Giving as Good as They Get? Organization and Employee Expectations of Ethical Business Practice

Corporate malpractice and malfeasance on an unprecedented scale have brought ethical issues to the fore and accentuated demands from activists, governments, and the public for greater corporate social responsibility (CSR). The predominant response of researchers and policymakers has been to focus on the external impact of business operations and the merits of regulation or persuasion in achieving more responsible practice in these areas. In this article, we focus on a less well explored aspect of CSR, namely the evaluation of an organization's CSR activities by its internal stakeholders (i.e., employees). Salient CSR literature is reviewed to differentiate between CSR and ethical business practice (EBP), conceptualizing the latter as the internal manifestation of CSR as represented by an organization's values and vision, strategy and policy, systems and procedures, and people management practices. This article assesses organizational espousal of EBP in three ways: how successfully it is communicated to employees, how closely espousal aligns with employee expectation, and how this evaluation impacts on employee commitment. Our research approach aligns with and extends previous work in this area that identifies the likelihood of a “false consensus bias” by managers in assuming congruence between organization espousal of EBP and employee expectation. A conceptual model is offered to explain possible employee responses to an organization's EBP. This relates organization espousal of EBP to employee assessment of its salience to identify three positions on commitment that employees can adopt—abrogated, continuance, and affective commitment—together with their likely behavioral implications. The analysis generates a series of research questions and related areas of exploration to empirically test the conceptual model.     

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.     

The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice

In this review, the primary subject is the 'business case' for corporate social responsibility (CSR). The business case refers to the underlying arguments or rationales supporting or documenting why the business community should accept and advance the CSR 'cause'. The business case is concerned with the primary question: What do the business community and organizations get out of CSR? That is, how do they benefit tangibly from engaging in CSR policies, activities and practices? The business case refers to the bottom-line financial and other reasons for businesses pursuing CSR strategies and policies. In developing this business case, the paper first provides some historical background and perspective. In addition, it provides a brief discussion of the evolving understandings of CSR and some of the long-established, traditional arguments that have been made both for and against the idea of business assuming any responsibility to society beyond profit-seeking and maximizing its own financial well-being. Finally, the paper addresses the business case in more detail. The goal is to describe and summarize what the business case means and to review some of the concepts, research and practice that have come to characterize this developing idea.     

The future of energy and the environment: Policy implications for electric power

Balancing environmental responsibility while promoting efficient restructing of the electric power sector is a primary challenge facing energy companies such as American Electric Power (AEP). These are issues that transcend the confines of business operations or regulatory procedures, belonging instead at the forefront of national (and global) policy on energy and the environment. Aligning effective corporate environmental strategy with good business sense relies upon a sound policymaking framework, and toward this end, a recent AEP analysis revealed several unrealistic assumptions and undesirable economic impacts of the emerging direction of environmental policy in the power sector. This study also identified numerous policy options that could lead to more feasible and sustainable alternatives for an environmentally concious, prosperous future.     

Conundrums of Urban Planning in a Global Context: The Case of the Frankfurt Airport

The article reviews the complexity of urban policy formulation in Frankfurt, Germany, where officials are trying to enlarge the international airport to stay competitive in international air transportation and meet the challenges of global business operations. This case study analyzes an elaborate mediation process that helped the formal decision-makers avert the violence threatened by anti-globalization and environmentalist protesters. Although some legal challenges loom ahead, a majority of Frankfurt residents support the new airport expansion. The Frankfurt experience will help other communities minimize the confrontation between urban policy makers, corporate business elites, and citizen groups that are concerned with issues of public health and clean environment.     

Managing public policy issues

The role of the public sector has expanded significantly in the last 40 years. The ability to anticipate public policy changes has become a critical component of an organization's environmental scanning activities. Today, every segment of society is affected by the development of government policies and programmes. Organizations that correctly anticipate government actions can achieve significant benefits and minimize loss potentials. Given the size and role of government, a significant literature has emerged which attempts to analyse and assess likely public policy developments. The objective of this article is to develop a simplified format, based on this literature, which will allow organizations to develop a check list against which potential public policy actions may be assessed.     

An integrated micro- and macrolevel discussion of global green issues: “It isn't easy being green”

Two key issues arising from globalization of world markets are the impact of business activities on the environment and threats to sustainable development. These issues are usually referred to as “green” issues. This paper presents a detailed discussion of global green issues in the context of a number of environments that include the socioeconomic, political, technological, and competitive arenas. The discussion is based on an attempt to integrate two conceptual models by Maslow (Maslow, A., 1954. Motivation and Personality. Harper & Row, New York) and Cateora (Cateora, P.R., 1983. International Marketing, 4th. ed. Irwin, Chicago, IL). The goal is to bring together both a microlevel perspective of the individual consumer and a macrolevel perspective of business through analysis in multiple environments that are affected by green issues. This integration is viewed conceptually as a recursive system of mutually reinforcing causes and effects at the micro- and macrolevels.The leitmotiv throughout the paper is that “it isn't easy being green,” either for consumers, activists, corporate leaders and managers, or public policymakers. Practical examples are presented to support and illustrate the discussion. The main finding is that a new approach is needed to business in general through a new dominant social paradigm (DSP) and to international business in particular in order to achieve both sustainable development and sustainable consumption. In conclusion, the importance of individual responsibility and action by consumers and managers alike is underlined.     

A missing link: psychological ownership as a mediator between transformational leadership and organizational citizenship behaviour

Interest in psychological ownership (PO) has increased due to its influence on employees’ attitudes and behaviours. This study focuses on PO as a mediator between transformational leadership (TL) and organizational citizenship behaviour (OCB) in the Korean public sector, which does not have employee stock ownership plans (ESOPs). With a total of 214 cases from the Korean public sector, structural equation modelling (SEM) analysis was conducted, and chi-square difference-based model comparison was performed to examine the mediating effect. Results indicated statistically significant relationships between TL and employees’ PO and between employees’ PO and their OCB. A statistically significant full mediating role of PO between TL and OCB in the Korean public sector context was found.     

A Passage to India: Altering Tracks through Paternalistic Welfarism for High Performance in India's Public Sector Rail Undertakings

High-performance work practices (HPWPs) enacted within public sector undertakings (PSUs) in emerging economies are a relatively underexplored topic. By employing the theoretical lens of social exchange and the ability, motivation and opportunity paradigm, this paper highlights the mediating effects of knowledge sharing on the relationship between employee perceptions of HPWPs and employee and business unit performance. We provide evidence drawn from both manager- and employee-level voices by applying a qualitative case study design to two large Indian PSUs and taking a reverse/inverse approach in order to delineate the commonly understood conceptualizations of HPWPs. Our findings confirm the presence of a combination of high-commitment, high-involvement and high-performance work systems that increase the ability, motivation and opportunity of employees to share knowledge, and thus help achieve positive employee and financial outcomes. We found that our set of HPWPs exhibit a strong paternalistic welfarism ethos. We also discuss the implications of our study for research and practice.     

Beyond Association: How Employees Want to Participate in Their Firms' Corporate Social Performance

Although many studies have found a positive relationship between corporate social performance and employer attractiveness, few have examined how different forms of responsibility might mediate that attraction, particularly when those social practices afford different degrees of employee participation. The current study undertook this line of inquiry by examining prospective employees’ attraction to three common approaches to corporate social performance (CSP) that offer increasing levels of participation: donation, volunteerism, and operational integration. Unexpectedly, findings from an empirical investigation challenged the study's main hypothesis; that is, prospective employees were least attracted to firms that integrated their social and financial goals. Consequently, important implications and questions remain for both employers and business educators.     

Exploring Job Satisfaction in Private and Public Employment: Empirical Evidence from Greece

Abstract. This paper analyses subjective job satisfaction (JS) responses by employees in the public and private sectors of the Greek labour market. Panel data covering the period 1995–2001 and a random effects ordered probit model are used for estimation purposes. The results of the econometric estimation show that a substantial JS differential exists between the two sectors, in every JS domain and always in favour of public employment. A typical ordered decomposition analysis indicates that about one‐third of the difference in expected JS can be explained by differences in employee characteristics and two‐thirds by unobserved sector‐specific inbuilt features. The comparison of wage reductions, which a representative employee will be prepared to endure in order to avoid employment in the private sector, reveals that the regularity of working schedules is appreciated more than any other facet of JS. The obtained results enhance the existing apparatus for evaluating government policies in the labour market.     

The role of trade unions in strategic planning

The changing climate of industrial relations has created a more puralist and complex state of relationships within the industrial sector of the economy. Trade unions and their employees are demanding and achieving a greater degree of participation in both the long and short term issues which affect company decisions in terms of either resource allocation or general policy. This article examines the role of trade unions within the context of strategic planning and argues that their increasing involvement is inevitable and their role should therefore be effectively recognized and their contribution to the development of corporate strategy ensured.     

R&D员工领导创新期望、内部动机与创新行为研究

在现代组织行为研究领域推动员工创造、创新的组织行为研究是一个热点问题。本文通过对我国跨地区企业研发员工的问卷调查研究对领导创新期望、员工内部工作动机及其创新行为间的关系进行了实证探讨。研究发现,在我国背景下,直属领导对下属员工的创新期望、员工之间横向交换对研发员工创新的行为都具有正向预测作用,其中员工内在工作动机在领导创新期望、员工横向交换对员工创新行为的作用路径关系中起到中介效应。本研究的调查结论不仅有助于加深我们对组织内员工创新行为推动和作用机制的深入了解,同时也会对我国企业,特别是高新技术企业推动员工创新的管理实践提供借鉴。     

Corporate reputation: Meaning and measurement

Corporate reputation has attracted interest from a wide range of academic disciplines. It is also a growing focus for business and media attention. This paper examines the construct of corporate reputation, first by untangling the terminological problems that have been caused by the interdisciplinary nature of much of the earlier work in the area. The construct of reputation and the allied constructs of image and identity are each reviewed. A structure is proposed in which the three constructs can be seen as labelling different but allied concepts. I then move on to consider how reputation has been measured. The paper uncovers considerable confusion in the use of what might appear to be basic terms and links this to a subsequent lack of grounded measurement tools in the sector, until relatively recently. With a clearer understanding of the construct of corporate reputation and the allied constructs of image and identity, researchers are now well placed to test the relationships widely claimed by practitioners between corporate reputation and other variables such as commercial performance and employee and customer satisfaction. The review ends by illustrating some of the issues that can be assessed from the basis of a clearer conceptualization of reputation and its measurement.     

The Contribution of Work Representation to Solving the Governance Structure Problem

The aim of this paper is to explain in what ways work representation may contribute to an efficient governance structure. The insights from institutional economic theories will be applied to two different kinds of employee participation, namely trade unions and works councils. From the discussion it follows that the latter may be better equipped than the former to play an effective role in corporate decision-making, owing to its specific institutionalisation. The paper concludes with the finding that works councils could fulfil an important economic function, by protecting the interests of the employees as well as those of the shareholders.Several agency problems can be solved. By giving the workers consultation and codetermination rights, this will reduce their dependence on unilateral decisions by the management and may stimulate them to be more cooperative, leading to greater productivity and less monitoring costs. By giving the workers information rights, the management becomes more disciplined as well. Because contrary to trade unions the works councils usually do not determine the terms of employment, the owners of the firm do not need to fear that the employees will be able to extract a portion of the firm's profits.     

Corporate Social Responsibility through Cross‐sector Partnerships: Implications for Civil Society,the State,and the Corporate Sector in India

Corporations are increasingly forced to widen their agendas to include social and environmental concerns, or corporate social responsibility (CSR). This development has been recorded in the current academic debate, and the views regarding its implications for business, the state, and civil society diverge. However, there is agreement within the CSR and corporate governance literatures that there is a lack of thorough empirical studies of these effects. Based on a case study of the multinational wind energy company Suzlon Energy's CSR projects in rural India, this article contends that CSR projects implemented through cross‐sector partnerships can help to build the capacities of civil society organizations (CSOs). Although the risk of corporate steering of the civil society agenda is reduced when CSR prioritizes community needs over business imperatives, CSOs tend to bear the highest costs in partnerships, through credibility losses and insecurity concerning project terms and funding, reinforcing the importance of critical cooperation and complementary core competencies in cross‐sector partnerships. The results have implications for the strategies of corporations, CSOs, and governments as well as for the planning of national and international development aid.     

Doing More with Less? Employee Reactions to Psychological Contract Breach via Target Similarity or Spillover during Public Sector Organizational Change

Many countries are facing the twin pressures of austerity and recession following the 2007–2008 global financial crisis. This paper uses the UK public sector and a major national announcement of budget cuts signalling extensive organizational cutbacks as its setting. We examine (a) whether organizational changes following the national announcement affect public sector employees' psychological contract breach, (b) whether employee reactions to psychological contract breach are consistent with the target similarity model and vary across foci, namely the organization, co‐workers and public service users, and (c) whether some of these relationships are moderated by job insecurity or public sector commitment. We collected longitudinal survey data before and after the announcement of budget cuts, using a sample of 340 employees from a range of public organizations and locations. Results largely confirm the hypotheses. Increases in organizational change predicted psychological contract breach, which in turn predicted decreases in contributions towards the organization; however, contributions towards co‐workers and public service users were unaffected, which can be explained with a target similarity, rather than a spillover, model. Furthermore, the relationship between breach and employee behaviours directed toward the public was moderated by job insecurity and public sector commitment.     

Discourses about Righting the Business ← → Society Relationship

This article engages the question—what is the right business‐society relationship? We consider three perspectives that seek to address the relationship: corporate social responsibility (CSR), social entrepreneurship (SE), and conscious capitalism (CC). We take a macroapproach considering how commentary about these approaches establishes a direction for corporate practice and its relationship to key stakeholder groups. We argue that these perspectives are ‘D'iscourses that provide arguments for and articulations about the direction of corporate practice and the business‐society relationship. To organize our review of each perspective, and focus our critique, for each we highlight (a) drivers and influencers, (b) core assumptions and defining features, and (c) approaches and exemplars. Although distinct, all emphasize effective business practices as key to meeting social needs. CSR suggests legitimizing business practice; SE relocates business practices; and CC seeks to reimagine/rehabilitate business for social good. Ultimately, we conclude that these Discourses lack a clear communicative focus in terms of decision making within these organizations. We attend to this and other implications, and offer avenues for further research.     

The green company: A case of labor management and employee empowerment in a small business

The basis of this teaching case is a small nursery and landscape business in the Northeast United States. The case describes how the company attempted to implement a decentralization and employee empowerment program to move relevant decision-making closer to the work site. It illustrates that shifting from a centralized top-down style of management to a decentralized incentive driven style can create many challenges for a small business. Moreover, top management should be cautious about delegating responsibilities to line managers. Not all employees will be successful in this new environment, and without procedures for monitoring and control, significant learning may be necessary as employees move into this environment.     

具有风险传导特征的信息加工业务薪酬激励研究

企业员工通过对信息进行加工处理得到支持企业决策的信息产品，然而由于业务本身的风险传导性，前序环节的错误会随着业务流程向后传递，在为企业创造价值的同时，也为企业带来风险。基于委托代理理论，建立企业与员工之间产出相关的多代理人薪酬激励模型，得到9种情形下的薪酬激励方案及员工的最优决策。研究表明，有效的薪酬激励方法可以促使员工选择使企业净收益最大的努力水平，从而达到降低企业风险的目的，并通过算例得到部分因素对员工及企业决策的影响。