveness and cooperativeness. These are illustrated in Figure 2, where it can be seen that low assertiveness and low cooperativeness results an avoiding style, where the goal is to delay. Low cooperativeness and high assertiveness create a competing style, where the goal is to win. High cooperativeness and low assertiveness results in an accommodating style, where the goal or outcome is to yield. High cooperation combined with high assertiveness creates a collaborating negotiation style, where the goal is for both parties to win. Medium cooperativeness and medium assertiveness gives rise to a middle-ground style, known as compromise, where the goal is to find a resolution that each party can accept.  Avoiding is useful when negotiation is regarded as undesirable or perceived to be unproductive. If forced to negotiate, an avoider will tend to concede quickly and is unlikely to obtain a satisfactory result in a negotiation. Though the style may be perceived as diplomatic, it is more likely to belong to someone unskilled, incompetent and lacking confidence in negotiation. Accommodating is a style that places value and emphasis on preserving the relationship, even if at the expense of the most-favoured outcome. When in frequent negotiation with a recurring party, such as a significant trading partner, it is often useful to accommodate the other’s needed outcome on some occasions, which then encourages them to accede to yours at other times. It is obviously not suited to once-off trades or transactions as invariably the other party will achieve their goal without benefit to the accommodator.


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The Influence of Moral Emotions on the Relationship Between

Workplace Bullying and Attachment

Dr. Jacqueline N. Hood, University of New Mexico, NM

Dr. Kathryn J. L. Jacobson, University of New Mexico, NM

Dr. Ryan P. Jacobson, University of New Mexico, NM



Workplace bullying is defined as repeated, malicious, and health-endangering mistreatment of an employee by one or more other employees. Workplace bullying has been associated with negative outcomes for the individual being bullied and for the organization in which such actions take place. This paper discusses the relationship between workplace bullying, attachment style and the moral emotions of guilt and shame. It is proposed that an individual’s attachment style (secure or insecure) is related to bullying such that those with a secure attachment are less likely to bully than those with an insecure attachment.  Further, the paper suggests that the moral emotions of guilt and shame moderate the effects of attachment style on bullying.  Specifically, it is proposed that the more secure one’s attachment style the less likely the individual is to exhibit workplace bullying behavior with guilt and shame proneness strengthening this relationship.  Further, the more insecure one’s attachment style, the more likely the individual is to exhibit workplace bullying behavior with guilt and shame proneness weakening this relationship. Workplace bullying has become an increasingly important topic in the business literature since managers need to retain the best and the brightest employees in the current highly competitive business environment.  Workplace bullying is the repeated, malicious, and health-endangering mistreatment of another individual or individuals at work (Jennifer, Cowie, and Ananiadou, 2003; Einarsen, 1999; Namie and Namie, 2000). Bullying has been found to have negative individual and organizational outcomes, such as psychosomatic illness (Djurkovic, McCormack, and Casimir, 2004), alcohol abuse, (Richman, Flaherty, and Rospenda, 1996), post-traumatic stress disorder (Vartia, 2001, 2003), reduced productivity (Hoel, Einarsen, and Cooper, 2003), decreased job satisfaction, reduced organizational commitment, and greater intention to leave (Tepper, 2000).  Although there have been a number of studies on the consequences of bullying, as well as the characteristics of victims, there is a paucity of research on the antecedents of workplace bullying.  Attachment theory may provide insight on the basis for workplace bullying.  Attachment theory notes that individuals develop at a young age “working models” of the self, one’s relationships, and relationship partners that include secure, insecure avoidant, and insecure anxious styles (Bowlby, 1982).  These models affect one’s relationships in adulthood (Little, Nelson, Wallace and Johnson, 2011; Mikulincer, Florian, Cowan and Cowan, 2002).  Those who are securely attached are able to perceive the world as generally safe, trust others to be available to them in times of need, and believe that interaction with others will be rewarding.  The insecure avoidant attachment style is related to problems with hostility and aggression (Cummings-Robeau, Lopez, and Rice, 2009).  A high level of attachment anxiety has been found to be related to emotional reactive behaviors (Wei et al., 2005), excessive reassurance seeking (Wearden, Perryman, and Ward, 2006), and hypersensitivity (Weems, Berman, Silverman, and Rodriguez, 2002).  Thus, an insecure attachment style is likely to lead to higher levels of bullying.  Guilt proneness has been conceptualized as the tendency to experience negative affect about one’s behavior following a transgression, while shame proneness is the tendency to experience negative affect about the global self following a transgression (Cohen, Wolf, Panter, and Insko, 2011).  Those who are guilt-prone are less likely to perform counterproductive work behaviors (Cohen, Panter, and Turan, 2013) and are less likely to act aggressively when angered (Stuewig, et al., 2010).  Shame-prone individuals have also been found to be less likely to exhibit undesirable work behaviors (Cohen, et al., 2013).  In addition, guilt- and shame-proneness have been found to related to attachment styles, with those insecurely attached being more prone to shame (Lopez, Gover, Leskela, Sauer, Schirmer, and Wyssmann, 1997).  This paper will propose that those who are insecurely attached are more likely to exhibit bullying behaviors at work, with this relationship weakened if the individual has a tendency to feel shame or guilt. The majority of bullying behaviors in the workplace consist of nonphysical, indirect, and passive actions (Neuman and Baron, 1998).  Emotional abuse is clearly evidenced in instances of bullying.  Emotional abuse involves “repeated hostile verbal and nonverbal, often nonphysical behaviors directed at a person(s) such that the target’s sense of him/herself as a competent worker and person is negatively affected” (Keashly and Jagatic, 2003).  In a study of the U.S. Department of Veterans Affairs, Neuman and Keashly (2004) found the top ten hostile behaviors in the workplace included the following:  glared at in a hostile manner, treated in a rude/disrespectful manner, interfered with work activities, given the silent treatment, given little or no feedback about performance, not given praise to which felt entitled, failed to give information needed, delayed actions on matters of importance, lied to, and prevented from expressing self.  Thus, the hostile behaviors are often subtle, not easily observable by others, and often involve the withholding of information, recognition, or acknowledgement from the other person.  The repeated and prolonged exposure to these behaviors that devalue the individual can be perceived as attempts to remove the targeted individual from effective participation in the workplace (Keashly and Neuman, 2005). Workplace bullying is carried out on 10% of the workplace population at any one time, with 25-30% of workers being subject to bullying at some time in their careers (Keashly and Neuman, 2005; Lutgen-Sandvik, Tracy, and Alberts, 2005).  Such bullying has been found to be related to heightened levels of anxiety, depression, burnout, frustration, and helplessness, and to negative emotions such as anger, resentment, and fear (Keashly and Neuman, 2005).  Individuals subject to workplace bullying have difficulty concentrating and lowered self-esteem and self-efficacy (Keashly and Neuman, 2005). It has been associated with a number of negative outcomes, including psychosomatic illness (Djurkovic, McCormack, and Casimir, 2004), reduced productivity (Hoel, Einarsen, and Cooper, 2003), alcohol abuse (Richman, Flaherty, and Rospenda, 1996), post-traumatic stress disorder (Vartia, 2001, 2003), and decreased job satisfaction, reduced organizational commitment, and greater intention to leave (Tepper, 2000). Attachment theory has been used to understand interpersonal processes or, specifically, one’s relationships in adulthood (e.g., Hazan and Shaver, 1987; Little, Nelson, Wallace and Johnson, 2011; Mikulincer, Florian, Cowan and Cowan, 2002).  The self-regulation process has been found to differ according to attachment styles (Fuendeling, 1998).  In addition, attachment theory has been related to reactions to others’ needs (Mikulincer, Gillath, Halevy, Avihou, Avidan, and Eshkoli, 2001). Attachment theory emerged from early studies with infants in which the interactions with the primary caregiver were analyzed (Bowlby, 1982).  In these studies, it was found that infants develop internal working models in close relationships that shape an individual’s self-image.  The Strange Situation studies by Ainsworth and others (Ainsworth, Blehar, Waters, and Wall, 1978; Ainsworth and Bell, 1969; Blehar, Lieberman, and Ainsworth, 1977; Tracy and Ainsworth, 1981) originally intended to analyze how infants behaved when they were presented with an unfamiliar playroom.  The unfamiliar playroom would allow the child an opportunity to explore new toys as well as to interact with an unfamiliar adult, both when the mother was present and when she was absent. 


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Methodology Calculation Differences of Customer Satisfaction of Field Service in China

Dr. William Bleuel, Pepperdine University, CA

Xiangre Kong, Pepperdine University, CA



In current high technology markets, customer satisfaction is becoming a more significant aspect of business management. In China, companies that provide products and services are concerned about the impact of field service on customer satisfaction as it may be affected by speed of economic development. This study examines customer satisfaction measurements with Field Service in China to determine whether there is a difference in the drivers of satisfaction provided by three different statistical methodologies; namely regression analysis, factor analysis and structural equation modeling.  The trend in Overall Satisfaction over the eight years from 2005 to 2012 has been positive.  Calculations of measured parameters of Field Service from the three methodologies are similar for the past eight years but with different orders of emphasis both between the methodologies and the years.  For each of the three methodologies, the two most significant factors are estimated and compared.  The comparison indicates that there is no consistency between the top two factors.  The results suggest that companies need to understand the similarities and differences in these computational methodologies in order to optimize the use of their resources and adjust their field service offerings to respond to their customer needs and expectations most effectively. For each company, market position is often impacted by well-organized product support. One way is to provide a level of customer satisfaction that meets customer expectations. While customer satisfaction does not completely imply customer loyalty, it is usually a significant factor.  Since the high technology industry has such a short half-life and serious competition, high technology companies usually need to pay significant attention to supporting their products in order to increase the likelihood of customer retention. The use of Field Service to improve customer satisfaction, especially in high technology companies, has been studied in terms of creating systems into cloud computing to improve the customer retention rate. [1] By collecting, organizing and analyzing Field Service data in a timely manner, companies can monitor and improve service quality. [2] Technology advancements have had an impact on employees and customers. In general, as the use of technology increases, the impact and implementation may induce stress on the users. [3] In China, personal education of communication and technical skills is lacking. Their education system emphasizes competence rather than process. So the hiring of Field Service personnel is based primarily on education and skills rather than experience. [4] Chinese customers have an increasing service quality requirement in more mature markets. Facing similar products, Field Service has become one of the most significant differentiators for purchasers when considering high technology products. And, there is a rising expectation of after-sales service. [5] Meanwhile, Chinese manufacturers focus more on service quality and reaction speed, such as response time and complete solutions, than ease of contact or professionalism as competition increases. In the future, Chinese prosperity will be founded on a continued commitment to globalization. Nowadays, driven by the trend toward global competition, great efforts are devoted to the speed of product development, the integration of resources, innovation and high quality field service.  Field Service refers to service personnel going to customers’ locations to fix product problems. This study has been conducted to examine customer satisfaction for worldwide companies in the area of Field Service and is limited to products with a high level of technology (computers and medical electronics). The research hypotheses for this paper are noted;  The two drivers with the strongest relationship to Overall Satisfaction derived from the data will be the same for each methodology each year. The two drivers with the strongest relationship to Overall Satisfaction derived from the data will be consistent from year-to-year. The most important assumption for this study is that the level of field service provided by each of the companies is the same.  This assumption is confirmed since each company uses Service Level Agreements (SLA) to define the parameter limits for field service. Since these companies are all multi-national corporations, these service performance parameters prescribed by the SLAs are generally consistent for each country.  The rationale for the primary assumption of similar service for each company/country is based on the following aspects of this study: 1. The study includes similar industries. Each product offers approximately the same level of complexity. 2. For each company, the same measurement system has been used to measure customer satisfaction. 3. The same survey company (Service 800) has taken all the measurements.  There are still some limitations of this study as noted below.  1. The data only covers 8 years period (2005-2012).  2. Even though there were more than 10 questions in this study, only the “overall” ranking was used to evaluate the null hypotheses (no differences in rank ordering of the drivers of satisfaction between the three methodologies).  While there was correlation between the individual questions identified below in the following section Discussion of Data, these levels of correlation will be considered in the next study.  3. As a large country, there are cultural differences that exist in different areas of China that have been neglected. Although the questionnaire provides a unified set of questions to evaluate, the differences still have been assumed to have little effect since the customers are primarily in urban environments. All of the data for this study was supplied by Service 800, a survey company with world-wide offices. The service call data was provided by the manufacturers to the survey-services companies which collected all the completed service calls for the 8 years from each company. A weekly random sample of data from the total of all service calls completed in that week was extracted.  A secondary assumption is that the data provided by each company were the total of all service events.  As a result of the random selection from the universe of service calls, the data collected from the target companies is a valid statistical sample. The scale used for each question is the 5-point Likert scale from 1-Very dissatisfied to 5-Very satisfied: 1. Very dissatisfied 2. A little dissatisfied 3. General 4. A little satisfied 5. Very satisfied:  The survey company striped the data of any company identification and provided Excel spreadsheets with the identification of each company removed. There was no identification by which an individual company could be recognized. The components of service that were measured in the survey were: 1. Ease of contact (Ease) 2. Time to respond (Response)  3. Technical ability of the Field Service agents (Tech Ability) 4. Professionalism of the agents (Professionalism)  5. Product quality  6. Communication ability of the Field Service agents (Communication)  7. Completeness of the solution (Completeness)  8. Fix time  9. Overall Satisfaction.  The size of data that were used for this study is in Table 1 on the following page:  Since all the data collected is ordinal, the use of the arithmetic mean to detect differences is not statistically valid and was not used. While there were several questions within the survey that might partially explain the changes in the past 8 years, the question that was used measures “Overall Satisfaction” for each service transaction throughout China.


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A Game Theoretical Analysis of the Equality of Cross-Regional Public Resources and Environment

Dr. Chen-Kuo Lee, Ling Tung University, Taiwan, R.O.C.

Li-Ru Chen, Department of Industrial Education and Technology, National Changhua University of Education, Taiwan, R.O.C.



This study discusses the equality of cross-regional public resources and environment using a cross-regional game model and the system arranged by central governments. Secondly, this study intends to identify the solutions for the cross-regional pollutions using game theories in order to identify the pareto optimal equilibrium in which all parties cooperate with and treat each other fairly. This study finds that, after the lengthy and repeated game process ends, all parties adjust their cross-regional pollutions strategies and choose pareto optimal equilibrium rationally instead of their strategies. Therefore, pareto optimal equilibrium is attainable for central governments using incentives and appropriate systems.  Ecological environment is one of the fundamental resources for economic and social developments. There is no doubt that environment protection is an essential choice for sustainable development (Brunnce, 2004). Faced with the irreversible trend of economic globalization, every nation strives to maximize its interests. Ironically, the political and economic inequality causes a number of developed nations to shift their pollutions and ecological crisis to the developing nations and have thus damaged the developing nations’ existence, particularly their sustainable development and environment safety (Rao,2002; Pocklington,2003; Dunoff,2004; Stander, 2004). The international community spares no effort to solve the problems arising from the overdevelopment and has thus implemented a multi-legal framework that controls hazardous wastes crossing borders using the Basel Convention as its core element based on global and regional treaties, bilateral agreements, and domestic legislatures, thereby creating the legal basis for the international community to control hazardous wastes being shifted across borders (Schneider,1996; Waugh,2000; Gallegos, 2002). Nevertheless, the international laws and domestic laws are unable to solve the problems permanently at the time that the huge difference between developed nations and developing nations continues to exist (Marcus, 2001; Gary and Moseley,2005; Sunderlin et al.2005; FAO,2007; Shahbaz et al.,2007; Lei and Dayong,2011; Shahbaz et al., 2011). Faced with the deteriorating problems arising from cross-border hazardous wastes, the international community has to foster the international cooperation, harmonize all nations’ interests, and improve the domestic laws in order to solve the problems for the sustainable development of the world (Campbell, 1996; Berke and Conroy,2000; Jepson,2003; Jepson,2004; Conroy,2006; Jepson,2007; Conroy and Beatley,2007; Saha and Paterson,2008; Lubell, Feiock, and Handy,2009; Grodach, 2011).  In the 1970s, the United States, Canada, Sweden, Norway quarreled with Germany and France for the problems arising from acid rain. In recent years, Korea complained about China’s acid rain spreading to Korean territory (Dunoff, 2004). Nuclear pollutions cause tensions between nations, too. The 119 nuclear power generators built by western European nations are located less than 100 kilometers from borders. The nuclear power generators have caused nuclear contaminations repeatedly for the neighboring nations, such as Portugal, Spain, Belgium, Luxemburg, and Germany (Parikh, 1994). Moreover, pollutions have been shifted across borders over the past years. For example, an American carbide corporation in India leaked poison gas; consequently, more than 2,500 people died in just a few days, more than 3,000 people were critically injured, and 125,000 people were injured. Experts believed that 100,000 people would be disabled permanently. Furthermore, the 2006 Côte d'Ivoire poison wastes incident and 1986 Philadelphia poison garbage incident sent a strong message to the world that the pollutants are being transferred across borders ceaselessly (Park, 1998).  At the time that the trend of economic globalization continues, pollutions are transferred through trade and economic activities faster than ever and have thus become a critical issue as the 21st century is unfolded. In recent years, pollutant producers have developed a number of new technologies to transfer pollutions across the borders, such as transferal techniques, equipment, and enterprises (Mathur, 1999; Florida,2002; Gleaser and Saiz,2003; Clark,2004; Markusen and Nesse,2007; Blakely and Green Leigh, 2010). Pollutant producers also transfer pollutions through trade, exporting pollutants or environment-sensitive products to endanger the environment, lives, and properties of other nations (Grimble and Wellard,1997; Siry et al.,2005; Gray and Moseley,2005’ Nilsson,2005; Simorangkir,2006; Shahbaz et al.,2007; Shahbaz et al., 2011). The transferal of pollutants have caused a number of environmental issues for the developing nations. As a result, forests began to disappear, land became unproductive, and biological diversity disappeared. Ultimately, the unsustainable development was shifted from the developed nations to the developing nations, causing the global environment to deteriorate. Apparently, pollutions have not only ruined numerous species and natural habitats and destructed biological gene pool, but also endangered the developing nations and their poorly nutritious people, causing tremendous threats and obstructing national development (Elkin, 1987; Hazel,1997; Hanson,2003; Vision North Texas,2006; Walz and Wilson,2007; Graff,2008; Dallas Regional Chamber,2009; Grodach, 2011). Western nations developed their economies taking advantage of the undeveloped nations. Now, the western nations are building their biological cities and picturesque cities and meanwhile shift pollutants to the developing nations (Grodach, 2011; Shahbaz,2009; Shahbaz and Suleri, 2009). International treaties and domestic laws prohibit pollutants to be shifted directly. However, more and more pollutants are being transferred indirectly by industries, especially the pollution-intensive industries. Apparently, the indirect transferal of pollutants has become a critical issue for international environment protection. The cross-border transferal of pollutants has become the most critical environment issue for the international community. The cross-border pollutions have to be solved permanently. Otherwise, the cross-border pollutions will cause confrontations between nations. For example, cross-border pollutions caused global warming, acid rain, and ocean contaminations; Middle East nations’ quarrel over resources and Africa’s environment deterioration caused food crises; and Foreign Direct Investment (FDI) transferred pollutions across borders to the developing nations. The cross-border pollutions cause the environmental inequality between nations (Shahbaz et al., 2008). Similarly, pollutions are transferred between different regions in a nation, causing the external diseconomics created by the pollutions to be shifted to neighboring regions, thereby damaging the neighboring regions’ economic and social benefits. Thus, pollutions trigger neighboring regions to quarrel over public resources and cause public resources to be distributed unequally. Two guidelines were formulated to solve the issues arising from cross-border and cross-regional environmental conflicts; namely, pareto optimal solution designed to minimize social costs or maximize social benefits for all regions, and equality designed to distribute responsibilities, costs, rights, and benefits between all regions. This study intends to identify the pareto optimal equilibrium using game theory to explore the solutions for all parties to cooperate with each other equally and thereby solves the issues arising from cross-region pollutions.


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Corporate Governance and Firm Financial Performance: The Effects on Security Returns of Listed Companies in the Stock Exchange of Thailand

Dr. Kanibhatti Nitirojntanad, Chulalongkorn University, Thailand

Dr. Nantana Jaengsawang, Rajabhat Thepsatri University, Thailand



The purpose of this study is to analyze the effects of corporate governance and firm financial performance on the security returns of listed companies in the Stock Exchange of Thailand.  This study used secondary data of 339 listed companies in the Stock Exchange of Thailand in all industrial groups excluding companies in the market for alternative investment, business financial group, as well as the rehabilitation companies.  The data was analyzed using multiple regression analysis.  The results suggested that corporate governance as proxies by board composition and ownership structure including percentage of directors in board meetings, percentage of free float on total shareholders were found to have positive effects on security returns whereas board size was found to have negative effects on security returns. The percentage of directors with financial or accounting expertise in the audit committee was not found to have significant effect on security returns.  Firm financial performance as measured by earnings before interests, taxes, depreciation and amortization (EBITDA) was found to have positive effects on security returns while free cash flows were not found to have significant effect on security returns.  Book value as a control variable was found positively related to security returns whereas the leverage as measured by the ratio of equity to total debt was not found to be significantly related to security returns. The results of this study implied that corporate governance and firm financial performance are important information affecting security returns of listed companies in the stock exchange of Thailand. Therefore, information disclosed in the financial reports of companies listed on Stock Exchange of Thailand are relevant to investor decision making. Research concerning value relevance of accounting information concerning firm financial performance and corporate governance including board composition and ownership structure have been subjected to considerable empirical analysis.  Over the past few decades, the value relevance of earnings based firm performance measures appears to have increased (Collins, Maydew & Weiss, 1997).  Empirical market-based accounting research seeks evidence of the value relevance of firm financial performance by analysis of the relationship between these data and various market variables such as security price and returns.  In addition, the literature indicates the importance of good corporate governance in enhancing quality of financial reports. Gompers, Ishii & Metrick (2003) found that good corporate governance increases value and profitability of the firm.  Claessen  (2002) found that corporate governance benefit firms through greater access to financing, lower cost of capital, better performance and more favorable treatment of all stakeholders.  The purpose of this study is to analyze the effects of corporate governance and firm performance on the security returns of listed companies in the Stock Exchange of Thailand (SET).  In this study, corporate governance as proxies by board composition and ownership structure are examined.  Board composition is measured by the percentage of independent directors, percentage of financial or accounting expertise of directors in audit committee, percentage of directors in board meeting, and board size.  Ownership structure is measured by percentage of free float.  The measurement of firm financial performance includes net profit, free cash flows, and earnings before interest and taxes, depreciation and amortization (EBITDA).  The control variables include book value and the ratio of equity to total debt.  The main objective of corporate governance is to encourage accountability, transparency, fairness, disclosure and responsibility which are core values for the success of the organization. Yasser, Entebang and Mansor, (2011) defined corporate governance as “the mode through which entities are managed and governed”.  Corporate governance attempts to relate the way in which financial resources available to an organization are used to achieve the overall objectives of an organization.  According to Gulzar and Wang (2010), good corporate governance is very important for the business sustainability and growth.  In addition to the board of directors, more non-executive and independent directors, board committees, bylaws and company codes should be introduced in a company depending on the set of rules and regulations in each country which may take the form of laws, guidelines or social norms.  Corporate governance aims to ensure transparency to satisfy different stakeholders such as suppliers, customers, and creditors.  Corporate Governance lays down an outline for creating long-term trust between company and its stakeholders (Samontaray, 2010).  Shaheen and Nishat, (2005) claimed that poorly governed firms have lower valuations, while better-governed firms have higher valuations.  Irshad, Hashmi, Kausar, and Nazir (2015) study board effectiveness, ownership structure and corporate performance in Pakistan and found significant positive impact of independent directors, frequency of meetings and board size on firm performance.  Thus, board composition and ownership structure have been considered as the important parts of corporate governance.  Components of corporate governance concerning ownership structure and board composition examined in this study include the percentage of free float, percentage of independent directors, the percentage of financial or accounting expertise of directors in audit committee, the percentage of directors in board meeting, and board size.  Despite widespread research interest in corporate governance, there have been mixed results concerning relationships among the components of corporate governance, firm performance and security returns.  The concept of firm financial performance has been discussed widely.  For example, Charitou, Clubb & Andreou (2001), Bo (2009) indicate that financial performance in terms of earnings and cash flows are related to security returns.  Irshad, Hashmi, Kausar, and Nazir (2015) examine the factors of ownership structure and board effectiveness that influence the firm performance using Marginal Q marginal returns and ROA.  Hayes, Mehran,  and Schaefer (2004) study the relationship among board committee structures, ownership, and firm performance as proxies by market to book ratio.  Klapper and Love (2002) study the relationship among corporate governance, investor protection, and corporate performance in emerging markets.  Ntim and Osei (2011) find the positive relationship between frequency of meetings and firm performance.  In this study, firm financial performance is measured by net profit, free cash flows, and earnings before interest and taxes, depreciation and amortization (EBITDA). The research model for the association of independent variables and dependent variable used in the study is presented in Figure 1.  The independent variables include corporate governance and firm financial performance. The dependent variable is the security returns. The control variables are book value and the ratio of equity to total debt.


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The Demise of Academic Structure - When Organizational Ails Blindside the Organization

Dr. Janice Spangenburg



Treating individuals with dignity and respect never goes out of style, and incidences of maltreatment and sexual harassment are rife in organizations because it does not discriminate and it often is not just between one gender and another. Harassment can target those who are different in other ways and those with education or wisdom and who know the difference. A case just like this case study occurs all over the world, in every industry, including academia. While this case here has occurred and it has been thought the door was closed on it, it is very much a stone that has been overturned. It will continue to be a situation that will start others discussing and thinking about how much we need to learn about this. When we fully learn how to deal with this, it will truly be a better organization and a better world. The truth is those in leadership carry the power and the ability to do something but will they? Let’s hope that the future turns out a multitude of leadership that not only leads but cares for the welfare and treatment of the people and doesn’t prioritize the political element so much. This case study involves an academic organization and the problem of sexual harassment. This is not unique to the academic setting and a situation over several years in this study will be demonstrated. All organizations and leaders of every industry have seen at one time or another problems with the people who work in the organization. This makes sense for the problem that has been a plague in organizations that rears its ugly head, called sexual harassment. Whether it is the overt sexual advance to someone or the hostile workplace aspect, it hurts and causes a black eye in the organization. This is caused by a break down and problem in communication and it can be something that happens innocently, or not. It just is not welcomed and leaders who condone this and do not do the right things on behalf of the organization often find that they are part of the problem. This sexual harassment cannot persist and tears down the positives that are going on in the organization. It is like a disease that comes in and starts tearing on the very fiber of what is going on in the organization. It affects the organizations and its mission and the ability to gain ground and growth. In fact, it stops growth and causes decay of some of the better things and parts of the organization. As it continues it makes people have to work in a culture that is toxic and cannot keep going forward. If it does go forward, it will kill motivation, loyalty and hurt the relationships and communication that helps move the organization in the right direction. This is an example of sexual harassment in an academic setting that was allowed to fester and cause more damage. No form of leadership in the institution did anything to take care of the problem and only moved people to other locations which was just putting the problem on another manager. The senior and higher leadership punished the wrong person and let the other two perpetrators go forth and continue to add to the failing culture, keeping them on the payroll (Spangenburg, 2012). Why has leadership been around so many years, and yet, some take it seriously and some do not. This does cause a phenomenon that drives many of us back to school, and learning more about it. Leadership has been a fascinating element since the dawn of time. The first leadership can be traced back to biblical times and through time we have become more engaged in the workplace and more focused on behaviors and attitudes. That has led to many outcomes and a host of different diverse studies on the topics. This has meaning and has been something that we hold on to and value. This has led us down many roads of discourse and has given us many lessons to learn and apply along the way. One of the things that leadership has brought us was the gift of organizational diagnosis. It demonstrates how people are not always the problem. Sometimes it can be the system or process itself and the root cause is found during the application of this technique. The problem remains is that leaders are not savvy enough to give the people the benefit of the doubt and go straight to accusing them when something occurs. It may very well be a system problem or even a process problem and one that a person never had any input or action or involvement in. This is why leaders need to be trained and to have refresher training to make sure they are up for the challenge.  An organization is complex in nature and critical in every organization is culture and communication. Culture and communication sets the stage in the organization and mostly it does hinge on communication. Sometimes it is both the organizational flow and process and some of the people that do not make it the best place it can ultimately be. Sometimes people show the bad sides of themselves or get wrapped up into the politics of the organization and show a side that they would not otherwise show as will be evidenced in this case of a situation that took a wonderful work environment and plunged it directly into the death spiral. The quality and motivation and the commitment wanes and usually disappears when this happens, opening the door for demise or fatal blow to the organization. An organization does not benefit when the leadership do not respect themselves or the organization and it becomes quite sad to see the demise at the hands of those who are diabolical and self-interested. Those who tune into themselves do not fare very well and they bring their cloud of doom to everyone in the organization. This is why the organization cannot deal with fatal blows or a very dark aura of demise. The impact of culture has been mentioned before and is a critical part of the organization and how it functions, ether positively or negatively. Culture is something that we report being good and bad and thick and thin. When an organization gets many years under its roof, the culture is pretty thick and very hard for people to just move out because they are part of that organization memory and a vested part of the organization as a result. The culture matters and when the culture is positive and conducive to great achievements, the better it is to work and produce through effective and efficient means. When something adverse like sexual harassment is allowed to come in and seize our joy, it affects the culture and makes it start to stop and not grow anymore. It kills the joy and the positives that culture has to provide us. It puts a black eye on things that were once in a better light. While sticking to the higher elements and the positive characteristics is advised, it is very hard to have that when we have something that is being submersed into our daily work and impacts the way we feel and the way we conduct ourselves. Good things are always something we strive to keep alive and when there is a long historical aspect of an organization that is something that makes all proud. That means it has been around a long time and because it has done the right things and followed the rules and regulations. It means the organization has been full of leaders and individuals that have been stewards and doing the right by everyone concerned. It means that the spirit is positive and should endure. When ails start creeping in, these serve to blindside the good in the organization, leaders and individuals alike. In an academic organization, these ails certainly will penetrate out into the students or those that patronize the place of business. If this is not handled delicately it can have a very hard and very abrasive impact. It can take down all the best things that have been accomplished and can turn otherwise good leaders into bad ones.  When we look at an academic structure from the outside, we may not be able to see the problems that are going on inside of the framework or what is impacting a strong foundations. Further, we may not even be aware of the discord or blatant wrongdoing at the center of most things that are going awry. We have to be able to go inside and diagnose the issue and sometimes that is harder than it seems. We can only really do this when the leader gives us the authority to do so and most often it is the case that the wrongs that are being done are known by the leadership and the leaders do not want outsiders to know the real story. This is a true masking of deceit and does more harm than good. While the victim in this paper, Dr. Nobull, did everything to make this known and went through the chain of command, the blame was spread thickly. How can we work in a place that does not give us the autonomy to share our craft and be the best we can be? How can we tolerate anything less than professionalism in the academic sense of the matter? When looking at all that can be and doing the right things and taking charge, a real leader in this academic organization could have made the right decisions and could have made a difference. It is very frustrating to have non leaders who turn a blind eye and forget where they came from and what they learned along the way. If a leader is not there to support the mission and take care of the people and guide them in the right direction, the leader should go into another field where leading is not one of the main functions of the job. 


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