Will the Truth Set Us Free? An Exploration of CSR Motive and Commitment

This article examines why firms engage in Corporate Social Responsibility (CSR). Specifically, it investigates the relationship between a firm's motivation to engage in CSR and the depth of its commitment. I propose that the enduring debate over CSR and financial performance is misaligned, and that scholars should instead focus on the underlying components of CSR engagement. This research sheds light on the motivational antecedents of a firm's engagement in CSR and their effect on CSR commitment. Despite calls for scientific investigation of this linkage, it has received scant attention in the literature. Pursuing this area of research requires the construction of measures of CSR motivation and CSR commitment, as prior work generally lacks objective analysis. I present measures and a research methodology that test hypotheses about how CSR motivation relates to different levels of CSR commitment. The results of this research both validate and challenge current theory. This refined understanding of CSR engagement may enhance firm transparency and accountability to stakeholders. It may reduce the uncertainty in both internal and external assessments of firm CSR and the potential for social and financial impact.     

FEMA and the Witt Revolution: Testing the Hypothesis of “Bureaucratic Autonomy”

In the wake of widespread criticism for its poor performance in Hurricane Andrew in 1992, FEMA became a more effective organization under the leadership of James Witt (1993–2001). One answer to the question of how and why FEMA improved so rapidly and significantly during this period is Carpenter’s (2001) theory of “bureaucratic autonomy.” This paper defines the minimum conditions Carpenter considers necessary for the term, evaluates their applicability to FEMA during this period, and briefly examines alternative explanations for FEMA’s organizational transformation. It concludes that the innovation and entrepreneurship FEMA demonstrated during this period do indeed meet the criteria for “bureaucratic autonomy.”

Who knows what? Reconfiguring the governance and the capabilities of the supply chain between physical and digital processes in the fashion industry

Abstract

On the basis of an exploratory multiple-case qualitative longitudinal study in the fashion industry, this article describes how digital technologies enabled choices among different types of supply chain governance. In doing so, this study responds to calls for governance-oriented longitudinal explorations and suggests an alternative path of governance choices in which the digital technologies become the platform that allows a dynamic discourse between outsourcer and outsourcee. Our results show that, when firms decide to leverage their performances through the adoption of information technology, they need to define their knowledge transfer capacities in order to adopt the appropriate type of governance model. With this article, we contribute to the global value chain literature adding to the knowledge transfer dimension.     

Warning Triggers in Environmental Hazards: Who Should Be Warned to Do What and When?

Determining the most effective public warnings to issue during a hazardous environmental event is a complex problem. Three primary questions need to be answered: Who should take protective action? What is the best action? and When should this action be initiated? Warning triggers provide a proactive means for emergency managers to simultaneously answer these questions by recommending that a target group take a specified protective action if a preset environmental trigger condition occurs (e.g., warn a community to evacuate if a wildfire crosses a proximal ridgeline). Triggers are used to warn the public across a wide variety of environmental hazards, and an improved understanding of their nature and role promises to: (1) advance protective action theory by unifying the natural, built, and social themes in hazards research into one framework, (2) reveal important information about emergency managers’ risk perception, situational awareness, and threat assessment regarding threat behavior and public response, and (3) advance spatiotemporal models for representing the geography and timing of disaster warning and response (i.e., a coupled natural‐built‐social system). We provide an overview and research agenda designed to advance our understanding and modeling of warning triggers.     

A Brief Review and Assessment of the Leegin Decision: Who Wins and Who Loses When Manufacturers Are Free to Set Retail Prices?

For decades, it has been a per se violation of U.S. antitrust law for manufacturers or distributors to specify retail selling prices. In the spirit of atomistic, unrestrained competition, retailers were free to set prices without undue interference from upstream channel participants. Attempts by manufacturers or other channel participants to restrict retail price setting initiatives were viewed by regulators as an unwarranted and illegal interference with the market mechanism. Restrictions on price setting initiatives would, it was argued, lessen competition and ultimately raise prices above competitive levels to the detriment of consumers. Recently, under the leadership of newly appointed Chief Justice Roberts, a more “business friendly” Supreme Court has reversed this policy; vertical price fixing is no longer a per se violation of U.S. antitrust law. By a five‐to‐four margin, the Court held in Leegin Creative Leather Products that manufacturers could, under certain circumstances, establish binding retail selling prices. Henceforth, retail price setting restrictions will be subject to a rule of reason evaluation whereby price restrictions will be assessed on a case‐by‐case basis. Proponents of the now‐legal restrictions argue that this will ensure that merchandise sold through retail outlets will receive needed support, free riding will be reduced or eliminated, and new brand introduction will be facilitated. Critics argue that the Court's decision marks a return to the days of fair trading; marginal firms will be protected, so‐called “inframarginal consumers” will be forced to pay for services they do not want or need, and prices for many branded products will rise, all to the detriment of consumer welfare.     

Judgments of Personal and Environmental Risks of Consumer Products—Do they Differ?

Many psychometric studies have investigated judgments concerning personal risks from technologies, activities or consumer products, but only a few studies have included judgments of risk to the environment. Thus, little is known about this aspect of environmental risk perception, and whether it differs from personal risk perception. This study investigates risk judgments for 30 consumer products of various types such as herbal remedies, mobile telephones, genetically engineered drugs, or garden pesticides. A survey was conducted in two German cities: Leipzig and West Berlin. In total, 408 subjects evaluated the consumer products with regard to personal and environmental risk (and other risk-related aspects) and whether they would recommend the product to others. The findings show statistically significant differences between the mean values of perceived personal risk and environmental risk for most products. Despite these differences, the rank order of mean personal risk and environmental risk judgments for the products is quite similar. However, separate analyses for each product reveal that correlations between perceived personal and environmental risk vary strongly across products. Multiple regression analyses with personal and environmental risk judgments as predictors and product recommendation as criterion, run separately for each consumer product, show that it is mainly the judgment of perceived personal risk that explains product recommendation. Perceived risk to the environment adds little explanatory power. The study also explores differences in judgments of personal and environmental risk with regard to two sociodemographic variables: location (former East Germany vs. West Germany) and gender. Differences in both types of risk judgments are found with regard to location but not for gender.     

Who Shall Follow? factors affecting the adoption of succession plans in Taiwan

Succession planning is widely believed to help business organizations with internal resourcing, reduce attrition of the work force caused by job-hopping high-fliers, and prepare qualified candidates for appointment to senior management positions. It is further known that when organizations fail to treat their succession plans as living documents, they may not only threaten their own continuity but also lose the opportunity to revitalize themselves. Even so, succession planning has been slow to take root in traditional Chinese businesses, which have been noted for their informal organization, top-down decision making, and emphasis on personal ties and relationships. However, rapid growth and increasingly tougher competition may force these firms to change their style of management. This study assesses the extent to which formal succession planning has taken hold among Taiwanese business firms, and identifies factors underlying the decision to adopt a formal plan. For those local firms that have not introduced formal planning, it seeks to determine the concerns that have inhibited or prevented them from doing so. Finally, this paper attempts to detect differences that may exist between Chinese- and foreign-owned firms in the tendency to adopt succession plans.     

Who decides? The connecting thread of euthanasia,eugenics, and doctor-assisted suicide

Throughout recorded history, a series of seemingly unrelated ideas have been consistently intertwined: suicide, euthanasia, infanticide, eugenics, genocide and, most recently, the practice termed physician-assisted suicide. From Plato and Hippocrates to a pair of twentieth-century American physicians named Haiselden and Kevorkian, an examination of history shows these disparate notions always involve two troublesome questions: Which lives are not worth living? And who will decide? The same examination of history teaches that separating the worthy from the not worthy is a very dangerous proposition, especially for those whose lives are deemed marginal.     

Environmental leadership in business education: Where's the innovation and how should we support it?

General managers have the power to shape environmental performance through the strategic decisions they make about products, markets and investments. Yet, often times managers fail to fully recognize the link between improved environmental performance and business performance. Over the past ten years, many business schools have added environmental content to their classes and research to help future business leaders recognize and act on these links. Ironically, although business leaders articulate ambitious environmental goals, corporate recruiting demands have not kept pace with the growing supply of these graduates. The following recap of the World Resources Institute's recent study, Grey Pinstripes with Green Ties: MBA Programs Where the Environment Matters, helps identify information barriers firms encounter in seeking new managers with a combination of business training and technical competence.     

Can Relaxation of Beliefs Rationalize the Winner's Curse?: An Experimental Study

We use a second‐price common‐value auction, called the maximal game, to experimentally study whether the winner's curse (WC) can be explained by models which retain best‐response behavior but allow for inconsistent beliefs. We compare behavior in a regular version of the maximal game, where the WC can be explained by inconsistent beliefs, to behavior in versions where such explanations are less plausible. We find little evidence of differences in behavior. Overall, our study casts a serious doubt on theories that posit the WC is driven by beliefs.     

Does the capital of social capital matter? Relational resources of the board and the performance of Brazilian companies

Based on theories of social capital, in this study, we seek to assess the impact of a board’s social capital on the market value of companies listed on the Brazilian stock exchange. As our indicator of social capital, we use the relational resources identified in the direct, indirect and heterogeneous ties of the board. Employing panel data from 508 observations, our results indicate that heterogeneous relational resources have a stronger and more significant influence than the resources available from board members’ direct relationships. Additionally, as the effects of board interlock are endogenously determined by several factors related to the firm level, we seek to mitigate the endogeneity problem using models of instrumental variables and simultaneous equations. Our hypotheses were consistent after controlling for endogeneity. We also check whether the board’s social capital could present a U-inverted effect on the market value. This relationship was only plausible in social capital by indirect ties. Finally, we isolate the effect of relational resources within and between industries on Tobin’s Q. There was no significant effect through interlocks within the same industry. However, ties with companies in several other industries were significant.     

Increasing offensive or defensive efficiency? An analysis of Italian and Spanish football

This paper analyses technical efficiency of Italian and Spanish football during three recent seasons, to shed light on the sport performance of professional football clubs. To achieve this we have used mathematical optimisation methods, particularly DEA models, which enable the calculation of the frontiers of efficient production. Some of the most interesting results are the following. Firstly, the Spanish league is clearly more homogeneous and competitive than the Italian league. Secondly, to obtain a better classification in the Italian league, it is much more important to improve defensive, rather than offensive, efficiency. The popular maxim holds in Italy: the best attack begins with a good defence. Third, in Spain our analysis supports the idea that to improve the ranking in the league, the best-rewarded strategy consists in improving offensive efficiency playing at home ground, followed by increasing offensive efficiency when playing away from home.     

In the eye of the beholder? An eye-tracking experiment on emergent leadership in team interactions

Integrating evolutionary signaling theory with a social attention approach, we argue that individuals possess a fast, automated mechanism for detecting leadership signals in fellow humans that is reflected in higher visual attention toward emergent leaders compared to non-leaders. To test this notion, we first videotaped meetings of project teams and collected leadership ratings for the team members from three rating sources. Second, we provided 18 naïve observers with 42 brief, muted video clips of the team meetings and analyzed their eye gazing patterns. Observers gazed at emergent leaders more often, and for an average longer duration, than at non-leaders. Gender effects occurred such that male emergent leaders received a higher number of fixations than female emergent leaders. Non-verbal behavior analysis indicated that emergent leaders showed a higher amount of active gestures and less passive facial expressions than non-leaders. We discuss theoretical and methodological directions for emergent leadership research in teams.     

Shame on Who? The Effects of Corporate Irresponsibility and Social Performance on Organizational Reputation

This study examines the relationship between corporate irresponsibility, corporate social performance and changes in organizational reputation. By combining attribution theory with expectancy violations theory, we provide the first systematic analysis of how organizational reputations are influenced by attributions of corporate irresponsibility in the context of social expectations. Drawing on a comprehensive and unique corporate irresponsibility dataset, this study reveals that firms previously believed to be most socially responsible are penalized by evaluators when corporate culpability is verified by a court of law. Conversely, firms perceived as least socially responsible were more likely to suffer reputation penalties when accused of irresponsibility, without their culpability established through litigation. Overall, the results of our study suggest that organizational reputations are mostly stable in light of irresponsibility, in that evaluators only penalize certain firms, in certain circumstances. Specifically, reputation penalties occur when highly responsible firms are perceived as hypocritical and least responsible firms were not found culpable by a court of law. Upon reflection on these findings, our study reveals that the mechanisms of social sanction previously assumed to regulate irresponsibility are weaker than currently understood. The theoretical and policy implications of this study are discussed, along with directions for future research on social evaluations.     

Do Interactions Between Environmental Chemicals and the Human Microbiome Need to Be Considered in Risk Assessments?

One of the most dynamic and fruitful areas of current health‐related research concerns the various roles of the human microbiome in disease. Evidence is accumulating that interactions between substances in the environment and the microbiome can affect risks of disease, in both beneficial and adverse ways. Although most of the research has concerned the roles of diet and certain pharmaceutical agents, there is increasing interest in the possible roles of environmental chemicals. Chemical risk assessment has, to date, not included consideration of the influence of the microbiome. We suggest that failure to consider the possible roles of the microbiome could lead to significant error in risk assessment results. Our purpose in this commentary is to summarize some of the evidence supporting our hypothesis and to urge the risk assessment community to begin considering and influencing how results from microbiome‐related research could be incorporated into chemical risk assessments. An additional emphasis in our commentary concerns the distinct possibility that research on chemical–microbiome interactions will also reduce some of the significant uncertainties that accompany current risk assessments. Of particular interest is evidence suggesting that the microbiome has an influence on variability in disease risk across populations and (of particular interest to chemical risk) in animal and human responses to chemical exposure. The possible explanatory power of the microbiome regarding sources of variability could reduce what might be the most significant source of uncertainty in chemical risk assessment.     

Risk Perception in the U.K. Oil and Gas Production Industry: Are Expert Loss‐Prevention Managers' Perceptions Different From Those of Members of the Public?

This article investigates potential differences in risk perception between experts (loss-prevention managers in the U.K. oil and gas production industry) and nonexperts (managers and students). Extant research on expert versus nonexpert perceptions of risk is reviewed, followed by the present study concerning risk perceptions of seven pen-picture scenarios involving the occurrence of hazardous events in the U.K. oil and gas production industry. In contrast to many of the earlier studies of expert versus nonexpert perceptions of risk, the present analysis concludes that experts did not judge the overall riskiness of the portrayed hazardous events as less risky than the nonexperts. Nevertheless, the experts believe more strongly than our nonexperts that the risks portrayed in the scenarios pose little threat to future generations, are more precisely known, and are relatively controllable. Use of multiple regression analysis to help uncover the basis of overall riskiness assessments for expert and lay respondents was inconclusive, however. Finally, little evidence was found that nonexperts were any more heterogeneous in their risk perceptions than experts. It may be that the nature of the risks assessed in the present study may account for the general lack of clear expert versus nonexpert differences in overall perceptions of the riskiness of hazardous events in the North Sea. Earlier findings of strong expert versus nonexpert differences in risk perception assessed hazards of major public concern. It is inferred that using such extreme hazards may have resulted in an exaggerated view of differences in expert versus public (nonexpert) perception of risk.     

Greenfield or M&A? An institutional and learning perspective on the establishment mode choice of Chinese outward investments

We develop and test a model of Chinese greenfield investments using institutional and learning theories. Both the host country institutional context and the firm's international characteristics affect the establishment mode. Using 152 Chinese emerging market multinationals (EMNEs) with 401 subsidiaries distributed in 26 countries from 2003 to 2013, we build a database of 284 pairs of host country/Chinese firms to test two hypotheses. We find that, first, governance environment affects the establishment mode: greenfield investments are preferred over acquisitions in relation-based host markets, and M&As are preferred in rule-based countries. Second, the depth of Chinese EMNEs' international experience (i.e. the amount of previous investments in the same host market) moderates the effect of the governance environment on the establishment mode. Firms with greater international depth use more M&As in relation-based markets and more greenfield investments in rule-based markets, suggesting that previous investments in the same host country provide a type of learning that reduces acquisition uncertainty in the former case and increases the self-confidence of Chinese EMNEs in the latter.     

An Analysis of the Commonality and Type of Preintervention Assessment Procedures in the Journal of Organizational Behavior Management (2000–2015)

We reviewed all issues of the Journal of Organizational Behavior Management (JOBM) from 2000 through 2015 to identify the percentage of empirical articles, which utilized some form of preintervention assessment. In addition, we categorized five types of assessment used and compared the number of assessments conducted in each category. Finally, because assessment is considered to be particularly important in the subdiscipline of behavioral safety (McSween, 2003), and prior research has not examined the commonality of assessment in this area, we also analyzed the frequency and type of assessment procedures used in behavioral safety and compared this to the use of assessment in OBM in general. Results indicated that 28% of the empirical articles in JOBM used some form of preintervention assessment. Indirect methods were the most often used type of assessment. In addition, 48% percent of the articles in JOBM, which employed a safety-related dependent variable, included some form of assessment. The most frequently used type of assessment in behavioral safety was historical assessment. Based on these data, the use of some form of preintervention assessment in OBM appears to be occurring with some regularity, and assessment in behavioral safety is more common relative to assessment in OBM in general.     

Institutionalization or Decoupling? An Exploratory Analysis of the UN Global Compact LEAD Initiative

Institutionalization occurs when organizations adopt policies and practices in an attempt to increase their legitimacy and competitive position. This process assumes that an organization's formal policies (macro‐level) are translated into organizational practices (micro‐level). This translation, however, can fail to occur, resulting in organizational decoupling and de‐institutionalization. Drawing on an institutionalization typology based on different levels of legitimacy (macro) and taken‐for‐grantedness (micro), the article draws on data from an assessment of the United Nations Global Compact LEAD initiative, assessing the extent to which this initiative is being institutionalized in the member firms and examining the implications for the LEAD initiative and our thinking about institutionalization.