Monitoring and Pay: An Experiment on Employee Performance under Endogenous Supervision

We present an experimental test of a shirking model where monitoring intensity is endogenous and effort a continuous variable. Wage level, monitoring intensity and consequently the desired enforceable effort level are jointly determined by the maximization problem of the firm. As a result, monitoring and pay should be complements. In our experiment, between and within treatment variation is qualitatively in line with the normative predictions of the model under standard assumptions. Yet, we also find evidence for reciprocal behavior. Our data analysis shows, however, that it does not pay for the employer to solely rely on the reciprocity of employees

Regulating the employment dynamics of domestic supply chains

This paper sheds light on the role that the regulation of primarily domestic, rather than global, supply chains could play in protecting and enhancing standards of workplace health and safety, as well as employment standards more generally. The analysis presented confirms the potential relevance of such regulation in these regards. However, it also reinforces existing evidence pointing to the fact that only very rarely will market-related considerations on their own prompt purchasers to seek to directly influence the employment practices of their suppliers. The paper ends therefore by highlighting a number of key issues relating to the design of regulatory initiatives aimed at protecting and enhancing employment conditions within supply chains

Extrinsic Rewards and Intrinsic Motives: Standard and Behavioral Approaches to Agency and Labor Markets

Employers structure pay and employment relationships to mitigate agency problems. A large literature in economics documents how the resolution of these problems shapes personnel policies and labor markets. For the most part, the study of agency in employment relationships relies on highly stylized assumptions regarding human motivation, e.g., that employees seek to earn as much money as possible with minimal effort. In this essay, we explore the consequences of introducing behavioral complexity and realism into models of agency within organizations. Specifically, we assess the insights gained by allowing employees to be guided by such motivations as the desire to compare favorably to others, the aspiration to contribute to intrinsically worthwhile goals, and the inclination to reciprocate generosity or exact retribution for perceived wrongs. More provocatively, from the standpoint of standard economics, we also consider the possibility that people are driven, in ways that may be opaque even to themselves, by the desire to earn social esteem or to shape and reinforce identity

A framework for increasing the availability of life cycle inventory data based on the role of multinational companies

Purpose The aim of the paper is to assesses the role and effectiveness of a proposed novel strategy for Life Cycle Inventory (LCI) data collection in the food sector and associated supply chains. The study represents one of the first of its type and provides answers to some of the key questions regarding the data collection process developed, managed and implemented by a multinational food company across the supply chain. Methods An integrated LCI data collection process for confectionery products was developed and implemented by Nestlé, a multinational food company. Some of the key features includes: (1) management and implementation by a multinational food company, (2) types of roles to manage, provide and facilitate data exchange, (3) procedures to identify key products, suppliers and customers, (4) LCI questionnaire and cover letter, and (5) data quality management based on the pedigree matrix. Overall, the combined features in an integrated framework provides a new way of thinking about the collection of LCI data from the perspective of a multinational food company. Results The integrated LCI collection framework spanned across five months and resulted in 87 new LCI datasets for confectionery products from raw material, primary resource use, emission and waste release data collected from suppliers across 19 countries. The data collected was found to be of medium-to-high quality compared with secondary data. However, for retailers and waste service companies only partially completed questionnaires were returned. Some of the key challenges encountered during the collection and creation of data included: lack of experience, identifying key actors, communication and technical language, commercial compromise, confidentiality protection, and complexity of multi-tiered supplier systems. A range of recommendations are proposed to reconcile these challenges which include: standardisation of environmental data from suppliers, concise and targeted LCI questionnaires, and visualising complexity through drawings. Conclusions The integrated LCI data collection process and strategy has demonstrated the potential role of a multinational company to quickly engage and act as a strong enabler to unlock latent data for various aspects of the confectionery supply chain. Overall, it is recommended that the research findings serve as the foundations to transition towards a standardised procedure which can practically guide other multinational companies to considerably increase the availability of LCI data

Economics of Land Degradation Initiative: Methods and Approach for Global and National Assessments

Healthy land ecosystems are essential to sustainable development, including food security and improved livelihoods. Yet, their key services have usually been taken for granted and their true value underrated, leading to land degradation becoming a critical global problem. This pattern of undervaluation of lands is about to change in view of the rapidly rising land prices, which is the result of increasing shortage of land and high output prices. Despite the urgent need for preventing and reversing land degradation, the problem has yet to be appropriately addressed. Policy actions for sustainable land management are lacking, and a policy framework for action is missing. Such a framework for policy action needs to be supported by evidence-based and action-oriented research. The Economics of Land Degradation (ELD) initiative seeks to develop such a science basis for policy actions to address land degradation. The purpose of this methodological paper is to provide with sound and feasible standards for ELD assessment at global and national levels. Only if some basic standards are identified and adhered to, comparative assessments can be conducted between countries and useful aggregation of findings, based on these case studies, can be achieved. Therefore, using the Total Economic Value (TEV) framework, the paper identifies minimum core standards that need to be adhered to in all country case studies to generate comparable material for international assessment and ELD policy guidance. It also identifies additional and desirable areas of information and analyses that would add value to the country case study material. The proposed framework is also intended as a forward-looking agenda which can guide future research