Diversity in organizations: Where are we now and where are we going?

A great deal of research has focused on workforce diversity. Despite an increasing number of studies, few consistent conclusions have yet to be reached about the antecedents and outcomes of diversity. Likewise, research on different dimensions of diversity (e.g., age, race, gender, sexual orientation, disability, and culture) has mostly evolved independently. Therefore, the purpose of this review is to examine each of these dimensions of diversity to describe common themes across dimensions and to develop an integrative model of diversity.     

Welfare Policy: Cash Versus Kind,Self-Selection and Notches

This paper investigates second-best allocations where the government lacks full information about consumer types, and how such allocations may be implemented through notch schemes. Thus, we provide another rationale for notches in addition to that investigated by Blinder and Rosen (1985). We use a model of Blackorby and Donaldson (1988), extending their results to more general preferences and to more general tax-subsidy instruments (piecewise linear, rather than linear). We argue that observed policies are sometimes of this nature: In-kind subsidies that are available only if consumption equals or exceeds a particular amount have been used in practice, in housing, and medical care.     

Transnational corporations and the global water industry

This article takes stock of foreign direct investment (FDI) undertaken by transnational corporations (TNCs) in the global water industry and examines the evidence on the impact of their operations in host countries. Between 1996 and 2006, approximately $12 billion were invested in water‐related sectors, of which 75% came from the private sector (including TNCs) from just four countries, while tentative calculations put the global share of investment by TNCs at 56%. Presently, 243 enterprises have interests in 409 water projects in 53 host countries. However, just six countries have received over half of the total investment. A survey of the evidence reports mixed results of the impact of TNCs' investment in host countries. It is argued that the biggest issue here is pricing, a dilemma that, alongside the privatization issue of host countries' water industry, is discussed in the concluding section. © 2011 Wiley Periodicals, Inc.     

Supplements and Complements to the Current Employee Representation System in the United States

Employee representation is an important aspect of the employment relationship. In some countries (e.g., Germany), the government mandates employee representation. In other countries (e.g., the Commonwealth), employers voluntarily recognize employee representatives. In the United States, employees must earn their right to be represented in a certification process that results in collective bargaining. With the significant reduction of union membership in the United States, this representation model is in decline. Other forms of participation have not picked up the slack. Hence, there remains a significant representation gap. In this paper, I describe and analyze several solutions to the representation gap. Both unorganized and organized forms of employee representation are considered.     

Politics, Insurance Regulation, and Unfunded Pension Liabilities

ABSTRACT: Insurance regulators operate in an environment in which resources are scarce and issues are most often complex and not salient to affected persons. Consequently, regulatory agencies, such as the Pension Benefit Guaranty Corporation (PBGC), need to use resources efficiently by making issues salient and not complex if regulatory goals are to be attained. To further its goal of full funding of defined benefit pension plans, the PBGC annually published a list of the Top Fifty Companies With the Largest Underfunded Pension Liability (LIST). This article investigates the issue of the economic effects of pension plan disclosure by measuring the share price response of the companies included on the LIST; then policy implications are drawn. The event study findings show that, on average, publication of the LIST did not have a negative effect on firm value. However, cross-sectional analysis provides some support for the contention that publication of the LIST had an economic cost on LISTed firms. The authors' results show that the value of large firms on the PBGC's list is less negatively affected at arrival (ARRIVAL) than smaller LISTed firms. Conversely, when firms leave the list (DEPARTURE), the value of large growth-oriented firms is more negatively affected than the value of other firms that reduce their unfunded pension liability. From a policy perspective, as hypothesized by Meier (1991), the PBGC used its scarce resources effectively by publishing the LIST. The issue of unfunded pension liability became less complex and more salient to interested parties. Consequently, consumer groups and political elites provided their support to further the regulatory agency's stated goal, which was the full funding of defined benefit pension plans. Furthermore, increased awareness of the underfunding problem contributed to the passage of the Retirement Protection Act of 1994.     

Code of ethics quality: an international comparison of corporate staff support and regulation in Australia,Canada and the United States

The objective of this paper is to examine the ‘Code of Ethics Quality’ (CEQ) in the largest companies of Australia, Canada and the United States. For this purpose, a proposed CEQ construct has been applied. It appears from the empirical findings that while Australia, Canada and the United States are extremely similar in their economic and social development, there may well be distinct cultural mores and issues that are forming their business ethics practices. A research implication derived from the performed research is that the construct provides a selection of observable and measurable elements in the context of CEQ. The construct of CEQ consists of nine measures divided into two dimensions (i.e. staff support and regulation). They should not be seen as a complete list. On the contrary, it is encouraged that others propose and elaborate revisions and extensions. A practical implication of this paper is a structure of what and how to examine the CEQ in a managerial setting. It may assist companies in their efforts to establish, maintain and improve their ethical culture, norms and beliefs within the organization and supporting them in their ethical business practices with different stakeholders in the marketplace and society. The dimensions and measures of the construct may be used as a frame of reference for further research. They may be useful and applicable across contexts and over time using similar samples when it comes to large companies, as small‐ or medium‐sized ones may not have considered all areas nor have the elements in place. This is a research limitation, but it provides an opportunity for further research.     

Do US macroeconomic conditions affect Asian stock markets?

The aim of this paper is to examine the impact of US macroeconomic conditions—namely, exchange rate and short-term interest rate—on the stock markets of seven Asian countries (China, India, the Philippines, Malaysia, Singapore, Thailand, and South Korea). We use daily data for the period 2000–2010. We divide the sample into a pre-crisis period (pre-August 2007) and a crisis period (post-August 2007). We find that, in the short-run, the interest rate has a statistically insignificant effect on returns for all countries, except for the Philippines in the crisis period. On the other hand, except for China, regardless of the crisis, depreciation has a statistically significant and negative effect on returns. When the long-run relationship among the variables is considered, for five of the seven countries (India, Malaysia, the Philippines, Singapore, and Thailand), while there is cointegration in the pre-crisis period, in the crisis period there is no such relationship, implying that the financial crisis has actually weakened the link between stock prices and economic fundamentals.     

Stakeholder prioritization and reporting: Evidence from Italy and the US

This study investigates the considerations that might be made by managers when choosing between mutually exclusive stakeholder expectations and reaching and engaging in a dialogue with them. In addition, the study also examines if there are systematic differences across countries (Italy and the US) in the decision to address the concerns of various stakeholder groups. Data was collected from 244 managers and 72 companies simultaneously in two different national business contexts, Italy and the US. The results of the study provide some evidence that managerial perception of three stakeholder group characteristics – power, legitimacy, and urgency – form a parsimonious group of variables that explain the process of stakeholder prioritization. However, only limited support was found for the relationship between salience accorded to a stakeholder group and engagement efforts directed toward the group. The results of the study also show that the managerial decision as to which of the stakeholder groups’ demands to address will be influenced by society-specific expectations. The significance of this study lies in investigating the stakeholder prioritization and engagement process, as it is being practiced, which, one could argue, would help in developing guidelines for effective stakeholder management that stands a realistic chance of being adapted and followed.     

The determinants of inter-industry variations in the proportion of intra-firm trade: The behaviour of US multinationals

Zusammenfassung Die Bestimmungsgründe für interindustrielle Unterschiede im Anteil des firmeninternen Handels. Das Verhalten US-amerikanischer multinationaler Firmen. — Die Autoren untersuchen die Bestimmungsgründe der interindustriellen Unterschiede im Anteil der firmeninternen Exporte und Importe am Handel von US-amerikanischen Muttergesellschaften im Jahr {dy1982} für 32 Industriezweige. Der Intra-Firmen-Handel internalisiert den Handel im Rahmen der multinationalen Unternehmen. Die Untersuchung zeigt, da? es gro?e Internalisierungsvorteile in forschungs- sowie in humankapital-intensiven Industrien gibt. Der Anteil von firmeninternen Exporten aus den USA war ebenfalls hoch in Industrien, die einen überdurchschnittlich hohen Aufwand bei der Verkaufsf?rderung und Markterschlie?ung erfordern. Die Studie deutet auch darauf hin, da? es im Gefolge der US-Umweltvorschriften dazu kommen kann, da? Industrien in andere L?nder verlagert und von dort firmeninterne Exporte in die USA durchgeführt werden.

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Résumé Les facteurs déterminants des variations inter-industrielles dans le partage du commerce intra-entreprise: Le comportement des entreprises multi-nationales américaines. — Cette étude analyse les facteurs déterminants des variations inter-industrielles dans le partage des exportations et importations intra-entreprise dans le commerce des sociétés mères américaines concernant 32 branches industrielles en 1982. Le commerce intra-entreprise intensifie le commerce au sein des entreprises multi-nationales. L’étude démontre que l’avantage du commerce intra-entreprise est très grand dans les branches qui sont caractérisées par la recherche-développement et par une main-d’œuvre très qualifiée. La proportion des exportations intra-entreprise venant des Etats Unis a été aussi élevée dans les industries caractérisées par des dépenses hautes pour la vente et le développement du marché. L’étude indique aussi la possibilité que le lieu de production est déplacé aux autres pays à cause des lois américaines anti-pollution et que les importations intra-entreprise sont la conséquence.

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Resumen Las déterminantes de las variaciones interindustriales del comercio intraempresa: el comportamiento de las multinacionales de los EE UU. — En este trabajo se analizan las determinantes de las variaciones interindustriales de las proporciones de exportaciones e importaciones intraempresa en el comercio de casas matrices de los EE UU en al ano {dy1982}, considerando 32 ramas de la industria manufacturera. El comercio intraempresa internaliza el comercio entre las multinacionales. Se muestra que las ventajas derivadas de la internalización son grandes en industrias intensivas en I&D y mano de obra calificada. La proporción de exportaciones intraempresa desde los EE UU también son altas en industrias con importantes gastos en el ámbito de las ventas y en el desarrollo de mercados. También se indica la posibilidad de que empresas de los EE UU tengan que ubicarse en otros países y que dedicarse a las importaciones intraempresa, debido a las leyes contra la contaminación ambiental vigentes en los EEUU.