Environment, Corporate Ideology, and Employee Involvement Programs

Corporations are implementing employee involvement programs in both union and nonunion settings in response to growing environmental pressures. This study examines the relationships among environmental pressures, corporate ideology, and participative practices in union and nonunion settings and tests two industrial relations models. Questionnaires measuring environmental pressures, corporate ideology, and participation were completed and returned by the Vice President of Human Resources (or similar corporate executive) in 159 of the largest manufacturing companies in the United States. Multiple regression results show that environmental pressures exert little effect on corporate ideology, but ideology has a significant effect on participative practices in both union and nonunion settings.     

Organizational responses to environmental demands: opening the black box

This article combines new and old institutionalism to explain differences in organizational strategies. We propose that differences in the influence of corporate departments lead their facilities to prioritize different external pressures and thus adopt different management practices. Specifically, we argue that external constituents—including customers, regulators, legislators, local communities, and environmental activist organizations—who interact with influential corporate departments are more likely to affect facility managers' decisions. As a result, managers of facilities that are subjected to comparable institutional pressures adopt distinct sets of management practices that appease different external constituents. We test our framework in the context of the adoption of environmental management practices using an original survey and archival data obtained for nearly 500 facilities. We find support for these hypotheses. Copyright © 2008 John Wiley & Sons, Ltd.     

Red,blue, and purple firms: Organizational political ideology and corporate social responsibility

Research summary : Why do firms vary so much in their stances toward corporate social responsibility (CSR )? Prior research has emphasized the role of external pressures, as well as CEO preferences, while little attention has been paid to the possibility that CSR may also stem from prevailing beliefs among the body politic of the firm. We introduce the concept of organizational political ideology to explain how political beliefs of organizational members shape corporate advances in CSR . Using a novel measure based on the political contributions by employees of Fortune 500 firms, we find that ideology predicts advances in CSR . This effect appears stronger when CSR is rare in the firm's industry, when firms are high in human capital intensity, and when the CEO has had long organizational tenure . Managerial summary : Why do firms vary in their stances toward corporate social responsibility (CSR )? Prior research suggests that companies engage in CSR when under pressure to do so, or when their CEOs have liberal values. We introduce the concept of organizational political ideology, and argue that CSR may also result from the values of the larger employee population. Introducing a novel measure of organizational political ideology, based on employees' donations to the two major political parties in the United States, we find that liberal‐leaning companies engage in more CSR than conservative‐leaning companies, and even more so when other firms in the industry have weaker CSR records, when the company relies heavily on human resources and when the company's CEO has a long organizational tenure . Copyright © 2016 John Wiley & Sons, Ltd.     

Trade Union Decline and Union Wage Effects in Australia

Union density in Australia fell precipitously in the 1990s. This study investigates how union wage effects may have changed as a result. The findings from 1993 data suggest that union/nonunion wage differentials were very small, especially among workers in high-density industries. By 2001 the overall union wage effect had increased significantly; however, the union/nonunion wage differential was no longer correlated with union density at the industry level.     

Twin Tracks—Employee Representation at Eurotunnel Revisited

The introduction of the European Directive on Information and Consultation and the recent implementation of the Information and Consultation of Employees (ICE) Regulations into United Kingdom (UK) law have increased the focus on workplace representation arrangements. This paper examines the interplay between nonunion and union representative arrangements at Eurotunnel (UK) and assesses their effectiveness in representing the needs of employees over a 5‐year period. Importantly, the paper also examines the opportunities and challenges of both nonunion representation (NER) and union voice arrangements. The findings show that the effectiveness of nonunion structures as bodies representing the interests of employees in filling the lack of representation is questionable. However, union recognition through an employer–union partnership agreement has also raised important issues regarding the effectiveness, impact, and legitimacy of unions at Eurotunnel. The main implication of this research is that the existence of a mechanism—union or nonunion—for communication between management and employees at the workplace may not be a sufficient condition for effective representation of employee interests. In addition, while trade unions may provide greater voice than nonunion arrangements (thus the reluctance of management to accept such voice arrangements), the strength of voice is dependent on the legitimacy and effectiveness of trade unions in representing employees’ interests at the workplace. And that in turn depends on the union being perceived by the workforce as both representative and able to act independently. If the union cannot, it will not meet the needs of either employees or management—and could run the risk of being supplanted under the provisions of the new EU Directive on Information and Consultation with tougher requirements for compliance in terms of procedures for consultation and information disclosure.     

Corporate environmental responsibility (CER) weakness,media coverage,and corporate philanthropy: Evidence from China

This study investigates the hidden connection between corporate philanthropy and corporate environmental responsibility (CER) weakness. Using a sample of Chinese listed firms in polluting industries and hand-collected data on corporate environmental performance and corporate philanthropy, we show that CER weakness is significantly positively associated with corporate philanthropy, suggesting that corporate philanthropy may be used by environmentally unfriendly firms to mitigate the negative influence of CER weakness and offset pressures from stakeholders. This finding also implies that Chinese enterprises in polluting industries are inclined to engage in greenwashing via the conduit of corporate philanthropy. In addition, media coverage reinforces the positive association between CER weakness and corporate philanthropy. Above results are still valid after controlling for the potential endogeneity between CER weakness and corporate philanthropy.     

Leadership, the buying center, and supply chain performance: A study of linked users, buyers, and suppliers

With conceptual foundations taken from leadership theory and the resource-based view (RBV), this study examines the influence of transactional and transformational leadership on the relationship between the value of the corporate buying center and performance in supply chains. The sample consists of 58 directly linked and matched supply chains, each composed of one user (internal customer), one corporate buyer, and one external supplier. The results indicate that transformational leadership has a positive moderating effect on the relationship between the value of the corporate buying center and performance, while transactional leadership negatively moderates this relationship. Two “localness” dimensions (formalization and centralization) and two “openness” dimensions (participative and reflective) were included as controls in the analysis.     

Government's green grip: Multifaceted state influence on corporate environmental actions in China

Research summary: Emerging economies such as China enjoy economic expansion, but also face dramatic environmental challenges. China's government is a central actor in both stimulating economic activities and pursuing environmental protection. Drawing on panel data and in‐depth interviews, we examined the influence of the Chinese state at multiple levels on the environmental actions of publicly listed firms. The results show that corporate environmental actions follow an inverted U‐shape as control of environmental practices moves from the central government to the most decentral administrative level. This curvilinear relationship is positively moderated by the stringency of environmental regulation and negatively moderated by environmental monitoring capacity. We conclude that state influence on corporate environmental actions in China is multifaceted and subject to “policy‐policy decoupling.” Managerial summary: As China's environmental awareness is growing, the country's government is increasingly concerned with the question as to how it can improve the environmental performance of the firms it controls. Our evidence shows the concurrence of two contravening government influences on corporate environmental practices: a performance‐enhancing effect of the regulatory pressure by multiple authorities and a performance‐diminishing effect of the autonomy enjoyed by local governments. Both the most centrally and the most decentrally controlled firms in China show significantly weaker environmental performance than those controlled by intermediary levels of government. The stringency of sectorial environmental regulation and environmental monitoring capacity affect the strength of the Chinese government's green grip.     

An International Study of Trade Union Involvement in Community Organizing: Same Model,Different Outcomes

This article reports on a two‐year study of union/community organizing in the UK, USA and Australia. It takes a particular model of organizing — that of the Industrial Areas Foundation — and analyses trade union engagement in coalition‐building activity in each of the three countries. Findings show mixed approaches to working with community groups from ad hoc instrumentalism to deep coalition‐building. While these variations may, in part, be explained by different industrial relations contexts, it appears that the ‘fit’ between ideology and culture of unions and their coalition partners, as well as the practices and strategies that reinforce this fit, have much greater effect on the attitude and behaviour of unions towards non‐workplace‐based organizing. The article contributes to debates about the conditions under which unions succeed (or not) in sustaining strong coalition‐building beyond their traditional constituencies.     

Peering into the Black Hole: The Downside of the New Employment Relations in the UK

Using a national sample of 1,000 employees, this paper examines the proposition that those working in so-called 'black hole' organizations (i.e. where there is neither a set of progressive HRM practices nor a recognized trade union) will report more negative attitudes and work experiences than those in settings where there is either HRM, a trade union presence or both. The results lend some support to this hypothesis with respect to job satisfaction and organizational commitment and in judgements about experiences of fairness of treatment and trust in management. However, the most negative views about employment relations are reported by those who belong to a union in workplaces with little HRM. The findings indicate that it is HRM practices rather than trade union membership that have the major impact on attitudes and experiences. Even in black hole organizations some employees report satisfaction. This can be largely explained by a positive psychological contract between individual and organization. The implications for the role of trade unions in the promotion of fairness at work are discussed.     

Measurement of Compensation: Union and Nonunion

For many purposes, the economic impact of unions is better measured by the proportion of union wages in total payrolls rather than by the proportion of unionized employees in the overall workforce. We use recently available Current Population Survey data to generate estimates of the former. We also show that published data from the Survey on median union and nonunion wages produce substantially larger estimates of the union 1 nonunion wage differential than figures based on mean wages. Finally, we note that the Bureau of Labor Statistics' Employment Cost Index gives undue weight to the union sector because of its Laspeyres methodology.     

Unions and Firm Profits

This study examines the effect of unionization on manufacturing firm profits, extending earlier research by combining industry-level and firm-level measures of unionization. Using several profit measures, we find that quasi-rents from firm investments in intangible assets are a relatively greater source of union profit effects than product market concentration and that union profit effects occur largely in the first 10 percent of firm coverage, suggesting spillover effects on nonunion employees.     

The Developing Role of Unions in China's Foreign‐Invested Enterprises

This article evaluates the development of Chinese enterprise unions, drawing on case‐study evidence from foreign‐invested enterprises in the Pearl River Delta. Findings suggest that it was difficult for such employers to resist the establishment of an enterprise union. However, they generally sought to co‐opt the union to meet organizational needs. Management strategy was critical in shaping the union's role, and our evidence suggests that this was influenced by factors such as home‐country policies, the expectations of overseas customers, management ideology and pressures from the ACFTU and the Party‐State to comply with the requirement for a union. The implications for the role of unions are evaluated.     

The Layering of Meso‐Level Institutional Effects on Employment Systems in Japan

Japan's corporate governance and employment relations systems have been under considerable pressures to reform towards a more Anglo‐American model, against a back‐drop of intensified global competition and slow economic growth over two ‘lost’ decades. But what is the relationship between these systems, and specifically, how does corporate governance structure condition employment relations practice? This paper adopts the ‘Systems, Society, Dominance and Corporate (SSDC) effects’ framework in order to contextualize and evaluate the outcomes of these pressures, particularly in the period following the 2007–2008 global financial crisis. It reports case study data from various parts of the Japanese economy drawn from a series of firm‐based interviews and a variety of secondary sources. It is argued that there has been a strong degree of continuity in certain employment practices, such as lifetime employment, even in relatively new high technology firms, but that the pattern for other practices, such as seniority‐based pay, is more mixed with increasing differentiation between industries and individual organizations. We articulate a layered assessment of the varying SSDC effects at play in corporate Japan. This differentiation across industries and organizations is a function both of strategic choice (corporate effects) and also the increasing variation in the meso‐level institutional pressures that are experienced at organizational level; that is, the differentiation in the sources and nature of dominance effects that are relevant.     

Further Evidence on Union Efficiency in Construction

This study examines the impact of unions on efficiency in retail construction in the late seventies. Square footage put in place per hour is 51 per cent greater for union than nonunion contractors. The study finds no difference in mean cost per square foot and offers mixed econometric evidence on Tran slog cost functions. There is also no difference in profit rates or prices between union and nonunion contractors.     

Unions and Unemployment Insurance Benefits Receipt: Evidence from the Current Population Survey

Using data from the January 1996 Current Population Survey's Displaced Worker Supplement, this article analyzes the effect of union representation on the likelihood that individuals eligible for unemployment insurance (UI) benefits receive UI benefits. For white-collar workers, unions do not have a significant effect on the probability of UI benefit receipt. Eligible blue-collar workers laid off from union jobs are approximately 23 percent more likely than comparable nonunion workers to receive UI benefits.     

Catching Fire: Institutional Interdependencies in Union‐Facilitated Knowledge Diffusion

I find that school union representatives’ ‘boundary spanning’ communications throughout the school district predict the diffusion of knowledge between schools. Hence, my data reveal school union representatives as critical conduits for improvement‐related knowledge transfer and innovation. Yet, I also find that these external networks interact strongly with the level of workforce participation characterizing each school: The effects of external networks on internal knowledge diffusion are considerably stronger in more participative schools compared to less participative schools. This research contributes to industrial relations scholarship by demonstrating how union‐related institutions can foster unique social structures that directly strengthen innovation‐related capabilities, as well as how the efficacy of these networks depends on managerial norms at different areas of the organization. This study is also of timely practical relevance at a time when labour unions are increasingly painted as obstacles to, rather than potential facilitators of, improvement and innovation.     

Is the New Deal System Collapsing? With What Might It Be Replaced?

The prevailing “New Deal” system of industrial relations laws and practices is working poorly, especially since private-sector union density has declined. Both law and practice have failed to adjust to changing economic and technological conditions. The modest reforms recommended by the Dunlop Commission might have made some slight difference; however, these will not be enacted. The future may see more nonunion forms of representation and greater government regulation of employment conditions.     

The Impact of Human Resource Policies on Union Organizing

Using newly available data from the Conference Board on employer human resource policies, certification election outcomes, and union organization of new company facilities, we find that the logic of "union substitution" efforts by employers is supported: Companies having or encouraging employee communication and participation programs, including nonunion grievance procedures, are more successful in maintaining nonunion status than are companies without such programs. However, certain human resource policies, such as work sharing (as an alternative to layoffs), may actually enhance chances of union success.