Group Legal Services for Trade Associations

This Article will examine the goals of the Canons of Professional Ethics in this trade association context, noting the pre-Button limitations on the representation of members of such associations, and analyzing the possible impact of the three cases on the development of group legal services in this area. Hopefully, the perspective gained from such an examination may prove useful in the difficult task immediately confronting the legal profession: reformulation of the Canons to bring them into conformity with Button, BRT and UMW while minimizing, on the one hand, the loss of those traditional conceptions which have continuing value and validity, and maximizing, on the other, the utility of the Canons as general guidelines to ethical conduct

Corporate Norms and Contemporary Law Firm Practice

Larry Mitchell\u27s book describes the movement toward share price maximization by corporate managers. More intensive market competition both domestically and abroad has led managers to believe that their corporations have little choice but to focus on short-term profits. This practice leads to greater instability for corporate workers and efforts to externalize other costs on third parties. It also intensifies the erosion of local cultural practices that are seen as impediments to profit maximization, whether they are associated with countries abroad, communities in the United States, or within the corporation itself. In this process, the norms of the market gain increasing influence as the impetus for the rhythms of daily life even beyond the formal institutions of the economic system. Professor Mitchell has done an admirable job of laying out the implications of this development for many aspects of modern life both here and abroad, thereby indicating the wide impact of corporate behavior. In this essay, I want to focus on how the changes in the corporation that Professor Mitchell describes have prompted similar shifts in another important social institution: the large American corporate law firm

An Empirical Examination of Relational Governance and Service Capabilities on the Success of Professional Service Firms Offshore Outscoring the Client Perspective

Professional services, such as accounting, finance, engineering and management consulting, are significant contributors to the U.S. economy accounting for the largest value added industry within the private sector. Knowledge-intensive professional services reached this level of economic prominence by responding to heightened competition, managing rising costs, utilizing key resources, and re-directing their focus to internal core competencies through the strategic decision to engage in offshore outsourcing relationships. By 2015, the Congressional Research Study report predicts 3.4 million, or 13.7 of professional service jobs will be offshore outsourced. Offshore outsourcing is a firm level strategic decision to relocate business activities to an offshore third party primarily to emerging markets. Based on existing theories of transaction cost economics, resource based view, and resource dependence theory, this dissertation empirically validates a comprehensive model evaluating the multi-dimensional relational governance mechanism of collaboration on the capabilities of the offshore service provider. In addition, the model examines the influence of the service capabilities on the success of the client firm. One of the key contributions of this study is the client perspective examination of the relationship between the U.S. client firm and offshore service provider thereby addressing a stated need for additional academic research. The importance of governance mechanisms established by professional service firms have evolved over time from minimizing transaction costs and opportunistic behavior, to maximizing access to complementary resources, to building long-term relationships based on communication, commitment and information sharing. These governance mechanisms are integral to a collaborative client-vendor relationship. This dissertation develops hypotheses, from existing outsourcing literature, evaluating the influence of collaboration on the client\u27s perception of the learning capability, the se

Mission-Market Tensions and Nonprofit Pricing

Private not-for-profit organizations combine characteristics of a public sector agency with those of a private, proprietary firm. In particular, nonprofits are required to address designated social missions while breaking even financially. This structure underlies the difficulty that nonprofit organizations face in making decisions with important resource implications. Specifically, choices that would achieve maximal mission impact may differ from choices that reward the organization in purely financial terms. As a result, nonprofit managers face a variety of trade-offs between mission responsive and financially rewarding actions. This paper considers some of these tradeoffs in the context of pricing decisions by nonprofit organizations. In particular, the paper draws on alternative theories of nonprofit pricing from the literature. In one theory, nonprofits are viewed as revenue maximizers, pricing their services to garner as much net revenue as possible to support their organizations. In an alternative theory, nonprofits are conceived as mission maximizers, pricing their services to achieve maximum mission impact within the constraint of financial solvency. The efficacy of these theories is explored through five case studies of organizations offering a variety of services within the context of a local social services federation. Evidence from these cases suggests that the forgoing theories apply in some combination for any given nonprofit organization. Several different behavioral patterns are found, including nonprofits seeking to balance financial and mission impacts in the pricing policies for each of their service offerings and others pursuing a strategic mix of pricing policies for profitable and mission-impacting services. It is clear from all cases observed that nonprofit managers struggle with mission-market tensions as they relate to pricing and that they can benefit from metrics to help them sort through these decisions in ways that resolve these tensions. Working Paper 08-0

Can Minimum Prices Assure the Quality of Professional Services?

This papers studies the effects on service quality and consumer surplus of a minimum price which is fixed by a bureaucratic non-monopolistic professional association. It shows that the price floor set by a Niskanen-type professional assocation will maximize consumer surplus only if consumers demand the highest possible average quality. If consumers demand services of lesser quality, the association's price floor will be too high if measured by consumer surplus. Moreover we show that a de-regulated market will always reproduce the favorable result of a uniformly high price in the case of top quality demand while delivering superior results in the case of a mixed demand for high and low quality services. The general picture that emerges from this discussion is that the current EU Commission's initiative to abolish fixed price schemes for professional services will not lead to a decrease in quality that would be undesirable from a standpoint of consumer protection. This holds even if we acknowledge the opponent's claim that there is a chance of deprivation of professional ethics due to price competition.Liberal professions; Price regulation; Quality; Professional association; Self-regulation; EU competition policy; Intrinsic motivation

Legal fee restrictions, moral hazard, and attorney profits

When attorney effort is unobservable and certain other simplifying assumptions (such as risk neutrality) hold, it is efficient for an attorney to purchase the rights to a client's legal claim. However, the American Bar Association Model Rules of Professional Conduct prohibit this arrangement. We show that this ethical restriction, which is formally equivalent to requiring a minimum fixed fee of zero, can create economic rents for attorneys, even though they continue to compete along the contingent-fee dimension. The contingent fee is not bid down to the zero-profit level, because such a fee does not induce sufficient attorney effort. We thereby provide a political economy explanation for these restrictions.

Maximizing Institutional Archives with Limited Resources: A Case Study

This practice-oriented article shares how one small institution on a tight budget without a fulltime archivist leveraged existing resources (human, technological, and physical) to maximize 75 years of institutional archives for a recent milestone alumni reunion. Projects included drafting an institutional history, interviewing long-time members of the institution, organizing photos for display, and providing alumni with access to yearbooks. Special attention is given to the process of creating a 20-minute institutional history video, which premiered at an alumni banquet and was shared with other constituents electronically. There is also a focus on project management and collaborating with coworkers in other departments. Part-time archivists or those who are beginning archival management will gain an approach to tackling projects and creating professional results

Blended Value Investing: Capital Opportunities for Social and Environmental Impact

This paper is offered not as a fully comprehensive survey of the emerging area of blended value investing, but rather as a set of examples of how such investing practices are being developed and applied around the world. The paper's intent is not to provide a single answer for all investment challenges, but to demonstrate how groups of investors are mobilizing capital on new terms to meet the challenges of emerging investment opportunities, as well as the demands of investors seeking out new asset classes in which to place their capital.This paper presents innovations in capital finance that promise to bridge market-rate interests with strategic opportunities to create blended value that benefits shareholder and stakeholder alike. The following examples speak to an evolving capital convergence wherein mainstream capital markets and investing will increasingly become drivers of new solutions to historic problems. Blended value investing funds and instruments offer financing strategies a set of tools that go beyond traditional philanthropy or market rate investing and which complement the vision we all share of a world with greater equity and opportunity for its members.This paper also identifies several areas of research that would help advance the field of blended value investing. Finally, the paper concludes with words of caution that suggest a prudent approach to developing blended value capital markets. It offers a critique of the state of the markets, presents a strategic vision for the blended value capital markets, and suggests specific steps that participants might take in moving toward the ideal

Markets for professional services: queues and mediocrity

We analyze a dynamic, decentralized market with endogenous entry, where in each period the active professionals supply one unit of an indivisible service at varying degrees of quality. The customers that have entered the market are randomly matched with the active professionals and prices are set by (complete information) pair-wise bargaining. In its unique steady state, the market leads to an excess diversity of quality and customers may have to suffer costly delays. Notably, efficiency is not regained as per period delay costs disappear. We also show that a professional college setting licensing rules will improve welfare (and even Consumer Surplus), relative to the free market, whenever the inefficiency is caused by a large enough excess supply.