Introducing and applying a new Australian alcohol advertising code

This article introduces the new Australian Alcohol Advertising Review Board (AARB) Code and assesses television advertising practices against its advertising content provisions. The Code is administered by independent experts to provide an alternative to the industry‐led Alcohol Beverages Advertising Code Scheme that has attracted substantial criticism. The new Code aims to balance the alcohol industry's right to promote a legal product against critical protections for young people and public health. To assess whether the new Code will require substantial changes to alcohol advertising practices, a content analysis was conducted of alcohol advertisements aired prior to its introduction on all four free‐to‐air commercial television channels over two months. A majority of the analysed advertisements (48 of 64) contained at least one element that could be construed as a breach of the AARB Code. The largest numbers of potential breaches were for the provisions relating to the association of alcohol with success and using appeals that are likely to be attractive to young people. The results demonstrate that the Australian alcohol industry will need to reassess current advertising practices to achieve compliance with the new Code. Copyright © 2012 John Wiley & Sons, Ltd.     

Do time restrictions on alcohol advertising reduce youth exposure?

Regulators may attempt to reduce youth exposure to alcohol advertising by restricting times during which alcohol ads may be aired on television or radio. The Netherlands introduced such a policy and found that teenage advertising exposure increased following the time restrictions. This study uses simulation analysis and a comprehensive database of television alcohol advertising to demonstrate that time restrictions are likely to reduce advertising exposure to the youngest viewers while increasing exposure for the high‐risk teenage population. Copyright © 2012 John Wiley & Sons, Ltd.     

Does Compliance Pay? Social Standards and Firm‐Level Trade

What is the relationship between trade and social institutions in the developing world? The research literature is conflicted: Importing firms may demand that trading partners observe higher labor and environmental standards, or they may penalize higher standards that raise costs. This study uses new data on retailers and manufacturers to analyze how firm‐level trade responds to information about social standards. Contrary to the “race to the bottom” hypothesis, it finds that retail importers reward exporters for complying with social standards. In difference‐in‐differences estimates from over 2,000 manufacturing establishments in 36 countries, achieving compliance is associated with a 4% [1%, 7%] average increase in annual purchasing. The effect is driven largely by the apparel industry—a long‐term target of anti‐sweatshop social movements—suggesting that activist campaigns can shape patterns of global trade.     

Advertising and the conquest of culture

Thomas Frank's important The conquest of cool: Business culture, counterculture, and the rise of hip consumerism usefully described the advertising industry's “conquest of cool” in the 1960s and beyond, the co-optation of the hip and the cool for the purposes of advertising marketing. This article argues that, since Frank's book appeared, the “convergence of commerce and content” – as the advertising industry calls it – has meant that the production of content is even more entwined with advertising than ever before. The first part of this article describes this shift with particular attention paid to the production of advertising music, which increasingly employs well-known rock, hip-hop, and other popular musicians. The analytical portion of this article draws on the studies of Richard A. Peterson and others on the rise of the socially elite “omnivore” consumer of cultural products to argue that advertising has played a crucial role in this shift, emphasizing the cool and the trendy. Last, the article updates Pierre Bourdieu's influential notion of cultural capital, for, if social elites are more omnivorous in their tastes, then cultural capital today must increasingly be associated with knowledge of the trendy, not only the fine arts.     

Nudging Early Reduces Administrative Burden: Three Field Experiments to Improve Code Enforcement

In the past decade, public sector organizations around the world have worked to simplify administrative processes as a way to improve user experience and compliance. Academic evidence on administrative burden supports this approach and there is a strong body of research showing that learning costs, compliance costs, and psychological costs help to explain why residents do not always take up programs for which they are eligible. This article considers the role of these types of costs in a different set of resident-state interactions: compliance with regulations. We present the results of three large field experiments aimed at improving resident compliance with municipal housing codes using targeted behavioral interventions. We find that contacting property owners earlier, redesigning first notices, and proactively communicating with previous violators, can significantly improve compliance by 14.7 percent, 3.3 percent, and 9.2 percent, respectively, with costs savings ranging from 6 to 15 percent of a city's annual enforcement budget. Our results counterintuitively suggest that sometimes adding steps to an administrative process can reduce the costs associated with the resident-state interaction.     

Tussle for space: The politics of mock-compliance with global financial standards in developing countries

As efforts to harmonize policies globally intensify, developing countries increasingly face pressures to adopt international standards. Yet, we know little about the circumstances under which developing countries manage to circumvent such pressures, or about their strategies to maintain policy space. We explore under which conditions developing countries are willing and able to sustain mock-compliance, a situation where countries comply on paper but not in practice. Using country comparisons of Angola's, Nigeria's, Tanzania's, and Vietnam's engagement with the Basel banking standards, we show how three factors combine to produce sustained mock-compliance: high costs of outright non-compliance due to outward-orientated banking sectors; high political costs of substantive compliance; and state control over profitable markets. Our article contributes to theory-building in the literature on compliance and structural power as well as to broader debates about developing countries' policy autonomy in their engagement with global financial norms.     

Did Ontario's Zero Tolerance & Graduated Licensing Law reduce youth drunk driving?

On April 1, 1994, Ontario, Canada, instituted a new graduated driver license (GDL) system that effectively set the legal blood alcohol content (BAC) threshold at zero for the first few years of a youth's driving eligibility. I use data from the 1983–2001 Ontario Student Drug Use Surveys (OSDUS) to examine whether the Zero Tolerance (ZT) policy reduced self‐reported drinking and alcohol‐involved driving among youth. I find that rates of drunk driving reported by 16‐ to 17‐year‐olds—who faced new, lower legal limits after adoption of the ZT policy—were about 5 percentage points lower after the law was implemented. Visual inspection of the data, however, shows that the estimated reduction is an artifact of a pre‐existing trend: Drunk driving rates in this age group were falling steadily throughout the 1980s and into the 1990s. Estimates that account for this pre‐existing trend or that consider shorter windows around the 1994 implementation date return effects on alcohol‐involved driving that are either small and statistically insignificant or large and implausibly signed (positive). These null findings are robust to using the associated change in outcomes for slightly younger (14–15) or slightly older (19–20) youths as controls in a difference‐in‐differences framework. I similarly find no robust effect on drinking participation. This suggests that Ontario's age‐targeted drunk driving law—despite being harsher than similar policies in the United States—was not responsible for reductions in Canadian youth road fatalities over the past two decades. © 2006 by the Association for Public Policy Analysis and Management     

Institutionalizing fairness in financial markets: Mission impossible?

This article analyzes the institutionalization of process‐oriented regulation, namely: regulatory institutions that allow firms to adapt regulation to their individual circumstances, while holding them to account for the adequacy and efficacy of their internal compliance systems. The article's main focus is on the strategies sought by compliance professionals to attain managers' receptiveness to regulatory expectations. It analyzes British financial firms' responses to a process‐oriented regulatory initiative, which sought to transform the widespread culture of product “mis‐selling” in this industry. Three key arguments and hypotheses are put forward: first, it is suggested that the existing theoretical literature on process‐oriented regulation overly stresses managers' rational, profit‐maximizing motivations for (non‐)compliance, whilst overlooking their emotive motivations. Second, it is proposed that managers' emotive resistance is expected when regulatory expectations challenge firms' “organizational identities” and thereby their individual identities. Third, it is hypothesized that when process‐oriented regulation poses a threat to organizations' identities, its institutionalization will entail delegation of the design and subsequent implementation of compliance systems to managers outside compliance, and reframing of regulatory expectations into existing businesses discourses and methodologies.     

Establishing New Advertising Self‐regulatory Schemes: A Comparison of the UK and Australian Approaches

Advertising is the most visible element of modern marketing, and an important component of trading. It is also an activity often accused by its critics of being intrusive and pervasive. Such accusations are not easily refuted by a worldwide industry which spends billions of dollars each year reaching and persuading its target markets through daily bombardment of thousands of ads in most developed countries. When advertising does offend, mislead, or is untruthful, a structure needs to be in place in order to provide protection to all parties and, in most cases, a country's legal system is complemented by a self‐regulatory scheme. Self‐regulation is a common approach to controlling conduct or behaviour in society and, indeed, Australian advertisers have opted for this system of control for more than 60 years.     

Uniformity as response to soft law: Evidence from compliance and non‐compliance with the Dutch corporate governance code

The objective of the paper is to examine how firms have dealt with the trade‐off between flexibility and uncertainty that is characteristic for the decision‐making of firms in coping with self‐regulatory initiatives in general and the comply‐or‐explain principle in corporate governance in particular. Using unique data for 126 listed Dutch firms, we find that firms respond to this self‐regulatory initiative by largely complying with the code recommendation, possibly out of fear that the firm's reputation may be damaged. Furthermore, we find evidence suggesting that firms confine themselves to adopting a specific set of code recommendations and use similar arguments to explain non‐compliance. Our findings indicate uniformity in adopting the standard of good governance which is not in line with the logic of corporate governance codes and casts doubt on the effectiveness of this form of soft law. Overall, the paper's findings indicate that more restrictive (regulatory) instruments may be necessary to make firms conform to the spirit of codes.     

Oppositional symbolic values of language display,or the case of “English” drinking in France

This article examines the linguistic manifestations of the tension between notions of a healthy national drinking culture and the increasing homogenisation of problematic drinking practices in an era of globalised marketing and media influence. Taking the proliferation of English in France when it comes not only to alcohol advertising, but also public health discourses and mass media commentary as its object, this paper discerns patterns of and motivations for English language borrowings in French when discussing alcohol and immoderate drinking practices. Findings point to a double indexicality in these borrowings. On the one hand, the widespread use of English in alcohol advertising draws on and creates positive associations between English and Anglo-American culture and, on the other, the public health community's use of English terms like binge drinking designates problematic drinking behaviours as foreign and anathema to traditional modes of French alcohol consumption, and by extension to French cultural identity.     

The Political Viability of Carbon Pricing: Policy Design and Framing in British Columbia and California

The adoption of climate policies with visible, substantial costs for households is uncommon because of expected political backlash, but British Columbia's carbon tax and California's cap‐and‐trade program imposed such costs and still survived vigorous opposition. To explain these outcomes, this article tests hypotheses concerning policy design, framing, energy prices, and elections. It conducts universalizing and variation‐finding comparisons across three subcases in the two jurisdictions and uses primary sources to carry out process tracing involving mechanisms of public opinion and elite position‐taking. The article finds strong support for the timing of independent energy price changes, exogenous causes of election results, reducing the visibility of carbon pricing, and using public‐benefit justifications, as well as some support for making concessions to voters. By contrast, the effects of the use of revenue, industry exemptions/compensations, and making polluters pay are not uniform, because the effects of revenue use depend on how it is embedded in coalition building efforts and a middle path between exempting or compensating industry and burdening it appears to be more effective than pursuing just one or the other approach.     

Signs of change in North Korea

The spread of liberal democracy around the world has raised the risk of wishful thinking by students of democratization who hope that what they study will happen. One way of reducing this risk is to focus on regions that challenge the expectations and explanations of democratization. Four criteria can roughly measure a region's ‘recalcitrance’ in this regard: the extent to which it: (1) lacks liberal democracy, thus disappointing democ‐ratizers; (2) is diverse, thus making it hard to explain the lack of liberal democracy with across‐the‐board generalizations; (3) seems not to fit a particularly common expectation, e.g., that more well‐to‐do countries should be more liberal‐democratic; and (4) has leaders who have articulated a serious critique of liberal democracy. By meeting all of these criteria more fully than other parts of the world, Southeast Asia qualifies as the most recalcitrant region. The anomalousness of Southeast Asia is no reason for pessimism. But it does suggest that observers would do well to diversify what they mean by democracy beyond its conventionally liberal form.     

Facing the future: young people's awareness of the 2001 British general election advertising campaigns

This paper presents findings from a national survey of ‘potential’ first time voters at the 2001 British general election. It investigates these young people's awareness of the advertising used by the main political parties during this election. Overall what emerges is a young electorate aware of the advertising, who were interested in the election itself and nearly half of whom say they voted in it. Consequently the findings reject the notion that young people are generically unaware of and disinterested in party political messages. In addition the findings indicate that the political parties' print advertisements—to some degree—are penetrating the first layer of young people's message processing, suggesting they are a useful aid in capturing the youth vote. Copyright © 2003 Henry Stewart Publications     

The importance of industry compliance in improving advertising self‐regulatory processes

As the most visible element of the marketing communications mix, advertising has had its critics and, given the choice, developed countries usually select a self‐regulatory approach to deal with unacceptable advertising. The recent breakdown of one of the world's longest established advertising self‐regulatory programmes in Australia has reopened the 20‐year old debate that has taken place in the leading academic and business journals concerned with enhancing understanding of such regulatory systems. This paper focuses on the activity of code enforcement in improving the effectiveness of advertising self‐regulatory frameworks. The key findings of an Australian study, where its scheme has recently failed, are presented and discussed in this context and a key concept is developed. Copyright © 2003 Henry Stewart Publications     

The challenge of accountability in complex regulatory networks: The case of the Deepwater Horizon oil spill

A puzzle that faces public administrators within regulatory governance networks is how to balance the need for democratic accountability while increasingly facing demands from elected officials to optimize oversight of industry by utilizing the expertise of the private sector in developing risk‐based standards for compliance. The shift from traditional command and control oversight to process oriented regulatory regimes has been most pronounced in highly complex industries, such as aviation and deepwater oil drilling, where the intricate and technical nature of operations necessitates risk‐based regulatory networks based largely on voluntary compliance with mutually agreed upon standards. The question addressed in this paper is how the shift to process oriented regimes affects the trade‐offs between democratic, market, and administrative accountability frames, and what factors determine the dominant accountability frame within the network. Using post‐incident document analysis, this paper provides a case study of regulatory oversight of the deepwater oil drilling industry prior to the explosion of the Deepwater Horizon rig in the Gulf of Mexico, to explore how the shift to a more networked risk‐based regulatory regime affects the trade‐offs and dominant accountability frames within the network. The results of this study indicate that a reliance on market‐based accountability mechanisms, along with the lack of a fully implemented process‐oriented regulatory regime, led to the largest oil spill in US history.     

Flying high: A case study of Japanese industrial policy

Japan's policies with respect to industry promotion consist of much more than picking winners and subsidizing them to ensure their success. The highly flexible and adaptive character of Japan's policies is illustrated by the country's efforts to enter the world aerospace industry, an industry in which Japan is handicapped by the absence of a substantial domestic market. To meet the challenge, Japan has concentrated its efforts on altering the very structure of the world market in which it hopes to compete. Japan has participated systematically in international consortia, hoping to use such consortia as a conduit for acquiring access for foreign technology and foreign markets.     

External dimensions of European environmental policy: An analysis of environmental treaty ratification by third states

The European Union has become an important leader in international environmental affairs – particularly through the negotiation of multilateral environmental agreements (MEAs) with favourable terms. In this article, EU environmental leadership is studied from a new perspective, focusing on the ratification stage of environmental regime formation. Specifically, it investigates whether the EU is also capable of motivating third states to join its preferred MEAs. It is argued that third states join the EU's preferred MEAs to signal their compliance with EU environmental standards in an effort to become eligible for various rewards that the EU could potentially offer, including a credible membership perspective, access to its lucrative markets, and aid and assistance. The argument is tested by examining the ratification behaviour of 25 non‐EU Member States with regard to all 21 MEAs negotiated under the auspices of the United Nations Economic Commission for Europe (UNECE). The results provide robust support for the theory that EU rewards motivate third states to ratify these treaties. The results withstand a number of statistical tests, even when alternative explanatory factors such as trade intensities, transnational communication and geographic proximity are controlled for. The study is the first large‐scale demonstration of the EU's external influence at the ratification stage of environmental regime formation. By identifying three different channels of EU influence, the research permits a more refined understanding of the EU's role as a promoter of environmental protection standards.     

Long‐Run Labor Market Effects of the Job Corps Program: Evidence from a Nationally Representative Experiment

Job Corps is the nation's largest and most comprehensive career technical training and education program for at‐risk youth ages 16 to 24. Using the sample from a large‐scale experiment of the program from the mid‐1990s, this article uses tax data through 2015 (20 years later) to examine long‐term labor market impacts. The study finds some long‐term beneficial effects for the older students, with employment gains of 4 percentage points, 40 percent reductions in disability benefit receipt, and 10 percent increases in tax filing rates in 2015. For these students, program benefits exceeded program costs from the social perspective. This study is the first to establish that a national program for disconnected youth can produce long‐term labor market gains, and can be a positive investment made for society. The results suggest that intensive, comprehensive services that focus on developing both cognitive and noncognitive skills are important for improving labor market prospects for this population.     

Firm size and regulatory compliance costs: The case of workers' compensation insurance

This paper examines the relative costs of workers' compensation insurance across firm-size groups, with particular focus on administrative scale economies (“compliance effects”) and biases in rate-setting (“enforcement effects”). Analyzing data on premiums and losses from the insurance industry, the authors find that the costs of insurance per dollar of loss are relatively high for very small firms. These higher costs reflect certain fixed administrative costs insurance companies must bear, but for extremely small firms these higher costs tend to be mitigated by an “enforcement” bias in state rate-setting outcomes. Due to imperfect experience-rating of insurance premiums, middle-sized firms—which have the highest losses—pay less per dollar of loss than either the smallest or largest firms. Indeed, it appears that large firms purchasing commercial workers' compensation insurance subsidize other size groups.