Though still relatively infrequent, the issuing of dissenting and concurring opinions is becoming more common in international investment arbitration. This paper reviews the reasons for delivering separate opinions envisaged in the bibliography on investment arbitration, comparing these with practices in the related area of commercial arbitration. Fourteen recent separate opinions appended to ICSID arbitration awards and decisions are then analysed to determine how the arbitrators themselves explain why they have taken the drastic step of issuing (...) a separate opinion. Potential areas of convergence between investment arbitration and commercial arbitration practice will be addressed. (shrink)

International dispute resolution in general and international arbitration, in particular, is highly affected by the emergence and fast development of innovation-driven technologies. On the one hand, such technologies are cost and time-effective. To name a few, they allow online filing of a case, collecting of e-evidence and remote hearings, among others. On the other hand, they also may lead to some challenges that need to be addressed. The primary concerns comprise e-arbitration agreements and e-awards, as well (...) as cybersecurity and data protection. Therefore, this begs the question of whether such new technologies will significantly impact the dispute resolution landscape and thus become a game-changer therein. This analysis leads to the conclusion that the emergence of new technologies provides an opportunity to establish a long-lasting new standard for international arbitration. (shrink)

In international arbitration, timely application and enforcement of interim measures can have a substantial effect on the possibility of the enforcement of final arbitration award, especially when issues relating to the protection of assets or evidence arise before or during the course of arbitration proceedings. Though the substantive amendments to the UNCITRAL Model Law on International Commercial Arbitration concerning the application and enforcement of interim measures in international arbitration were made in 2006, (...) the legal regulation of these matters in Lithuania by the Law on Commercial Arbitration remained as previous. Hence, the purpose of this article is to provide a brief analysis of the contemporary universal legal doctrine and international practice regarding the availability, application and enforcement of interim measures in international arbitration; to examine and evaluate the Lithuanian law and court practice, their compliance with the analyzed contemporary universal legal doctrine and international practice on the application and enforcement of interim measures in international arbitration. (shrink)

The arbitral world is at a crucial point in its historical development, poised between two conflicting conceptions of its nature, purpose, and political legitimacy. Formally, the arbitrator is an agent of the contracting parties in dispute, a creature of a discrete contract gone wrong. Yet, increasingly, arbitrators are treated as agents of a larger global community, and arbitration houses concern themselves with the general and prospective impact of important awards. In this paper, I address these questions, first, from the (...) standpoint of delegation theory. In Part I, I introduce the basic “Principal-Agent" framework [P-A] used by social scientists to explain why actors create new institutions, and then briefly discuss how P-A has been applied to the study of courts. Part II uses delegation theory to frame discussion of arbitration as a mode of governance for transnational business and investment. In Part III, I argue that the International Center for the Settlement of Investment Disputes is presently in the throes of judicialization, indicators of which include the enhanced use of precedent-based argumentation and justification, the acceptance of third-party briefs, and a flirtation with proportionality balancing. Part IV focuses on the first wave of awards rendered by ICSID tribunals pursuant to Argentina's response to the crushing economic crisis of 2000-02, wherein proportionality emerged, adapted from the jurisprudence of the Appellate Body of the World Trade Organization. (shrink)

The increasing use of digital technologies in judicial and arbitration proceedings increases the usage of digital evidence by the parties, which brings the necessity of creating patterns for adjudicators to admit and assess this new type of evidence. This paper generally addresses digital evidence focusing on the second moment in international arbitration proceedings. It also narrows the topic to hacked and leaked evidence and its admissibility in international arbitration. The literature review showed a significant amount (...) of research devoted to the evidence in arbitration. Some considered electronic evidence within one jurisdiction; others focused on certain forms of digital evidence such as electronic signatures. Papers on digital evidence in international arbitration approach arbitration rules for digital evidence but skip admissibility issues. No systemic and complex works research digital evidence in arbitration, explicitly focusing on the admissibility of hacked and leaked digital evidence from a comparative perspective. Also, no research deals with enforcing international arbitration awards relying on illegally obtained digital evidence. In these cases, there could be a possible violation of domestic public policy under the New York Convention terms (art. V, 2, b). That is why the paper aims to offer the concept of digital evidence in international arbitration, including hacked and leaked evidence, criteria of its admissibility and relevance, and design the arbitration guidelines for assessing hacked and leaked evidence. Comparative legal analysis of the international arbitration rules and national procedure law allowed us to compare the regulatory approaches to the definition of digital evidence and its admissibility worldwide. The method of legal modeling allowed designing model guidelines for arbitral tribunals to evaluate the admissibility and relevance of digital evidence, including hacked and leaked evidence. Moreover, the case study method allowed us to analyze jurisprudence and define criteria for admission of hacked and leaked evidence. We conclude that the admissibility of hacked and leaked evidence depends solely on the arbitrator’s broad discretion to assess the evidence. Nevertheless, thorough evidence analysis and a well-reasoned award are always mandatory. (shrink)

There can be no doubt that the Romans were very much influenced in their use of interstate arbitration by the Greeks. This statement can be made without affecting the question as to whether the actual principle of arbitration was known to them before their contact with the Greeks. Either the practice sprang up independently in Italy and Greece owing to similarity of conditions, or else it was part of the same stock of political and social ideas inherited by (...) each race alike from common ancestors. It would be improbable if two nations of such close relationship and such similar civilisation could not have inherited so natural an idea or developed it along similar lines, and indeed the very widespread practice of arbitration in private law at Rome has none of the signs of an imported idea. (shrink)

This article describes the emergence of a new category of actors in the social arbitration field, namely third-party financiers, with a focus on the possible ethical implications for investment arbitration proceedings. Third-party financiers are actors-service providers specialized in the financing of procedures in which they are associated with the result and the redemption of arbitral awards which they ensure the execution. The emerging phenomenon of third-party financing in the social field of international arbitration raises various ethical (...) concerns, which have not been regulated by the legal framework of most arbitral institutions. By exploring the various interactions between third-party funders and other actors in the social field of international arbitration, the article intends to highlight the ethical implications that the phenomenon of third-party funding may have on both the lawyer-client relationship and the independence and impartiality of arbitrators. It is argued that the introduction of the new phenomenon of third-party funding into the dispute may disrupt the arbitral process. Third-party funding is particularly likely to lead to situations of conflict of interest for arbitrators, which may affect the final award and exacerbate the crisis of legitimacy of the arbitral process. This article explores the various ethical concerns that it raises, and proposes some thoughts on the need for precise regulation of this emerging phenomenon in the contemporary arbitration panorama. It argues that, for ethics to prevail, disclosure of the identity of the third-party funder and the funding agreement should be encouraged in certain circumstances. This is the way to preserve the integrity of the proceedings and the impartiality and independence of the arbitrators. (shrink)

The concept of international strategic litigation for the defense of Venezuela is analyzed against the 2018 Guyana lawsuit before the International Court of Justice-ICJ. Evading the agreement in Article IV of the 1966 Geneva Agreement, it attempts to validate the Paris Arbitration Award of 1899, which was rejected by Guyana and Venezuela. The claim is inadmissible because the bilateral ways to resolve the territorial conflict have not been exhausted, the ICJ lacks jurisdiction and the Geneva Agreement is (...) distorted. Scenarios are analyzed for Venezuela to participate or not in the litigation, highlighting the convenience of a peaceful, practical and satisfactory settlement for the Parties. (shrink)

Papers presented by three scholars from Asia, Africa and Europe, at a seminar held at the Hague Academy of International Law, Netherlands.

Despite the increasingly diversified discourses in international commercial arbitration, this device of socio-legal regulation remains a relatively under-theorized subject. In particular, far too little attention has been paid to analyzing international commercial arbitration through critical approaches such as Third World Approaches to International Law (TWAIL). TWAIL is broadly understood as a methodological reorientation in international law by highlighting the historical links between the foundations of this field of law and the history of capitalism and (...) imperialism as well as the colonial and Eurocentric legacies in the structure and operation of the current international legal regime. With this in mind, two fronts in international commercial arbitration invite a reexamination through a TWAIL perspective and by drawing on the concept of hegemony. One front is the transnational account of arbitration, and the other one is the epistemic community of arbitration. By examining these two notions through a narrative of hegemony of Western legal traditions, we posit that any effective attempt at redefining or reforming arbitral governance structure towards sustaining diversity requires a deeper understanding of historical and current world power structures and creating a vision for the prospect of dehegemonization. (shrink)

This book analyzes the implementation of CSR reporting and codes of business conduct and ethics in the legal systems of the USA, Austria and China and their enforcement in international supply chain arbitrations. The book demonstrates that long-term profit maximization is increasingly intertwined with corporate ethics and CSR policies. In order to prevent window-dressing and greenwashing, certain control mechanisms and legal standards are required along the entire supply chain. This book introduces an ethics and CSR system recommending a reward-based (...) whistleblowing mechanism, internal oversight by a CSR and Ethics Committee comprised of independent board members and at least one sustainability expert, and an external, independent and comprehensive assurance of CSR reports provided by auditing firms or newly formed governmental agencies consisting of certified CSR experts. The author emphasizes the significance for supply chain leaders to ensure contractual enforcement of their codes of business ethics and conduct along the supply chain. Against this background, the author created a comprehensive fictitious case scenario covering a supply chain dispute arising from the breach of the supply chain leader’s code of business conduct and ethics by a lower-tier supply chain member. The author acknowledges the fact that in most of the cases the governing law of international supply chain contracts is English law or law based on English law. Thus, the author discusses potential contractual claims for damages arising from a loss of profits caused by a loss of reputation resulting from violations of core provisions of the chain leader’s supplier code of conduct pursuant to English law. As international supply chain disputes usually involve more than two parties, and international arbitration is the ideal means for the resolution of these disputes, the book compares the arbitration rules for consolidations and joinders of some of the most significant international arbitration institutions: SIAC, ICC, AIAC, ICDR, VIAC, CIETAC and HKIAC. The book is directed at legal practitioners, legislators of various jurisdictions, board members of corporations, ethics and compliance officers, academics, researchers and students. It is the author’s main goal that the book serves as an inspirational source for the establishment or the improvement of a corporate ethics and CSR system preventing window-dressing and greenwashing and covering the entire supply chain. Furthermore, it is intended that students develop a deeper understanding for the enforcement of corporate ethics and CSR policies. (shrink)

Local reports from different international societies have considered the achievement of the successful Glocalized architecture model in line with the 2030 UN Sustainable Development Goals (SDGs). The Aga Khan Cultural Foundation’s International Program for Islamic Architecture has also prioritized the understanding of the success drivers in architectural projects. This study aimed to detect the potentials of the common global indicators to access qualitative design assessment through analyzing the Aga Khan Award’s reports. The selected methodology in the present study (...) is a quantitative approach using the systematic content analysis and coding techniques for qualitative data obtained from the technical. The physical, non-physical, modern, and traditional factors that have contributed to the success of the works as well as their combinations were extracted and analyzed using Sensible and Abstract international, national, and local indications. There is a relative superiority for Sensible indications (A combination of modern and physical factors). The hybrid data distribution provides the ground to assess the works, and this can be used to manage the globalization challenges in the contemporary architecture of Muslim societies. (shrink)

The Covid-19 pandemic disrupted in-person dispute resolution proceedings, leading to the rapid adoption of digital technologies for remote hearings in international arbitration. The use of these technologies has opened up new possibilities for enhancing procedures, improving efficiency, and streamlining processes. However, it also raises concerns about transparency and authenticity in virtual hearings. This paper explores the impact of digital technologies on the semiotics of law and legal communication in international arbitration, considering the intersections between new technologies (...) and persuasion. Based on practices like the use of e-evidence, debates surrounding remote hearings, and the formulation of standards for stakeholders’ behavior, the study takes a practice-based approach, exploring cognitive processes, such as memory and attention, and their influence on the behavior of counsel, arbitrators, and witnesses in remote hearings. It highlights the key issues, findings, challenges, and future research opportunities arising from the introduction of digital technologies in this field, including considerations on how stakeholders of a virtual hearings are affected by the unique features of the digital environment. (shrink)

This article connects the insights of post-realist scholarship about radical indeterminacy and its consequences for the legitimacy of adjudication to the current legitimacy crisis of the international investment regime. In the past few years, numerous studies have exposed serious shortcomings in investment law and arbitration including procedural problems and the substantive asymmetry of the rights protected. These criticisms have prompted a broad consensus in favor of amending the international investment regime and multiple reform proposals have appeared that (...) appeal to the rule of law ideal as an instrument for increasing the acceptability of the international investment system. This article argues that the reliance of such proposals on jurisprudential approaches that fail to adequately accommodate the post-realist indeterminacy critique and take seriously the role of ideology in adjudication renders reform efforts unable to solve the legitimacy problems of the investment regime. The conclusions suggest the need to abandon implausible claims to depoliticization and face the methodological challenges posed by the promise of ideologically balanced assessments advanced by some rule of law theorists. The article finally points at the urgency to reform traditional approaches to doctrinal work in order to increase awareness of critical challenges and open up doctrinal methods to alternative methodological avenues. (shrink)

In Canada, much media attention has recently been focused on the formation of arbitration tribunals that would use Islamic law or Sharia to settle civil matters in Ontario. In fact, the idea of private parties voluntarily agreeing to arbitration using religious principles or a foreign legal system is not new. Ontario's Arbitration Act has allowed parties to resolve disputes outside the traditional court system for some time. This issue has been complicated by the fact that Canada has (...) a commitment to upholding both a policy of multiculturalism and an international obligation towards women's rights. Although these values need not necessarily conflict, in this context, they have carried a tension that must be reconciled. This paper will examine the legal implications of faith-based arbitration tribunals in family law, with a particular emphasis on the impact that Sharia could have on Muslim women in Ontario. (shrink)

Lex Mercatoria play a crucial role in resolving disputes arising from international trade contracts before arbitration bodies, thus establishing them as an independent legal system capable of regulating international commercial relations. This legal characteristic imposes a certain obligation on various arbitration bodies to apply them to the disputes brought before them, either based on the parties' intentions or based on the legal force inherent in those customs. Consequently, this research examines the extent of recognition of the (...) binding force of commercial customs before arbitration bodies, and based on that, it elucidates the authority of these bodies in applying them to international trade disputes. It is evident that these customs, due to their flexibility derived from the nature of commercial transactions and the customary practices of traders resorting to them, have become today an independent legal system that imposes itself on arbitration bodies even if the parties did not choose to apply those customs. This paper recommends the Jordanian legislator to explicitly adopt the application of these commercial customs in the Jordanian Arbitration Law texts, following the example of national and international comparative legislation. (shrink)

In recent years, the phenomenal development and application of technology have given rise to new means and forms of international commercial dispute resolution. In particular, in the post-COVID era, the demand for efficient, flexible and cost-saving dispute resolution methods has increased significantly. Therefore, technology-enabled digital methods such as online arbitration, have become more widely accepted and applied. At the same time, globalisation has turned international commercial disputes increasingly complex, which often involves the interests of third parties. According (...) to data released by arbitral institutes, about 40% of arbitration cases worldwide involve more than two parties. As there is an increasing number of multi-party arbitration cases, multi-party dispute resolution mechanisms have played a more prominent role in such circumstances. Digitalisation and globalisation have facilitated multi-party projects, but they have also inevitably increased risks in multi-party disputes. For instance, arbitration is a business-friendly process, but the consensual nature of arbitration does not easily accommodate multi-party disputes. Although digitalisation in the conduction of arbitrations has made it more efficient and increased the access of multi-party commercial disputes to resolution, it still has not helped arbitration overcome the basis of party’s consent. This paper will examine the joinder mechanism in international commercial arbitration, focusing on its interaction with traditional theories and principles of arbitration, the joinder provisions in the rules of several leading arbitral institutions (e.g. ICC, LCIA, HKIAC and SCAI), and the value of the joinder mechanism in the context of digitalisation. (shrink)

In the realm of Polish law, arbitration is anything but a new concept. In an ever-developing economy, arbitration has become a useful tool in resolving disputes that are commercial in nature. The issue pertinent to the choice of language in an arbitral proceeding has been thoroughly investigated in the doctrine of international arbitration, yet the conclusions are not set in stone and are likely to change and evolve over time. As evidenced by the technological revolution, introduction (...) of mechanical translations, and artificial intelligence (“AI”) it may seem that the challenges will be difficult to predict. Alternatively, the status quo of the English language as the number one language in the arbitral proceedings will remain. The parties can easily dismiss the linguistic and interpretative problems surrounding arbitration agreements. Thus, this article endeavors to consider the possible implications of a case scenario, wherein a party would attempt to arbitrate an international dispute with a Polish party on the basis of a contract that would be in a language that differs from Polish. Additionally, attention is drawn to the role of witnesses in an arbitration proceeding as such witnesses may speak languages that are the same, similar, or entirely different to the language spoken by the parties involved in the arbitration, as well as differ from the primary language of the arbiters. This article examines the aforementioned hypothetical case-scenario with the emphasis on relevant Polish acts of law. The research presented in this article is also focused on the examination of regulations vested in the statute of the most prominent Arbitration Court in Poland, and its provisions pertinent to language. (shrink)

Internal due process systems are the formal mechanisms thatmany organizations use to address and resolve ethics conflicts.Problematical due process systems such asinvestigation-punishment and grievance-arbitration systemsnarrowly constrain the political and moral space needed formeaningful ethics voice, praxis, and community. The relativelyuncommon employee board and mediator-counselor types of systemscan help solve such problems. The employee board andmediator-counselor systems permit questioning not only of guiltwith respect to policy violations but also the appropriateness ofthe policies as well as potential biases in an organization'sembedded (...) tradition-system that may be contributing to unethicalbehavior. Theoretical implications for organization ethics,praxis, community, and integrative social contracts theories areexplored. Several case examples are discussed. (shrink)

Expropriation is a hotly debated issue in international investment law. This is the first study to provide a detailed analysis of its norm-theoretical dimension, setting out the theoretical foundations underlying its understanding in contemporary legal scholarship and practice. Jörg Kammerhofer combines a doctrinal discussion with a theoretical analysis of the structure of the law in this area, undertaking a novel approach that critically re-evaluates existing case-law and writings. His approach critiques the arguments for a single expropriation norm based on (...) custom, interpretation and arbitral precedents within international investment law, drawing also on generalist international legal thought, to show that both cosmopolitan and sovereigntist arguments are largely political, not legal. This innovative work will help scholars to understand the application of theory to investment law and help specialists in the field to improve their arguments. (shrink)

Arbitration is the dispute resolution method of choice in international commerce, but it rests on a complex legal foundation. In many international commercial contracts, the parties will choose the law governing any future disputes. However, where the parties do not choose a governing law, the prevailing approach in arbitration is to afford arbitrators broad and largely unfettered discretion to choose the law considered most appropriate or most applicable. The uncertainty resulting from this discretion potentially affects the (...) parties' rights and obligations, the performance of their contract, the presentation of their cases, and negotiations undertaken to settle their disputes.In this text, Dr Benjamin Hayward critically reviews the prevailing approach to the conflict of laws in international commercial arbitration. The text adopts a focused and detail-oriented analysis - being based on a study of more than 130 sets of arbitral laws and rules from around the world, and drawing heavily on arbitral case law. Nevertheless, it remains both practical and accessible, taking as its focus the needs and expectations of commercial parties, who are the ultimate users of international commercial arbitration.This text identifies the difficulties that result from resolving conflicts of laws through broad and unconstrained arbitral discretions. It establishes that a bright-line test would be a preferable way to resolve arbitral conflicts of laws. Specifically, it recommends a modified Art. 4 Rome Convention rule as the ideal basis for law reform in this area of arbitral procedure. (shrink)

The COVID-19 pandemic has led to the widespread use of online hearings in arbitral proceedings, raising questions about the impact of such proceedings on the determination of facts underlying a dispute. This article explores the extent to which online hearings may hinder arbitrators’ ability to assess witness credibility by drawing upon the cognitive psychology literature on truthfulness determination and lie detection. A survey of the literature suggests that the ability to differentiate truthful from dishonest statements through verbal and nonverbal cues (...) is limited, leading to the notion that observing behaviors like fidgeting, gaze aversion, vocal pitch, or body posture is not particularly relevant in assessing the credibility of a witness. Instead, focusing on the content of what is reported appears to be the most relevant strategy to determine credibility. Therefore, research does not support the idea that face-to-face contact with witnesses is essential to determine the facts of a dispute. Still, the use of in-person hearings may, in practice, continue to be preferred due to underlying cultural assumptions regarding the nature of hearings, the facilitation of communication between parties, counsel, and the tribunal, and a general sense of _Zoom fatigue_. (shrink)

Arbitration is a preferred method for the resolution of international business disputes. As of yet, most publications on online arbitration deal with legal issues. In this paper, we present an Online arbitration environment that we believe facilitates the participants in a meaningful way. Our assumption is that an ODR service should be easy to use (convenient), and at the same time provide meaningful support. More specifically we have paid attention to four criteria that we believe are (...) important, viz. simplicity, awareness, orientation and timeliness. The online arbitration service is called GearBi. (shrink)

Investor-state-dispute-settlement is an arbitration mechanism to settle disputes between foreign investors and host-states. Seemingly a technical issue in private international law, ISDS procedures have recently become a matter of public concern and the target of political resistance, due to the power they grant to foreign investors in matters of public policies in the countries they invest in. This article examines the practice of ISDS through the lenses of liberal-statist theories of international justice, which value self-determination. It argues (...) that the investor-state arbitration system illustrates how liberal-statist theories of international distributive justice ought to care about relative socioeconomic disadvantage, contra the sufficiency principle that they typically defend. The sufficiency principle draws on a questionable conception of the freedom that self-determination consists in. (shrink)

The Dispute Settlement Reports of the World Trade Organization (WTO) include Panel and Appellate Body reports, as well as arbitration awards, in disputes concerning the rights and obligations of WTO members under the provisions of the Marrakesh Agreement Establishing the World Trade Organization. These are the WTO authorized and paginated reports in English. An essential addition to the library of all practising and academic trade lawyers, and needed by students worldwide taking courses in international economic or trade law. (...) Among others, DSR 2007: I reports on United States – Measures Relating to Zeroing and Sunset Reviews. (shrink)

Although Ontario's first experiment with faith-based arbitration ended in 2006 with the Liberal government's amendment of the 1991 Arbitration Act to disallow faith-based arbitration, the debate about whether such tribunals should be permitted in a multicultural democracy is still open given that actors in a number of jurisdictions persist with campaigns to have faith-based arbitration recognized as legitimate. Are faith-based arbitration tribunals permissible in a multicultural democracy? Does faith-based arbitration put the rights of women (...) and children at risk? More generally, are the requirements of democratic stability and legitimacy compatible with this sort of legal pluralism in family and civil law? The author assesses faith-based arbitration from the perspective of deliberative democracy and argues that, if certain institutional reforms and safeguards are adopted, faith-based arbitration may serve to improve deliberative reciprocity across group boundaries, rather than harm stability and integration in a multicultural democracy as critics suggest. (shrink)

_Relevance. _The role of internal audit in the entity's governance structure is constantly evolving. For a variety of reasons, internal auditors engage in an in-depth analysis of business processes to help ensure that these processes are working properly and effectively. One reason is that advanced entities expect internal auditors not only to verify compliance with laws and procedures, but also to suggest ways to make internal control more effective. However, often internal auditors in entities do not perform the function they (...) could and should perform. They focus on tax matters, financial statements, and assess compliance with procedures. Internal auditors are sent where problems arise to play the role of auditors to detect errors and report blame. In some entities, internal auditors are separated from business or operational problems, leaving them with the traditional function of verification [Daujotaitė et.al. (2015), Tarptautiniai vidaus audito profesinės praktikos standartai (2004), Rupšys et.al. (2007), Lakis (2017)]._ _ Scientists investigate internal audit from different angles, highlighting issues in the design and implementation stages of internal audit. Recently, the scientific literature has increasingly focused on the quality of internal audit and its evaluation. The collapse of banks also contributed to this, although in 2007 Bank SNORAS Internal Audit Service was awarded the title of "Oldest Internal Audit Service" by the Lithuanian Association of Internal Auditors. Although it is believed that poor quality audit is only due to insufficient qualification and professionalism of the auditor, this view can be negated by the list of factors determining the internal audit environment [Lakis (2007), Lietuvos Respublikos vidaus kontrolės ir vidaus audito įstatymas (2002), Pickett (2011)]. Modern performance and business management tools require employees to change their well-established work habits, but internal audit is still associated with the function of verifier for many managers and internal auditors themselves. The speed of adapting to changes in the environment depends on the success of operations and business, which requires managers to have a modern approach to their internal audit function. _Research aim:_ Identify and evaluate the determinants of the internal audit environment. _Research methods: _Systemic analysis of scientific literature and legislation and questionnaire survey. _Research results and conclusions_: Systematic analysis of the literature suggests that the following key factors exist in the internal audit environment: the legislative environment; regulatory enactments; business practices in the region. The first two factors are otherwise known as legal regulation. It should be noted that there are significant differences in the legal level of audit regulation between external, public and internal auditing. Most of the regulations are for external audit, and least for internal audit. An analysis of the legal literature and regulatory documents on internal audit suggests that only the public sector and, to some extent, commercial banks are required to comply with statutory and regulatory requirements that are binding on them. The activities of private sector internal auditors are not regulated by law, the functions of internal auditors are determined by the managers of the entity in which they work, and the standards are purely advisory. The beginning of the establishment of internal audit in Lithuania is considered to be 1995, when the Board of the Bank of Lithuania approved the Procedure of the Internal Audit Service of Commercial Banks and obligated commercial banks to establish internal audit services. The development of internal audit in the Lithuanian public sector was started only in 2000. In accordance with the 2000 February 7th Government of the Republic of Lithuania resolution no.127 On Internal Audit of State-owned Enterprises and Institutions, internal audit units or positions have been established within public institutions. 2002 January 1st this resolution was replaced by the Republic of Lithuania Law on Internal Control and Internal Audit. International Standards on Internal Auditing that set out the principles for conducting internal auditing are applied worldwide. The standards themselves are fairly generalized, setting only basic requirements and guidelines, as TVAI seeks to have the standards adopted by the widest possible audience. The Internship Regulations provide interpretations and more detailed explanations of the Standards of Professional Practice in Internal Auditing. Standardization and other supporting materials include methodological literature, studies and reviews, books, seminars, conferences and more. A systematic analysis of the literature indicates that sufficient legislation and regulations have been adopted, which has a positive impact on the internal audit environment. In order to assess the impact of business practices in the region on the internal audit environment, a questionnaire survey was conducted among the employees of the entities. It showed that a manager's attitude towards internal audit is strongly influenced by his education. Internal audit is acceptable to higher education managers because they are more open to change and open to change. Educated executives enable the internal auditor to be qualified and understand that internal audit requires an appropriate amount of knowledge. Respondents were also asked about their views on the internal audit process. When employees are not hostile to auditing and evaluating their work, it positively affects the internal audit environment, enabling internal auditors to play the role they would like to have in the company. (shrink)

The purpose of the present paper is to unveil whether the power distance/textual complexity duality attributed ordinarily to legal language applies to two different documents which are widely deployed, interpreted and applied in the global scope of commercial trade and communications, namely Lloyd’s Institute Cargo Clauses and the London International Court of Arbitration Rules. In choosing two texts which are the direct product of the law-making machinery of the Common law system, but which are used internationally, we ultimately (...) undertake to research whether opacity is really inherent to legal texts in English with an international scope of implementation. To scrutinise, illustrate and argue on the degree of difficulty and power distance in such legal instruments, the perspective of genre has been chosen as the most effective of instruments provided by current Applied Linguistics. Genre analysis permits to identify the genre or genres of a specialised professional community connected to the communicative group it comes from, the audience that receives it, the historical and cultural background and the extra-textual reality it aims to represent. The goal of our study, carried out through different levels: formal, discursive and, mainly, pragmatic, is to discern whether there exists any possible equation between power and textual complexity, and the consequences this entails for the understanding of the nature of these major international texts. (shrink)

J.M. Coetzee has unquestionably achieved the status of ‘international author’ within dominant conceptions of world literature: his works circulate widely in both English and translation and have been legitimated by the principal arbitrators of the global cultural industry. He has, however, recently positioned himself as ‘an international author, but in a different sense’; that is, as a writer whose internationalism is achieved through his location in ‘the South’. This article considers how Coetzee’s narratives thematize being ‘international’ in (...) this ‘different sense’. It focuses on the pivotal works of Youth: Scenes from Provincial Life (2002) and the opening chapters of Elizabeth Costello: Eight Lessons (2003) while tracking an orientation southward across his oeuvre in allusions to Joseph Conrad, Jorge Luis Borges and, in particular, Pablo Neruda as well as in Coetzee’s repeated turn to littoral settings. These settings open to what the article describes as the ‘blue southern hemisphere’, implicating narrative world-making in the geophysical properties and ‘troubled histories’ that constitute the South and recasting the act of writing from ‘the far edges’ into a planetary perspective that contends with the uncanny nature of settler societies in the southern temperate zone. (shrink)

The global demand for information has brought in new developments in the publicity of discursive practices of many professional areas. This study takes the professional practice of International Commercial Arbitration, a mechanism to resolve business disputes outside the courts and traditionally considered as private, to explore the process of resemiotization of information, from the strategies used by corporations in their press releases to the news reports published by national and international media. It takes the theoretical concept of (...) interdiscursivity in critical genre analysis to show that texts are the result of a combination of a very complex range of resources brought about by genres, professional practices and professional cultures, which derive not only from the ‘local’ representation of the transnational arbitration process, but also from the different corporate identities and their ways of coping with the increasing publicity of the facts of arbitration. (shrink)

Integrating stakeholder agency theory with the instrumental corporate social responsibility (CSR) literature, this study explores how award-winning CEOs consider personal interests and balance competing stakeholder demands when they decide between external and internal CSR, or CSR focus. Using a difference-in-differences research design, we find that after winning a prestigious media award, CEOs engage in more external CSR, which is more visible to the public, and less internal CSR, which is less likely to attract public attention. We find that such an (...) influence on CSR focus is more salient for award-winning CEOs with lower stock ownership (i.e. a stronger self-serving motivation) than for CEOs with higher stock ownership. Furthermore, we explore the role of stakeholder salience in modifying award-winning CEOs’ decisions about CSR focus. When external stakeholder salience is higher (e.g. higher media coverage), award-winning CEOs' manipulation of CSR focus by increasing external CSR and decreasing internal CSR is more salient. However, such effects can be dampened when internal stakeholder salience is higher (e.g. higher human capital intensity). Our study contributes to the instrumental CSR literature by demonstrating the underlying processes and boundary conditions of how awards affect CEOs' balance of stakeholder salience. (shrink)

The pandemic has catalysed to hasten the wider use of virtual hearings in international arbitration. However, the promotion of virtual hearings in international commercial dispute resolution was more complex than commonly thought due to the highlighted concerns of cybersecurity and breach of confidentiality in arbitration. The worries against the wide use of virtual hearings cannot stand because technological innovations can largely improve and solve this. However, virtual arbitration hearings may not be common post-COVID times. Technology (...) shapes how people behave, interact, grow, and develop in their relationships with others and wider communities. Yet greater immersion in the digital world undoubtedly creates new challenges and can adversely affect human-to-human interactions. There is very little scientific study on the psychological impacts of virtual hearings on arbitrators, witnesses and counsels. It is too early to assess its effectiveness from the user's perspective until the much-needed scientific data is released. Virtual hearings are unlikely to replace in-person ones necessary for more complex and high-value disputes requiring greater interaction and personal connection. Strategically, international arbitration is a private initiative-orientated, flexible, and market-driven dispute resolution mechanism. The parties are best positioned to choose the hearing format after balancing off. (shrink)

How is legitimacy to be secured for constitution-like legal orders operating beyond the state? Some scholars recommend connecting aspects of global law to human rights adjudication and enforcement by adopting their preferred method for resolving conflicts, namely, proportionality analysis. Adopting a frame of analysis widely embraced by apex courts might generate the requisite regime legitimacy, it is argued. This turns out to be a strategy that is difficult to pursue in the realm of international investment law, a global legal (...) order made up of over 3,300 investment and regional treaties, enforced by private systems of dispute resolution, that incorporates standards of treatment familiar to national constitutional law. By undertaking an analysis of statements made by relevant actors in the field, principally investment lawyers and arbitrators, we learn that there is not that much interest in taking up proportionality analysis, despite the legitimacy problems that continue to dog the system. Whatever the purported advantages of turning to proportionality, it turns out that investment lawyers and arbitrators are not so interested in embracing logics other than one preoccupied with owing solicitude to foreign investors. This reluctance renders investment law a less legitimate, and therefore less sustainable, form of constitution-like global law. (shrink)

DISCOURSE, INTERACTION, AND COMMUNICATION Co-organized by the Department of Logic and Philosophy of Science and the Institute for Logic, Cognition, Language, and Infonnation (ILCLI) both from the University of the Basque Country, tlle Fourth International Colloquium on Cognitive Science (ICCS-95) gathered at Donostia - San Sebastian ti'om May 3 to 6, 1995, with the following as its main topics: 1. Social Action and Cooperation. 2. Cognitive Approaches in Discourse Processing: Grammatical and Semantical Aspects. 3. Models of Infonnation in Communication (...) Systems. 4. Cognitive Simulation: Scope and Limits. More tllan one hundred researchers from all over the world exchanged their most recent contributions to Cognitive Science in an exceptionally fruitful annosphere. In this volume we include a small though representative sample of tlle main papers. They all were invited papers except the one by Peter Juel Henrichsen, a contributed paper tllat merited tlle IBERDROLA - Gipuzkoako Foru Aldundia: Best Paper Award, set up in ICCS-95 for the first time. (shrink)

This paper assesses recent trends in international law regarding the availability and character of reparations. Presently, reparations issues have arisen particularly in domestic societies searching for transitional justice in the aftermath of authoritarian rule. These issues are shaped by national legal systems, but are also influenced by international practice. In these transitional settings, the search for justice is affected by political preoccupations such as the persistent influence of displaced prior authoritarian leadership as well as by real and alleged (...) limitations on the financial capabilities of transitional states. No general approach can address the interplay between national and international law at this stage. Reliance must be placed on a case by case approach, considering matters of context such as the degree of suffering and disability inflicted on particular categories of claimants, the balance of claims versus the State’s demands for resources to fund sustainable and equitable development. Remoteness in time bears on the credibility of the claimants as present victims tend to be given priority over victims in the distant past when assessing relative merits. Scale and selectivity suggests that if the total of claims overwhelms the administrative capacity of the state, there will be a tendency to substitute apology and symbolic gestures for material ones, and award reparations based on individual need associated with the prior deprivation. International law informs background moral and political thinking about reparations, but practical considerations of capability and prudence are decisive in most instances, making the influence of international law indirect and sometimes marginal. (shrink)

The article explores the unique character of international commercial arbitration as a globalized phenomenon, where universalizing and harmonizing effects have largely been achieved by private means and spontaneous expansion, outside the States’ direct intervention and control. The evolution of arbitration in recent decades from an alternative to the core mechanism of deciding cross-border commercial controversies is considered. Privatization of this area of dispute resolution is examined in the context of its growing autonomization, marked—as observed by Emmanuel Gaillard—by (...) notable changes in its theoretical representations and narratives. This specific conceptual, institutional, and procedural framework of commercial arbitration reflects the demands of decision-making exercised in a legally, linguistically, and culturally diversified environment. Interpretation and application of law in arbitral cases requires skillful navigation between the rules of domestic, international and transnational origin, performed not only on the level of substantive norms, but also on those involving conflict of laws and procedure. As a consequence, comparative analysis plays a critical and complex role in arbitral decision-making, reaching beyond the mere demands of rendition of relevant provisions, and has been defined sensu largo as a ‘comparative mindset’, characteristic to international commercial arbitration. The article examines this phenomenon and its mechanics, challenges for legal professions and the effect of transnationalization of relevant domestic rules. It also explains the role of comparative analysis as an important instrument, used strategically in the processes of autonomization of commercial arbitration. (shrink)

This study investigates the impact of internal corporate governance on the relation between disclosure quality and earnings management in the UK listed companies, in particular whether governance mechanisms have deterrent effect on earnings management similar to firms’ disclosure quality. Unlike prior literature, we measure a number of board and audit committee-related governance instruments, three disclosure quality proxies and the Modified Jones Model to test the hypotheses of the study on a matched-pair sample data of Investor Relation Magazine Award winning and (...) non-winning firms. Our findings in the OLS and sensitivity analyses using Heckman Procedure and 2SLS regressions consistently report a significant negative association between earnings management and disclosure quality for all proxies in restraining earnings management. In contrast, corporate governance variables are mostly insignificantly related to earnings management. This provides an emerging trend of the outperformance of disclosure quality over internal governance mechanisms in lessening earnings management. These findings warrant due attention of the policy makers, investors, corporate firms and other stakeholders in shaping a high-quality disclosure and governance regime in corporate settings to mitigate managerial manipulations of earnings across the countries in the world. (shrink)