Governance in the Australian Superannuation Industry

In the superannuation/pension industry, ordinary investors entrust their retirement savings to the trustees of the superannuation plan. Investors rely on the trustees to ensure that ethical business and risk management practices are implemented to protect their retirement savings. Governance practices ensure the monitoring of ethical risk management (Drennan, L. T.: 2004, Journal of Business Ethics 52, 257?C266). The Australian superannuation industry presents a unique scenario. Legislation requires employers to contribute a minimum of 9% of the employees wage to retirement savings. However, there are no legislated governance standards, although there are standards of recommended governance practices. In this article, we examine the level of voluntary adoption of governance practices by the trustees of Australian public sector and industry superannuation funds. We also assess whether superannuation governance practices are associated with performance and volatility/riskiness of returns. Survey results show that the majority of superannuation plans adopt recommended governance practices supporting the concept of ethical management of the member??s retirement savings. The examination of governance principles that impact returns and risk shows that board size and regular review of conflicts are positively associated with return. Superannuation plans with higher volatility in returns meet more frequently.     

Employer branding: strategic implications for staff recruitment

Abstract

In many developed economies, changing demographics and economic conditions have given rise to increasingly competitive labour markets, where competition for good employees is strong. Consequently, strategic investments in attracting suitably qualified and skilled employees are recommended. One such strategy is employer branding. Employer branding in the context of recruitment is the package of psychological, economic, and functional benefits that potential employees associate with employment with a particular company. Knowledge of these perceptions can help organisations to create an attractive and competitive employer brand. Utilising information economics and signalling theory, we examine the nature and consequences of employer branding. Depth interviews reveal that job seekers evaluate: the attractiveness of employers based on any previous direct work experiences with the employer or in the sector; the clarity, credibility, and consistency of the potential employers’ brand signals; perceptions of the employers’ brand investments; and perceptions of the employers’ product or service brand portfolio.     

The Effects of Employee Attitudes on Workplace Charitable Donations

ABSTRACT

The objectives of this paper are to examine the effects of employee attitudes toward the employer on workplace monetary donations at two levels: (1) to see if there is a significant difference between the attitudes of employees who make workplace contributions and those who do not; and (2) to examine whether awareness of employer charitable contributions moderate the relationship between employee attitudes and donating behavior. Employee attitudes include organizational commitment and job satisfaction. The research questions are examined in the context of workplace contributions made to a regional branch of United Way. The results indicate that organizational commitment scores exhibited by employees who made workplace contributions, and who were aware that their employer was also making corporate donations were significantly higher than the commitment for employees who did not make workplace contributions. No significant relationships were found for job satisfaction.     

Der Flexibilitätsbeitrag in der Arbeitslosenversicherung

The controversy around fixed-term contracts centres around the conflict between the employer’s need for flexibility and the employee’s need for security. The authors propose flexible contributions for employers to the public unemployment insurance system to balance both interests. The employers’ contributions for their temporary staff would increase while the contributions for their permanent staff would in turn decrease slightly. The authors calculate four versions. With regards to the total sum of contributions, the first version holds the contributions received constant while the second version leads to a reduction. They then repeat these two calculations for fixed-term contracts without substantive grounds. The flexibility premium takes into account the higher unemployment risk of employees with fixed-term contracts and establishes monetary incentives for employers to hire employees with permanent contracts.     

Enhancing Employee Voice: Are Voluntary Employer–Employee Partnerships Enough?

One of the essential ethical issues in the employment relationship is the loss of employee voice. Many of the ways employees have previously exercised voice in the employment relationship have been rendered less effective by (1) the changing nature of work, (2) employer preferences for flexibility that often work to the disadvantage of employees, and (3) changes in public policy and institutional systems that have failed to protect workers. We will begin with a discussion of how work has changed in the last 20 years in countries like Australia and the United States, and then take up the issue of employees as organizational stakeholders and the ethical duties that are owed them, with special attention given to issues of power. We will then consider whether voluntary action by employers such as social auditing is sufficient to ensure equity for employees, and conclude with a discussion of how changes in public policy might ensure greater fairness in the employment relationship by bringing employers and employees together in partnership.     

Ethical, Legal and Economic Aspects of Employer Monitoring of Employee Electronic Mail

This paper examines ethical, legal and economic dimensions of the decision facing employers regarding whether it is appropriate to monitor the electronic mail (e-mail) communications of its employees. We review the question of whether such monitoring is lawful. Recent e-mail monitoring cases are viewed as a progression from cases involving more established technologies (i.e., phone calls, internal memoranda, faxes and voice mail).The central focus of the paper is on the extent to which employer monitoring of employee e-mail presents a structure of costs and benefits to the employer which are unlikely to make such a practice profitable or practical to the employer. The practice of employer monitoring to detect illicit employee behavior (e.g., fraud, harassment of fellow employees, industrial espionage) is considered.It is argued that not only does such monitoring behavior fall short of the standard imposed by Kant's categorical imperative for ethical behavior, monitoring also fails to meet Aristotle's ethical standard of practical wisdom. Other ethical aspects of employer monitoring are considered.     

Fairness in International Trade and Investment: North American Perspectives

In this article, we examine an important but relatively under-researched form of corporate social responsibility, namely, employer support for employee voluntary activity. Using Canadian data, we examine two questions. First, we analyze the impacts of employer support on the total number of hours volunteered and on the voluntary activities which are undertaken. Second, we examine how employer support is distributed between male and female employees. Our results indicate that employer support is associated with a greater amount of volunteer activity by both men and women employees and in a wide range of voluntary activities. However, we also find that women are less likely to receive employer support than men and are less likely to receive support in the form of flexible work hours and time-off. These results are puzzling given that women typically face more binding time constraints than men. We conclude the paper by discussing how employer policies might be changed to address this finding.     

Is success hereditary? Evidence on the performance of spawned ventures

A common phenomenon in entrepreneurship is that employees turn away from employment to found their own businesses. Prior literature discusses the former employers’ characteristics that influence the creation of entrepreneurial ventures. An investigation of whether these characteristics also affect the success of the spawned ventures is missing so far. This paper contributes to the literature by showing that entrepreneurial ventures spawned by well performing firms are financially more successful than ventures stemming from poorly performing firms. This suggests that spawned entrepreneurs are able to exploit valuable knowledge from their previous employers which impacts their ventures’ performance positively. The analysis is based on a linked employee–employer data set for the Netherlands for the period 1999–2004.     

Mobility and loyalty in labour relations: an Israeli case

Employee mobility is a phenomenon that challenges workplace ethics. This paper argues that despite on-going attempts by management and consultants to build and install employee loyalty, and despite the complexity of relationships between employees and their organization, employee mobility remains a common phenomenon in today's market. Courts, at least Israeli courts, perceive the employee–employer relationship as almost purely contractual and thus strive to protect workers first, often ignoring deeper commitments such as loyalty. This results in a certain dissonance in the relationships between employees and employers.     

Explaining employers' illicit envelope wage payments in the EU‐27: a product of over‐regulation or under‐regulation?

The aim of this paper is to evaluate the prevalence in the 27 member states of the European Union of a little discussed illicit wage arrangement in which formal employees are paid two wages by their formal employers – an official declared salary and an additional undeclared wage, thus allowing employers to evade their full social insurance and tax liabilities. Reporting the results of a 2007 Eurobarometer survey involving 26,659 face‐to‐face interviews, the finding is that one in 18 formal employees received such an envelope wage from their formal employer and that envelope wage payments are more prevalent in member states with lower (rather than higher) levels of state intervention. The tentative conclusion is that illicit envelope wage payments are a product of under‐regulation, rather than over‐regulation, and that further research is now required to test the validity analysis of this thesis in other global regions.     

Stochastic Dominance of Pension Plans

We compare different possibilities to reform a funded pension plan, whose balance is threatened by a decrease in mortality rates. Since the plan is mandatory, the welfare of employees might be reduced if contributions increase or if the retirement age is raised. An empirical study of Israeli data shows that a reform which decreases the pension benefits is the optimal strategy, compared with the options of increasing the retirement age or increasing pension fund contributions. We also show that giving employees freedom to choose their retirement age and induced pension benefits is the optimal policy and increases the welfare of employees.     

Reasonable accommodation under the ADA: What's an employer to do?

As many observers expected when the Americans with Disabilities Act became law, employers have faced numerous court cases regarding the matter of appropriate accommodations for disabled workers under the law. The difficulty is that no consensus has emerged on the various interpretations of that law. Three particular areas of concern and disagreement have emerged, namely, how the accommodation request is made, how to handle reassignments, and whether to permit telecommuting as a substitute to working on premises. Several federal circuit courts have determined that the employer must respond to an employee's request in virtually any form, while others have stated that the employee must be specific in requesting an accommodation for disability. In two circuits, the employee must show some evidence of disability. The case law governing reassignment also varies by circuit, but in general a disabled employee who is being transferred would be given priority over prospective hires for the same position. The work of existing employees is not to be increased as a consequence of the ADA. Finally, telecommuting has thus far not found favor in most courts, but an employer who permits telecommuting for some employees will find it difficult to claim hardship for a worker who seeks to telecommute under the ADA's provisions. The courts have been most supportive of employers who have made a specific, fact-based determination regarding an employee's request for accommodation. By focusing directly on the situation at hand, an employer can document the particulars of an ADA request, regardless of whether the employee is satisfied by the employer's determination.     

Handle with care: Avoiding and managing retaliation claims

Anti-retaliation protections for whistleblowers are routinely included in federal statutes. During the past decade, claims of retaliation in employment-related cases have grown in numbers and in reach, due in part to a seemingly far-reaching commitment by the U.S. Supreme Court to interpret anti-retaliation provisions to provide maximum protection to complainants. Employers must take care not to run afoul of the anti-retaliation provisions; however, that does not mean that employees who complain of discrimination are ‘untouchable.’ This article provides an overview of anti-retaliation law as it relates to the employer–employee relationship and outlines eight practical tips for managing and avoiding retaliation claims. Though anti-retaliation provisions provide ample reason for employers to proceed with caution in the face of employee complaints, employers need not succumb to paralyzing litigation fear when addressing concerns regarding complaining employees’ performance issues.     

The brand personality dimensions of business-to-business firms: a content analysis of employer reviews on social media

ABSTRACT

Purpose: The purpose of this paper is to explore the brand personalities that employees are creating of their employer brands, in particular business-to-business (B-to-B) brands, when describing these brands on social media. We examine how the brand personalities, based on written online reviews, differ between high- and low-ranked, and high- and low-rated brands.

Methodology/Approach: 6,300 written employee reviews from a social media platform, Glassdoor, are used for content analysis in DICTION, to determine the brand personality dimensions they communicate (J. L). An independent B-to-B brand ranking data source, Brandwatch, is used as a reference to various brands’ level of ranking, while an ANOVA test is used to determine whether there is a difference in the brand personality trait means when comparing high and low-ranked, and high- and low-rated brands.

Findings: Our findings suggest that a strong social media presence does not equate to a strong employer brand personality perception among employees, since there are no significant differences between B-to-B firms based on their rankings.

Research Implications: Extant literature has mostly explored the impact of either critical reviews or favourable customer ratings and reviews on company performance, with very little research focusing on the B-to-B context. In addition, research employing DICTION for the purposes of content analysis of reviews is sparse. The methodology used in this study could thus be employed to further compare and contrast the reviews from a single company, dividing top and low starred reviews to compare discrepancies.

Practical Implications: The results of this study show how online shared employee experiences of employer brands contribute to the formation of a distinct employer brand personality. From a managerial viewpoint, engaging with current and past employees and being cognizant of the online narratives that they share on social media, may be an early indicator of where the firm is lacking (or showing strength) in its’ employee engagement. This would offer a way for firms to both understand their employer brand personality as well as gauge how they compare to top employers in a specific sector or industry.

Originality/Value/Contribution: The study attempts to grow the literature of employee brand engagement in a B-to-B context, by recognizing the important role that employees play in engaging with their employer brand online. Two main contributions are offered. The first contribution relates to the finding that employees perceive highly-rated B-to-B brands as being more competent, exciting, sincere and sophisticated than low-rated B-to-B brands. Second, the methodology used in this study proves to be a novel and accurate way of comparing employee reviews and perceived employer brand personality, with the employer-created intended brand image.     

Employee References: Between the Legal Devil and the Ethical Deep Blue Sea

An employer asked to provide a reference for a former or departing employee is confronted with a number of complex legal and ethical concerns. The issue of references is always controversial, involving a balance of employers' fears of legal liability, interests in providing relevant information to prospective employers, and concerns for fairness to former employees. Recently this topic has been the focus of new attention as the result of a court decision holding a former employer legally liable for wrongs committed by a former employee in a new job. In that case, the former employer had provided a positive reference while neglecting to note certain negative aspects of the former employee'sperformance. This paper addresses legal and ethical aspects of the reference dilemma and incorporates responses of human resource professionals to the question of ethical reference policies and practices.     

Human rights in industrial relations – the Israeli approach

Basic human rights are supposed to protect people from abuse and harm. They are the means whereby we protect our humanity. One would expect, therefore, that basic human rights would be valid and sacred in any context, including industrial relations. However, the complexity of the employee–employer relationship obscures this issue, and it is not clear whether such rights can be protected or whether they are valid in the context of industrial relations. Since rights are relational, they are preconditioned on the special nature of the relationship between employee and employer. Hence, the specific meaning that these rights have in industrial relations cannot be grounded in the notion of human rights as such, but rather depends on the special relationships between employers and employees. Though much legislation has been passed to regulate the relationship between employees and employers, the issues surrounding this relationship remain one of the most debated topics in business ethics. Our paper focuses specifically on the right to equal pay and the right to privacy. With respect to the right to property, the paper examines whether there is a conflict between general human rights and the fundamental right of employers to their property. The Israeli legislature has responded to this conflict by enacting 'protective laws' that legally outline and mandate certain human rights. Under these laws, employees are prevented and prohibited from waiving the rights granted to them by law, even if employed in private industries. Despite this legislative effort, market forces are at times stronger, and consequently some basic rights are not fully applied or implemented.     

Owing loyalty to one's employer

Neither employer expectations of loyalty, nor good treatment of employees by employers, nor employee appreciation of employers, nor the duty of nonmaleficence, nor the intention to be loyal, nor the duty not to act disloyally provide a basis for a moral or ethical duty of employee loyalty. However, in addition to the law, a pledge to be loyal can obligate one to be loyal. But if the specific content of such a pledge is unstated, the conduct required by the pledge may be indefinite. Moreover, the content and implications of loyalty are fluid, varying from context to context. Consequently, there is only a limited basis for the thesis that employees owe loyalty to their employers.Raymond S. Pfeiffer is Professor of Philosophy at Delta College. He holds a Ph.D. from Washington University (Philosophy), is at heart an islander, and works largely in the area of applied philosophy, with recent articles published on collective moral responsibility, corporate personhood, oppression, and interpersonal manipulation.     

An I-P/C model of employee-organization relationship: A dual perspective

Most existing studies on employee-organization relationship (EOR) are either from the employee perspective (e.g., the psychological contract approach) or from the employer perspective (e.g., the inducement and contribution approach). Drawing upon prior research, we propose in this paper an inducement-performance/commitment (I-P/C) model based on a dual perspective. Our empirical test on the model reveals that developmental inducements have stronger effects on employees’ contributions than economic inducements, and that the incongruent perception of inducements between employees and managers moderates the relationship between organizational inducements and employee contributions. We also find that employee satisfaction varies in different I-P/C combination categories.     

Retail employee guardianship behaviour: A phenomenological investigation

Supermarkets suffer significant losses as a consequence of shoplifting. Amongst the existing electronic and manual surveillance measures for retail crime management, the role of employees in preventing or controlling retail crime has not been systematically addressed within the extant literature. This paper contributes to addressing this gap by examining how employers’ corporate social responsibility (CSR) involvement influences employee proclivity towards guardianship behaviour in shoplifting prevention. A phenomenological approach is adopted comprising semi-structured interviews of twenty-nine shop-floor employees of two national supermarket chains within a cosmopolitan city of New Zealand. Findings strongly support the suggestion that employee perceptions of employer internal and external CSR may shape their feelings of organisational attachment, resulting in employee guardianship behaviour that manifests in in-store shoplifting prevention. Further, from a societal perspective, this study suggests that a reduction in retail crime contributes towards positive relationships among key stakeholders such as supermarkets, their employees, and society at large based on the social, environmental, and employee welfare practices of supermarkets.     

Enforcing and re-enforcing trust: Employers,managers and upper-white-collar employees in Finnish manufacturing companies, 1920–1980

In this article employee–employer relations with respect to upper-white-collar employees in Finnish large-scale companies are investigated. The period is from the 1920s to the 1980s. The article shows that the employee–employer relations were during the whole period based on mutual trust. In spite of significant transformations in the labour market practices and in interest formulation and unionisation among these employees, it was in the interests of both parties to maintain these trustful relations. However, the tools with which to maintain such relations changed and adapted. The process was not easy, and was marked by elements of conflict and tension. The elements of trust had to be actively strengthened and rebuilt, especially in the 1960s and 1970s. But as the post-war economic and societal model was marked by a striving for consensus and the smoothing out of conflicts in order to promote industrialisation and growth, the institutional model also supported the maintaining of mutual trust and loyalty between the employees and the employers.