Organizational performance with a broader focus: The case for a stakeholder approach to leadership

In 2019, BlackRock CEO Larry Fink, Apple CEO Tim Cook, and the other 179 CEO members of the Business Roundtable argued that the purpose of a corporation must reflect not only the fiduciary interests of owners but also the varied interests of all stakeholders: employees, customers, partners, and broader society. This idea challenges a decades-old norm of shareholder primacy, so it is reasonable for organizational leaders to wonder whether doing so is truly in their firms’ best interests, and if so, how to implement this approach to leadership. To answer these questions, we draw on over 200 peer-reviewed articles covering leadership research to demonstrate how servant leadership, a stakeholder-focused approach to management, outperforms other leadership approaches across both shareholder and stakeholder criteria. We leverage case studies of organizational leaders from SAS, Zappos, Starbucks, and Jason’s Deli, financially successful organizations that exemplify how managers provide value and sustainability to stakeholders and shareholders through servant leadership. We also include practical steps managers can take to begin putting this form of leadership into practice.     

Tourism,climate change and adaptation: a review

The relationship between tourism and changing climate has been discussed and studied for a relatively long time in tourism research. Over the past 15 years, more focused studies have begun to appear, and especially recently, the issue of adaptation has been emphasised as an urgent research need in tourism and climate change studies. This paper is based on a systematic review of the tourism and adaptation literature prior to 2012. It discusses adaptation challenges, the dimensions of vulnerability in a tourism context and the implications of such studies on communities. By dividing the current adaptation studies into business; consumer; destination; and policy- and framework-focused theme areas and traditions, the paper concludes that adaptation studies in tourism have so far had a limited focus on community perceptions, which in general has been an area of major interest in tourism research. More emphasis on community-based research in relation to tourism and climate change allows highly contextual adaptation challenges to be met in a more sustainable way.     

Insights into Innovation in European Museums

Abstract

Innovation has become a key tool enabling museums to adapt to the major changes that have taken place in recent decades in the milieu in which such organizations operate. However, countries' differing cultural policies, coupled with the particular nature of museums themselves (size, type of collection, organizational structure, system of funding, etc.), have a practical impact on the ability of such organizations to innovate and adapt to the new situation. In this context, our study posits three aspects through which innovation may appear in museums: technological innovation in management, technological innovation in visitor experience and organizational innovation. We also explore the extent to which the nature of cultural policies in different countries, how museums are managed and their size and funding impact each type of innovation. The empirical analysis was conducted for art and history museums in four European countries: France, Italy, Spain and the United Kingdom. We felt that exploring these relations in cultural organizations would be of interest and would make an important contribution to the field.     

High‐involvement work practices and environmental capabilities: How HIWPS create environmentally based sustainable competitive advantages

We study how high‐involvement work practices (HIWPs) may enhance a firm's economic performance through the development of a proactive environmental strategy (PES). HIWP systems facilitate the implementation of a PES by promoting employees' ability, motivation, and opportunities to behave in ways consistent with environmental management goals. In turn, PESs contribute to the development of strategic competitive advantages and drive superior performance. The results of our empirical analysis of 233 firms broadly confirm our hypotheses and suggest that although the direct effect of HIWPs on performance was not signifi cant in our sample, HIWPs do have a significant indirect effect through a PES as a mediator.     

Individual political contributions and firm performance

We present evidence that individuals make political contributions strategically by targeting politicians with power to affect their economic well-being. Individuals in Congressional districts with greater industry clustering choose to support politicians with jurisdiction over the industry. Importantly, individual political contributions are associated with improvements in operating performance of firms in industry clusters. The relation between contributions and firm performance is strongest for poorly performing firms, firms closer to financial distress, and for contributions in close elections. The results imply that individual political contributions are valuable to firms, especially during bad economic times.     

The Case for Secondary Buyouts as Exit Channel

Do private equity firms have a clear pecking order when deciding on exit channels for their portfolio companies? Are secondary buyouts—that is, sales to other PE firms—always an exit of last resort? And are there company‐ or market‐related factors that have a clear and predictable influence on decisions to pursue secondary buyouts? Using a proprietary dataset of over 1,100 leveraged buyouts that exited in North America or Europe between 1995 and 2008, the authors attempt to answer these questions by analyzing the returns associated with public, private, and secondary (or “financial”) exits. Based on their analysis of the realized returns, there is no clear pecking order of exit types. Secondary buyouts deliver rates of return that are the equal of those achieved through public exits. In addition, the authors assess the relationship between the likelihood of choosing a financial exit and certain company‐related as well as market‐related factors. Portfolio companies with greater debt capacity are more likely to be sold in secondary buyouts. Furthermore, increases in both the liquidity of debt markets and the amount of undrawn capital commitments to the private equity industry increase the probability of exit through secondary buyouts.     

Models of disequilibrium and shortage in centrally planned economies Christopher Davis and Wojciech Charemza,editors Chapman and Hall,London and New York, 1989, 501 pp.

Portes applied the econometric disequilibrium model of market economies to Centrally Planned Economies (CPEs) to show that the consumer goods sector was in equilibrium. Kornai considered these models inapplicable to CPEs and regarded CPEs as chronic shortage economies. Arguments on both sides of the debate are presented in this book. The conflict between Portes and Kornai lies in their microeconomic view of CPEs. While Portes acknowledges the welfare loss from shortages, Kornai analyzes and emphasizes it. Portes' view implies that changes in relative prices can reestablish equilibrium in CPEs. Kornai disagrees because CPEs do not respond to price changes like market economies. Only total reform, now attempted in many transition economies, can eliminate the imbalances.     

Counting the costs: Denmark's changing migration policies

During the Danish local and national elections in November 2001, the scale, intensity and tone of the debates on migration took both national and international commentators by surprise. Within the first year of the new right‐wing government, supported by the influential Danish People's Party, Denmark has become one of the most exclusive and restrictive immigration regimes in Europe. This article takes a closer look at the recent politicization of migration issues in Denmark. While there is certainly concern with the compatibility of migrant ‘otherness’, in particular Islam, with Danish society and norms, then an equally, or even more central issue regards the ‘cost of migration’ for Danish social policy standards. Because of high unemployment rates, migrants and their descendants receive a relatively large part of Danish social contributions. This has raised the more general question of how to combine immigration with a tax‐financed universal welfare system where all have rights to full social benefits immediately upon arrival. The answer of the government has been to cut both sides of the equation by implementing stricter entry rules for family reunification and asylum‐seekers, as well as making a historical break with the principle of equal social welfare benefits for all legal residents. Lors des élections danoises locales et nationales de novembre 2001, l'ampleur, l'intensité et le ton des débats sur la migration ont surpris les commentateurs tant nationaux qu'étrangers. Au cours de la première année au pouvoir du nouveau gouvernement de droite, soutenu par le puissant Parti populaire danois, le Danemark a mis en place l'un des régimes d'immigration les plus fermés et restrictifs d'Europe. L'article s'attache à la récente politisation des questions de migration dans ce pays. Sans négliger le souci réel de compatibilité de ‘l'altérité’ des migrants, notamment l'Islam, avec la société et les normes danoises, il expose un problème aussi, voire plus crucial: le ‘coût de la migration’ selon les bases de la politique sociale nationale. Compte tenu des forts taux de chômage, les migrants et leurs descendants reçoivent une part relativement importante des contributions sociales danoises. D'où une question plus générale sur la façon de combiner immigration et système social universel financé par la fiscalité, où tous ont droit à l'intégralité des prestations sociales dès leur arrivée. En réponse, le gouvernement a tronqué les deux câtés de l'équation, en appliquant des règles d'entrée plus strictes pour la réunification familiale et les demandeurs d'asile, tout en créant une rupture historique avec le principe de prestations sociales égales pour tous les résidents légaux.     

WELFARE EFFECTS OF DISTORTIONARY FRINGE BENEFITS TAXATION: THE CASE OF EMPLOYER‐PROVIDED CARS*

In Europe, many employees receive company cars as fringe benefits induced by taxation. We analyze the welfare effects of company car taxation for the Netherlands by estimating to what extent car expenditure and private car travel change when employees receive a company car. Tax treatment of company cars generates an annual welfare loss, ranging from €600 to €780 per company car, mainly due to a shift toward more expensive cars (from €420 to €600), but also due to increased private travel (€180). For the whole of Europe, the annual welfare loss is about €12 billion.