Fixing “bad” capitalism: why CSR and pro-good initiatives may not be enough

2019 ◽  
Vol 16 (2) ◽  
pp. 137-142 ◽  
Author(s):  
Elisa Giuliani ◽  
Federica Nieri
Keyword(s):  
Child Labor ◽  
Multinational Enterprises ◽  
Social Role ◽  
Past Century ◽  
Negative Consequences ◽  
Content Type ◽  
Grand Challenges ◽  
Modern Slavery ◽  
Short Commentary ◽  
Corporate Elites

Purpose The purpose of this paper is to provide a short commentary on the negative consequences of contemporary global capitalism on society. Despite the economic growth experienced across the world over the past century, the so-called grand challenges which include, for instance, rising inequality, global warming, modern slavery and child labor, are becoming endemic phenomena also in high income countries. The authors invite further research to come up with radical ideas to fix “bad” capitalism. Design/methodology/approach The proliferation of negative business conducts has led international business scholars to propose new ways to address sustainability grand challenges. The articles in this special issue on which the authors were invited to comment, Holmström Lind, Kang, Ljung and Forsgren; Lashitew and van Tulder; Zagelmeyer, are contributing to this agenda. The authors contextualise these articles in the current scholarly discussion on the social role of Multinational Enterprises (MNEs). Findings Despite all the calls for business to be more responsible and despite the steps taken by MNEs through their Corporate Social Responsibility (CSR) policies, this is not enough to address contemporary grand challenges with any degree of seriousness. Originality/value The authors invite further research to propose new attempts to fix “bad” capitalism that also involve a rethinking of the way companies reward corporate elites and redistribute their gains.

Modern slavery and international business scholarship: the governance nexus

2019 ◽  
Vol 15 (2/3) ◽  
pp. 139-157 ◽  
Author(s):  
Brent Burmester ◽  
Snejina Michailova ◽  
Christina Stringer
Keyword(s):  
International Business ◽  
Multinational Enterprises ◽  
Governance System ◽  
Content Type ◽  
Modern Slavery ◽  
Strong Position ◽  
Multi Level ◽  
Primary Unit ◽  
Regulatory Challenge

Purpose Modern slavery is a problem that international business (IB) research can no longer ignore. Multinational enterprises (MNEs) are often contributors to the persistence of modern slavery, by virtue of the regulatory challenge they pose to states and their insufficient oversight of supply chains. The purpose of this paper is to show that governance inadequacies with respect to modern slavery will be lessened if IB scholars give more attention to MNEs’ governing role within and beyond global value chains. Design/methodology/approach A set of arguments is presented in support of intensified effort in IB research with respect to studying the role of MNEs in transnational labour governance. The paper draws inspiration from IB theory and the conceptualisation of the MNE in neighbouring disciplines that regard it as a bearer of duties toward labour, consistent with its role in multilevel governance. Insights from the literature on global and multi-level governance are utilised. Findings The paper construes modern slavery as a multi-level governance challenge and argues that MNE capabilities and responsibilities with respect to labour governance and the deterrence of slavery exceed those identified on the margins of IB literature. MNEs are underappreciated as governors within the multilevel transnational labour governance system. The IB discipline is in a strong position to develop our understanding of the MNE’s different roles in governance and thereby contribute to the reduced incidence of modern slavery. Originality/value This paper represents an attempt to mobilise the IB academy to help eliminate slavery from workplaces that rely on MNE patronage or where labour rights abuses are made possible by MNE diversion of governance resources. It places particular emphasis on the use and abuse of MNEs’ governance capabilities in the sphere of international relations and calls attention to over-simplification of the MNE, IB’s primary unit of analysis.

Gender plays different roles? Examining the dark side of ubiquitous connectivity enabled by personal IT ensembles usage

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yingying Hu ◽  
Ling Zhao ◽  
Sumeet Gupta ◽  
Xiuhong He
Keyword(s):  
Gender Differences ◽  
Role Theory ◽  
Information Overload ◽  
Social Role ◽  
Two Dimensions ◽  
Dark Side ◽  
Negative Consequences ◽  
Content Type ◽  
The Social

PurposeThe purpose of this paper is twofold: first, to explore the negative consequences of ubiquitous connectivity enabled by personal IT ensembles (PITEs) usage; and second, to investigate the gender differences in the adverse effects of ubiquitous connectivity.Design/methodology/approachThis study employs a socio-technical approach to identify the technical and interpersonal dimensions of PITE-enabled ubiquitous connectivity and develops a theoretical model to investigate their stress-inducing effects based on the framework of technostress. Furthermore, the moderating role of gender is examined based on the social role theory. The authors test the model on a sample of 439 Chinese netizens.FindingsUbiquitous technical and interpersonal connectivity induce four stressors: information overload, communication overload, life invasion and privacy invasion. These stressors further lead to psychological exhaustion and reluctance to try new ITs. The ubiquitous technical connectivity exerts stronger effects on stressors for female users than male users, and interpersonal connectivity exerts a stronger effect for male users than female users.Originality/valueThis study primarily contributes to the small amount of research on PITE-enabled ubiquitous connectivity by considering ubiquitous connectivity from a socio-technical perspective and examining the stress-related effects and outcomes of both technical and interpersonal dimensions of ubiquitous connectivity. This study also provides valuable insights into the gender differences in the stress-inducing effects of the two dimensions of ubiquitous connectivity.

Family-supportive organizational environment and turnover intention

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatemeh Taheri
Keyword(s):  
Job Satisfaction ◽  
Turnover Intention ◽  
Work Life ◽  
Organizational Environment ◽  
Staff Retention ◽  
Negative Consequences ◽  
Content Type ◽  
Work Family ◽  
Work Family Enrichment ◽  
Family Enrichment

PurposeThe purpose of this paper is to test a model in which family-supportive organizational environment is associated with lower levels of turnover intention through higher levels of work-family enrichment and job satisfaction.Design/methodology/approachBased on a sample of 300 employees, the bootstrap procedure for estimating indirect correlations in multiple mediator models was used to test the research hypotheses.FindingsThe results suggest that employees experiencing high levels of family-supportive organizational environment are likely to report lower intention to leave their profession by virtue of their higher levels of job satisfaction and work-life enrichment.Research limitations/implicationsThe study is limited to public organization and sample size. Further research is needed to make comparison between large/state-owned and small/private organizations.Practical implicationsIn the Iran context, work-family enrichment and job satisfaction are effective in reducing the employees' turnover intention. Organizations should show concerns for the employees' work-life enrichment and job satisfaction to reduce their turnover intention.Social implicationsTurnover is one of the problems of organizations in many countries throughout the world including Iran, which has negative consequences through increasing the cost of organizations. The results of this study suggest ways in which staff retention could be improved.Originality/valueThe present study contributes to supportive organizational environment literature by addressing the relationship between family-supportive organizational environment and employee-related outcomes. Given some commonalities between Iran and other developing countries, the findings might be of potential interest in comparative studies dealing with the employees' turnover issue.

What determines the adoption of employee empowerment practices by MNE subsidiaries in China?

2020 ◽  
Vol 14 (4) ◽  
pp. 871-894
Author(s):  
Yishuai Yin
Keyword(s):  
Multinational Enterprises ◽  
Design Methodology ◽  
Large Body ◽  
Employee Empowerment ◽  
Institutional Factors ◽  
Hierarchical Regression ◽  
Content Type ◽  
Hrm Practices ◽  
Institutional Forces ◽  
Mne Subsidiaries

Purpose This paper aims to explore how institutional factors determine the adoption of employee empowerment practices by multinational enterprises (MNEs) subsidiaries in China. Design/methodology/approach This paper examines the effects of MNE subsidiaries’ external and internal institutional factors on the degree of employee empowerment practices adopted by these subsidiaries. Using hierarchical regression analysis, hypotheses were tested with a sample of 99 MNE subsidiaries operating in China. Findings The results show that both the informal institutions of the host country and the subsidiary’s characteristics play an important role in shaping the degree of empowerment practices adopted by MNE subsidiaries in China. Originality/value Employee empowerment practices have been increasingly used by MNEs to leverage human resources for organizational competitive advantage. Although a large body of work has studied a bundle of HRM practices as a whole adopted in MNE subsidiaries, there is a paucity of research on the specific empowerment practices in MNE subsidiaries. This research fills this important gap in the literature by investigating the institutional forces that influence the empowerment practices in MNE subsidiaries in China.

Ethical leadership

2019 ◽  
Vol 16 (1) ◽  
pp. 88-108 ◽  
Author(s):  
Fahad Shakeel ◽  
Peter Mathieu Kruyen ◽  
Sandra Van Thiel
Keyword(s):  
Public Sector ◽  
Organizational Behavior ◽  
Ethical Leadership ◽  
Future Research ◽  
Recent Criticism ◽  
Negative Consequences ◽  
Measurement Instruments ◽  
Leadership Theories ◽  
Content Type ◽  
The Public

Purpose The purpose of this paper is to offer a review of the selected literature in ethical leadership synthesizing findings from 45 articles selected from journals on leadership, public administration, organizational behavior, psychology and ethics. Design/methodology/approach Four themes are addressed: the conceptualization of ethical leadership theories, the existence of popular measurement instruments for ethical leadership, findings on ethical leadership in the public sector and outcomes of ethical leadership in terms of benefits and negative consequences. Findings The definition by Brown et al. (2005) is the most frequently used definition, even though recent criticism states that this definition may be too narrow. Ethical leadership is usually measured by means of a survey; however, there are at least three different questionnaires in use. In the public sector, ethical leadership has been linked to both positive outcomes and negative consequences. Research limitations/implications This paper only includes selected academic articles and does not include published books. Originality/value Based on our findings, the authors present recommendations for future research, among others into a broader conceptualization of ethical leadership and the use of mixed methods.

Relationship closeness paradox: contingency analysis in B2B sales

2020 ◽  
Vol 35 (6) ◽  
pp. 971-982 ◽  
Author(s):  
Yonggui Wang ◽  
Daniel Peter Hampson ◽  
Myat Su Han
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Sales Performance ◽  
Dark Side ◽  
Negative Consequences ◽  
Contingency Analysis ◽  
Content Type ◽  
Market Expansion ◽  
Relationship Closeness ◽  
Business Customers

Purpose This study aims to examine the positive and negative consequences of relationship closeness between salespersons and their business customers in a B2B sales context: sales performance and salesperson passive opportunism. Design/methodology/approach Drawing on the social exchange theory, the authors develop a conceptual model of positive and negative consequences of relationship closeness. The authors empirically test the model using matched survey data from 269 salesperson-sales supervisor dyads and individual sales performance ratings from one of the largest distribution and market expansion companies in Myanmar. Findings Results provide evidence of positive (i.e. sales performance) and negative (i.e. salesperson passive opportunism) consequences of salesperson’s perceived relationship closeness. These relationships are, however, contingent on organization-level and employee-level factors. High extent of supervision enhances the effects of salesperson’s perceived relationship closeness on sales performance but attenuates its influence on salesperson passive opportunism. The effect of salesperson’s perceived relationship closeness on salesperson’s passive opportunism is stronger for salespersons with a promotion (vs prevention) focus. Research limitations/implications The results offer guidelines to firms seeking to optimize the efficacy of close relationships between their salespersons and customers. For example, higher levels of supervision could increase the likelihood of positive outcomes of relationship closeness while minimizing its negative consequences. Originality/value To the best of the authors’ knowledge, this study is the first to demonstrate not only the benefits of relationship closeness between salespersons and customers but also its dark side: the relationship closeness paradox.

scholarly journals Technology-sourcing investment abroad as an enhancer of Chinese MNEs’ innovative capabilities

2015 ◽  
Vol 10 (2) ◽  
pp. 243-271 ◽  
Author(s):  
Philippe Gugler ◽  
Laura Vanoli
Keyword(s):  
Foreign Direct Investment ◽  
Citation Analysis ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Knowledge Diffusion ◽  
Technological Capabilities ◽  
Content Type ◽  
Chinese Mnes ◽  
Firm Knowledge ◽  
Innovative Capabilities

Purpose – The purpose of this paper is to focus on Chinese firms’ innovation processes that are induced by foreign direct investment abroad. The study uses a patent and citation analysis to examine the extent to which investments abroad contribute to enhancing these firms’ innovative capabilities. More specifically, this study focusses on the role of foreign location competitiveness as an asset to provide technological capabilities to Chinese affiliates. Design/methodology/approach – Patents are good indicators of firms’ innovative capabilities. Moreover, patents allow to track the inter-firm knowledge transfer through the citations of patents on which they are based. The authors use an OECD patent database called “OECD REGPAT July 2013” that compiles patents registered with the European Patent Office (EPO) over the period from 1986 to 2013. The authors focus the analysis on patents registered by Chinese multinational enterprises’ (MNEs) based in Europe because the authors assume inter alia that innovations patented by Chinese affiliates in Europe are registered with the EPO. The sample comprises 3,010 patents involving 5,749 citations that the authors have individually examined. Findings – The findings suggest that Chinese MNEs ability to generate innovation based on their own knowledge is low, with a self-citation rate of approximately 4 percent. Patents by Chinese MNEs are largely based on foreign patents, especially from developed economies (at least 90 percent). The citation analysis also suggests that 39.2 percent of citations represent domestic firms in the local recipient country. This subgroup of citations is categorized as follows: 1.04 percent are M&A linkages, 13.8 percent are cluster linkages, and 24.36 percent are localization linkages. The remaining 60.8 percent of the total sample demonstrates that firms do not necessarily need to be collocated in foreign locations with domestic firms to exchange assets. Research limitations/implications – Patent and citation analysis considers only a part of the inter-firm knowledge diffusion. Some innovations are not patented and tacit knowledge diffusion is not observable. Moreover, the analysis focusses only on Chinese outward foreign direct investment to Europe, but a large part of knowledge is accumulated in China thanks to inward foreign direct investment. Originality/value – Many scholars have scrutinized emerging markets multinational enterprises’ strategic asset-seeking investments abroad that are designed to upgrade the companies’ technological capabilities (Cui and Jiang, 2009; Zhang and Filippov, 2009; Huang and Wang, 2013; Amighini et al., 2014; De Beule et al., 2014; Nicolas, 2014). However, few studies analyze the results of these strategies in terms of innovation output.

The benefits and disadvantages of the law on the expansion of the jurisdiction of the DIFC Court

2018 ◽  
Vol 60 (2) ◽  
pp. 221-232
Author(s):  
Tareq Na’el Al-Tawil ◽  
Prabhakar Gantasala ◽  
Hassan Younies
Keyword(s):  
English Language ◽  
Geographical Area ◽  
Legal Framework ◽  
Negative Consequences ◽  
Content Type ◽  
Limited Volume ◽  
Financial Centre ◽  
The World ◽  
Long Time ◽  
The Law

Purpose This paper aims to discuss the benefits and disadvantages of the law on the expansion of the jurisdiction of the Dubai International Financial Centre (DIFC) Court. The major role of DIFC Courts in the Arab community is to handle cases related to commerce and business. For a long time, the court had been acting only in their geographical area until a new law was enacted to extend their jurisdiction all over the world. Afterward, a lot of criticism emerged as for why and how the court will benefit from such actions. The law has drawn a harsh response, although most benefits have also been experienced since the court received quite a large number of new signings. Interaction at the world business forum has benefited the economy of Dubai thanks to the law. Design/methodology/approach The following study focuses on a description of such benefits and drawbacks. The study does not evaluate a factual process of expansion but indicates the most distinct evidence of positive, as well as negative consequences of the expansion. Findings It is appropriate to make a general comment on the fact that the expansion of DIFC Court is not sufficiently effective at the current stage. Needless to say, it contains numerous positive aspects, but the gaps are evidently essential because they place the entire Court in a hard circumstance. The Court does not have a well-developed legal framework for its new area of jurisdiction as long as its limited volume of prior precedent is a distinct sign of the Court’s dependence on the UAE’s Law. In such way, DIFC Court will not be able to address issues within new fields of jurisdiction, as it simply lacks an expertise and international law in its legal framework. Moreover, the jurisdiction over new areas of international business was not verified with a plain system of mediation, which is why a current expansion of DIFC Court has to be recognized as redundant. However, its advantages are tending to produce their effects provided that the Court manages to address its current problems. Originality/value The study has described the basic benefits and drawbacks of DIFC Court expansion. To speak about the main benefits, they can be depicted as appliance of the common law, unification of English language for proceedings, presence of a preliminary arbitration and guarantees of award enforcement. In a similar way, the drawbacks of the expansion have been issued. The study has identified such drawbacks as lack of international and sophisticated expertise, untested legal framework, strong influence of forum non conveniens, and existence of a limited volume of prior precedent. The paper has not assessed a success of a factual expansion of DIFC Court jurisdiction, but it has managed to fulfill its primary purpose. Thus, the paper has identified a certain tendency concerning the expansion.

Corporate sustainability reporting in Japanese multinational enterprises: a threat to local legitimacy or an opportunity lost for corporate sustainability practices?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Masayoshi Ike ◽  
Jerome Denis Donovan ◽  
Cheree Topple ◽  
Eryadi Kordi Masli
Keyword(s):  
Multinational Enterprises ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Internal Communication ◽  
Structured Interviews ◽  
Host Countries ◽  
Content Type ◽  
The Sustainable Development ◽  
Novel Approach ◽  
Responsible Consumption

Purpose This paper aims to investigate whether Japanese manufacturing multinational enterprises (MNEs) maintain local legitimacy in their host countries through adequate informing of local stakeholders with targeted corporate sustainability (CS) reporting. Design/methodology/approach The paper first identified specific CS activities that were considered important in four Association of Southeast Asian Nations host countries, through semi-structured interviews with 58 participants of 16 Japanese manufacturing MNEs. The degree of establishment of local legitimacy was then measured through the number of references made to these CS activities and other activities specific to the respective host countries in the CS reports of the MNEs across a five-year period. Findings The majority of MNEs in the sample were under-reporting items of specific interest to localhost country stakeholders potentially undermining the MNEs’ image. There were found to be differences on the topics published in CS reports compared to those mentioned in the interviews indicating potential issues with regard to internal communication between the subsidiary and headquarters offices. Originality/value A novel approach is taken to investigate the degree of local legitimacy established by MNEs through comparing the contents of interviews held at subsidiaries with their respective CS reports. This paper highlights the importance of considering MNE subsidiaries when addressing Target 12.6 of the Sustainable Development Goal 12: responsible consumption and production.

Gender, formal organizational status and humor use: perceptions of social acceptance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy R. Moake ◽  
Christopher Robert
Keyword(s):  
Social Acceptance ◽  
Social Role ◽  
Role Expectations ◽  
High Status ◽  
Organizational Status ◽  
Content Type ◽  
Gender Influence ◽  
Aggressive Humor ◽  
Influence Perceptions ◽  
Practical Implications

PurposeHumor can be a useful tool in the workplace, but it remains unclear whether humor used by men versus women is perceived similarly due to social role expectations. This paper explored whether female humorists have less social latitude in their use of aggressive and affiliative humor in the workplace. This paper also examined how formal organizational status and the target's gender can impact audience perceptions.Design/methodology/approachTwo scenario-based studies were conducted where participants rated the foolishness of the humorist. For Study 1, participants responded to a scenario with an aggressive, humorous comment. For Study 2, participants responded to a scenario with an affiliative, humorous comment.FindingsResults suggested that high-status female humorists who used aggressive humor with low-status women were viewed as less foolish than low-status female humorists who used aggressive humor with low-status women. Conversely, status did not impact perceptions of male humorists who used aggressive humor with low-status women. Results also indicated that high-status women who used affiliative humor were viewed as less foolish when their humor was directed toward low-status men versus low-status women. Conversely, no differences existed for high-status men who used affiliative humor with low-status men and women.Practical implicationsNarrower social role expectations for women suggest that interpersonal humor can be a riskier strategy for women.Originality/valueThis study suggests that women have less social latitude in their use of humor at work, and that organizational status and target gender influence perceptions of female humorists.

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