In Western societies and organizations, episodes of discrimination based on individual demographic and social characteristics still occur. Relevant questions, such as why ethnic discrimination is perpetuated and how people confront it in the workplace, remain open. In this study, we adopt a social-symbolic work perspective to explore how individuals confront workplace ethnic discrimination by both upholding and challenging it. In doing so, we incorporate the perspectives of those directly experiencing, observing and neglecting discrimination. Specifically, we focus on the Italian branches (...) of North American professional service firms (PSFs), performing a qualitative investigation of the worlds of concern among professionals regarding the topic of ethnic discrimination to explore how different backgrounds motivate social-symbolic work. We find that different forms of work are enacted to support the status quo, shape the boundaries of existing organizational practices, and balance professional identities, emotions, and careers to silence episodes of ethnic discrimination. We also highlight cases of ‘soft,’ yet increasing, work that contests the status quo. Finally, we discuss our results in light of neo-institutional and critical management research to ultimately inspire our focal firms and societies to find alternatives to the rhetoric in the established approaches to inequality. (shrink)

We examine market reactions to the stock options backdating scandal in a slightly unusual way, but focusing on firms who were not perceived to have had a backdating concern, but were instead linked to firms who did have a backdating concern. These linkages can be found via board interlocks and the roles those directors perform. In addition we examine the linkages which occur from shared professional services firms, such as auditors and outside legal counsel. That these potential (...) conduits are available is not in question, but rather, do investors perceive the conduits are used to pass along information about backdating stock options? We then ask if affiliation with dominant audit and legal services firms ameliorates or exacerbates those investor market reactions. We find that firms linked to the scandalized firms also face negative reactions, which are worsened when they also are serviced by professional services firms who are themselves are also linked to the managerial practice. (shrink)

In this study, we examine whether corporate environmental responsibility plays a role in enhancing operating performance in the financial services sector. Because achieving success with CER investing is often a long-term process, we maintain that by effectively investing in CER, executives can decrease their firms’ environmental costs, thereby enhancing operating performance. By employing a unique environmental dataset covering 29 countries, we find that the reducing of environmental costs takes at least 1 or 2 years before enhancing return on assets. (...) We also find that reducing environmental costs has a more immediate and substantial effect on the performance of financial services firms in well-developed financial markets than in less-developed financial markets. These results are economically and statistically significant and robust even after alleviating endogeneity and using an additional performance measure. We interpret our empirical results as supporting the social impact and reputation-building hypothesis. Our findings also suggest that policy makers dealing with corporate sustainability management should pursue an environment-centered industry policy not only at the manufacturing sector but also at the financial services sector, as firms in both sectors with lower environmental costs perform better. (shrink)

Public service organization's increasingly are considering diversification into new “for-profit” or “high-profit” enterprises. Such undertakings offer a number of potential benefits to both the organization and the public. They also have potential problems. This article examines some of the major types of benefits and problems in hopes that both public service managers and public policy makers will give a balanced consideration to these diversification efforts.

Given that services differ from goods in terms of intangibility, heterogeneity, and inseparability, customers may evaluate green services differently from how they evaluate green goods. Previous research has investigated customers’ perceptions and purchase decisions regarding green products. However, limited attention has been paid to the impact of green practices on customer evaluations of the service experience as well as important contingencies that bear on this relationship. Drawing on stakeholder theory, our study examines the impact of green practices on customer (...) evaluations and further considers the influences of environmental- and firm-level contingencies. We test our model with a multi-source dataset in the Chinese hotel industry. The findings indicate that green practices improve customer evaluations of the service experience. This positive impact is, however, weaker in external environments characterized by high internet penetration and market complexity but is stronger for hotels with innovative services and for business hotels. Our findings provide novel insights into the environmental ethics and stakeholder management literatures by revealing the role of green practices in promoting positive service evaluations as well as the contingent influences of external environments and internal firm-level characteristics. (shrink)

The article starts by arguing that seeing the firm as a mere nexus of contracts or as an abstract entity where different stakeholder interests concur is insufficient for a “humanistic business ethos”, which entails a complete view of the human being. It seems more appropriate to understand the firm as a human community, a concept which can be found in several sources, including managerial literature, business ethics scholars, and Catholic Social Teaching. In addition, there are also philosophical grounds that support (...) the idea of business as a human community. Extending this concept, and drawing from some Phenomenological-Personalist philosophers, we propose that the firm should be seen as a particular “community of persons” oriented to providing goods and services efficiently and profitably. Being a “community of persons” emphasizes both individuals and the whole, and makes explicit the uniqueness, conscience, free will, dignity, and openness to human flourishing. This requires appropriate communication about and participation in matters which affect people’s life, and makes it essential to cooperate for the common good of the business firm and the society. (shrink)

Business Ethics: A European Review, EarlyView.

Dysfunctional customer behavior is common in service settings. For frontline employees, negative encounters can cause short-term despondency or have profound, long-term psychological effects that often result in both direct and indirect costs to service firms. Existing research has explored the influence of dysfunctional customer behavior on employee emotions, but it has not fully investigated the psychological mechanism through which customer misbehavior transforms into employee responses. To maintain service quality and employee well-being, it is important to understand (...) the impact of customer misconduct on employee emotions and its effect on subsequent service behavior. To assess the process through which dysfunctional customer behavior manifests as negative emotions in frontline service employees, and the influence of negative employee emotions on their prosocial service behavior, we surveyed 185 frontline banking service employees. We sought information on service employee experiences, attitudes, and feelings regarding dysfunctional customer behaviors, the perceived level of supervisor support, and employee prosocial service behavior intentions. Structural equation modeling and hierarchical linear modeling were used for statistical analysis and hypothesis verification. Results indicate that dysfunctional customer behavior has a positive relationship with bank service employee negative emotions and a negative influence on employee prosocial service behavior. The study found that negative emotions fully mediated the relationship between dysfunctional customer behavior and prosocial service behavior. The moderating role that perceived supervisor support plays on the relationships between dysfunctional customer behavior and negative emotion was also investigated. The results show that perceived supervisor support moderates the relationship between dysfunctional customer behavior and negative employee emotions. Finally, the study provides bank managers with effective strategies to assist frontline employees to manage and deter dysfunctional customer behavior, and presents employees with internal recovery strategies when encountering dysfunctional customer behavior. (shrink)

Bottom of the Pyramid strategies recognize for the first time that global companies can contribute to the alleviation of worldwide poverty by adopting non-traditional and mostly non-Western models of business involvement. It is now widely accepted that poverty and hunger arise not because there are no goods or food, but because billions of people lack income to purchase them. It is also a common belief that the private sector can play a significant role in lifting the poor from the margins (...) of the market system. This would require strategic and mindset shifts in global companies leading to a very different path where their operations intersect with the greater good of communities, societies, and nations. Successful engagement in the untapped market space at the base of the global income pyramid calls for completely new capabilities, responsibilities, and values. Alliance building with local and non-traditional partners, promoting bottom-up solutions and understanding social sustainability are some of these new managerial challenges. This article reflects on some of the critical challenges of global companies and global managers in their strategic engagement at the BOP and explores how large firms can become involved in the pursuit of social capital acquisition and how new approaches of public–private partnerships in reformulating the profit-performance links, the downscaling of products or services without compromising their quality and integrity, the bridging of the information and infrastructure gap, educating, and empowering the poor, together with innovations through technological adaptations can be managed through the embracing of new mindsets. A number of frameworks are presented with a view to contributing to the debate and outlining new value objectives for global companies. (shrink)

The Austrian School's conventional theory of the firm is based on an attempt to synthesize Coase's concept of the firm as a centrally planned hierarchy with the Austrian theory of entrepreneurship and monetary calculation. This paper is a critique of that program as well as an attempt to outline the alternative theory of the firm, one based on the synthesis of the contractual agency theory of the firm with the same Austrian arguments about entrepreneurship and calculation. The firm in this (...) paper is defined as a nexus of various markets for goods as well as for labor and managerial services rather than as a hierarchy or “organization.” Both the neoclassical and Austrian critiques of the latter concept are utilized to prove that a clear distinction between the market and the firm cannot be established. That distinction is based on the misunderstanding of the firm's dynamics as exclusively tied to the managing/transaction costs ratio as well as on the mischaracterization of inter-firm relations as commanding ones. On the other hand, the central planning view of the firm is equally at odds with the key Mises's argument that rational economic planning is impossible in the absence of market prices. If this is so, the firm, as understood in a Coasian paradigm, would not have any reason to exist, or any reason to contribute positively to economic efficiency, because it would simply represent a centrally planned “island of incalculability” in a wider market setting. Since the firm is a nexus of various markets, its operation is contrary to the Coaseian assumptions led by the price signals. Only insofar as the internal firm's operation is driven by the price signals can the firm be efficient. (shrink)

In this article, we examine the factors determining the representation of women on boards of directors by considering three main questions. The first question deals with the relationship between characteristics of ownership and governance on one side, and female directorship on the other. The second major question concerns the demographic attributes of women directors, such as nationality, foreign experience, educational level, business expertise, and connections to external sources. The third important question refers to women in senior positions on French boards (...) (e.g., as independent members or board subcommittee members) in relation to firm characteristics and women’s demographic attributes. Our study focuses on French large- and mid-capitalized companies belonging to the SBF120 stock market index during a 5-year period running from 2000 to 2004. First, our results give evidence that the appointment of women directors is strongly related to family ownership and board or firm size. Second, the appointment of women directors is related to their professional services, valuable skills, and network links. Furthermore, we show that women face a double glass-ceiling problem, and note that French firms rely more on the demographic attributes of their women directors when they are appointed to senior board positions. Our study sheds light on issues concerning the law that comes into force in 2016, which imposes quotas of women members on boards of directors in French companies. (shrink)

Business codes are an oft-cited management instrument. But how common are codes among multinationals? And what is their content? In an unprecedented study, the codes of the largest corporations in the world have been collected and thoroughly analyzed. This paper presents the results of that study. Of the two hundred largest companies in the world, 52.5% have a code. More than half of these codes describe company responsibilities regarding quality of products and services (67%), adherence to local laws and regulations (...) (57%) and the protection of the natural environment (56%). Many codes make reference to principles governing stakeholder relations (e.g. transparency (55%), honesty (50%) and fairness (45%)), corporate core values (e.g. teamwork (43%)), appropriate conduct among employees (e.g. discrimination (44%) and intimidation (43%)) and treatment of company property by employees (e.g. conflict of interests (52%), corruption (46%) and fraud (45%)). Monitoring compliance with the code is addressed in 52% of the codes. Based on this content study, three types of codes are distinguished: the stakeholder statute (72%), the values statement (49%) and the code of conduct (46%). The results of this inquiry present a benchmark for the evaluation and development of both individual and international business codes. (shrink)

In this study, we examine the relation between corporate environmental responsibility and risk in U.S. public firms. We develop and test the risk-reduction, resource-constraint, and cross-industry variation hypotheses. Using an extensive U.S. sample during the 1991–2012 period, we find that for U.S. industries as a whole, CER engagement inversely affects firm risk after controlling for various firm characteristics. The result remains robust when we use firm fixed effect or an alternative measure of CER using principal component analysis or downside (...) risk measures. To address the concern of endogeneity bias, we use a system equations approach and dynamic system generalized methods of moment regressions, and continue to find that environmentally responsible firms experience lower risk. These findings support the risk-reduction hypothesis, but not the resource-constraint hypothesis, along with the notion that the top management in U.S. firms is generally risk averse and that their CER engagement facilitates their risk management efforts. Our cross-industry analysis further reveals that the inverse CER-risk association mainly comes from the manufacturing sector, whereas in the service sector, CER tends to increase firm risk. (shrink)

Organizations are increasingly finding it challenging to balance economic and environmental performance particularly those that face competitive, regulatory and community pressure. With the increasing pressures for environmental sustainability, this calls for the new formulation of strategies by the manufacturers in order to minimize their products and services negative impact on the environment. Hence, Green Human Resource Management (GHRM) continues to be an important research agenda among the researchers. In Palestine, green issues are new and still developing. Constant study is needed (...) to fully understand and update information regarding this area. Objective: The aim of this paper is to explore the views and level of acceptance of GHRM practices among manufacturing firms in Palestine. Results: Through the use of e-mail survey, 121 responses were obtained to generate the results of the study. The result showed GHRM practices have been practiced to somewhat to a greater extent a firms in Palestine. Findings can be extended to study on the issues in further. Academicians and practitioners can apply this result to their research and business strategies on how to improve sustainable performance and to effectively implement GHRM practices. (shrink)

The COVID-19 pandemic has had a profound psychological and behavioral impact on people around the world. Consumer purchase behaviors have thus changed greatly, and consumer services companies need to adjust their business models to adapt to this change. From the perspective of consumer psychology, this paper explores the impact of consumer purchase behavior changes over the course of the pandemic on the business model design of consumer services companies using a representative survey of 1,742 individuals. Our results show that changes (...) in consumer purchase behavior have a significant impact on the design of consumer services firms’ business models. Specifically, changes in consumers’ purchase object, motive, and timeframe are more likely to spark a novelty-centered business model design, whereas changes in purchase method tend to inspire an efficiency-centered one. Our findings provide a theoretical reference for consumer services companies in designing business models when faced with unexpected crises. (shrink)

This research paper aims to examine the association between product market competition and gender diversity on the corporate board. More specifically, this paper examines the likely corporate governance determinants of firms operating by female directors. This study included all the Australian listed companies in the primary list of samples from 2001 to 2015. This research explored that low competition increases the probability of existing female directors on the corporate board. Results also reveal that low product market competition is positively (...) associated with firms’ female directors where female directors are the member of the audit committee and have long service experience. This research obtains evidence that low-competitive firms encourage board gender diversity even if their presence is insignificant (as a token). This study contributes to the literature by providing evidence that first, low competition drives managers to appoint female directors on board as few primarily large firms with low competition show fairness to comply with corporate governance regulations, especially on gender diversity. Moreover, low competition forces firms to search for unique competitive advantage, and gender diversity is one of them which can increase the visibility of female directors. Finally, a firm’s board gender diversity can ensure intense monitoring, rational decision, advising, calculative risk-taking comparing with a gender bias board and leading to a good firm image for the stakeholders. (shrink)

ABSTRACT:This article proposes a theory of the firm based on the common good. It clarifies the meaning of the term “common good” tracing its historical development. Next, an analogous sense applicable to the firm is derived from its original context in political theory. Put simply, the common good of the firm is the production of goods and services needed for flourishing, in which different members participate through work. This is linked to the political common good through subsidiarity. Lastly, implications and (...) challenges arising from the positing of work as the common good of the firm are explored. (shrink)

This paper provides an empirical study of Italian ‘boutique law firms’. By building on seventeen semi-structured interviews with lawyers, the paper explores institutional, professional, and societal features of such firms and their lawyers. The article shows that, while the rise of large law firms triggered a partitioning of the Italian legal field in the past decades, more recently this small, but economically important, sector of the profession revived the classic model of delivering legal services characterised by a (...) strong sense of autonomy and independence, a client-centered but ethically robust approach to legal practice, a close relationship with academic and political environments, and a focus on projecting a professional image of themselves and their firms in society. These are, in other words, the last bastion of professionalism and are increasingly gaining an important role in the Italian field. (shrink)

We provide evidence of the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in Palestine, a highly unstable political context. Annual reports of all firms listed on the Palestine Exchange (PEX) for the period 2016-2019 were manually content analysed. A checklist of reported CSR items is summarised into four areas: environmental information, human resources, community involvement, and product and customer service quality. Results indicate a robust positive connection between each of the four dimensions and the (...) composite CSR index with three performance indicators: ROA, ROE, and Tobins Q. Results also find better performing companies with a higher degree of community involvement being greatly appealing, while the environmental dimension was the least resilient. We discuss the significance of community engagement for an unstable context like Palestine from a community cohesion standpoint. (shrink)

In a previous essay (Sison and Fontrodona 2012), we defined the common good of the firm as collaborative work, insofar as it provides, first, an opportunity to develop knowledge, skills, virtues, and meaning (work as praxis), and second, inasmuch as it produces goods and services to satisfy society’s needs and wants (work as poiesis). We would now like to focus on the participatory aspect of this common good. To do so, we will have to identify the different members of the (...) firm as a community, drawing from corporate citizenship literature and stakeholder theory. Afterward, we will explore both the manner and the intensity of these different members’ participation and its impact on the firm’s common good. (shrink)

Legal tech is growing, and its growth provokes anxieties about the future of the legal profession as such. In this article, we examine the impact of legal tech on the central role of lawyers at law firms in crafting an imagined ‘right legal answer’ by drawing on Duncan Kennedy’s suggestion that a claim to the rightness of one’s legal propositions is a central characteristic of the legal profession. We first ask how changes in the organisation of legal services affect (...) the ability of lawyers at law firms to produce that ‘right legal answer’. While legal tech only exacerbates already ongoing processes of eradication of routine tasks, we find that it continues to mask the role of ideology in arriving at a right legal answer under a new layer of technological projection. Second, we ask how lawyers’ ability to produce ‘the right legal answer’ is affected by, first, expert systems and, second, a legal tech application named Bryter, representing a no-code system. We find that expert systems do not permit to uphold the unity of the lawyer required for Kennedy’s model of the right legal answer, but that no-code systems as Bryter do so. No-code systems can be reduced to a slogan: Have the lawyer, but evict her ideological temptations more efficiently than before! (shrink)

Given the omnipresence and profoundness of the ongoing pandemic from the Coronavirus disease 2019, its potential spread can be minimized through social distancing. However, this practice causes increasing difficulties and undesirability of traditional transactions or interactions. Accordingly, various manufacturing firms around the world have become more committed not only to accelerating the development of digital technologies, but also to integrating them with existing processes. In this study, we address an important issue of how manufacturing firms can adapt to (...) the ever-changing volatility and unpredictable global business environment, and achieve sustainable growth by developing a strong supply chain management capability. Two specific interrelated research questions are considered: How do supply chain management capabilities contribute to firm environmental performance; and What are the sources of such capabilities? In so doing, we integrate various forms of digital innovation into a supply chain management capability logic to explore their antecedents and consequences. By using survey data from 272 manufacturing firms in China, we examine the relationship between three key forms of digital innovation and firm environmental performance. Results show that digital product, platform, and service innovations all have positive contributions to supply chain management capability. In turn, supply chain management capabilities have a partial mediating effect between digital product innovation and firm environmental performance, but a full mediating effect between digital platform and service innovations and firm environmental performance. (shrink)

The purpose of cause-related marketing (CRM) is to publicise and capitalise on a firm's corporate social performance (CSP) by enhancing its legitimacy in the eyes of its stakeholders. This study focuses on the firm's internal stakeholders - i.e. its employees - and the extent of their involvement in the selection of social campaigns. Whilst the difficulties of managing a firm that has lost or damaged its legitimacy in the eyes of its employees are well known, little is understood about the (...) extent to which managers and their social partners listen to and involve their employees in the legitimation process. Through telephone interviews with non-profit organisations and senior managers of service sector firms, the extent of employee involvement in CRM campaigns and the perceived benefits of doing so are investigated. Amongst other things, we find that (i) the extent of employee participation varies significantly across firms; (ii) larger CRM campaigns tend to be managed centrally with relatively less employee participation than smaller ones and (iii) financial services firms are more likely to make CRM decisions centrally, with relatively less employee participation than retail services firms. (shrink)

Drawing on service climate theory and insights from the literature on self-service technologies and customer participation, this study investigates the antecedents of customers’ continuance intentions toward in-lobby self-service technologies (SSTs). Using data collected from 257 actual customers in the context of retail banks, this experimental study examines the proposed relationship between customer perceived service climate, customer readiness factors (i.e., perceived ability, role clarity, and perceived benefit), customer satisfaction and customer continuance intention toward in-lobby self-service technologies. (...) The results show that customers’ perceived service climate positively influences customers’ continuance intentions toward in-lobby SSTs. Moreover, two customer readiness factors (i.e., perceived ability, perceived benefit) and customer satisfaction mediate this relationship. The findings demonstrate the importance of customers’ perceived service climate in driving their continuance intention and provide managerial implications for service firms employing in-lobby self-service technologies. (shrink)

The purposes of this study are to investigate whether current corporate social responsibility (CSR) is at the theoretically derived achievable level (hereinafter referred to simply as achievable level), to introduce “CSR inefficiency” as the difference between actual and achievable levels of CSR, and to specify its determinants. We established that the achievable level of CSR activity is determined by a range of keiretsu group, government, sector, and resource factors, and choosing specific activities can affect the priority levels of social contributions. (...) CSR inefficiency is affected by its own factors such as internal management, which are different from those of CSR activity. Our study suggests the importance of the differences between the achievable levels of CSR among firms. For example, firms in machinery, electrical equipment, public utilities, and service industries have greater inefficiency in environmental CSR than the other industries. Conversely, the achievable levels of construction and petroleum and gum industries for environmental CSR are higher. Service firms can achieve higher level of environmental CSR, although their emissions and wastes are not as large as those of manufacturing firms in general. In retail industries, the achievable level of environmental CSR is lowest among all industries, while those for labor issues and social contribution are as high as those of other industries. Public utilities have large CSR inefficiency compared with other industries, while construction, steel and nonferrous metals have small CSR inefficiency. (shrink)

This study examines the ethical values of respondents by level in the organizational hierarchy of a single firm. It also explores the possible impacts of gender, education and years of experience on respondents' values as well as their perceptions of how the organization and professional associations influence their personal values. Results showed that, although there were differences in individuals' ethical values by hierarchical level, significantly more differences were observed by the length of tenure with the organization. While respondents, as a (...) whole, were rather ambivalent in their perception of the organization's and professional associations' influence on their values, sales/service persons frequently felt pressured to modify their values in order to achieve company goals. (shrink)

Although the political and consumer consciousness has turned increasingly green, many firms continue to resist the adoption of environment-friendly technological innovations—even in the face of higher costs, negative health effects, and stricter government oversight. This article examines how business owners weigh the trade-offs associated with environment-friendly innovations by examining the role of prosocial motivation in their decision-making process. We use primary data to overcome a common restriction in studying environmental innovations—the scarcity of relevant data—to analyze how business owners’ expectations, (...) perceptions, and motivations affect innovation in organizational processes and, consequently, the level of environmental friendliness of their products or services. We found that prosocial motivation had a significant negative impact on innovation adoption and that it is expressed differently under high and low levels of customer compatibility—possibly because business owners have a larger number of competing social objectives and priorities. Our results further showed that the innovation’s ability to satisfy downstream customer demands has the greatest impact on environment-friendly innovation adoption decisions by business owners. This study enhances our understanding of how business owners make innovation decisions based on competing business, environmental and social objectives and provides a foundation for future research in this area. (shrink)

This article revolves around the issue of whether or not legal professions deserve their status as professions. It looks at how empirical literature addresses this issue, concentrating on lawyers working within law firms in common law systems. A discussion of the way the profession is structured, and the creation of elites within elites, has intersected with arguments about the demography of the profession. In addition, this article considers the literature that looks at the quality of lawyering. It compares, through (...) a research study, how the quality of the work of non-lawyers compared with the work of formally qualified lawyers. This article concludes by considering how economic incentives are a necessary part of any market-based service and suggests a need of more nuanced understanding of professional competence and the contribution of professionalism to the quality of services. (shrink)

This study addresses two issues. First, does corporate social performance matter in Hong Kong. Second, if yes, is it relevant to some industries more than others. To answer these questions, we develop a corporate social performance index (CSP) to measure the quality of corporate social performance of major Hong Kong listed firms. The criteria are based on the OECD Principles of Corporate Governance. Using the 3-year period from 2002 to 2005, we find that firm valuation is positive and significantly (...) associated with CSP. Interestingly, this relation matters less in China related firms and firms with a concentrated ownership structure. The results also show that CSP impacts firm valuation more positively when the firm is in the service sector. We further find that CSP is positively related to the market valuation of the subsequent year. (shrink)

In recent decades, the expansion of economic activity has been accompanied by negative environmental impacts. In response, there have been dramatic changes worldwide in terms of an increased demand for environmentally friendly products and services. To achieve these eco-innovations, firms have sought to acquire knowledge and implement operational flexibility by cooperating with different agents such as universities through a value cocreation system that is also expected to enhance firms’ performance. Using a sample of 250 companies, the present paper (...) examines the role of cooperation with universities in the development of diverse environmental innovations and building operational flexibility and, through this, improving firm performance. Results show that firms that value cooperation with universities develop a wider range of environmental innovations and increase their sales and benefits. (shrink)

This study provides evidence on the governance of CSR policies and activities by Indian central government-owned companies [i.e. Central Public Sector Enterprises ] within a unique mandatory regulatory setting. We utilise the multi-level ‘Logic of governance’ conceptual framework and draw upon interview data collected from 25 senior managers in 21 CPSEs to assess the dynamics of CSR implementation within CPSEs. Our findings indicate most managers believe that a mandatory policy has enhanced the accountability and commitment of governing boards and senior (...) management to CSR. However, CSR policy implementation within Indian CPSEs is still nascent, fraught with bureaucratic hurdles, insufficient human and knowledge resources, limited stakeholder analysis and over-emphasis on CSR budget utilisation as an outcome. Several key areas for improvements include the need for better translation of national CSR policy goals to firm-level strategies, more formal assessment of stakeholder needs, clearer communication lines with external service providers, such as NGOs and local government agencies, and the better evaluation of CSR outcomes. The findings of this study have implications for both theory and policy development. (shrink)

While it is widely believed that bribery is ubiquitous among Asian firms, few studies have offered systematic evidence of such activities, and the dynamics of bribery in Asian firms have not been well understood. The research reported here used World Business Environment Survey data to examine some distinct characteristics of bribery in Asian firms and to empirically test 10 hypotheses on determinants of bribery. We find that firm characteristics such as firm size, growth rate, and corporate governance (...) are important determinants of bribery activities at the firm level, and that Asian firms are more likely to bribe when faced with fierce market competition, corrupted court systems, convoluted licensing requirements, nontransparent interpretation of laws and regulations, inefficient government service delivery, and high taxes. (shrink)

This research replicates Weber's 1995 study of a large financial services firm that found that ethical subclimates exist within multi-departmental organizations, are influenced by the function of the department and the stakeholders served, and are relatively stable over time. Relying upon theoretical models developed by Thompson (1967) and Victor and Cullen (1998), hypotheses are developed that predict the ethical subclimate decision-making dimensions and type for diverse departments within a large steel manufacturing firm and that these ethical subclimate types will be (...) stable across the two periods of time when the data were collected. Employees were surveyed in 1995 and again in 1999 using Victor and Cullen's Ethical Climate Questionnaire. Response rates of 88 and 94 percent were achieved. Contrary to Weber's findings, our results imply that, in both samples, ethical subclimates may be determined by the strength of an organization's overall ethical climate, rather than the department's function. However, we did find support for Weber's earlier contention that these subclimates are relatively stable. Our results also suggest that differences may exist across industries, that is when comparing a large steel manufacturer, as we did in our study, with a large financial services organization, as Weber did in his 1995 study. (shrink)

Developing countries often rely on consumption taxes, because these are broad, easy to administer, and harder to evade. However, the taxation system becomes inherently regressive. To counter this problem of the regressive nature of consumption taxes, there is a temptation among policymakers to address equity concerns through a multiplicity of rates, making the consumption tax system complex. Here, complexity is considered the by-product, or companion, to pursuing goals of equity. Complex tax systems, however, pose a different problem relating to equity. (...) Assuming a minimum fixed cost of compliance imposed by a complex tax system, smaller firms and individuals face a much higher cost of compliance relative to larger firms and richer individuals. Oligarchic sectors dominated by a few large firms also find it easier to organize and lobby to get favorable rates compared to competitive sectors with small firms. Though complexity is considered a by-product of several equity-enhancing measures, the Indian experience with its Goods and Services Tax reform serves demonstrates the opposite, that there is a trade-off between equity and complexity. (shrink)

This study aims to investigate the awareness and perception level of bioethical issues among pre-service science teachers at one of the Malaysian Education Institutions. A total of 67 respondents studying science major and science elective were involved. A questionnaire based survey with an alpha Cronbach of approximately 0.93 was used. Data were analysed using SPSS version 22. The results showed that the average awareness and perception level were =4.218±0.758 (very high level) and =3.991±0.923 (high level), respectively. There was a (...) statistically significant difference according to religion and course. Cloning showed the highest awareness level followed by organ donation, genetic modification, stem cells, abortion, gene therapy, gene screening and euthanasia. Overall, the findings indicated that pre-service science teachers were aware of the existence of bioethical issues. However, the authorities may implement bioethical issues more firmly in the future to increase pre-service science teachers’ awareness and perception level. (shrink)

Supported by a qualitative study of triple bottom line firms—those that simultaneously prioritize economic, social, and environmental objectives—we investigated the market logic and practices of TBL firms to better understand how they fulfill their mission and achieve their goals. We explored if and how TBL firms may differ in their approach to stakeholders and the management of their resources, including dynamic capabilities. We employed a research design that emphasizes the iterative comparison of narrative data within themselves and (...) with scholarly literature [i.e., resource-based view ] to develop new theoretical insights. Because the RBV is commonly used to theorize how firms achieve competitive advantage, we explored whether TBL firms achieve competitive advantage differently from what RBV theory would predict. Our data suggest that how a firm defines value has a significant influence on the capabilities it creates and how it treats its resources. We find that TBL firms redefine value to not only focus on the end product or service but also to include the systemic cost of delivering goods. As a result, TBL firms differ from prevailing scholarly thought in RBV. They strive to have resources that are sustainable and therefore imitable, commonly found, and substitutable. Moreover, they are not only transparent in their processes but also collaborate with others in the value chain and in their sector. In doing so, they deliberately create new markets from which other firms can benefit. Rather than focusing on competitive advantage, they focus on collaborative advantage. (shrink)

The first urgent question for any scholar willing to study the Open Source (OS) movement has been clearly put by Glass (1999, 104): I don’t know who these crazy people are who want to write, read and even revise all that code without being paid anything for it at all. A growing body of economic literature has been addressing the motivations at the basis of the participation in the OS movement since when the new paradigm has become successful and triggered (...) the entrance on the market of firms offering Open Source based products and services (Open Source firms). However, most of the empirical analyses focus on individual developers and neglect companies that adopt Open Source business models. This paper contributes to the literature by providing empirical evidence on the incentives of the firms that engage in OS activities. Findings on firms’ motivations are compared. (shrink)

Service failure is almost inevitable with the intensifying competition in the service market and expectation of heterogeneous customers. The customer–firm relationship can significantly influence customers’ subsequent attitudes and behaviors to the service provider when they encounter service failure. This study proposes a theoretical model to examine how customer-perceived dependence affects their forgiveness toward a service failure in attribution logic. According to an experiment with 138 and a survey with 428 commercial bank customers, we used a (...) multivariate approach to validate our model. The results show that relationship-valued dependence leads to external attribution, which is positively related to customer forgiveness. In contrast, switching-cost dependence leads to internal attribution, which is negatively related to customer forgiveness. The relationship length is a relevant contextual factor that acts as a negative moderating factor. Our study contributes to the service recovery literature by elucidating the underlying process of forgiveness with the presence of the customer–firm dependence relationship. (shrink)

China has undergone a profound paradigm shift in its approach to economic development since its policy of 'opening and reform' was first implemented in 1978. It has shifted rapidly from a centrally planned economy to a market-oriented one, speeding up its economic development through foreign investment, a more open market, access to advanced technologies and management experience. It is notable that its economic growth, marked by annual double-digit rises in GDP over two decades, has lifted more than 400 million people (...) out of extreme poverty. Today, the number of Chinese billionaires has ballooned, but so has the rich-poor gap. China's 'development' has to address this urgent issue. This article examines, based on the experience of Amity Foundation, one of China's largest faith-based organisations, how religious organisations are being harnessed by the state to redress the wealth gap arising from 'development'. The process of social engagement has empowered FBOs, made their presence more accepted and appreciated in Chinese society and contributed to the creation of more social and political space for a nascent civil society. The author argues that FBOs must provide visible, viable and replicable alternatives in their social practices that are firmly rooted in their faith, if they are to make any sustainable impact on the development debate. (shrink)

Cooperative innovation has become a critical method for freight logistics firms in supply chain management. The previous study has proved that relational embeddedness has a positive effect on service innovation performance. However, the influence of organizational learning capacity has been widely ignored. This study focuses on explaining the mechanism of OLC on the relationship between RE and innovation performance of freight logistics service. Firstly, a theoretical model is constructed based on Social Network Theory, and four research hypotheses (...) are presented. Secondly, a sample of 236 respondents from freight logistics firms in China is analyzed to test the hypotheses. Finally, several management implications and recommendations are suggested. The research results demonstrate that both RE and OLC have positive effects on IPFLS. Meanwhile, OLC partially mediates the relationship between RE and IPFLS. The findings provide practical guidance for managers to strengthen the relationship with partners and enhance OLC. (shrink)

This study investigates the risk and return characteristics of impact investing in the public equity market. We use a unique hand-collected dataset of 50 US listed firms whose product (or service) addresses at least one of the global social and environmental challenges, as defined by the United Nations Social Development Goals (SDGs). We designate such firms Impact Firms, and we compare their financial performance to a matched sample of Non-Impact Firms in the time span 2002–2019. (...) Our results show that Impact and Non-Impact Firms have similar level of financial performance and both volatility and systemic risk over the entire sample period. At the same time, Impact Firms show a slightly lower negative skewness of the returns over the entire sample period, but not during crisis periods. However, compared to matched Non-Impact Firms, Impact Firms outperform during periods of market crisis, generating a valuable dampening of downside risk. (shrink)

During the last two decades, the intra-industry trade between western companies and former socialist enterprises in Central and Eastern Europe gradually shifted from the subcontracting of marginal operations such as final assembly to the outsourcing of products and intermediate inputs. To further enhance their competitiveness, firms in Central and Eastern Europe have yet to take one more step forward: integrate services with manufacturing. Developing such capabilities hinges, aside from intensive training and learning on the existence of functional interactive knowledgebased (...) innovation systems. Whereas Central and East European economies exhibit conspicuous weaknesses in this last respect, they still possess a countervailing advantage that is apt to lure foreign investors into the region: lower wage rates relative to western countries across all industries and skill levels. Offshoring therefore seems to be the most appropriate means to reconcile the two sides of the coin. (shrink)

This paper argues in favor of the _end user thesis_, which holds that the fundamental goal of the firm is to create products and services that provide a benefit to _the people who ultimately use them._ The argument turns on the interest that employees have in work that is meaningful, in the sense that it is an activity worth spending time doing. I argue that a person’s life is diminished to the extent that work constitutes a central feature, but is (...) not meaningful in this way. I argue further that an employee’s work is fully worth doing only if her fundamental aim is to provide a benefit to the people who ultimately use what she produces, and that this is not possible within an organization that aims to maximize profits. The paper concludes by considering arguments that the efficiency gains generated by assigning the firm the goal of profit-maximization justify structuring the firm in a way that does not enable employees to have work that is fully worth doing. (shrink)

This study was designed to examine the prevalence of a code of ethics and to analyze its content among public relations agencies in the United States. Of the 1,562 public relations agencies reviewed, 605 (38.7%) provided an ethical statement. Among the ethical statements provided by these public relations agencies, ‹respect to clients,’ ‹service,’ ‹strategic,’ and ‹results’ were the values most frequently emphasized. On the other hand, ‹balance,’ ‹fairness,’ ‹honor,’ ‹social responsibility,’ and ‹independence’ were the least frequently mentioned in the (...) ethical codes. Also, none of the sampled agencies included any sanctions regarding enforcement of their particular codes of ethics. (shrink)