Disadvantaged through discrimination? The role of employers in social stratification1

Sociologists have consistently demonstrated that a rather strong association exists between an individual's social class origin and their social class destination, even after controlling for educational attainment. One explanation for this persisting association which is rarely addressed in research in social stratification and mobility is the extent to which class inequalities in access to advantaged class positions are due to discrimination by employers. I set up a field experiment to test whether employers discriminate on the basis of class origin characteristics. I sent letters of job application for professional and managerial occupations to 2560 large UK companies, so as to compare the prospects of equally matched potential employees differing on a range of characteristics, some related to class of origin. The six treatment conditions in the experiment were: the name of the candidate, the type of school attended, the candidate's interests outside work, their sex, the university that they attended and their achieved degree class. Results suggest that employers do pay attention to the class origin characteristics tested here, and that candidates with a name, school type and interests associated with the social elite are more likely to receive a reply to their application than candidates with the equivalent non‐elite characteristics. However, the treatment conditions do not, on the whole, have significant effects on the employers' responses in and of themselves. Instead, employers appear to favour particular combinations of characteristics while penalising others.     

Reason,grace and charity: Augustine and the impact of church doctrine on the construction of intellectual disability

This paper examines how early church doctrine influenced the construction of and response to intellectual disability. Though the main focus of the paper is on intellectual disability, much of the discussion is more broadly relevant to other types of impairments and human differences. The vehicle for this examination is the work of the key figure in the development and codification of church doctrine, Augustine, Bishop of Hippo (354–430 CE). The paper concludes that while church doctrine mitigated the stark association of reason and human value found in classical Greek thought, it did not engender an attitude of equality in this world. The ideas of grace and the ‘divine plan’, while opening up a limited space for acceptance and broad equality in the eyes of God, also reinforced and legitimated an inferior position in this world, leaving those considered to have an intellectual disability on the margins of social life and subject to a charity ultimately undertaken for the salvation of the giver, rather than for the welfare of the recipient. Subsidiary themes related to the construction of intellectual disability, such as ‘object lessons to the wise’ or as ‘monsters’, use as sources of amusement, innocence and their association with children and the charity ethic, are also examined.     

When is it time to revise your SKU classification: setting and resetting the decoupling point in a dairy company

Classification of stock-keeping units (SKUs) is a much used approach to determine inventory strategy, production strategy or location of the decoupling point for different SKU categories. However, the literature mainly provides approaches for determining categories at a certain moment in time without addressing the need and factors that urge revision of a determined classification. This paper addresses that gap. The empirical part relies on an extensive case study of a dairy company and uses a large longitudinal data-set from the case company. Our study demonstrates that periodic reclassification is needed to either increase the competitive strength of the company or to reduce risks. Still, classification and reclassification are much more a subtle process that balances customer wishes, operational decisions and commercial motives than a straightforward calculation.     

Replacement Decisions for Potentially Hazardous Substances

As public awareness of environmental hazards increases, a growing concern for corporations is the potential negative environmental impact of their products and the chemicals these products contain. In this study, we analyze the optimal decisions of a firm when a substance within its product is identified as potentially hazardous. Although the substance is not currently regulated, regulation may occur in the future. Therefore, the firm must devise a strategy for the development and implementation of a replacement substance. In an environment where replacement costs can be millions of dollars, regulation is uncertain, and both consumer and non‐governmental organization pressures exist, a carefully developed plan that balances costs and risks is critical for a firm. Our results demonstrate that as long as a threat of regulation exists, a firm should always dedicate resources toward developing a replacement substance. However, it is not always optimal for a firm to implement a developed replacement. Regarding competitive dynamics, we find that competition between firms can offset a low chance of a shift in consumer perception about a substance and compel firms to replace; however, competition can lead to inefficient outcomes in which firms incur avoidable costs to implement ahead of potential regulation.     

Optimal Crop Choice,Irrigation Allocation,and the Impact of Contract Farming

The changing climate and concerns over food security are prompting a new look at the supply chain reliability of products derived from agriculture, and the potential role of contract farming as a mechanism to address climate and price risk while contributing toward crop diversification and water use efficiency is also emerging. In this study, the decision problem of a farmer associated with allocating his land among different crops with varying water requirements is considered, given that a subset of the crops may be associated with a forward contract that is being offered by a buyer. The problem includes a decision to acquire a certain amount of irrigation water capacity prior to the season and to allocate this capacity as irrigation water to be applied during the season to each of the crops selected. Rainfall in the growing season and the market price of each crop at the end of the season are considered to be random variables. Two stochastic programming models are developed to consider facets of this problem and to understand how contracts that reduce market price uncertainty from the problem may change the farmer's decision. The structural properties of these models are discussed, and selected implications are illustrated through an application to data from the Ganganagar district in Rajasthan, India.     

Corporate governance convergence in Germany through shareholder activism: Impact of the Deutsche Boerse bid for London Stock Exchange

This case study examines the shareholder revolt initiated by a small activist shareholder, which eventually thwarted a takeover bid by Deutsche Boerse for the London Stock Exchange and forced the resignation of two of its highest profile board members. Primarily the case marks the emergence of the Anglo-American style shareholder rights movement in a country that offers only limited power to the shareholders of corporations. In the process it illustrates the mechanisms by which functional convergence of corporate governance regimes can occur long before the legal framework catches up. In Germany, the corporate governance regime requires stakeholder interests to be maximised rather than the sole interests of shareholders. This paper chronicles the shareholder actions that forced the takeover bid to be abandoned and seeks to provide an understanding of the motivations behind the activists’ campaign and the process by which they were able to overcome difficult odds and win their campaign. In this respect, it provides a useful insight into the processes used by relatively small investors to exercise their rights to thwart a takeover offer and topple some powerful corporate executives. Furthermore, the case illustrates how a single issue such as the strategic logic or the value creation potential of a takeover bid can rapidly spiral to become a wider campaign over deeply rooted governance concerns at targeted companies. Event study analysis reveals the stock market reaction to the activists’ intervention. Thirdly, the case sheds light on the importance of communication between management and shareholders especially when corporate decisions of great strategic import, such as a takeover, are being implemented. The globalisation of stock markets is empowering shareholders to assert their rights and their activism is driving corporate governance regimes towards greater convergence and recognition of the primacy of shareholder interests. Overall, the case raises a number of important issues regarding the corporate governance regime in Germany, the challenges posed by overseas investors, and the international convergence of corporate governance regimes. The case further suggests an additional mechanism by which international governance systems can converge functionally towards a common theme even if the form of national regimes remains largely unaltered. Our results are consistent with the institutional theory perspective of coercive isomorphism in adopting the shareholder value paradigm by Deutsche Boerse.