Data reveal that the physical effects of trauma exposure increasingly surface in business, social, and other settings. Exposure to trauma at any point in life can cause employee health concerns, yet many firms do not acknowledge or address this. Herein, we combine trauma theory with human capital theory to explain how manifestations of trauma exposure— hyperarousal, intrusion, and constriction—impact employee health and performance. This article outlines how each manifestation affects human capital deployment, and thus employee performance. It further demonstrates how (...) these human capital deployment issues have individual- and unit-level performance implications. This article offers a theory linking health effects of trauma to performance outcomes at work. It suggests how managerial awareness of trauma manifestations is a necessary step toward workplaces becoming supportive or healing. Our model offers new explanations related to why some individuals behave as they do at work and connects trauma to employee behavior and value creation. (shrink)

This study investigates how social franchises extend health care in rural areas, thus addressing vast and persistent disparities in health care access. We conducted an inductive study of Unjani, a South African organization that extended primary health services to disadvantaged rural communities through a network of 135 health clinics. Our analysis focused on the process of impact intermediation—the propagation of impact across multiple layers of the franchise network, including franchisees and downstream beneficiaries. To facilitate impact intermediation, the franchisor harmonized the (...) mission of the franchisees with its own mission and integrated community impact among franchisees. Such coordination and monitoring activity exposed franchisees to intermediation problems in the form of mission conflict and impact divergence. Our analysis reveals how Unjani nurtured network stewardship that afforded the franchisee nurses with greater support, autonomy, and ownership, thus overcoming intermediation problems in their pursuit of shared communal responsibilities to extend health care to rural communities. (shrink)

Public officials rely on performance data that are self-reported by organizations to evaluate progress on a wide range of prosocial outcomes. Policies that require public disclosure of performance in health care are thought to enable patients to select high-quality providers, which in turn may spur quality improvements as providers seek to protect their reputation or increase economic returns. Drawing on institutional theory that examines how conflicting institutional pressures influence organizational decisions, we theorize how profit orientation may mediate the response of (...) health care providers to disclosure mandates in a public health crisis. We focus on measures of data quality—completeness and accuracy—in self-reported data on COVID-19 status and outcomes generated by thousands of long-term care facilities. Using pooled regressions and a difference-in-differences style design, we find that overall, for-profit and not-for-profit facilities report similarly complete data but that for-profit facilities report less accurate data than their not-for-profit counterparts. Our results suggest that it may be important to incentivize each dimension of data quality separately to address differential institutional pressures that affect reporting practices. (shrink)

This Special Issue explores the vital connection between business and public health, highlighting their interdependence in addressing today’s global challenges. First, we demonstrate how firms are both contributors to and recipients of public health outcomes. Second, we examine the complexities business faces in defining its public health responsibilities, particularly when navigating diverse and often ambiguous stakeholders, such as communities. Third, we emphasize the importance of interdisciplinary research in addressing the multifaceted challenges at the intersection of business and public health, calling (...) for a holistic approach that integrates insights from public health, medical research, management, and policy. The contributions affirm that public health is everyone’s business — both a societal concern and a business imperative that demands attention from all sectors. We hope the insights from this Special Issue spark ongoing dialogue and inspire firms to take a more proactive role in shaping a healthier, more sustainable future for all. (shrink)

This study investigates how essential retailers responded to the COVID-19 pandemic through stakeholder communications. Based on a comprehensive text analysis of the corporate websites of the 20 largest U.S. essential retailers during the first 19 months of the crisis, we categorize the public health measures communicated by these retailers and assess how these retailers adapted their messaging to address the concerns of different stakeholders over time. This analysis allowed us to create a framework for understanding the flow of retailer/stakeholder communication (...) during a health crisis, highlighting the important role businesses can play in alleviating stakeholder concerns when public health is on the line. We discuss the implications of our findings for retailers and public policy, aiming to enhance preparedness and response for future health emergencies. (shrink)

Improvements in the health capital of citizens are central to the development of countries. By exploiting steep decreases in antiretroviral drug prices and the subsequent increases in antiretroviral therapy (ART) coverage, we test whether the resulting improvements in the health of the population are associated with the prevalence of entrepreneurial activity and whether entrepreneurial activity strengthens the relationship between ART coverage and a country’s development. Drawing on a sample of 87 low- and middle-income countries (2006–2019), we find that a 1% (...) increase in ART coverage is associated with a 1.5% increase in the number of newly registered limited liability firms; however, there is no significant relationship with (male or female) self-employment. Higher ART coverage is particularly associated with development—as proxied by gross domestic product (GDP) per capita and the Human Development Index—in countries with low levels of new business formation and high proportions of self-employment. (shrink)

In the wake of corporate governance scandals, questions arise about the effectiveness and intent of corporate ethical codes: Are they genuine governance mechanisms to enhance corporate responsibility, or are they mere shields against legal risks? This study delves into the linguistic choices within ethical codes, positing that these choices serve as communication devices that articulate a firm’s institutional logic. We use stakeholder theory to differentiate between code language that is governed by instrumental (legal-oriented) or normative (behavior-oriented) logic. Upon analyzing the (...) lexicon of Fortune 500 corporate codes, our findings reveal that behavior-oriented codes are associated with a decrease in the number of environmental, social, and governance (ESG) issues. Yet, they correspond to an increase in class action lawsuits. By contrast, legal-oriented codes are linked to an increase in ESG issues but to reduced legal litigation. Notably, firms that blend approaches from both logics experience lower litigation rates. These findings enrich the discourse on stakeholder theory and provide practical guidance for organizations aiming to refine their ethical codes. This refinement seeks to enhance ethical behavior and mitigate corporate risks. (shrink)

Many of today’s most disruptive challenges are the result of rare yet highly impactful events. Their characteristics are largely at odds with prevailing management research paradigms, thus stymieing efforts toward societally relevant guidance. New approaches are needed to ensure sustainable businesses and societies.

We examined the current field identity of Islamic banks and its evolution. We conducted interviews with 44 Sharia (Islamic law) scholars and related professionals in the fields of Islamic and conventional banking, representing nine jurisdictions. We found that Islamic banks are still hybrid organizations belonging to two equally powerful fields of Islamic law (Sharia) and conventional banking. Consequently, Islamic banks abide by two completely different institutional logics. The hybrid identity of Islamic banks resultantly became static due to institutional pressures exerted (...) by both root fields. We discuss how hybrid fields evolve focusing on the conditions that prevent hybrid field identities from becoming independent. We also contribute to the literature on elastic hybrid identity of organizations by theorizing an elastic fatigue model. Finally, we suggest some practical motions to boost the static hybrid identity of Islamic banks and transform it to an elastic one. (shrink)

Prior research on sustainability suggests that ambitious sustainability strategies are often turned into “business-as-usual” practices. Although ecological embeddedness—that is, actors’ physical and cognitive anchoring in their ecological environment—can help maintain sustainability ambitions, its collective dynamics and pluralistic moral foundations remain understudied. We rely on the economies of worth framework and the revelatory case of a biodynamic farm business experiencing sustained commercial growth to explore these blind spots by analyzing how ecological embeddedness was maintained despite this growth. We found that moral (...) threats moved the organization away from its initial sustainability commitment and demonstrated how the farm maintained its ecological embeddedness through three mechanisms that involved multiple moral foundations: nurturing ecological inspiration, networking green projects, and unifying a green ethos. By inducing such mechanisms of moral recombination, our analysis advances sustainability studies by clarifying and bridging individual and collective dynamics of ecological embeddedness while revealing their multiple moral foundations; we also extend economies of worth research by demonstrating the role of ecological materiality in the alignment of organizations with the green world. (shrink)

Corporations have increasingly been called on to assume responsibilities for paying fairer shares of tax, while, at the same time, governments have been repeatedly urged to develop more effective corporate tax systems to tackle tax avoidance. Therefore, institutional attributions of tax responsibility for companies seem to have features of both explicit and implicit corporate social responsibility (CSR). However, given that we lack a clear understanding of which form or forms of CSR in relation to tax are expected of companies and (...) how exactly this might be changing, we examine the evolution in institutional expectations of explicit and implicit CSR for corporate taxation. Drawing on a longitudinal content analysis of 992 news media articles from the United Kingdom between 2000 and 2021, we find that institutional expectations of corporate tax responsibility have followed a process of continuous and non-linear hybridization characterized by a pendulum-like trajectory of explicitization followed by implicitization. We discuss the implications of these findings for the theory and practice of corporate tax responsibility and the framework of explicit/implicit CSR. (shrink)

This article provides a comprehensive analysis of the stock market reaction to green bond issuance announcements for a large, international sample of listed companies. Existing empirical studies find mixed results regarding this issue. Using a sample of 595 green bonds issued between 2014 and 2021, we conducted a series of event studies to analyze the changes in issuer returns and liquidity following the announcements. We find that the market reaction is significantly negative, more severe compared to conventional bond issues, but (...) improves over time. Green bonds issued by companies with poor environmental performance or without prior experience in issuing such bonds generate a more negative market reaction. We also find that stock liquidity improves for issuers with good environmental performance. Our findings have significant implications as they suggest the existence of economies of scale in repeated issuances of green bonds and/or increasing reliability in the bond’s greenness. (shrink)

This article develops the argument that the interplay between emotions and cognitive biases influences corporate decision-making on climate change adaptation. Our theoretical analysis examines how emotions can change the effect of cognitive biases on adaptation decisions by influencing how firms select, access, and process complex and uncertain climatic information. We draw on research on climate adaptation, social psychology, and managerial cognition and focus on three forms of bias: availability heuristic, framing, and anchoring. We explain how each bias shapes the decision-making (...) process on adaptation and theorize how emotions of different valence and arousal affect this process. We shed light on the underlying mechanisms that explain how emotions influence the effect of cognitive biases as a source of inaction on adaptation in firms. Our analysis provides a new perspective on how firms approach the strategic decision to adapt to climate change by considering both cognitive and emotional aspects. (shrink)

In settler societies, upward social mobility by Indigenous people is seen in the growth of successful professional and entrepreneurial classes where both wealth creation and social power are significant resources. Yet, public and academic discourses perpetuate the belief that social mobility impacts negatively on Indigenous people by placing cultural identity in conflict with capitalist business practices. Using data from an international comparison consisting of interviews with 220 Indigenous entrepreneurs in research sites across three countries, this article shows that the belief (...) is unfounded and reveals how this duality creates an impossible tension when Indigenous cultural identity is framed as “at risk” because of social mobility. A discursive colonial mind-set remains a central, enduring and problematic organizing principle of the field of Indigenous social mobility, one that requires a shift in the kinds of research questions that are asked and the ways in which social mobility is ultimately defined. (shrink)

Prior work shows limited success in retail firms’ efforts to create socially responsible supply chains by enforcing suppliers’ compliance with labor standards, partly due to conflicting sourcing demands exerted on the supplier by siloed functional units within the retail firm. To ensure the substantive adoption of labor standards throughout its supply chain, we argue that the retail firm must improve their degree of “supply chain labor compliance integration” by minimizing cross-functional tensions in human capital, identities, processes and goals. We define (...) supply chain labor compliance integration, identify its determinant organizational practices that reduce cross-functional tensions, and explain the mechanisms by which it improves the retail firm’s supply chain labor standards performance. This work offers theoretical and practical insights on the retail firm’s capacity for managing socially responsible supply chains, and more broadly, on how systematically minimizing intra-organizational tensions arising in the pursuit of competing organizational priorities is a prerequisite for their simultaneous execution in inter-organizational business exchanges. (shrink)

This research proposes that broad-based employee share ownership (ESO) affects corporate environmental performance (CEP). Drawing upon corporate governance literature, social exchange theory, and stakeholder utility theory, we propose that employees as owners adopt more favorable attitudes toward beneficial outcomes for CEP, and that the broad-based impact of ESO overwhelms the impact of CEO ownership. Also, we propose that these relationships are contingent upon trade union presence as a form of worker voice that amplifies the ESO influence on CEP. The empirical (...) results from U.S. publicly traded companies from 2009 to 2016 indicate that broad-based ESO is linked to positive CEP by companies, and provides some support for all proposed hypotheses. This study provides scholarly and practical implications for the effects of shared capitalist modes of ownership and employee engagement on corporate sustainability. (shrink)

Socioeconomic inequality is perpetuated and exacerbated by an overlooked yet serious epidemic of time theft: the act of causing others to lose their time without adequate cause, compensation, or consent. We explain why time theft goes unnoticed, how it drives socioeconomic inequality, and what businesses and policymakers can do to address it.

We examine the interface of entrepreneurship and society by considering a novel source of gender bias (public opinion) and a novel expression of it (affective evaluations). We posit that women-led teams displaying success will trigger a “penalty for success” bias, and this will be inhibited if the team receives a “stamp of approval” from a gender congruent individual (i.e., an investor who is a man). Analysis from our first study, based on archival data, indicated that other mechanisms might be at (...) play that we could not tease apart in our archival data, so we conducted a follow-up experimental study to further examine our initial findings. Results jointly indicate that women are viewed unfavorably unless either (a) they are validated by success or endorsement from a man, or (b) they fail but are “warm and accommodating” about it. We also find that while men benefit from being validated by success or endorsement of an opposite-gender investor, they do not face a similarly steep penalty absent that validation. (shrink)