Frequent CEO Turnover and Firm Performance: The Resilience Effect of Workforce Diversity

© 2020, Springer Nature B.V. CEO turnover (or succession) is a critical event in an organization that influences organizational processes and performance. The objective of this study is to investigate whether workforce diversity (i.e., age, gender, and education-level diversity) might have a resilience effect on firm performance under the frequency of CEO turnover. Based on a sample of 409 Korean firms from 2010 to 2015, our results show that firms with more frequent CEO turnover have a lower firm performance. However, firms with more gender and education-level diversity could buffer the disruptive effect of frequent CEO turnover on firm performance to offer a benefit to the organization. Our theory and findings suggest that effectively managing diverse workforce can be a resilience factor in an uncertain organizational environment because diverse workforce has complementary skills and behaviors that can cope better with uncertainty and signals social inclusion of an organization, thus fostering a long-term exchange relationship. These findings contribute to the literature on CEO turnover (or succession) and diversity

The limits of corporate social responsibility : Techniques of neutralization, stakeholder management and political CSR

Since scholarly interest in corporate social responsibility (CSR) has primarily focused on the synergies between social and economic performance, our understanding of how (and the conditions under which) companies use CSR to produce policy outcomes that work against public welfare has remained comparatively underdeveloped. In particular, little is known about how corporate decision-makers privately reconcile the conflicts between public and private interests, even though this is likely to be relevant to understanding the limitations of CSR as a means of aligning business activity with the broader public interest. This study addresses this issue using internal tobacco industry documents to explore British-American Tobacco’s (BAT) thinking on CSR and its effects on the company’s CSR Programme. The article presents a three-stage model of CSR development, based on Sykes and Matza’s theory of techniques of neutralization, which links together: how BAT managers made sense of the company’s declining political authority in the mid-1990s; how they subsequently justified the use of CSR as a tool of stakeholder management aimed at diffusing the political impact of public health advocates by breaking up political constituencies working towards evidence-based tobacco regulation; and how CSR works ideologically to shape stakeholders’ perceptions of the relative merits of competing approaches to tobacco control. Our analysis has three implications for research and practice. First, it underlines the importance of approaching corporate managers’ public comments on CSR critically and situating them in their economic, political and historical contexts. Second, it illustrates the importance of focusing on the political aims and effects of CSR. Third, by showing how CSR practices are used to stymie evidence-based government regulation, the article underlines the importance of highlighting and developing matrices to assess the negative social impacts of CSR

Equitable representation in councils: theory and an application to the United Nations Security Council

We analyze democratic equity in council voting games (CVGs). In a CVG, a voting body containing all members delegates decision-making to a (time-varying) subset of its members, as describes, e.g., the relationship between the United Nations General Assembly and the United Nations Security Council (UNSC). We develop a theoretical framework for analyzing democratic equitability in CVGs at both the country and region levels, and for different assumptions regarding preference correlation. We apply the framework to evaluate the equitability of the UNSC, and the claims of those who seek to reform it. We find that the individual permanent members are overrepresented by between 21.3 times (United Kingdom) and 3.8 times (China) from a country-level perspective, while from a region perspective Eastern Europe is the most heavily overrepresented region with more than twice its equitable representation, and Africa the most heavily underrepresented. Our equity measures do not preclude some UNSC members from exercising veto rights, however

Strategic options development and analysis

Strategic Options Development and Analysis (SODA) enables a group or individual to construct a graphical representation (map) or a problematic situation, and thus explore options and their ramifications with respect to a complex system of goals or objectives. In addition the approach aims to help groups arrive at a negotiated agreement about how to act to resolve the situation. It is based upon the use of causal mapping – a formally constructed means-ends network. Because the map has been constructed using the natural language of the problem owners it becomes a model of the situation that is ‘owned’ by those who define the problem. The use of formalities for the construction of the model makes it amenable to a range of analyses encouraging reflection and a deeper understanding. These analyses can be used in a ‘rough and ready’ manner by visual inspection or through the use of specialist causal mapping software. Each of the analyses helps a group or individual discover important features of the problem situation. And these features facilitate agreeing a good solution. The SODA process is aimed at helping a group learn about the situation they face before they reach agreements. Most significantly the exploration through the causal map leads to a higher probability of more creative solutions and promotes solutions that are more likely to be implemented because the problem construction process is more likely to include richer social dimensions about the blockages to action and organizational change. The basic theories that inform SODA derive from cognitive psychology and social negotiation, where the model acts as a continuously changing representation of the problematic situation (a transitional object) – changing as the views of a person or group shift through learning and exploration. This chapter jointly written by two leading practitioner academics and the original developers of SODA, Colin Eden and Fran Ackermann, describe the SODA approach as it is applied in practice

Internalised Values and Fairness Perception: Ethics in Knowledge Management

This chapter argues for ethical consideration in knowledge management (KM). It explores the effect that internalised values and fairness perception have on individuals’ participation in KM practices. Knowledge is power, and organisations seek to manage knowledge through KM practices. For knowledge to be processed, individual employees—the source of all knowledge—need to be willing to participate in KM practices. As knowledge is power and a key constituent part of knowledge is ethics, individuals’ internalised values and fairness perception affect knowledge-processing. Where an organisation claims ownership over knowledge, an individual may perceive being treated unfairly, which may obstruct knowledge-processing. Through adopting ethical KM practices, individual needs are respected, enabling knowledge-processing. Implications point towards an ethical agenda in KM theory and practice

The role of justice in negotiation

This chapter discusses the role of justice in negotiation between rival parties and the durability of peace agreements. It draws on research about group negotiation processes and agreements to end civil wars, mostly during the early 1990s. Hypothesized relationships between the presence and importance of distributive justice (DJ) in the agreements, and their durability, were first explored with multiple methods (see also the chapter by Koeszegi and Vetschera, this volume). The difficulty of the conflict environment was shown to have the strongest impact on durability. However, the DJ principle of equality was found to reduce the negative impact of difficult environments. An emphasis on equality was also associated with more forward-looking agreements, which were found to be more durable than those that were backward looking. (See also the chapters by Nurmi, Klamber, Kilgour and Hipel, Turel, and Yuan, this volume for modeling approaches to issues of justice and fairness.) Next, the presence and importance of procedural justice (PJ) were examined in the negotiation processes that led to the signing of the peace agreements. Significantly more durable agreements occurred when a process based on PJ led to agreements that emphasized equality. This focus on process is similar to the analyses conducted by the authors chapters (See also the chapter by Koeszegi and Vetschera, Kersten and Lai, this volume). A close examination of how the equality principle was applied revealed that agreements based on provisions of equal treatment and/or equal shares were particularly durable. The chapter concludes with a discussion of tactics used by third parties to produce durable agreements, and lessons for policy