Social stigma and executive compensation

We document that executives working at firms perceived negatively in light of social norms, such as tobacco, gambling and alcohol, earn a significant compensation premium. The premium compensates for personal costs executives bear due to their employer’s negative public perception and include: (i) a reduced likelihood these CEOs will serve as directors on other firms’ boards, which associates with lower executives’ social status, and (ii) impaired job mobility as employers shun stigmatized executives. The compensation premium is not explained by higher managerial skill required in firms we investigate, higher employment contract risk, political capital, litigation risk, or differences in corporate governance quality, and robust to endogeneity concerns. Our results highlight the significant impact job-related social stigma has on executive compensation

Employee Attributions of the Why of HR Practices: Their Effects on Employee Attitudes and Behaviors, and Customer Satisfaction

The construct of Human Resource (HR) Attributions is introduced. We argue that the attributions that employees make about the reasons why management adopts the HR practices that it does have consequences for their attitudes and behaviors, and ultimately, unit performance. Drawing on the strategic HR literature, we propose a typology of five HR-Attribution dimensions. Utilizing data collected from a service firm, we show that employees make varying attributions for the same HR practices, and that these attributions are differentially associated with commitment and satisfaction. In turn, we show that these attitudes become shared within units and that they are related to unit-level organizational citizenship behaviors and customer satisfaction. Findings and implications are discussed

More than a match? Assessing the HRM challenge of engaging employers to support retention and progression

This paper considers employer engagement within a changing landscape of Active Labour Market Policy (ALMP). Employer engagement in ALMP has focused on supporting job entry for disadvantaged groups, through working with employers to attain changes on the demand-side, or using dialogue with employers to implement changes on the supply-side. Employer engagement in this model is orientated to a point in time: the job match. However ALMP policy in the United Kingdom is beginning to give greater emphasis to the sustainability of job entries and progression opportunities. This potentially creates a quite different set of expectations around employer engagement, and asks more of employers. Yet securing strong engagement from employers in ALMP has tended to be difficult. This paper examines the challenges that such a change in focus will have for existing models of employer engagement and on associated implications for HRM theory, policy and practices

A Literature Review of Social and Economic Leader-Member Exchange

Leader–member exchange (LMX) research has increasingly relied upon the social exchange theory (SET) as a theoretical foundation, but the dominating way of measuring LMX has not followed this theoretical development (Gottfredson et al., 2020). With the aim of developing a measure that more coherently reflects SET, Kuvaas et al. (2012) conceptualized LMX as two qualitatively different relationships, labeled economic LMX and social LMX. Since the most applied LMX measures are under scrutiny for not being sufficiently grounded in theory (Gottfredson et al., 2020), it may be especially important to expose alternative measures. Therefore, we provide a comprehensive review of the research to date applying a two-dimensional approach to LMX, while also adding to interpretation and suggestions for how we can progress the field even further.publishedVersio

With greater power comes greater responsibility? takeover protection and corporate attention to stakeholders

Using takeover protection as an indicator of corporate governance, this study examines how an exogenous shift in power from shareholders to managers affects corporate attention to non-shareholding stakeholders. Two competing hypotheses are entertained. The shareholder view predicts that stronger takeover protection will lead to a decrease in corporate attention to shareholders and non-shareholding stakeholders alike, as managers divert resources from shareholders to the pursuit of their private interests. The stakeholder view, in contrast, predicts that stronger takeover protection will increase corporate attention to non-shareholding stakeholders. Because catering to non-shareholding stakeholders contributes to the long-term value of the firm, managers will be more likely to attend to those stakeholders when relieved from short-termism triggered by the threat of hostile takeovers. Using a sample of 878 U.S. firms from 1991 to 2002, the study finds that an exogenous increase in takeover protection leads to higher corporate attention to community and the natural environment, but has no impact on corporate attention to employees, minorities, and customers. Additional analyses show that firms that increase their attention to stakeholders experience an increase in long-term shareholder value. These findings provide additional evidence that relief from short-termism is a likely source of the increase in corporate attention to non-shareholding stakeholders following the increase in takeover protection. Copyright © 2008 John Wiley & Sons, Ltd.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/61437/1/733_ftp.pd

Mapping the Relationship Among Political Ideology, CSR Mindset, and CSR Strategy: A Contingency Perspective Applied to Chinese Managers

The literature on antecedents of corporate social responsibility (CSR) strategies of firms has been predominately content driven. Informed by the managerial sense-making process perspective, we develop a contingency theoretical framework explaining how political ideology of managers affects the choice of CSR strategy for their firms through their CSR mindset. We also explain to what extent the outcome of this process is shaped by the firm’s internal institutional arrangements and external factors impacting on the firm. We develop and test several hypotheses using data collected from 129 Chinese managers. The results show that managers with a stronger socialist ideology are likely to develop a mindset favouring CSR, which induces the adoption of a proactive CSR strategy. The CSR mindset mediates the link between socialist ideology and CSR strategy. The strength of the relationship between the CSR mindset and the choice of CSR strategy is moderated by customer response to CSR, industry competition, the role of government, and CSR-related managerial incentives