Law

Overview

In recent times, there has been an increase in scandals within the corporate environment (Friedman, 2007). There has also been a sharp decline in business values especially with regards to the manner in which employees conduct themselves within and outside the workplace. These trends have raised eyebrows as to the status of ethics and corporate responsibility. With an aim of enhancing corporate responsibility, the United States Congress passed the Sarbanes-Oxley Act with an aim of encouraging corporations to conduct business in a legal manner (Mallow, Barnes, Langvardt, Prenkert and McCory, 2015).

Through this Act, firms are expected to run their business in an ethical and responsible manner. This paper will thus focus on the ethical and criminal responsibility that employers have with their employees.

Ethical Obligations of the Employer

In an event where an employer knows or has reason to suspect that an employee poses danger to others, the employer has an ethical obligation to take corrective or preventive measures. In accordance to the right’s ethical theory, there are specific human liberties that are critical and should be respected by every individual (Knights, 2006). This theory lays emphasis on the rights and liberties of individuals within the society and as such it creates a fundamental basis that aims at safeguarding the rights of each individual as per the stipulations of the constitution.

In this respect, an employer is bestowed with the ethical responsibility of ensuring the safety of employees as well as the public. Therefore, an employer is expected to create and maintain a working environment that is safe for both the employee and the public and if the employer knows or has reason to suspect that an employee poses danger to others, the employer should take necessary steps to remove such an employee from the workplace as a precaution.

Level of Evidence

As asserted earlier, an employer has the ethical obligation of ensuring and maintaining the safety of the employees and the public. Therefore, in an event where the employer has reasonable suspicion or irrefutable evidence against a specific employee, the employer has the power to dismiss the said employee from the workplace as a security measure. This is due to the fact that employers do not need to have irrefutable evidence of harmful behavior, malice, or misconduct to take necessary action that is required to safeguard other employees or the public (Guest and Woodrow, 2012).

Details and Extension of Ethical Obligation

An employer has an ethical obligation that extends to the employee in question, other employees at the workplace, and the public. The harmful act of an employee can be within or outside the workplace. As asserted by Mallow et al. (2015), the violence of an employee in the public scene is considered as a more pressing issue as compared to the workplace. In such an event, an employer has two approaches in dealing with the issue; a corrective action and a preventive action (Nord, 2006). Usually, employers apply the corrective action approach by terminating the employment of the employee in question.

On the other hand, employers apply a preventive approach by avoiding hiring individuals who seem to have the potential of posing harm to fellow employees or the public. The most common means of achieving this is through screening especially on social media sites of employees to get a glimpse of their behaviors and activities. Constant monitoring of the personality of the employees at the work place is also an ideal means of screening to determine if an employee has the potential to cause harm at the work place. Most importantly, employers should have regular clinics, trainings and seminars that aim at enhancing the importance of adhering to the ethics of the corporation as well as adhering to the stipulations of the law.

Ethical Obligation to the Employee

In the case at hand, the employer has ethical obligations with regards to the employee at hand. First, the employer needs to be familiar with the codes of ethics that govern the profession of the employee in question (Valentine and Fleischman, 2008). In this respect, the employer will be in a better position of acting in an ethical and professional manner with regards to the employee’s harmful behavior. Generally, the employer has an ethical obligation of treating the employee in question with integrity. In this case, the employer is expected to treat the employee in a morally accepted manner.

The employer is also expected to be honest to the employee. In this case, the employer needs to clearly explain to the employee the accusations that have been laid against him/her and the decision that the employer has arrived on with regards to the said acts. Finally, the employer should handle the case of the employee and treat him/her with fairness. The employee needs to be impartial while handling the case. Despite the outcome of the decision that will be arrived at, the employer needs to be just and fair. These ethical obligations are necessary since the employee in question is part of the employer’s staff and as such should be treated according to the moral and ethics of the corporation.

Torts and Criminal Liability in the Scenario

In the scenario described, several torts and criminal liabilities may arise depending on the nature of the wrongful act that was conducted by the employee in question. For instance, if the employee in question physically assaulted a fellow member of staff or a member of the public in a violent manner, he/she would be liable for the tort of battery. The employee in question will also be liable of the criminal offense of assault.

In accordance to the doctrine of Respondeat superior, the employer may also be liable for the acts committed by the employee if the said acts were within the employee’s scope and description of employment (Valentine and Fleischman, 2008). However, if the acts were outside the scope and description of employment, the employer can only be liable if it is proven beyond reasonable doubt that there was negligence in the process of hiring, supervising and retaining the employee.

References

Friedman, B. (2007). Workplace Privacy: Employee Relations and Legal Implications of Monitoring Employee E-mail Use. Employee Response Right Journal, 122(3), 45-53.

Guest, D. E., and Woodrow, C. (2012). Exploring the Boundaries of Human Resource Managers’ Responsibilities. Journal of Business Ethics, 111(1), 109-119.

Knights, D. (2006). Leadership, Ethics and the Responsibility to the Other. Journal of Business Ethics, 67(1), 125-137.

Mallow, J., Barnes, A., Langvardt, A., Prenkert, J. and McCory, M. (2015). Business Law: The Ethical, Global, and E-Commerce Environment. New York: McGraw-Hill.

Nord, G. (2006). E-Monitoring in the Workplace: Privacy, Legislation, and Surveillance Software. Communications of the ACM, 49(8), 118-131.

Valentine, S. and Fleischman, G. (2008). Professional Ethical Standards, Corporate Social Responsibility, and the Perceived Role of Ethics and Social Responsibility. Journal of Business Ethics, 82(3), 657-666.

The meaning of legal terms used in the contract

• Hereby-by virtue of
• Render-make
• Prior-before
• Execution-performing a task
• Pursuant to-according to
• Strict compliance-adherence to given rules
• Disclose-bring out
• Assigns- allocates a piece of work
• Merger- combining aspect
• Binding-obligating one to
• Deemed-assumed
• Construed-given by

  • The titles have been exerted in the contact statement after a careful study of the document.
  • Short explanations of the requirements of each clause.

Arbitration

It provides a method of solving conflicts that may arise in the cause of fulfilling the contract between the two parties.

Assignment

It explains the task to be performed during the contract and it is the reason for hiring the contractor in the first place.

Choice of Law

It specifies the particular legal principles applicable to this specific contract.

Compensation

It explains the remuneration or payment to a party for tasks performed after completion.

Conflict of Interest

It elaborates what is to be done in case individual interests that are against the contract emerge as well as prevents the parties from the contract from taking part in activities that directly conflict with the task to be performed.

Entire Agreement

It explains piecemeal interpretations of the agreements and their validity

Exclusivity

It explains the importance of the contract over all other agreements.

Expenses

It explains how the contractor is to be reimbursed in case of extra expenses from their monies.

Force Majeure

It explains the superiority of the contract over other agreements that either party may get into in the course of the contract.

Headings

It elaborates on how various titles should be interpreted.

Insurance

It explains the nature and validity of insurance policies that may be sorted by either party.

Invennins

This clause sets the path straight about discoveries or other related inventions by either party during the contract.

Invoicing

It explains how to fill and submit invoices.

Language

The clause specifies the language to be used in interpreting the contract.

Merger

Explains what should happen in case the company is merged with other companies in the course of the contract.

Non-Hire Provision

It prevents one party from hiring employees of the other within a specified period after the contract.

Service of Notices

It gives the procedure to be followed in serving notices.

Services to Be Provided

This clause explains the particular task to be performed during the duration of the contract.

Severability

Elaborates how punitive, non-adherence to the terms of the contract can be detrimental.

Successors and Assigns

It explains how successors and other similar parties can affect the contract.

Term

It gives details on the duration of the contract from the beginning to the end.

Termination

It explains how the contract can be brought to an end and what actions can lead to such a decision.

Trade Secrets and Confidentiality

This clause prevents the parties from exposing confidential information related to the business to a third party not stated in the contract.

Waiver

It brings out situations that may lead to the nullification of the whole contract.

Written reports

It elaborates on the impacts of the various reports that may contradict the terms of the contract.

1. The contract starts upon signing of the agreement and ends on the date that is to be specified under the end of the termination clause.
2. The contract has to complete the tasks specified in the contract. They will then serve the company with the invoice containing the amounts to be paid. Payments will be made after processing of the invoice (Randy 33).
3. Expenses paid from the contractor’s pocket to cater for the contractual assignments are paid back to together with their remuneration. He is expected to specify such payments on the invoice and they should be supported with their specific receipts.
4. The contractor is allowed to work for others as per the terms of the contract, but he is expected to give more priority to this contract (Ewan 42).
5. A third party like the contractor’s son or wife can only take up the contractual assignments after the contractor agrees with the company on such arrangements in writing and the company must agree if not then a third party cannot transact.
6. Intellectual property relates to many inventions and discoveries that may come up in the course of the contract. Such properties are owned by the company and not the contractor as it is clearly stated under the invention clause.
7. The contract binds the contractor after completion in terms of who he can employ or hire.
8. The contractor is restricted from setting up his own business with any of the employees of the company six months after completion of the contract.
9. In the case of disagreements between the contractor and the company, they should make use of the arbitration clause. The arbitration clause contains the rules and venue at which the conflict will be resolved. The rules are specified by the parties to the contract at the time of signing the contract and hence they should be adhered to in case of any breach of contract or dispute (Atiyah 56).

Final analysis and conclusion

The contract is a bit fair, although to some extent it favors the company. It is fair in that at the end of it all the contractor is fully compensated for the work done and any expenses incurred from their own pockets reimbursed as long as they can provide proof of the expenses incurred. The company also benefits from the services rendered by the contractor thus they have nothing to lose since their business secrets are safe as per the terms of the contract and if the other partner gives out any of their insider information then they will be liable to prosecution by law.

However, it is unfair that the contractor does not gain anything from the intellectual properties that may come up in the course of the contract. The terms are clear that any such inventions will be the sole property of the company and this may make the employees of the company reluctant to provide all their expertise as well as explore their creative potential for the fear of not being recognized. The company is not expected to pay for such discoveries in any way as it is not stated in the contract and making the company pay will result in a breach of the contract yet a contract is usually protected by law.

Works Cited

Atiyah, Philip. The Rise and Fall of Freedom of Contract. New York, NY: Clarendon Press, 2009. Print.

Ewan, McKendrick. Contract Law – Text, Cases and Materials, London, UK: Oxford University Press, 2006. Print.

Randy, Barnett. Contracts. London, UK: Aspen Publishers, 2010. Print.

The affordable care act has related provisions in titles one to ten. Title one reflects on the quality and affordable health benefits for American citizens. The provisions of the title are rules and mandates of employers, insurance companies, and tax credits. Title two lays down the role of public programs such as Medicaid and Medicare. The title discusses the changes in the health care workforce and the provision of new taxes.

According to Hofer, Abraham, and Moscovice (2011), the second provision improves disabled care through the expansion of home care services at flexible rates. Title three discusses the improvement of the quality and efficiency of health care. The provision protects Medicare through the increase of incentives to healthcare institutions. The rural communities are getting quality and efficient health services through the implementation of the provisions of title three (Harrington, 2010).

Title four actively encourages the prevention of diseases and the improvement of public health. According to Rosenbaum (2011), the provision uses the national health promotional strategies in chronic illness reduction and enhancement of innovation in the public health sector. Title five promotes education advancement among health care practitioners and related professionals. The provision provides loans and scholarships with an aim of workforce development. Title six encourages transparency and program integrity in health care. The sixth provision advocates the exposure of frauds and abuse of healthcare requirements (Harrington, 2010).

Title seven promotes health care competition through the improvement of innovative medical therapies. The effect of the competition is the availability of efficient and affordable medical products in the market. Title eight provides additional options for financing through different categories of health insurance plans. Title nine closes all the tax loopholes through broadening the tax base of Medicare. Title ten strengthens the quality of affordable care through the incorporation of amendments and the development of administrative standards (Rosenbaum, 2011).

The paper discusses the third provision that aims at improving the efficiency and quality of health care services. One of the sub-topics in the third provision is improving Medicare for care providers and patients. The financing of the Medicare improvements is through enrollment in a Medicare savings program. The savings program ensures taxpayers’ patients become the beneficiaries with minimal adjustments (Jencks, Huff, & Cuerdon, 2003).

The savings under the Medicare programs also motivates the health care providers, especially in the rural setting. Medicare is the main health coverage for people with disabilities and people above 65 years old. Medicare patients rely on family members to get comprehensive support in medical care access. The third affordable care act provision allows supplementation of the insurance from the Medicare savings, especially in times of emergency (Hofer et al., 2011).

Jencks et al. (2003) appreciate the low-income savings programs under Medicare that aim at cost-sharing the health care expenses for the Medicare beneficiaries. The financing access quality of care is facing challenges of low enrollment of the Medicare savings programs, hence the low number of beneficiaries of the funds. The significant changes in the Medicare saving program for the taxpayers’ patients are an expansion of limits on health disparities and a reduction in the cost of treating chronic illnesses. The Act limits inflation of the medical costs through a provision of low-income subsidy on taxpayers’ patients.

The affordable care act prioritizes quality performance and reporting of the Medicare improvements. The national government permits post-hospital care services to the taxpayers’ patients in line with the type of health care insurance plan. Financial sustainability is a major risk in the process of improving Medicare for patients and providers. Additionally, the financing access quality of care involves the implementation of the final goals of financial risk protection through social responsiveness (Baker, 2011).

In terms of care providers, the third provision has regulations that motivate doctors and other health care providers for offering quality care. The provision creates incentives for health care providers that allow them to work together purely voluntary. The Medicare savings program also plays a role in the soliciting of funds for the care providers from Federal government agencies and societies.

The health care providers have the mandate of maintaining constant funding to facilitate quality and efficient service provision. The Medicare savings program encourages health care providers in meeting the recommended performance standards through sharing in the savings program (Poghosyan, Lucero, Rauch, & Berkowitz, 2012). The care providers benefit from the Medicare savings program through the provision of electronic health records, physician quality reporting systems, and other incentive programs. The incentive programs ensure the health care providers remain relevant in the medical field through the acquisition of advanced knowledge of treatment and care procedures (Baker, 2011).

The beneficiaries of the Medicare savings program are few due to limited access to the finances. The private bodies in the United States have a role in financing quality care through taxes and other government policies. The funds support the elderly and low-income people. The provision allows the use of a certain percentage of the funds in payment of health care providers working in rural settings to offer quality care to the patients.

The health care providers in rural areas use some of the innovations in soliciting funds from the government and invest in medical research. Generation of funds for access to quality care involves a combination of tax regulations, restriction on the reduction of incentives, and budget ceilings (Poghosyan et al., 2012).

References

Baker, T. (2011). Health insurance, risk, and responsibility after the Patient Protection and Affordable Care Act. University of Pennsylvania Law Review, 1577-1622.

Harrington, S. E. (2010). US Health‐care Reform: The Patient Protection and Affordable Care Act. Journal of Risk and Insurance, 77(3), 703-708.

Hofer, A. N., Abraham, J., & Moscovice, I. (2011). Expansion of coverage under the Patient Protection and Affordable Care Act and primary care utilization. Milbank Quarterly, 89(1), 69-89.

Jencks, S. F., Huff, E. D., & Cuerdon, T. (2003). Change in the quality of care delivered to Medicare beneficiaries, 1998-1999 to 2000-2001. Jama, 289(3), 305-312.

Poghosyan, L., Lucero, R., Rauch, L., & Berkowitz, B. (2012). Nurse practitioner workforce: a substantial supply of primary care providers. Nursing Economics, 30(5), 268.

Rosenbaum, S. (2011). The Patient Protection and Affordable Care Act: implications for public health policy and practice. Public Health Reports, 126(1), 130-135.

Introduction

Companies engage in takeovers with the objective of increasing their value. Different nations have diverse legislations that guide or regulate takeovers. In the UK, Shikha reveals that takeover regulations take a shareholder-oriented approach.¹ Indeed, shareholders reserve the right and authority to permit managers to engage in any defensive tactics for a takeover bid. In fact, in the UK legislation, the City Code on Takeovers and Mergers only comes into play when a bid already exists. In support of this assertion, Jindra and Moeller state, “ban on defensive tactics by managers in the UK clearly makes it easier for hostile bids to succeed”.² Hence, the existence of a bid gives room for managers to deploy less stringent regulations before the actualization of a takeover bid. Despite this possibility, the UK still believes that its takeover regulations encourage economic growth. From this position, by reviewing the literature on hostile takeovers and considering typical takeover cases between Cadbury Plc and Kraft Food Inc., this paper argues that the UK’s takeover regulations are detrimental to its long-term economic growth and that urgent reforms are needed to address this situation.

Literature Review and Gap Analysis

According to Johnston, City Code on Takeovers and Mergers entails several written down rules and regulations that guide takeovers in the UK.³ A panel administers these rules. According to Armour and Skeel, the staff of the panel must be approved via being seconded by various members of professional communities whom the rules and regulations seek to control.⁴ In case of any disputes, the team has the responsibility of responding in real-time and flexibly to the voiced concerns. However, as Johnston reveals, this approach differs to that of the U.S. since Delaware Courts have the duty of governing takeovers.⁵ The UK City Codes focus on protecting the interest of shareholders during takeovers. The codes impose compulsory proposal requirements coupled with equal treatments, hence preventing all acquirers from engaging in coercive bids.

According to Asker, Farre-Mensa, and Ljungqvist, corporate takeovers should serve the principal purpose of improving stock prices and the stock market performance of various businesses that are involved in takeovers through a merger or acquisition.⁶ However, despite the substantial stock price increment after a takeover, Erel, Jang, and Weisbach assert that the acquirers suffer negative market performance in the long-term.⁷ Arguably, this situation occurs in instances where takeovers are based on ill intentions. For example, the 1996 hostile takeover worth 11.6 billion USD involving Wells Fargo and First Interstate Bancorp resulted in a merger where various company executives left followed by evidence of various accounting errors in the corporations’ accounts, which left regrettable problems to customers as Shenoy reveals.⁸ Amid these challenges, the UK regulations still give room for hostile takeovers. Indeed, considering the experience between Wells Fargo and First Interstate Bancorp, hostile takeovers are detrimental to long-term economic growth.

Considering various regulations that are applicable to different jurisdictions, the literature on takeovers establishes mechanisms for ensuring that takeovers do not produce negative implications to a country’s long-term economic growth due to hostilities in the bidding process. For example, Bates and Becher reveal how regulations in the U.S. permit flexibility in the bidding process by not prescribing a mandatory proposal as witnessed in the UK.⁹ According to Armour and Skeel, mandatory bid requires “bidders who acquire a large block of target shares to make an offer for all of the target company’s shares”.¹⁰ A gap is apparent in this plan since it dictates the price of all other shares to the extent that a bidder can only pay an equal price for every share acquired. Consequently, as Greene points out, it is likely that shareholders would not have an opportunity to sell all shares in case a given bidder acquires a company.¹¹ This situation is disadvantageous to the long-term financial development in jurisdictions such as the UK where many takeover deals take place with target companies having no capability to deploy defensive tactics to frustrate the takeover offers.

Arguably, managers can help to overcome the challenge of a hostile takeover and its effects on long-term economic growth if the UK legislation on takeover and mergers reforms. The U.S. legislation constitutes an important benchmark in this case. Managers in the UK can deploy various defensive tactics that help in keeping away any hostile takeover bids. For example, according to Anand, the poison pill dilutes any potential hostile takeover bid in case a bidder obtained higher target stocks than initially specified.¹² Hence, successful deployment of the poison pill strategy to keep off hostile bids requires managers and the board of directors to have the discretion to resist any hostile takeover bid. Indeed, instead of providing a playground for a hostile bidder, it is far better if the UK takeover regulation promotes good relationships with the favoured bidders. As Gatti observes, lock-up provisions and breakup fees can help to achieve this noble concern.¹³ In fact, many states around the globe have adopted anti-takeover laws with the sole purpose of slowing or preventing unwanted takeovers.

Anti-takeover laws employ different techniques that aim at enabling managers to resist actively any takeover that is deemed hostile. According to Rowoldt and Starke, the provisions include the fair-price plan, managers taking control of shareholders’ interest, and eliminating voting rights for bidders unless approval from shareholders left after the takeover is made.¹⁴ In fact, Hasani and Liu inform how the provision of fair prices limits “a bidder’s flexibility to effect a subsequent combination after acquiring control”.¹⁵ However, the UK forbids poison pills or any managerial involvements aimed at frustrating takeover bids unless where shareholders present an approval. Takeovers seek to enhance synergies. However, Callaghan argues that they increase returns on shareholders but to the disadvantage of employees and creditors in the UK.¹⁶ For example, a merger results in the laying off of some employees, a situation that Worthy claims have consequences on their future purchasing power and hence detrimental to the UK’s long-term economic growth.¹⁷ Consequently, it is most desirable to eliminate and prevent any value-decreasing takeovers to enhance economic development in the United Kingdom.

Main Argument

The literature review establishes that the UK’s regulations on takeovers and mergers allow hostile takeovers to occur. Indeed, between 1990 and 2005, Armour and Skeel confirm that 0.85% of the mergers in the UK were hostile compared to 0.57% in the U.S.¹⁸ To this extent, a major argument that the UK’s takeover regulations are unfavourable to the country’s long-term economic growth emerges. This situation calls for an urgent transformation in the UK. Arguing that rules 9, 21, and 23 of the UK City Code create a scenario that increases the possibility of hostile takeovers occurring does not imply that one is anti-business. Here, the primary concern is that hostile takeovers cause short-termism, which has a detrimental impact on the UK’s long-term economic growth and hence the need for reforms to restore sanity in the UK’s takeover regulations.

Evidence to Support the Main Argument

In support of the above argument, damages to the UK’s long-term economic growth are evident in the regulations’ inability to provide room for managers to take part in turning down any offensive bid through defensive tactics, yet they are the main repositories of the company’s information. The objective of such a denial is to ensure that shareholders have access to all information necessary during bidding decision-making processes. As the true owners, Hannigan asserts that shareholders have the obligation and right to determine the future of their company.¹⁹ However, in line with Kershaw’s views, takeovers, especially through mergers and acquisitions, lead to some employees’ lay-offs and the cutting of some business lines with suppliers.²⁰ The net effect is the reduction of the purchasing power of a significant portion of the people who initially relied on the operations of companies forming the merger for income as Liu reveals.²¹ Since such revenue is redistributed to the economy, in this case, the UK, any hostile bid should be avoided.

The case of Cadbury Plc and Kraft Food Incorporation underlines the need for changing takeover regulations in the UK. Dulo observes, “For Cadbury plc, the Takeover Panel issued a public criticism of Kraft Food Incorporation for certain statements made by Kraft about the future of Cadbury’s Somerdale factory in the context of its offer for Cadbury”.²² In fact, consistent with this assertion, the statements failed in meeting information accuracy requirements as stated under regulation 19.1 of the UK City Code. This situation points to the need for changing the UK’s takeover regulations to allow bidders to provide additional and detailed information on takeover bid financing, including any emerging effects and implications. It is important for various boards of target corporations to state their views, including the bidders’ intentions. In fact, according to Tsagas, even the case Cadbury Plc prompted the UK’s takeover panel to consider potential areas that required alterations in the regulations.²³ The case also evidences that short-term investors can proactively participate in pushing for bid acceptance without due consideration of the long-term economic implications of their actions.

Kraft’s short-term investors played an active role in accepting a condition of 50 percent plus one. Temporary shareholders bought shares after it came to public attention that an imminent possible offer was underway. According to the Companies Act of 2006 Section 983, through the voting power, as per their shareholding, such shareholders influenced the outcomes of the offers.²⁴ As argued in the literature review section, managers in the UK have no permission to participate in tactics that may frustrate a bid unless authorized by shareholders. Consequently, according to the rules presented in the UK Takeover Code, short-term shareholders who have no sufficient experience in a firm’s performance are required to authorize managers to take such initiatives to protect them from future losses.²⁵ However, considering the positive anticipation of the increased stock market prices, such shareholders are unlikely to do so. Nevertheless, an urgent change of the UK’s regulations on takeover and mergers is necessary to effectively manage the powers of new shareholders who buy shares just before takeover offers are made as Manne observes. For example, even without diverting from shareholder-oriented regulations, the disfranchisement of shareholders is necessary.²⁶ This strategy can ensure that only shareholders who hold shares before an offer is announced are allowed to take part in the voting, thereby effectively contributing to an appropriate acceptance threshold in line with the UK’s economic growth plan.

Counter-Argument

Without the consent of shareholders, Armour and Skeel assert that managers cannot utilize defensive tactics in takeover negotiations that have a net effect of frustrating the actualization of a bid.²⁷ This situation raises the question of whether the UK’s takeover regulations consider the role of managers as the shareholders’ appointed agents who make decisions on behalf of their employers. Arguably, managers have better access to all critical organizational information necessary during bid negotiations. Hence, making it mandatory for shareholders to consent to the use of defensive tactics implies that managers are denied their role in making and implementing vital strategic decisions that benefit the owners of companies, which are undergoing takeovers. A possible counter-argument is that many managers fail to comply with corporate governance principles and instead engage in defensive tactics with the objective of achieving personal interest to the disadvantage of shareholders.

Criticizing the Counter-Argument

The counter-argument may be refuted. The UK and the U.S. have similar corporate governance systems. However, regulations on takeovers in the two jurisdictions take different routes. The U.S. Delaware system permits managers to manoeuvre by employing defensive tactics without seeking consent from shareholders. This plan works well in America, a situation that raises the question of what may be wrong with the UK adopting a similar approach in its takeover regulations. For example, through the poison pills, Deakin and Slinger assert that scenarios such as the influence of short-term shareholders on bid-offer outcomes may be avoided.²⁸ In fact, mergers and acquisition deals are detrimental to the long-term economic growth in the UK akin to the possibility of laying off some employees and cutting links with some suppliers. This situation is worse upon considering a scenario where the acquiring firm has some hidden intentions, yet short-term investors have to give managers the authority to engage in defensive tactics aimed at frustrating a hostile bid through their share voting powers.

A proposal to disfranchise short-term shareholders’ voting power faces a counterargument that they bought shares from long-term investors during the offer period. Therefore, disfranchising them amounts to eroding their rights for taking control of the affairs of their company extended to them by the long-term shareholders. In other words, according to Gatti, disfranchisement negatively influences the principle of uninterrupted capital flows, hence rendering the concept of one share for one vote useless.²⁹

Summation and Conclusion

Different jurisdictions adopt diverse approaches to regulate takeovers. For example, although the U.S. adopts the Delaware system, the UK has a team that administers various regulations on takeovers and mergers. This difference exists amid the two jurisdictions having similar corporate law systems. The disparity has a detrimental effect on the UK’s system to the extent that it is more susceptible to hostile takeovers compared to America. The paper has suggested the need to curtail the possibilities of hostile takeovers in the effort to ensure that acquisitions and mergers produce positive effects on shareholders, employees, and any other parties such as suppliers. The paper has argued that takeovers should not have negative spillover effects that disadvantage all concerned parties to the detriment of the overall economic growth as witnessed in the UK.

Bibliography

Anand, Anita, ‘The Future of Position Pills in Canada: Are Takeover Bid Reforms Needed?’ (2015) 61 McGill LJ1.

Armour, John, and David Skeel, ‘Who Writes the Rules for Hostile Takeovers, and Why?” The Peculiar Divergence of US and UK Takeover Regulation’, (2007) 95 Georgetown Law Journal 1727.

Asker, John, Joan Farre-Mensa, and Alexander Ljungqvist, ‘Corporate Investment and Stock Market Listing: A Puzzle?’ (2015) 28 Review of Financial Studies 342.

Bates, Thomas, and David Becher, ‘Bid Resistance by Takeover Targets: Managerial Bargaining or Bad Faith?’ (2017) 53 Journal of Financial and Quantitative Analysis 837.

Callaghan, Helen, Who Cares About Financialization? (Max Planck Institute 2013).

Deakin, Simon, and Giles Slinger, ‘Hostile Takeovers, Corporate Law, and the Theory of the Firm’ (1997) 24 Journal of Law and Society 124.

Dulo, Donna, ‘Unmanned Aircraft: The Rising Risk of Hostile Takeover’ (2015) 34 IEEE Technology and Society Magazine 17.

Erel, Isil, Yeejin Jang, and Michael Weisbach, ‘Do Acquisitions Relieve Target Firm’s Financial Constraints?’ (2015) 70 Journal of Finance 289.

Gatti, Matteo, ‘The Power to Decide On Takeovers: Directors or Shareholders, What Difference Does It Make?’ (2014) 20 Fordham Journal of Corporate and Financial Law 73.

Greene, Daniel, ‘Valuations in Corporate Takeovers and Financial Constraints on Private Targets’ (2017) 52 Journal of Financial and Quantitative Analysis 1343.

Hannigan, Brenda, Company Law (4th edn, OUP 2015).

Hasani, Mohd, and Kai Liu, ‘A Legal Perspective of Hostile Takeover Defensive Measures in China and Malaysia’ (2014) 35 Bus LR 54.

Johnston, Andrew, ‘Takeover Regulation: Historical and Theoretical Perspectives on the City Code’ (2007) 66 Cambridge Law Journal 422.

Johnston, Andrew, ‘Takeovers’ in Peter Cane, Joanne Conaghan (eds), The New Oxford Companion to Law (OUP, 2008) 1152.

Jindra, Jan, and Thomas Moeller, ‘Target Financial Independence and Takeover Pricing’ (2015) 38 Journal of Financial Research 379.

Kershaw, David, Company Law in Context: Text and Materials (2nd edn, OUP 2012).

Liu, Baixiao, ‘The Disciplinary Role of Failed Takeover Attempts’ (2016) 39(1) Journal of Financial Research 63.

Manne, Henry, ‘Mergers and the Market for Corporate Control’ (1965) 73 Journal of Political Economy 110.

Rowoldt, Maximilian, and Dennis Starke, ‘The Role of Governments in Hostile Takeovers-Evidence from Regulation, Anti-Takeover Provisions, and Government Interventions’ (2016) 47 Intl Rev Law Econ 1.

Shenoy, Jaideep, ‘An Examination of the Efficiency, Foreclosure, and Collusion Rationales for Vertical Takeovers’ (2012) 58 Management Science 1482.

Shikha, Neeti, ‘Takeover Through Scheme of Arrangement: A Changing Trend in UK’ (2013) 38 The Journal for Decision Makers 87.

Tsagas, Georgina, ‘Long-Term Vision for UK Firms; Revisiting the Target Director’s Advisory Role since the Takeover of Cadbury’s PLC’ (2014) 14 Journal of Corporate Law Studies 241.

Worthy, Ben, ‘Ending in Failure? The Performance of ‘Takeover’ Prime Ministers 1916-2016’ (2016) 87 Public Quarterly 509.

Companies Act 2006, ss983.

The UK Takeover Code. Web.

Footnotes

1. Neeti Shikha, ‘Takeover Through Scheme of Arrangement: A Changing Trend in the UK’ (2013) 38 The Journal for Decision Makers 87, 88.
2. Jan Jindra, and Thomas Moeller, ‘Target Financial Independence and Takeover Pricing’ (2015) 38 Journal of Financial Research 379, 383.
3. Andrew Johnston, ‘Takeover Regulation: Historical and Theoretical Perspectives on the City Code’ (2007) 66 Cambridge Law Journal 422.
4. John Armour, and David Skeel, ‘Who Writes the Rules for Hostile Takeovers, and Why?” The Peculiar Divergence of US and UK Takeover Regulation’, (2007) 95 Georgetown Law Journal 1727, 1729.
5. Andrew Johnston, ‘Takeovers’ in Peter Cane, Joanne Conaghan (eds), The New Oxford Companion to Law (OUP, 2008) 1152.
6. John Asker, Joan Farre-Mensa, and Alexander Ljungqvist, ‘Corporate Investment and Stock Market Listing: A Puzzle?’ (2015) 28 Review of Financial Studies 342, 347.
7. Isil Erel, Yeejin Jang, and Michael Weisbach, ‘Do Acquisitions Relieve Target Firm’s Financial Constraints?’ (2015) 70 Journal of Finance 289, 295.
8. Jaideep Shenoy, ‘An Examination of the Efficiency, Foreclosure, and Collusion Rationales for Vertical Takeovers’ (2012) 58 Management Science 1482, 1484.
9. Thomas Bates, and David Becher, ‘Bid Resistance by Takeover Targets: Managerial Bargaining or Bad Faith?’ (2017) 53 Journal of Financial and Quantitative Analysis 837, 839.
10. John Armour, and David Skeel, ‘Who Writes the Rules for Hostile Takeovers, and Why?” The Peculiar Divergence of US and UK Takeover Regulation’, (2007) 95 Georgetown Law Journal 1727, 1729.
11. Daniel Greene, ‘Valuations in Corporate Takeovers and Financial Constraints on Private Targets’ (2017) 52 Journal of Financial and Quantitative Analysis 1343, 1345.
12. Anita Anand, ‘The Future of Position Pills in Canada: Are Takeover Bid Reforms Needed?’ (2015) 61 McGill LJ1, 14.
13. Matteo Gatti, ‘The Power to Decide On Takeovers: Directors or Shareholders, What Difference Does It Make?’ (2014) 20 Fordham Journal of Corporate and Financial Law 73, 75.
14. Maximilian Rowoldt, and Dennis Starke, ‘The Role of Governments in Hostile Takeovers-Evidence from Regulation, Anti-Takeover Provisions, and Government Interventions’ (2016) 47 Intl Rev Law Econ 1, 8.
15. Mohd Hasani, and Kai Liu, ‘A Legal Perspective of Hostile Takeover Defensive Measures in China and Malaysia’ (2014) 35 Bus LR 54, 55.
16. Helen Callaghan, Who Cares About Financialization? (Max Planck Institute 2013) 32.
17. Ben Worthy, ‘Ending in Failure? The Performance of ‘Takeover’ Prime Ministers 1916-2016’ (2016) 87 Public Quarterly 509, 511.
18. John Armour, and David Skeel, ‘Who Writes the Rules for Hostile Takeovers, and Why?” The Peculiar Divergence of US and UK Takeover Regulation’, (2007) 95 Georgetown Law Journal 1727, 1739.
19. Brenda Hannigan, Company Law (4th edn, OUP 2015) 23.
20. David Kershaw, Company Law in Context: Text and Materials (2nd edn, OUP 2012) 7.
21. Baixiao Liu, ‘The Disciplinary Role of Failed Takeover Attempts’ (2016) 39(1) Journal of Financial Research 63, 64.
22. Donna Dulo, ‘Unmanned Aircraft: The Rising Risk of Hostile Takeover’ (2015) 34 IEEE Technology and Society Magazine 17.
23. Georgina Tsagas, ‘Long-Term Vision for UK Firms; Revisiting the Target Director’s Advisory Role since the Takeover of Cadbury’s.PLC’ (2014) 14 Journal of Corporate Law Studies 241, 243.
24. Companies Act 2006, ss983.
25. The UK Takeover Code. Web.
26. Henry Manne, ‘Mergers and the Market for Corporate Control’ (1965) 73 Journal of Political Economy 110.
27. John Armour, and David Skeel, ‘Who Writes the Rules for Hostile Takeovers, and Why?” The Peculiar Divergence of US and UK Takeover Regulation’, (2007) 95 Georgetown Law Journal 1727, 1729.
28. Simon Deakin and Giles Slinger, ‘Hostile Takeovers, Corporate Law, and the Theory of the Firm’ (1997) 24 Journal of Law and Society 124.
29. Matteo Gatti, ‘The Power to Decide On Takeovers: Directors or Shareholders, What Difference Does It Make?’ (2014) 20 Fordham Journal of Corporate and Financial Law 73, 132.

The Background of the Problem and the Research Question

In Saudi Arabia, foreign direct investment (FDI) includes financial resources attracted for the development of the country’s oil industry and numerous non-oil markets. According to the data provided at the United Nation Conference on Trade and Development (UNCTAD) in 2012 and 2014, Saudi Arabia was the third country in Western Asia in attracting FDI for the development of its industries.^{1 2} The nation’s modern focus on developing an open trade market, improving policies for private enterprises, and eliminating legal restrictions regarding FDI contribute to the fact that Saudi Arabia is viewed as successfully using other countries’ financial resources.³

In this context, much attention should be paid to the role of an effective legal framework in promoting and attracting FDI. Significant steps on this path included the establishment of the Saudi Arabian General Investment Authority (SAGIA) and the introduction of the Federal Investment Law (FIL) in 2000 along with promoting other legislation in the field.⁴

However, the problem is that, despite significant increases in FDI that were observed during the period of 2000-2008, there was a period of decline in 2008-2015, and the recent development in the field, as well as the overall situation in the sphere, is not studied effectively.⁵ There are possibilities that the used legal framework based on the FIL is not operational or appropriate enough in order to contribute to the stable growth of FDI tendencies in Saudi Arabia during two decades. More research is required in this field in order to analyze the specifics of the currently used legal framework regarding FDI and the aspects of the recent development in this area.

The following research questions and sub-questions are formulated for the current study in order to address the stated problem:

• RQ: How does the legal framework for FDI adopted in Saudi Arabia influence the recent development in the field?
• Sub-Question 1: How does the FIL influence the FDI regulations in Saudi Arabia in order to achieve changes in attracting foreign investments?
• Sub-Question 2: What aspects of the Saudi legal system, commercial law, modern regulations, and the rules of the Islamic law have influenced the recent development in the FDI area?

Literature Review: The Argument and Hypothesis

The recent literature on FDI in Saudi Arabia and the associated legal framework are focused on describing how the adoption of the FIL has led to developing the oil-industry sector in the country and what other major legal decisions were made. The Foreign Capital Investment Law of 1979 was oriented to protecting the role of the Saudi government in regulating the oil industry.⁶ However, global trends influenced the Saudi legislators’ vision of FDI, and the SAGIA was established along with introducing the FIL of 2000 in order to open the country to foreign investments.⁷ The law was innovative for Saudi Arabia because it allowed the 100% foreign ownership in different types of industrial and commercial projects.⁸

In subsequent years, the Council of Ministers concentrated on privatizing public sector utilities, and the focus on privatization and FDI became typical of many industries in the country to decrease its dependence on the oil sector.⁹ The adoption of the FIL has led to financing numerous industrial, non-industrial, and agricultural projects in Saudi Arabia using the resources from the Middle Eastern countries, the United States, the United Kingdom, France, Germany, and others.¹⁰

In 2005, Saudi Arabia joined the World Trade Organization and the country’s economic stability attracted even more investors than it was observed after 2000.^{11 12} In 2015, following a series of laws, the stock market related to such industries as petrochemicals, retailing, and banking among others was opened by the authorities for more active FDI. It is reflected in the Saudi plan of economic development up to 2030 (according to Vision 2030) that guarantees that FDI will be promoted and increase steadily.¹³

The adoption of the Banking Control Law to regulate taxes and the investment environment of the country and the development of the Insolvency Law seem to contribute to this process.^{14 15} In this context, it is necessary to focus more on the literature while analyzing how the existing legal framework can provide the effective legal protection for foreign investors in the country.

However, some researchers still present evidence that there are challenges and barriers associated with developing FDI and adopting its legal framework. Jadea and Basir indicate that the integration of FDI into the country’s economic structure is rather problematic because of the necessities of correlating the innovative legislation with the Islamic law and Western patterns within a legal framework.¹⁶ Furthermore, there are also data supporting the idea that, after adopting the FIL, both positive and negative aspects were observed in the legal and economic systems of Saudi Arabia, leading to periods of growth and decline. Thus, the period from 2008 to 2011 was not active in attracting FDI.^{17 18} In this context, it is important to examine what factors characterize the recent development in this sphere in Saudi Arabia.

After reviewing the literature on the legal framework related to regulating FDI in Saudi Arabia, it is possible to formulate the following hypothesis to guide this research: the legal framework for FDI that was adopted in the country has positively influenced the recent development in the field, resulting in the stable growth of investments. Moreover, it is possible to assume that the key role in affecting the recent development in FDI was played by the FIL that was adopted to achieve changes in attracting FDI to the country. In addition, the researcher assumes that certain aspects of the Saudi legal system, commercial law, modern regulations, and the rules of the Islamic law has also influenced the recent development in the FDI field, leading to financing more Saudi projects today.

It is important to note that the argument supporting the formulation of this hypothesis and assumptions is based on the preliminary analysis of the available literature on the topic. In spite of the fact that some researchers accentuate certain challenges in promoting FDI in Saudi Arabia, there is much evidence reported by experts to support the idea that the adopted laws promote FDI in the country, as it is in other states in the Middle Eastern region.^{19 20 21 22}From this perspective, the recently adopted laws in Saudi Arabia regarding FDI and regulations implemented in association with the SAGIA seem to contribute to diversifying the Saudi economy, opening employment opportunities, and expanding the country’s non-oil industries in contrast to the developed oil industry.^{23 24 25}

Furthermore, the research supports the statement that the SAGIA as a regulatory and investment promoting agency, as well as the FIL, played the key role in forming a positive economic environment in Saudi Arabia based on the effectively developed legal framework. It is important to pay attention to the fact that the SAGIA regularly reviews FDI-related activities and associated laws in order to guarantee the effective development of all sectors in Saudi Arabia, and this aspect also requires the further investigation.^{26 27 28}The marker of the positive development in a legal sphere regarding FDI is also the design of the new Insolvency Law that will be effective in order to attract even more investments to new sectors of Saudi Arabia.²⁹

Contribution of the Research to the Existing Literature

In spite of the fact that there are many studies on FDI and associated laws in Saudi Arabia, the majority of these investigations are based on examining what effects the FIL had on opening the country for foreign investment. Another group of studies is related to examining the composition of the existing legal framework related to FDI in Saudi Arabia with the focus on analyzing specific connections between international trends, the Western legal patterns, and the Islamic law.^{30 31} Still, there is a gap in the existing literature on the topic regarding the examination of the recent development of FDI trends in the country depending on the effectiveness or non-effectiveness of the adopted legal framework.

It is necessary to pay attention to the fact that, in the existing literature, much attention is paid to studying how the innovative course to supporting FDI that was chosen in 2000 has led to the development of the economy of the country.³² Nevertheless, one should note that only limited research is present on discussing how the tendency developed and what other regulations were added to the legal framework influencing its effectiveness. Therefore, it is possible to speak about the gap in the literature regarding the discussion of the recent development and trends in FDI in Saudi Arabia that are based on the existing legal framework. It is also important to discuss how this research can contribute to the existing literature in the area, as well as to theory and practice.

This study will contribute to analyzing how the legal framework for FDI that was adopted in Saudi Arabia could influence the recent development in the field with the focus on current trends in industries and law. As a result, the study will indicate how the FIL could influence the current situation in Saudi Arabia regarding FDI and whether positive tendencies in investing projects are still observed in the country. The planned research will also provide the examination of the aspects of the Saudi legal system that can be discussed as having the most significant impact on the recent development in the FDI area.

Thus, this contribution is important for the existing literature on commercial law and FDI in Saudi Arabia, as well as for the legal and economic literature in the field. The focus will be on discussing the legal framework related to FDI with reference to its recent impact on investments in Saudi Arabia, involving the latest events and updated changes in the legal system. The contribution to practice will include the discussion of potential weaknesses in the existing legal framework in order to address the latest trends and innovations in FDI from the global perspective to influence the economic development of Saudi Arabia.

Methodology

The qualitative methodology is selected for this research in order to address the set research question and sub-questions. The review of the primary and secondary literature in the context of the qualitative method will be supported by conducting interviews with representatives of organizations in Saudi Arabia where projects are financed through FDI. For the literature review, primary sources will include FDI-related legal documents, laws, initiatives, and court cases in Saudi Arabia that can effectively illustrate the existing legal framework associated with this issue.³³

The focus will be on examining the past and updated laws and regulations adopted in Saudi Arabia in order to understand their impact on the recent development of the sphere. Secondary sources will include publications and studies on the topic of the legal framework for FDI in Saudi Arabia and its effectiveness to stimulate the economic progress in the country.

The information gathered with the help of the literature review needs to be supported by other data according to the principle of triangulation that is used in the qualitative methodology. Semi-structured interviews will be conducted with the representatives of organizations that are directly connected with promoting FDI in Saudi Arabia for the purpose of identifying factual effects of the existing legal framework on the recent development in the field.

It is important to understand what actual advantages or barriers caused by laws and regulations on FDI in Saudi Arabia can influence the development of this area in the country today. It is necessary to note that the information collected with the help of the literature review and interviews will be analyzed and compared in order to respond to the set research question and associated sub-questions.

Bibliography

Abidin ISZ, Haseeb M, Azam M and Islam R, ‘Foreign Direct Investment, Financial Development, International Trade and Energy Consumption: Panel Data Evidence from Selected ASEAN Countries’ (2015) 5 International Journal of Energy Economics and Policy 841.

Al Khathlan K, ‘Foreign Direct Investment Inflows and Economic Growth in Saudi Arabia: A Co-Integration Analysis’ (2013) 4 Review of Economics & Finance 70.

Alavinasab SM, ‘Determinants of Foreign Direct Investment in Iran’ (2013) 3 International Journal of Academic Research in Business and Social Sciences 258.

Albassam B, ‘Does Saudi Arabia’s Economy Benefit from Foreign Investments?’ (2015) 22 Benchmarking: An International Journal 1214.

Alsharif DT, ‘How Saudi Arabia Shows It Is Open for Business’ Arab News (Riyadh, 2018). Web.

Dudley D, ‘Saudi Arabia Suffers Shock Collapse in Inward Investment’ Forbes (New York, 2018). Web.

Foreign Capital Investment Law (1979) 17/111421H 11/21.

Gawad GMA and Muramalla VSSR, ‘Foreign Direct Investment (FDI) and Its Effects on Oil, Gas and Refinery Production and Their Exports: An Applied Study’ (2013) 4 Journal of Economics and Sustainable Development 21.

Held D and Ulrichsen K, The Transformation of the Gulf: Politics, Economics and The Global Order (Routledge 2013).

Hussein K, FDI Trends in the Arab Region (United Nations Economic and Social Commission for Western Asia 2014).

Iamsiraroj S and Ali Ulubaşoğlu M, ‘Foreign Direct Investment and Economic Growth: A Real Relationship or Wishful Thinking?’ (2015) 51 Economic Modelling 200.

Iamsiraroj S, ‘The Foreign Direct Investment–Economic Growth Nexus’ (2016) 42 International Review of Economics & Finance 116.

International Trade Administration, ‘Saudi Arabia – 1-Openness to and Restriction on Foreign Investment’ (Export.gov, 2017). Web.

Jabri A, Guesmi K and Abid I, ‘Determinants of Foreign Direct Investment in MENA Region: Panel Co-Integration Analysis’ (2013) 29 The Journal of Applied Business Research 1103.

Jadea AK and Basir SM, ‘Legal Regime of Foreign Direct Investment in Saudi Arabia within 2008–2015’ (2017) 3 Imperial Journal of Interdisciplinary Research 479.

KSA Foreign Investment Law (2000) Royal Decree no. M/15 1421/10.

Moser S, Swain M, and Alkhabbaz M, ‘King Abdullah Economic City: Engineering Saudi Arabia’s Post-Oil Future’ (2015) 45 Cities 71.

Oxford Business Group, ‘New Legislation in Saudi Arabia to Attract Foreign Investment’ (Oxford Business Group, 2018). Web.

— — ‘Saudi Arabia Well Placed to Take Advantage of Its Trade and Investment Strengths’ (Oxford Business Group, 2018). Web.

Qureshi R and Medabesh A, ‘Saudi Arabia’s Declining Foreign Direct Investment Inflows: Inept Marketing Strategy?’ (2016) 4 International Journal of Economics, Commerce and Management 335.

Rogmans T and Ebbers H, ‘The Determinants of Foreign Direct Investment in the Middle East North Africa Region’ (2013) 8 International Journal of Emerging Markets 240.

Sbia R, Shahbaz M and Hamdi H, ‘A Contribution of Foreign Direct Investment, Clean Energy, Trade Openness, Carbon Emissions and Economic Growth to Energy Demand in UAE’ (2014) 36 Economic Modelling 191.

Shahbaz M, Nasreen S, Abbas F and Anis O, ‘Does Foreign Direct Investment Impede Environmental Quality in High-, Middle-, and Low-Income Countries?’ (2015) 51 Energy Economics 275.

Sillah B, ‘Human Capital, Foreign Direct Investment Stock, Trade and the Technology Diffusion in Saudi Arabia 1974-2011’ (2015) 42 Journal of Economic Studies 101.

Taylor S, Bogdan R and DeVault M, Introduction to Qualitative Research Methods: A Guidebook and Resource (John Wiley & Sons 2015).

Footnotes

1. Gaber Mohamed Abdel Gawad and Venkata Sai Srinivasa Rao Muramalla, ‘Foreign Direct Investment (FDI) and Its Effects on Oil, Gas and Refinery Production and Their Exports: An Applied Study’ (2013) 4 Journal of Economics and Sustainable Development 23.
2. Khaled Hussein, FDI Trends in the Arab Region (United Nations Economic and Social Commission for Western Asia 2014) 8-12.
3. Bassam Albassam, ‘Does Saudi Arabia’s Economy Benefit from Foreign Investments?’ (2015) 22 Benchmarking: An International Journal 1215.
4. Oxford Business Group, ‘New Legislation in Saudi Arabia to Attract Foreign Investment’ (Oxford Business Group, 2018). Web.
5. Alenazi Khaled Jadea and Salawati Mat Basir, ‘Legal Regime of Foreign Direct Investment in Saudi Arabia within 2008–2015’ (2017) 3 Imperial Journal of Interdisciplinary Research 481.
6. Foreign Capital Investment Law (1979) 17/111421H 11/21.
7. KSA Foreign Investment Law (2000) Royal Decree no. M/15 1421/10.
8. Khalid Al Khathlan, ‘Foreign Direct Investment Inflows and Economic Growth in Saudi Arabia: A Co-Integration Analysis’ (2013) 4 Review of Economics & Finance 71-73.
9. Bukhari Sillah, ‘Human Capital, Foreign Direct Investment Stock, Trade and the Technology Diffusion in Saudi Arabia 1974-2011’ (2015) 42 Journal of Economic Studies 102.
10. Alenazi Khaled Jadea and Salawati Mat Basir, ‘Legal Regime of Foreign Direct Investment in Saudi Arabia within 2008–2015’ (2017) 3 Imperial Journal of Interdisciplinary Research 480.
11. Bukhari Sillah, ‘Human Capital, Foreign Direct Investment Stock, Trade and the Technology Diffusion in Saudi Arabia 1974-2011’ (2015) 42 Journal of Economic Studies 102.
12. Riyazuddin Qureshi and Ali Medabesh, ‘Saudi Arabia’s Declining Foreign Direct Investment Inflows: Inept Marketing Strategy?’ (2016) 4 International Journal of Economics, Commerce and Management 336-337.
13. International Trade Administration, ‘Saudi Arabia – 1-Openness to and Restriction on Foreign Investment’ (Export.gov, 2017). Web.
14. Dimah Talal Alsharif, ‘How Saudi Arabia Shows It Is Open for Business’ Arab News (Riyadh, 2018). Web.
15. International Trade Administration, ‘Saudi Arabia – 1-Openness to and Restriction on Foreign Investment’ (Export.gov, 2017). Web.
16. Alenazi Khaled Jadea and Salawati Mat Basir, ‘Legal Regime of Foreign Direct Investment in Saudi Arabia within 2008–2015’ (2017) 3 Imperial Journal of Interdisciplinary Research 481.
17. Riyazuddin Qureshi and Ali Medabesh, ‘Saudi Arabia’s Declining Foreign Direct Investment Inflows: Inept Marketing Strategy?’ (2016) 4 International Journal of Economics, Commerce and Management 337.
18. Tim Rogmans and Haico Ebbers, ‘The Determinants of Foreign Direct Investment in the Middle East North Africa Region’ (2013) 8 International Journal of Emerging Markets 241.
19. Abdelkarim Jabri, Khaled Guesmi and Ilyes Abid, ‘Determinants of Foreign Direct Investment in MENA Region: Panel Co-Integration Analysis’ (2013) 29 The Journal of Applied Business Research 1104.
20. Irwan Shah Zainal Abidin, Muhammad Haseeb, Muhammad Azam and Rabiul Islam, ‘Foreign Direct Investment, Financial Development, International Trade and Energy Consumption: Panel Data Evidence from Selected ASEAN Countries’ (2015) 5 International Journal of Energy Economics and Policy 843.
21. Rashid Sbia, Muhammad Shahbaz and Helmi Hamdi, ‘A Contribution of Foreign Direct Investment, Clean Energy, Trade Openness, Carbon Emissions and Economic Growth to Energy Demand in UAE’ (2014) 36 Economic Modelling 193.
22. Seyed Mohammad Alavinasab, ‘Determinants of Foreign Direct Investment in Iran’ (2013) 3 International Journal of Academic Research in Business and Social Sciences 259.
23. Sasi Iamsiraroj, ‘The Foreign Direct Investment–Economic Growth Nexus’ (2016) 42 International Review of Economics & Finance 118.
24. Sasi Iamsiraroj and Mehmet Ali Ulubaşoğlu, ‘Foreign Direct Investment and Economic Growth: A Real Relationship or Wishful Thinking?’ (2015) 51 Economic Modelling 202.
25. Muhammad Shahbaz, Samia Nasreen, Faisal Abbas and Omri Anis, ‘Does Foreign Direct Investment Impede Environmental Quality in High-, Middle-, and Low-Income Countries?’ (2015) 51 Energy Economics 276-277.
26. Dominic Dudley, ‘Saudi Arabia Suffers Shock Collapse in Inward Investment’ Forbes (New York, 2018). Web.
27. International Trade Administration, ‘Saudi Arabia – 1-Openness to and Restriction on Foreign Investment’ (Export.gov, 2017). Web.
28. Oxford Business Group, ‘Saudi Arabia Well Placed to Take Advantage of Its Trade and Investment Strengths’ (Oxford Business Group, 2018). Web.
29. International Trade Administration, ‘Saudi Arabia – 1-Openness to and Restriction on Foreign Investment’ (Export.gov, 2017). Web.
30. Sarah Moser, Marian Swain, and Mohammed Alkhabbaz, ‘King Abdullah Economic City: Engineering Saudi Arabia’s Post-Oil Future’ (2015) 45 Cities 71.
31. Alenazi Khaled Jadea and Salawati Mat Basir, ‘Legal Regime of Foreign Direct Investment in Saudi Arabia within 2008–2015’ (2017) 3 Imperial Journal of Interdisciplinary Research 481.
32. David Held and Kristian Ulrichsen, The Transformation of the Gulf: Politics, Economics and The Global Order (Routledge 2013) 112.
33. Steven Taylor, Robert Bogdan and Marjorie DeVault, Introduction to Qualitative Research Methods: A Guidebook and Resource (John Wiley & Sons 2015) 84.

Proposal Timeline

Introduction

Recidivism is a serious issue to be addressed as it has numerous adverse effects on society including economic losses, public health, and social concerns (increasing rate of unemployment, substance abuse, single-parent families, and so on). Female offenders’ recidivism received little attention previously as women constituted less than 10% of the number of American inmates, but the rate of this population in correctional facilities increased by 20% during the 2000s, which is an alarming trend (Golder et al., 2013). Moreover, it has been estimated that approximately half of these females reenter the system. Golder et al. (2013) also stress that the vast majority of females under the supervision of parole/probation officers have a substance abuse disorder. All these facts suggest that the existing parole/probation programs are not efficient.

It has been acknowledged that social ties are influential factors affecting females’ recidivism (Barrick, Lattimore, & Visher, 2014). These ties are associated with the relationships with family members, community, and parole/probation officers. At the same time, Morash, Kashy, Smith, and Cobbina (2016) claim that there is an indirect link between parole/probation officers’ behaviors and attitudes and female offenders’ recidivism. For instance, parole/probation officers’ punitive leadership style results in the development of depressive symptoms in female offenders. Therefore, it is critical to explore major stakeholders’ views on the matter.

In this research, qualitative research methods will be used (survey research). The focus of this study is the analysis of female offenders’ and parole/probation officers’ perspectives concerning their interactions. The implications of the research are manifold as they can reveal drawbacks in parole/probation programs, needs and wants of the major stakeholders, and possible ways to improve the programs.

Problem Statement

The research problem of this study can be formulated as follows: certain behaviors and attitudes of parole/probation officers may have a significant effect on female offenders’ recidivism. It is noteworthy that the perspectives of female offenders and parole/probation officers will be considered. The researcher will examine former inmates’ needs, wants, fears, and concerns, as well as reasons behind parole/probation officers’ behaviors, the way they evaluate their behavior and leadership styles, concerns, and expectations. The data mentioned above may help identify some flaws in parole/probation programs and contribute to the development of cost-effective programs.

The probation/parole office at Tutwiler Prison (Wetumpka, AL) will be addressed. The prison has a capacity to accommodate 700 inmates. As seen from the data available, around 60% of inmates tend to have substance abuse disorders (Golder et al., 2013). Therefore, the target population is approximately 400 people. Since the proposed study will be qualitative, the sample will include approximately 40 female offenders. The researcher will request permission to examine records of offenders receiving parole/probation treatment during the past 12 months and parole/probation officers with a working experience of, at least, 18 months. The study subjects will be female offenders (aged between 18 and 55) who have participated in a substance abuse treatment program and have taken part in a parole/probation treatment program within the past 12 months. As for parole probation officers, the sample will include approximately 4 people. Parole/probation officers working in the field for at least 18 months and who have supervised at least one female offender with the characteristics mentioned above will be recruited. Probability sampling (simple random sampling) will be used to collect the data.

Literature Review

Many studies concerning female offenders’ recidivism are associated with the factors affecting these individuals’ behaviors after their release. It is noteworthy that since female recidivism has acquired researchers’ attention quite recently, researchers use the frameworks developed within the terrain of male offenders’ recidivism (Greiner, Law, & Brown, 2015). Greiner et al. (2015) state that primary factors that have an influence on female offenders’ recidivism include substance abuse, weak social bonds, unemployment, and the lack of education and skills, and so on. It has been found that these factors affect women offenders in different ways.

Substance abuse is seen as one of the most influential factors associated with recidivism. It has been estimated that 58% of females who are under the supervision of a parole/probation officer use illicit drugs (Golder et al., 2013). Golder et al. (2013) found that women on parole were less likely to use illicit substances as compared to females on probation. Rellahan (2017) the majority of former inmates tend to be victims of violence (domestic, sexual, and so on) during some (usually prolonged) periods of their life. This exposure to violence is one of the factors contributing to these women’s substance abuse disorders and behaviors. Makarios, Steiner, and Travis (2012) claim that female offenders taking part in a substance abuse treatment program are unlikely to re-offend. The researchers emphasize that the effectiveness of these programs is mainly associated with the approach employed as these programs imply psychological support, training, assistance, and so on (Makarios et al., 2012). Therefore, the researchers acknowledge that social ties have a positive effect on female offenders’ behavior.

Apart from substance abuse, the lack of strong social ties often contributes to female offenders’ recidivism. Barrick et al. (2014) note that this factor is more influential for female offenders rather than male offenders. The researchers identified family ties as the most relevant social bonds that affected former female inmates’ behavior. Greiner et al. (2015) also revealed a strong negative correlation between family ties and women offenders’ recidivism. Makarios et al. (2012) state that family ties are central as the use of these bonds in various programs for former inmates has proved to be effective. Attachment is also regarded as an important factor that can prevent female offenders’ reentering. For instance, Vidal, Oudekerk, Reppucci, and Woolard (2013) note that female youth parolees’ attachment to parents (and parole officers) positively affects their behavior and negatively correlates with recidivism. Importantly, Scott, Grella, Dennis, and Funk (2014) found that a female offender’s child custody had a considerable impact on the woman’s behavior and made her vulnerable to reoffending.

Although family bonds are the most influential type of social bonds, other relationships have been researched as well. It has been found that relationships developed during supervision interactions between parole/probation officers and female offenders may affect the former inmates’ behaviors (Kashy, Smith, and Cobbina, 2015). As has been mentioned above, attachment towards parole officers developed in youth female parolees helps the latter avoid engagement in criminal behaviors (Vidal et al., 2013). Morash, Kashy, Smith, and Cobbina (2015) emphasize that parole/probation officers’ punitive methods contribute to women offenders’ recidivism. It is noteworthy that researchers have quite different views on this aspect.

For instance, Morash et al. (2016) argue that there is no direct link between female offenders’ recidivism and parole/probation officers’ behaviors. However, the researchers found indirect effects of parole/probation officers’ behavior that included the development of depressive symptoms and anxiety among the female offenders. These psychological issues are often associated with substance abuse, which, in turn, often leads to criminal behavior. Cornacchione et al. (2016) explored female offenders’ views on their interactions with parole/probation officers and found that the agents’ advice was helpful and prevented female offenders from engaging in criminal activity.

Rellahan (2017) states that there is no direct connection between recidivism and parole/probation officers’ behaviors, but the use of punitive leadership styles during correctional programs is not efficient. The researcher emphasizes that the use of the trauma-informed approach can significantly enhance the effectiveness of the programs as it has been associated with the reduction of the rate of female offenders’ recidivism. The trauma-informed approach is associated with the use of interventions that include discussions of women offenders’ needs, hopes, fears, and so on. Kubiak, Fedock, Kim, and Bybee (2016) evaluated the effectiveness of a trauma-based intervention. The researchers stressed that the program has proved to be effective as it is associated with strong short- and long-term outcomes while it consists of only 20 sessions (to compare, the conventional program involved in the study included 44 sessions) (Kubiak et al., 2016).

It is necessary to note that the majority of articles reviewed focus on female offenders’ views and perspectives while perspectives of parole/probation officers have received little attention. As for studies concerning parole/probation officers work and behavior, Viglione, Blasko, and Taxman (2017) state that many of these professionals do not employ evidence-based approaches (proactive referral practices and case management) due to the lack of organizational commitment. This study reveals an important aspect that needs further research as organizational behavior has a significant impact on the effectiveness of probation and parole supervision.

This literature review helps identify a number of gaps existing in the knowledge base concerning female recidivism. For instance, it has been found that substance abuse and social ties are influential factors contributing to women offenders’ re-entering. Nevertheless, little attention has been paid to the correlation between these two factors. It can be beneficial to identify the ways relationships with different people affect female offenders’ ability to address their substance abuse disorder. Former inmates’ perspectives are of particular interest. This population could describe the major barriers to the effective treatment of their substance abuse disorder or their reentering into society.

Besides, the exploration of relationships between parole/probation officers and female offenders has been rather one-sided. Researchers have concentrated on female offenders’ views, but it can be helpful to examine parole/probation officers’ views on the matter. It could be beneficial to analyze these stakeholders’ views with the focus on the reasons behind their behavior. The information mentioned above can potentially improve the existing parole/probation programs making them more cost-effective, which, in turn, may contribute to the decrease in the number of reentering female offenders.

Methods

Conceptualization and Operationalization

The proposed research will address the gap mentioned above. It is necessary to start with the conceptualization and operationalization of the major concepts. The central concepts are recidivism, substance abuse, and substance abuse treatment. In the proposed study, recidivism can be defined as a conviction following a treatment program completion. The operational definition of the term is as follows: recidivism can be measured as an instance and the number of convictions taking place within 12 months after the completion of a substance abuse treatment program. The number of arrests will not be taken into account. The conviction may take place within a year or more after the completion of the treatment program while the offenses that took place within the period mentioned above will be measured.

In this study, recidivism is regarded as reoffending within one year after a substance abuse program is completed. The operational definition of recidivism can be formulated as follows: recidivism is any conviction for an offense that took place within a year after the completion of a substance abuse treatment program. Substance abuse treatment is seen as a program aimed at helping people suffering from a substance abuse disorder overcome their health issues. As for the operationalization of this concept, substance abuse treatment can be defined as a program involving a set of procedures aimed at treating a substance abuse disorder a female offender agrees to participate in during probation treatment. Such details as components or duration of the program will also be analyzed. Substance abuse is referred to as the use of any illicit drug or drugs during the parole/probation supervision after the completion of a program involving substance abuse treatment. The operational definition is as follows: substance abuse is the positive result of a drug test or self-reporting of the use of illicit drugs, as well as incarceration on a drug use charge.

Other concepts that should be conceptualized and operationalized include punitive styles, negative attitudes, anxiety, depressive symptoms, personal bias, insufficient training, and overload. Punitive styles can be referred to as the focus on control, supervision, enforcement of rules with little attention to offenders’ needs (Miller, 2015). The operational definition of this concept is parole/probation officers’ remarks concerning the importance of offenders’ compliance with laws and regulations and the corresponding notes they add to offenders’ profiles. Negative attitudes can be defined as parole/probation officers’ focus on the negative aspects such as substance abuse, employment status, psychological state of women offenders, and so on. This concept can be operationalized as follows: negative attitudes include judging and the prevalence of notes concerning negative aspects in female offenders’ profiles. Some symptoms of depression and anxiety include mood swings, problems with concentrating, the loss of appetite, problems with controlling temper (Morash et al., 2015). As for the operationalization of the concept, female offenders can be asked to estimate the frequency of such symptoms.

Parole/probation officers’ personal bias can be referred to as the belief that all female offenders are prone to engaging in criminal behaviors and recidivism and do not make efforts to improve their lives. To operationalize this concept, it is possible to ask parole/probation officers to share their views on women offenders’ characters, reasons for their incarceration and recidivism, the reasons for failing probation and parole treatment. Insufficient training can be referred to as training programs (especially those associated with the provision of psychological support, leadership, and so on) and the gaps identified by parole/probation officers regarding their training. The operationalization of the concept includes the calculation of available training courses and initiatives, the rate of parole/probation officers’ participating in these initiatives, as well as officers’ evaluations of the programs’ effectiveness. Overload is referred to as the need to provide services to an excessive number of female offenders. To operationalize the concept, it is possible to calculate the number of supervised people, as well as tasks completed by parole/probation officers. It is also possible to compare this number with the number of cases supervised a year ago.

Hypotheses and Research Questions

The hypothesis of the proposed study can be formulated in the following way:

1. Parole/probation officers’ negative attitudes and punitive styles contribute to the development of depressive symptoms and anxiety in female offenders.
2. Effective relationships between parole/probation officers and female offenders help the latter avoid engagement in criminal activity.
3. Parole/probation officers may display negative attitudes due to personal bias, overload, and/or insufficient training.

The research questions that will help address the hypothesis set are:

1. How does parole/probation officers’ improper behavior influence women offenders’ recidivism?
2. What are the reasons for such behaviors?

Sampling Method

As for the sampling method, probability sampling will be employed. Simple random sampling will be implemented. The records of a local parole/probation office will be reviewed and the population of female offenders who have participated in parole/probation treatment programs during the past 12 months aged between 18 and 55 will be reviewed. Women of the mentioned age with substance abuse history who completed a substance abuse treatment program will be included in the study. The randomization will be carried out with the help of software (Microsoft Excel). It is necessary to note that other variables (socioeconomic status, ethnicity, and so on) will not affect the recruitment process, but the researcher will mention correlations (if any) that will become apparent during the interviews. The chosen individuals will receive a phone call and will be offered to take part in the research. Those who reveal their interest will receive written consent forms via email. The forms can be sent to their mailbox or will be delivered to any other place (if necessary). When the form is signed, the researcher and the participant agree on the date and time of the interview.

Parole/probation officers will be chosen via simple random sampling as well. The records concerning the number of parole/probation officers working with female offenders will be reviewed. The eligible parole/probation officers will be those who have supervised at least one female offender who has completed a substance abuse treatment program. An important variable is the work experience, parole/probation officers who have worked for at least 18 months will be recruited. The parole/officers’ gender will also be a variable as officers’ gender may affect the way former inmates perceive them. For instance, some female offenders may have certain psychological issues associated with interactions with males. Since interactions between parole/probation officers and women offenders, officers’ gender will be under analysis. No other variables (age, ethnicity) are relevant to this study. The chosen parole/probation officers will be contacted via phones, and the written consent forms will be sent in any convenient way mentioned by the officer. When the form is signed, the date and time of the interview will be agreed upon. The necessary permissions from the parole/probation office will be obtained. As has been mentioned above, approximately four parole/probation officers and 40 female offenders will take part in the analysis. The sample size is appropriate as the focus is on former inmates of the Julia Tutwiler Prison for Women.

Research Design

Since the focus is on people’s perspectives, qualitative data will be collected and analyzed. The cross-sectional design is appropriate for this study as a particular group of people at a particular point in time is under research. The survey research will be the major approach used to address the research questions. This research design enables the researcher to elicit the qualitative data necessary to understand the factors affecting the efficiency of certain correctional programs. The reasons for some behaviors can also be revealed through the analysis of qualitative data.

Data Collection

The major data collection method of the proposed study is the interview. Semi-structured interviews will be used as they allow the researcher to elicit as many details as possible. The researcher has a set of prepared questions, but the participants’ answers may be associated with an area that has been neglected or underestimated by the researcher. It is vital to focus on the participants’ inclinations, needs, and wants, so questions can be shaped by the participants’ answers. Besides, this type of interview is very similar to a conversation, so it will be easier for the researcher to create the necessary atmosphere that will encourage the participants to be sincere and detailed. The interviews will be recorded with permission from the participants. If a participant does not want to have the interview recorded, the researcher will take notes.

Moreover, it is critical to encourage the participants to share their ideas on issues that can be quite sensitive. Therefore, paraphrasing and certain changes in the focus of the question can help achieve this goal. The questions concerning female offenders’ perspectives will include these women’s attitudes towards the parole/probation program, the relationships with the parole/probation officer, particular negative (if any) experiences, their psychological state (the focus will be on depressive and anxiety symptoms if any), the tie (if any) between the officers’ behavior and the females’ decisions regarding their involvement in criminal activities. The questions used during the interviews with parole/probation officers will include these people’s views on their leadership style (its effectiveness), the efficiency of the parole/probation program, prospects of the female offenders supervised, general views of offenders (their characteristic features, reasons for criminal behavior, and so on), some peculiarities of work (workload, available training), and so on.

Data Analysis and Presentation

The general approach that will be proposed to analyze the qualitative data collected will be inductive. The inductive approach is associated with the exploration of a phenomenon from a different perspective (Creswell, 2014). Therefore, although the interactions between women offenders and parole/probation officers have received certain attention, the major focus has been on the offenders’ attitudes and outcomes. The proposed study will examine the perspectives of female offenders and parole/probation officers. Content analysis will be employed. The participants will be interviewed, and the interview transcripts will be analyzed interpretively. The researcher will describe some peculiarities of the interactions and try to explain the reasons for such peculiarities as well as possible outcomes of the interactions for both offenders and officers.

It is possible to disseminate the findings of the proposed research in a number of ways. The findings can enrich the knowledge base as an academic paper can be developed. The paper can be published in a peer-reviewed article. However, to disseminate the findings of this study, it is also possible to develop a report. The report will include all the major details of a peer-reviewed article including literature review, background, methods, results, discussion, conclusion, and reference list. However, in spite of the use of the academic format, the report will be written for practitioners (officers) rather than researchers. The report will include an extensive number of visuals to help the reader grasp all the major details. The most detailed sections will be results and discussion. The report will also include recommendations section. This part will contain a set of particular recommendations that can help parole/probation officers improve their work. The report will be specifically valuable for administrators of correctional facilities.

The participants’ accounts will be transcribed with the help of online software. The data will be analyzed manually and with the help of software. First, the researcher will code the data collected. The focus will be on the most recurrent themes associated with the participants’ views on their interactions. The codes and themes identified will be inserted into a Microsoft Excel file for further analysis. Percentages may be used as a statistical tool as it is important to analyze the frequency of themes’ occurrence. Some charts will also be developed to help the researcher (and later, the reader) to visualize the findings. To ensure the reliability of the data analysis, the researcher will use data analysis software available online. QDA Miner Lite will be used to check the correctness of codes and themes identified. This tool can help with the visualization of the data. The software helps in creating charts and graphs.

At this point, it is necessary to add that statistical tools will be used to describe some characteristics of the participants. For example, the mean age of the participants and parole/probation officers will be provided. The percentage of people pertaining to different ethnic groups will also be given although ethnicity will not be taken into account when choosing participants. To present the data, it is possible to use a pie chart, which will explicitly reveal the prevalence of some ethnic groups (if any). The data mentioned above can help the researcher identify possible correlations, and links between people’s characteristics and their ideas. The data can also be important for the development of further research.

To ensure the reliability and validity of the study, the researcher will resort to peer examination and member checking. Creswell (2014) states that member checking can help ensure the correctness of coding and theming. The codes and themes that are identified by peers and the software mentioned above will be included in the study. As for member checking, this strategy can help the researcher eliminate possible bias. The researcher provides transcribed interviews with codes and themes identified to the corresponding participants. The participants (who agree to take part in member checking) check whether their words were interpreted correctly. The consent forms will include the request to participate in member checking.

Organizational Behavior

As has been mentioned above, organizational behavior has a considerable impact on parole/probation officers’ behavior, which, in turn, affects female offenders’ recidivism. This study will explore the way organizational behavior influences parole/probation officers’ behavior and their interaction with female offenders. Volkema (2010) identifies four concepts of organizational behavior and management. These concepts include individual / collective, differentiation / integration, centralization / decentralization, and linear / nonlinear. As has been mentioned above, the lack of organizational commitment is closely related to parole/probation officers’ behavioral patterns. Therefore, individual / collective and centralization / decentralization concepts will be central to this study. It is essential to understand the reasons for the lack of organizational commitment (and the focus on the individual principle rather than the collective one). The distribution of power and control within correctional facilities can help in assessing parole/probation officers’ behaviors (Volkema, 2010).

Apart from paying attention to the concept of organizational behavior when collecting and analyzing data, it is essential to take into account the way this aspect is related to the proposed study setting. Clearly, organizational culture is likely to have an impact on the way parole/probation officers will respond to questions and even the extent to which these professionals will be willing to participate. It is possible to assume that parole/probation officers are likely to reveal their commitment to organizational values, goals, and management practices. At that, there are chances that these professionals will criticize the distribution of power and control within the organization as they might need more freedom to make decisions as female offenders often have different backgrounds, needs, and goals. To ensure effective data collection, it is possible to consider the implementation of the interviews outside parole/probation officers’ offices as this can help them share their views more freely. Besides, it is important to develop clear and precise questions concerning the effects of organizational values, goals, and management practices on parole/probation officers’ behavior. The questions will address such concepts as leadership, management, the use of the evidence-based approach. When analyzing data, it can be important to compare parole/probation officers’ views on these aspects. This comparison can help evaluate the existing organizational culture and the way it affects parole/probation officers.

Ethics

Finally, it is important to make sure that the study is implemented in terms of the major ethical regulations. The proposed study will be characterized by confidentiality and privacy. First, the participants will be contacted via phone, and the written consent forms will be delivered to them in the way they will prefer. Although the administration of the center will be aware of the implementation of the study, the participants will be chosen randomly, which will make it difficult to identify exact people who will take part in the research. Additionally, the participants will receive information concerning their rights as to participating in a study. The information will be included in the written consent form. The form will cover such aspects related to participants’ rights as confidentiality and privacy as well as possible withdrawal from the study at any point. It is preferable to hold interviews in a place outside the parole/probation agents’ offices, which can ensure the confidentiality and privacy of both female offenders and parole/probation officers. It is noteworthy that the written consent form will also include the most relevant data concerning the study.

One of the basic rights of any study participants involves the full knowledge of certain details of the study. They should understand the benefits of the study as well as possible negative effects and hazards associated with their participation. The participants’ personal information, as well as the transcripts, will be stored on the personal computer that has the necessary security software. The participants’ personal information (names, contact details) will not be withheld to any third parties. Code names will be used to refer to particular participants during the data analysis. The use of code names will ensure the participants’ anonymity as even the researcher will be unaware of the identity of the participants while analyzing the interview transcripts. Although female offenders suffering or who have suffered from a substance abuse disorder can be regarded as a vulnerable population, the participants will be informed about the potential benefits of the study. This information can encourage them to share their ideas freely. Of course, all the questions will be clear, unbiased, and characterized by a positive attitude and empathy. The interviews will also be characterized by the proper atmosphere (the researcher will try to develop rapport and trustful relationships with the participants). The principles of ethical research (honesty, carefulness, and objectivity) will also be followed.

Conclusion

In conclusion, it is necessary to note that female offenders’ recidivism is a serious issue to be addressed as it is associated with financial losses for the government (correctional facilities overload, cost-ineffective correctional programs, unemployment), social imbalances within communities (unemployment, inequality), and personal tragedies (motherless children). It has been found that social ties are some of the most influential factors’ affecting female offenders’ behavior. Parole/probation officers are also a part of the social network female offenders find themselves in. It has been acknowledged that parole/probation officers’ behavior and attitudes affect female offenders’ decisions concerning their engagement in criminal activity and decisions concerning substance use. However, the studies associated with this correlation are mainly quantitative although it is essential to understand particular perspectives and reasons behind the behaviors mentioned above.

The proposed research will involve interviewing female offenders and parole/probation officers. It will last four months and will include such stages as problem identification, literature review, data collection, data analysis, and summarizing findings. At the end of the study, particular themes and areas of concern will be outlined. The study will reveal people’s evaluations of parole/probation programs.

This research will have diverse implications. First, it will unveil some shortcomings of parole/probation programs. The proposed study will also help identify particular expectations, needs, and concerns of the major stakeholders (female offenders and parole/probation officers). Importantly, the researcher will expand the knowledge base on the matter as parole/probation officers’ perspectives will be taken into account. This research may potentially have positive effects on the development of the entire society as female offenders will effectively re-integrate. Finally, the study may become a starting point for further investigation as there are still many gaps to be filled.

References

Barrick, K., Lattimore, P., & Visher, C. (2014). Reentering women: The impact of social ties on long-term recidivism. The Prison Journal, 94(3), 279-304.

Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches. Thousand Oaks, CA: SAGE.

Cornacchione, J., Smith, S., Morash, M., Bohmert, M., Cobbina, J., & Kashy, D. (2016). An exploration of female offenders’ memorable messages from probation and parole officers on the self-assessment of behavior from a control theory perspective. Journal of Applied Communication Research, 44(1), 60-77.

Golder, S., Hall, M., Logan, T., Higgins, G., Dishon, A., Renn, T., & Winham, K. (2013). Substance use among victimized women on probation and parole. Substance Use & Misuse, 49(4), 435-447.

Greiner, L., Law, M., & Brown, S. (2015). Using dynamic factors to predict recidivism among women. Criminal Justice and Behavior, 42(5), 457-480.

Kubiak, S., Fedock, G., Kim, W., & Bybee, D. (2016). Long-term outcomes of a RCT intervention study for women with violent crimes. Journal of the Society for Social Work and Research, 7(4), 661-679.

Makarios, M., Steiner, B., Travis, L. F. (2012). Examining the predictors pf recidivism among men and women released from prison in Ohio. In M. Stohr, A. Walsh, & C. Hemmens (Eds.), Corrections: A text/reader (pp. 285-297). Thousand Oaks, CA: SAGE.

Miller, J. (2015). Contemporary modes of probation officer supervision: The triumph of the “synthetic” officer? Justice Quarterly, 32(2), 314-336.

Morash, M., Kashy, D., Smith, S., & Cobbina, J. (2015). The effects of probation or parole agent relationship style and women offenders’ criminogenic needs on offenders’ responses to supervision interactions. Criminal Justice and Behavior, 42(4), 412-434.

Morash, M., Kashy, D., Smith, S., & Cobbina, J. (2016). The connection of probation/parole officer actions to women offenders’ recidivism. Criminal Justice and Behavior, 43(4), 506-524.

Rellahan, M. P. (2017). ‘WRAP’ initiative aims to help women offenders in Chester County. The Times Herald. Web.

Scott, C., Grella, C., Dennis, M., & Funk, R. (2014). Predictors of recidivism over 3 years among substance-using women released from jail. Criminal Justice and Behavior, 41(11), 1257-1289.

Vidal, S., Oudekerk, B., Reppucci, N., & Woolard, J. (2013). Examining the link between perceptions of relationship quality with parole officers and recidivism among female youth parolees. Youth Violence and Juvenile Justice, 13(1), 60-76.

Viglione, J., Blasko, B., & Taxman, F. (2017). Organizational factors and probation officer use of evidence-based practices. International Journal of Offender Therapy and Comparative Criminology, 1-20. Web.

Volkema, R. J. (2010). Unifying principles of organizational behavior. Journal of the Academy of Business Education, 11, 70-92.

Property ownership at law and in equity

Section 34(6) of the Law of Property Act 1925 treats co-owners as one legal entity: they are joint tenants in law (McKenzie & Phillips, 2012: 282). The Trustee Act 1925 limits the number of joint tenants of a legal estate to four persons. In this case, the first four owners that are: Satish, Bill, John, Richard are regarded as joint tenants under the statutory law: they are one legal entity and have a legal right and responsibility as a single entity.

The fact that there are five owners of the property means that the first four games in the register hold the property for themselves, and are the legal co-owners in trust. Therefore, Mike is not a legal co-owner. However, since under the equitable law there is no limit to tenancy, Satish, Bill, John, Richard and Mike have equitable rights and responsibilities. Equity categorizes co-ownership in terms of unities of interest (Bray, 2010: 289).

They hold the estate equitably as tenants in common based on the existing presumption in favour of a tenancy common in equity. The presumption here is that there is no proof of agreement among the Satish, Bill, John, Richard and Mike that they will have joint tenancy (Megarry, Wade & Harpum, 2012: 511).

Though the Law of Property Act 1925 and the Trust of Land and Appointment of Trustees Act 1996 do not cover the resulting trust, the case of Bull v. Bull [1955] provided for it. The decision in the case of Stack v Dowden [2007] applies to all the cases of equitable and legal co-ownership. If the estate is a joint tenancy in accordance with the Law of Property Act 1925, the estate will also be a joint tenancy in equity (Bray, 2010: 289).

A joint tenancy satisfies the unities of time, possession, interest, and title. According to the tenancy of Satish, Bill, John and Richard, the parties share unity in interests: they decide to purchase lanes for use as their local office. Moreover, there is the unity of title because their concern in the land is underneath a similar document. They share a unity of time since all want to convey the tenancy at the same particular time. The co-owners are entitled to posses the whole land legally under the unity of possession. However, to completely count as joint tenants, there should be no presumption in favour of a tenancy in common. There is a presumption that there is no proof of a written agreement to own the land jointly; therefore, disqualifying this as a joint tenancy.

According to the manner in which the property is owned, the rights of survivorship are also determined. Legally, Satish, Bill, John, Richard have a joint tenancy. This means they have a will dictating the successors in case of death is null. When one dies, the rest automatically assume full responsibility and ownership of his or her share. Therefore, any successors in such a situation become rebutted. While in terms of tenancy of commons, in case of death, the share goes to the person who is indicated in the will like the next of kin.

Effect of John’s death on the ownership

Section 36(2) of the Law of Property Act (as amended by the Trust of Land and Appointment of Trustees Act 1996) provides that a person serving the joint tenancy can give notice in writing or do some other thing or things that have the potential of effectively severing the tenancy in equity. This means that if John had died under a joint tenancy, legally, the son would not be able to inherit his share since the rest of the joint members automatically assume ownership of his share.

Under co-tenancy in equity, each tenant holds an undivided percentage of interest in the property. When a co-owner passes on, it means his/her interest form the property should be under the next of kin according to his/her will. Thus, since the partners equitably co-own the property as tenants in common, it means that the successor takes up his share. In such a case, the son is able to inherit whatever his father leaves behind.

Richard’s rights and obligations

Where two or more people have a unity of possession in the property, they assume equitable rights and legal responsibilities. With regard to co-ownership, the law imposes a trust (McKenzie & Phillips, 2012: 287). This means that in the case that Satish, Bill, John, and Richard have a joint tenancy, it would be impossible. Where one co-owner wants to sell property against the wishes of the other parties, he/she needs to get a court order under Section 14 of the Trust of Land and Appointment of Trustees Act 1996.

Richard can sell the equitable share and release capital if he can find someone to buy it. However, he cannot sell his legal share because he does not have an identifiable share in the legal estate (Perrins, 2000: 157). He is a joint tenant and cannot act on his own because he is a part of one legal entity with the other tenants. The sale of the title will give vacant possession to the purchaser.

However, under the equitable law, Richard co-owns his piece of property as a tenant in common. Therefore, he has the right to terminate the tenancy by selling his piece and leaving the partnership. On the basis of having no proof of an agreement written down, Richard has the right to sell his share of the property.

References

Bray, J 2010, Unlocking Land Law. 3^rd ed., Routledge, New York.

Bull v. Bull [1955] 1QB 234 CA (Eng).

Law of Property Act 1925, Ch20. London: HMSO.

McKenzie, J. & Phillips, M 2012, Textbook on Land Law, Oxford University, Press Oxford.

Megarry, R, Wade, W, and Harpum, C. (2012). The Law of Real Property. Sweet & Maxwell, London.

Perrins, B. (2000). Understanding Land Law. LEXISNEXIS, San Francisco.

Stack v Dowden [2007] UKHL 17.

Trustee Act 1925 c. 19 (Regnal. 15_and_16_Geo_5), London: HMSO.

Trust of Land and Appointment of Trustees Act 1996, Ch 47, London: HMSO.