Halo effect or fallen angel effect? Firm value consequences of greenhouse gas emissions and reputation for corporate social responsibility

Greenhouse gas (GHG) emissions are perceived to have negative consequences for society at large by contributing to potential climate change and represent a potential cash drain from firms from exposure to future regulatory, abatement, and compliance costs. Beginning in 2010, US companies are required to report their GHG emissions to the Environmental Protection Agency (EPA). We utilize these data for 2010–2014 to examine whether the possible adverse firm value impact of these GHG emissions is alleviated or exacerbated by the firm’s reputation for corporate social responsibility. Our findings suggest that there is no halo effect, i.e., a firm’s reputation for social responsibility (as reflected in its CSR score) does not protect the firm from the adverse firm value effects of GHG emissions. Rather, our findings suggest a fallen angel effect, i.e., for any given level of GHG emissions, the higher the firm’s CSR score, the greater the adverse impact on firm value. In other words, the decline in firm value due to the adverse impact of GHG emissions is compounded by the hit to the firm’s reputation for corporate social performance. Our paper contributes to the sparse prior US literature on the firm value effects of GHG emissions. Further, by providing scholarly evidence on the existence of a fallen angel effect, our findings suggest that boards and managers of firms that provide voluntary CSR disclosures cannot afford to be complacent about their GHG emissions.     

The Creativity‐Performance Relationship: How Rewarding Creativity Moderates the Expression of Creativity

Researchers have argued that creativity is intrinsically motivated, and that rewarding creativity can stifle creativity. Using a sample of 310 employees reporting to 50 different supervisors, we instead show that rewarding creativity influences the relationship between creativity and performance by changing the nature of expressed creativity. We do this by examining novelty and usefulness as separate dimensions. High perceived reward enhances the relationship between novelty and performance while diminishing the relationship between usefulness and performance. The moderating effect of reward for creativity on the relationship between creativity and performance was not observed when we operationalized creativity as an integrated, unidimensional construct. © 2015 Wiley Periodicals, Inc.     

Consumer Attachments to Human Brands: The “Oprah Effect”

Human brands offer an interesting complement to product brands in that consumer attachments to human brands take on personal relationship qualities that can engender greater affiliation and loyalty. At present, one of the most powerful human brands in the developed world is that of Oprah Winfrey. This research uses the Oprah brand as a context in which to explore and expand the existing model of human brand attachment because of the enduring strength and consistency of how she has cultivated her brand. The existing model of human brand attachment identifies autonomy, relatedness, and competence as the antecedents of attachment strength. However, the expanded model in the current research introduces and validates brand personality appeal (and its sub‐dimensions of favorability, originality, and clarity) as an important moderating factor in the relationship between these antecedents of attachment and attachment outcomes. Two studies utilizing both qualitative and quantitative data investigate the impact of these factors on attachment strength as manifested in emotional attachment behaviors, markers of relationship quality, and marketplace responses in the form of brand loyalty and purchase intentions.     

Small business— small minded? Training attitudes and needs of the tourism and hospitality industry

The Australian tourism and hospitality industry consists of at least 80% small business operators scattered over a wide range of urban and rural environments, consequently it has not been easy for training providers to assess accurately the needs of the industry as a whole and provide specialised programmes. During 1996, Tourism Training Victoria conducted a survey of training needs of tourism and hospitality operators. Results indicate that there is a shortage of skilled staff and owner‐managers with little management training or qualifications, who nonetheless recognise their shortcomings and needs for further education and training, particularly in the marketing and business areas. Barriers to further training include the cost of training and inflexibility of hours and place of delivery. Copyright © 2001 John Wiley & Sons, Ltd.