Does the market value corporate response to climate change?

Motivated by the controversial debate on mandatory reductions of greenhouse gases in the U.S., this study explores whether the market values corporate response to tackle carbon dioxide emissions. We measure corporate responses using the measure of media tone based on the positive and negative words in each news article. Our results show that the market reacts favorably to the negative media exposure of corporate response to climate change over the announcement period and the one-year period, which implies that the socially responsible action to tackle climate change is costly. We further find that the positive response is less pronounced for firms from polluting industries and firms with poor environmental performance.     

Fast and slow resource commitment to foreign markets: What causes the difference?

Apparently, the pace by which companies commit resources to foreign markets differs significantly. We test six propositions that potentially explain why some companies undertake faster foreign market commitment than others. Suggested factors discriminating between a fast and a slow foreign market commitment are (1) whether the company is producing manufactures or services; (2) foreign market entry motives; (3) company size; (4) foreign market stability; (5) experience with foreign markets similar to the entered; and (6) degree of globalization in the industry. Using multiple regression analysis on Danish MNE data, we obtain supportive empirical evidence for all propositions, except for number 5, experience with similar markets. The results indicate that resource commitment to stable, foreign markets undertaken by small, market-seeking, manufacturing companies operating in domestic industries is slow relative to the commitment of resources to unstable markets made by firms with other attributes (large firms, service firms, and motives other than market seeking) operating in global industries. The study suggests that a globalization of industries since the 1970s has prompt companies to increase the pace by which they commitment resources to foreign markets.     

How to motivate yourself and others? Intended and unintended consequences

To achieve goals, individuals and organizations must understand how to effectively motivate themselves and others. We review three broad strategies that people employ to increase motivation: giving feedback, setting goal targets, and applying incentives. Although each of these strategies can effectively motivate action under certain circumstances and among certain people, they can also result in unintended consequences: not helping or even hurting motivation. For example, employers may give positive feedback that leads employees to relax their effort or negative feedback that undermines employees’ commitment, organizations may set goals that are overly ambitious and consequently reduce motivation, and certain incentives might appear attractive before pursuing an action but uncertain incentives better motivate action during goal pursuit. By identifying when and how these common motivational strategies work versus fail, we are able to prescribe a specific set of guidelines that will help people understand how to motivate themselves and others.     

Can you recognize the winds of change?

If you find yourself between a rock and a hard place during your career, there are some tough choices you will have to make. Read how one physician executive made these choices.     

Supervisor commitment to employees: Does agreement among supervisors' and employees' perceptions matter?

Using 322 matched employee–supervisor dyads, we investigate how level and direction of employee–supervisor (dis)agreement on supervisor's affective commitment to the employee relate to organizational commitment, emotional exhaustion, leader–member exchange, and job performance. Results from polynomial regression and response surface analyses indicate that level of employee–supervisor agreement matters: the most beneficial outcomes appear when supervisors and employees agree that the supervisor is highly committed to the employee whereas the least favorable outcomes appear when dyads' members agree that the supervisor has low commitment to the employee. Direction of employee–supervisor disagreement is also important as employee overestimation of supervisor commitment is associated with more favorable outcomes than employee underestimation. However, for two of the outcomes (organizational commitment and emotional exhaustion), the effect of employee–supervisor disagreement was attributable to a main effect of employee perceptions of supervisor commitment. We discuss the implications of these findings for the understanding of employee–supervisor relationships.     

Can institutional investors fix the corporate governance problem? Some Danish evidence

It has been advocated within corporate governance that institutional investors may discipline management in listed firms and thereby alleviate the free rider problem associated with dispersed ownership. This article tests this hypothesis using a sample of Danish listed firms during 1998–2001 determining, whether ownership by institutional investors impacts performance, measured by Tobin’s q. Using three stage least squares, it is shown that aggregate ownership by institutional investors does not influence firm performance. However, when decomposing the results, it is found that joint ownership by the largest two Danish institutional investors, has a significant negative impact firm performance. Ownership by banks and to a lesser extent insurance companies significantly influences firm performance positively. The results somehow challenge the conventional wisdom, arguing that the black box view of institutional investors should be abandon. Therefore it is suggested that a more careful analysis should be devoted to each institutional investors own legal environment.

Shifting power: is the consumer next?

Consumers are not likely to act as patients much longer. They'll demand the same level of information and service they receive from every other sector of the economy. Dozens of new, innovative companies are changing the health care coverage purchasing methods to allow more control and accountability for consumers. They can be broadly categorized into four groups: (1) the "Charles Schwab" clones, (2) spot markets, (3) "make me a doctor," and (4) personalized health care systems. Physicians become directly accountable to their patients in these new models. But choosing health plans may not be enough. It is only a matter of time before consumers demand the right to build their own customized heath plans using the defined contributions from their employers. This article describes the benefits of personalized health care systems and why the death of medical necessity is not far away.     

Supervisors’ power to deal with employees’ inner resignation: How perceived power of the organization and the supervisor relate to employees’ voluntary and enforced work behavior

Power is fundamental in organizations and is exerted on employees by the organization itself as well as by supervisors. In this study, I applied the slippery slope framework (SSF) and interpersonal power interaction (IPI) model to shed light on how power dynamics relate to employees’ inner resignation and contextual performance.Survey data was obtained from 1102 employees of Austrian and German organizations. In line with expectations, the results of path modeling revealed that perceived coercive power of the organization and supervisors positively relates to employees’ inner resignation. Perceived legitimate power of the organization and supervisors is positively associated with contextual performance and negatively associated with inner resignation. Finally, supervisor reward power further strengthens the beneficial relationship between legitimate organizational power and inner resignation. The results are discussed in light of self-determination theory and the effort-reward imbalance model.     

When,why, and how do powerholders “feel the power”? Examining the links between structural and psychological power and reviving the connection between power and responsibility

Recent research in social psychology has examined how psychological power affects organizational behaviors. Given that power in organizations is generally viewed as a structural construct, I examine the links between structural and psychological power and explore how their interrelationships affect organizational behavior. I argue that psychological power takes two forms: the (nonconscious) cognitive network for power and the conscious sense of power. Based on this view, I identify two causal pathways that link psychological power and structural power in predicting organizational behavior. First, the sense of power is likely to induce a sense of responsibility among (but not exclusively among) structural powerholders, which in turn leads structural powerholders to be more responsive to the views and needs of others. Second, the sense of power, when brought into conscious awareness, activates a non-conscious association between power and agentic behaviors, which in turn leads structural powerholders to enact agentic behaviors. I discuss the ways in which these predictions diverge from previous theorizing, and I address methodological challenges in examining the relationship between structural and psychological power. In doing so, I suggest that certain features of the predominant methodological approaches to studying psychological power may have induced a bias in the empirical findings that obscures the crucial link between power and responsibility.     

Can Sustainable Development and the Market Co-exist?

This article looks at Shell vision of sustainable development which is based on three essential and inseparable building blocks — the creation and maintenance of economic wealth, environmental improvement and social equity. All three must be integrated and balanced for long-term success, and all three underpin the Shell approach to global markets.The process of moving towards a sustainable future is under way, but the rate of progress depends on customer choice, innovation and investment — in other words, on market forces. If governments set targets and provide a good framework, companies like Shell will take the chances and offer solutions that support sustainable development. Then the markets will decide.Shell companies see support for sustainable development as a key element in continuing business success. This article discusses some of the ways Shell works with a wide range of partners to seek ways of achieving the best balance between economic, environmental and social considerations and between short term and long-term benefits. On this basis, the market supports the aims of sustainable development and Shell companies intend to play their part by providing, responsibly, efficiently and profitably, the energy the world's growing populations will need and want in the 21^st century.     

Do emotionally perceptive leaders motivate higher employee performance? The moderating role of task interdependence and power distance

Extant emotional intelligence research has examined the relationship between employees' emotional intelligence and their job performance. We developed theory to extend this line of research to the domain of leader–employee relationships. Integrating emotional intelligence research with social exchange theory, we contended that leaders' emotion perceptions enhance employees' job performance. Drawing from social impact theory, we further argued that the strength of this relationship depends upon two contextual variables: within-group task interdependence and power distance. We tested our hypotheses using a sample of 350 employee nested in 74 workgroups. Hierarchical linear modeling results supported the hypothesized relationships between leaders' emotion perceptions and employees' job performance, and revealed that this relationship was strengthened by task interdependence and attenuated by power distance.     

Can organizational change be planned and controlled? Evidence from Russian companies

This study explores limits of applicability of a planned change approach in Russian companies. The data on change management programmes in 59 Russian companies of various industries, regions and sizes was gathered with the help of questionnaires filled by management consultants. The study found that resulted changes often did not coincide with initial plans of change agents. Two groups of organizational elements were identified: ‘uncontrollable’ (those elements that changed outside of the planned change) and ‘unmanageable’ (those elements that did not change despite forming part of the planned change). The findings also indicate that the efficiency of the change programme was unaffected by whether the change programme plans were executed or not. The results suggest that the applicability of a planned change approach is dependent upon the organizational elements at which change interventions are targeted and that change content has to be incorporated into contingency models of change.     

How to manage corporate reputation? The effect of enterprise risk management systems and audit committees on corporate reputation

Research on corporate reputation has generally argued that reputational risk, or risk of reputation loss, stems from all company risks. As companies use enterprise risk management (ERM) systems to manage all their risks, we analyse the effect of ERM system quality on corporate reputation. Furthermore, as audit committees are in charge of supervising ERM systems, we analyse the effect of audit committee characteristics (i.e. independence and independent members' knowledge and diligence) on corporate reputation through their effect on ERM system quality. Our results for a sample of listed Spanish firms support consultants’ arguments that ERM system is a useful tool for managing corporate reputation. Our results also show that audit committee independence improves corporate reputation through the ERM system. Finally, our findings also reveal a positive relationship between the average educational level of independent directors of the audit committee and ERM system quality. These results provide evidence that ERM systems are platforms to manage corporate reputations and suggest the importance of the audit committee as a supervisor of ERM system and as guarantor of corporate reputation.     

Does power corrupt the mind? The influence of power on moral reasoning and self-interested behavior

We test whether leaders' power shapes their reasoning about moral issues and whether such moral reasoning subsequently influences leaders' display of self-interested behavior. We use an incentivized experiment to manipulate two components of leader power: power over more versus fewer followers and power to enforce one's will by having discretion over more versus fewer payout options to allocate between oneself and one's followers. We find that having power over more followers decreased leaders' principled moral reasoning, whereas having higher power to enforce one's will enabled leaders to engage in self-interested behavior. We also find suggestive evidence that power over increases self-interested behavior by decreasing principled moral reasoning; the effect of power to was not mediated by moral reasoning. These results illustrate that power activates self-interest within and outside the context in which power is held. They also show that moral reasoning is not a stable cognitive process, but that it might represent an additional path via which power affects self-interested behavior.     

Shareholders and managers: Who care more about corporate diversity and employee benefits?

We test two competing theories that explain a firm’s engagement in corporate diversity and employee benefits: socially responsible investment theory and management overinvestment theory. We find that publicly-traded companies with strong shareholder rights are more likely to promote women and/or minorities to the positions of CEO and board of directors in their organizations, conduct business with women- and/or minority-owned operations, and provide better family benefits to their employees than firms with strong management power. These findings indicate that the companies with strong shareholder rights engage more actively in internal aspects of CSR activities, which supports the socially responsible investment theory rather than the management overinvestment theory. Shareholders (i.e. institutional investors) tend to integrate their social goals (i.e. internal CSR issues) and financial goals into their investments. In response to these changes, managers should engage in the internal aspects of corporate social issues more aggressively as the agents of shareholders.     

Does the internet change how we die and mourn? Overview and analysis

The article outlines the issues that the internet presents to death studies. Part 1 describes a range of online practices that may affect dying, the funeral, grief and memorialization, inheritance and archaeology; it also summarizes the kinds of research that have been done in these fields. Part 2 argues that these new online practices have implications for, and may be illuminated by, key concepts in death studies: the sequestration (or separation from everyday life) of death and dying, disenfranchisement of grief, private grief, social death, illness and grief narratives, continuing bonds with the dead, and the presence of the dead in society. In particular, social network sites can bring dying and grieving out of both the private and public realms and into the everyday life of social networks beyond the immediate family, and provide an audience for once private communications with the dead.     

Correction to: Do women directors contribute to R&D? The role of critical mass and expert power

Journal of Management and Governance - An amendment to this paper has been published and can be accessed via the original article.     

Can We Use Human Judgments to Determine the Discount Rate?

It has been suggested that the long-term discount rate for environmental goods should decrease at longer delays. One justification for this suggestion is that human judgments support it. This article presents an experiment showing that judgments concerning discount rates are internally inconsistent. These results point to potential problems with the use of judgments referenda for determining discount rates in cost-benefit analyses.     

Coping resources,coping strategies and adjustment to organizational change: Direct or buffering effects?

Abstract

This study examined the effects of personal and social resources, coping strategies and appraised stress on employees' levels of anxiety and depression. In relation to the effects of resources and coping strategies, two different models were tested. The main effects model proposes that, irrespective of the level of stress, coping resources and coping strategies have direct effects on well-being. In contrast, the buffering model predicts that the buffering effects of coping resources ad strategies are only evident at high levels of stress. One hundred lawyers completed a structured self-administered questionnaire that measured their personal and social resources, use of problem-focused and emotion-focused coping strategies, and appraisals of the stressfulness of the situation. Results revealed generally strong support for the main effects model in the prediction of employee levels of anxiety and depression. Lower levels of anxiety were linked to judgements of lower levels of organizational change, greater self-confidence, greater internality of control beliefs and less use of emotion-focused coping strategies. Lower levels of depression in employees were also linked to judgements of lower levels of organizational change, greater use of resources and less appraised stress. There was only limited support for the buffering effects model. Due to the small size of the sample, the findings need to be explored further in other contexts.