Walking and Talking Corporate Social Responsibility: Implications of Firm Size and Organizational Cost

In this paper we address two interrelated research gaps in the Corporate Social Responsibility (CSR) literature. The first results from a lack of understanding of different patterns of CSR engagement with respect to CSR talk (impression management and the creation of symbolic images and documentation) and CSR walk (substantive implementation of CSR policies, structures and procedures). Related to this, the second gap concerns limited knowledge about the influence of firm size on CSR engagement. We develop a conceptual model that explains differences in CSR talk versus walk based on organizational cost and firm size. This allows us to theorize the antecedents of what we call the large firm implementation gap (large firms tend to focus on communicating CSR symbolically but do less to implement it into their core structures and procedures) and vice versa the small firm communication gap (less active communication and more emphasis on implementation). Our model expands a new theoretical understanding of CSR engagement based on as yet underemphasized firm‐level antecedents of CSR, and opens up several new avenues for future, and in particular comparative, research.     

Optimality in a financial economy with outside money and restricted participation

We analyze an economy with inside financial assets and outside money. Households have differing restricted access on both types of assets and, according to a well-known approach, they use money to pay taxes. Since competitive equilibria are generically inefficient, we perform a Pareto improvability analysis through a monetary intervention. It results that, if the government modifies the amount of money endowments for just one consumer in period one, then Pareto improvements upon the market equilibrium are possible.     

Analyzing the volume and nature of emergency medical calls during severe weather events using regression methodologies

An effective emergency medical service (EMS) response to emergency medical calls during extreme weather events is a critical public service. Nearly all models for allocating EMS resources focus on normal operating conditions. However, public health risks become even more critical during extreme weather events, and hence, EMS systems must consider additional needs that arise during weather events to effectively respond to and treat patients. This paper seeks to characterize how the volume and nature of EMS calls are affected during extreme weather events with a particular focus on emergency preparedness. In contrast to other studies on disaster relief, where the focus is on delivery of temporary commodities, we focus on the delivery of routine emergency services during blizzards and hurricane evacuations. The dependence of emergency service quality on weather conditions is explored through a case study using real-world data from Hanover County, Virginia. The results suggest that whether it is snowing is significant in nearly all of the regression models. Variables associated with increased highway congestion, which become important during hurricane evacuations, are positively correlated with an increased call volume and the likelihood of high-risk calls. The analysis can aid public safety leaders in preparing for extreme weather events.     

Firms,public good provision and institutional uncertainty: Evidence from Russia

Enterprises in post-socialist and transition economies often participate in providing infrastructure and social services to the surrounding community which in the Russian legal setting should be local authorities’ responsibility. We propose that this bundling of social and infrastructure goods provision with firm's core operations is a fully rational choice in an uncertain institutional environment. A unique survey data suggest that this manifests itself through more reliable infrastructure, stronger employee attachment to the firm and, most interestingly, through better relations with the authorities. Relationship with authorities is a two-way game where the firm gains from the arrangement but on the other faces sanctions if it decided to depart from it. Firm's participation in the arrangement is clearly enhanced by inherited fixed capital assets from the Soviet era.     

Does a Switch of Budget Regimes Affect Investment and Managerial Discretion of State-Owned Enterprises? Evidence from Italian Firms

We investigate the investment decisions of Italian state-owned enterprises (SOEs) across budget constraint regimes and carry out a natural experiment that exploits a regime switch in 1987. Drawing on the theory of capital market imperfections, we apply an empirical framework for investment analysis to a panel of manufacturing SOEs in competitive industries. We identify parallels between SOEs and widely held, quoted companies afflicted by agency problems, managerial discretion, and overinvestment. We argue that, in the case of SOEs, the soft budget regime increases managerial discretion, facilitates collusion with vote-seeking politicians, and results in wasteful investment. Consistent with our predictions, we find that the regime switch disciplines SOE's investment behavior. Following a hardening of the budget constraint, managers lose discretion to indulge in collusion and overinvestment. J. Comp. Econ., June 2002 30(4), pp. 787–811. London School of Economics and Political Science, Houghton Street, London WC2A 2AE, United Kingdom; and CERIS–CNR, Institute for Economic Research on Firms and Growth, National Research Council, Via Avogadro, 8, 10121 Turin, Italy. © 2002 Association for Comparative Economic Studies. Published by Elsevier Science (USA). All rights reserved.Journal of Economic Literature Classification Numbers: E32, G31, G32, L32, M40.     

Herding in the strategic allocations of Spanish pension plan managers

This paper empirically examines herding behavior in the strategic style allocations of Spanish pension plan managers. The study uses both the standard metric used in financial literature to capture institutional herding and a new approach to address some shortcomings of this traditional measure. Concretely, some authors have highlighted that the traditional measure does not take into account that the probability that a manager buys rather than sells a certain stock depends on both the initial holding in the stock and the asset flows. As a consequence, this study proposes a new approach, which can be applied to other financial markets and provides more accurate values of the probability to increase (or decrease) the style exposures bearing in mind the previous exposure of each portfolio. The study confirms the existence of herding behavior by using both methods. Although the strength of this behavior decreases using the new approach, the herding levels detected in this study of style herding of Spanish pension plans are higher than those of previous research analyzing portfolio holdings in other countries. Additionally, herding levels are higher in periods of low volatility while market returns does not seem to influence herding levels.     

Exploring the firm and country determinants of the voluntary adoption of integrated reporting

Information used to manage the business and support the decision‐making of stakeholders is being subject to an evolution. In this context, traditional financial reporting is considered not sufficient anymore. This has translated into a sharp increase in the number of firms that have begun to adopt emerging reporting practices. This study aims to examine the influence that both firm‐ and country‐specific characteristics have on the voluntary uptaking of integrated reporting internationally. In order to do so, it analyses a sample of 71 international listed companies that have adopted this reporting form in 2016. The results show that firms are more likely to implement integrated reporting if they are located in countries with a higher level of corruption perception and a better risk rating and that are considered as relatively more collectivist and feminist and with a long‐term orientation. Legal system has resulted to be not significant. As for firms' characteristics, large size, profitability, market‐to‐book ratio, and the size of the board are found to be significant variables. Moreover, the results indicate that the adoption of integrated reporting is not influenced by a higher level of leverage, firm efficiency and board diversity and independence.     

When age does not harm innovative behavior and perceptions of competence: Testing interdepartmental collaboration as a social buffer

Can older managers overcome stereotypes relating age to low competence? We integrate the literature on age and cognitive ability with research on innovation to explore whether—and if so, when—employees' age harms performance and promotability appraisals made by their supervisors. Multisource, time‐lag data from 305 project managers indicate that the negative stereotypes can be explained through decreased innovative behavior. However, older employees are not always seen as poorer performers with less potential to be promoted due to their reduced innovative behavior. Rather, interdepartmental collaboration moderates these effects. Specifically, older employees with low interdepartmental collaboration are less innovative and receive worse performance and promotability appraisals than younger employees, but the “age handicap” vanishes when older employees collaborate with members of other departments. Organizations should foster formal or informal collaboration among units to prevent negative consequences of an aging workforce.     

Capital flows and the boom–bust cycle: The case of Estonia

During 2000–2007, Estonia was among the fastest growing emerging market economies, but in late-2008 entered a deep recession. This paper examines shocks, institutions, and policies that have made Estonia's boom–bust cycle so severe. It finds that an open capital account, the prospect for EU entry, and the currency board facilitated massive capital inflows, which led to credit and real estate booms. In late-2008 a domestic slowdown was greatly amplified by the global financial and economic crisis. To resume sustainable growth, the country will need to regain competitiveness and rebalance resources to exports. Estonia's experience underscores the importance for other emerging market economies to retain some flexibility in their macroeconomic frameworks and approach capital account liberalization cautiously.     

Motivating Employees towards Sustainable Behaviour

Workers engaging in voluntary and unrewarded environmental actions that go above and beyond their job requirements in an organizational setting can crucially contribute to a reduced environmental impact of organizations. This research investigates some of the factors that may contribute to the emergence of such organizational citizenship behaviour directed towards the environment (OCBE). The hypotheses predicted employees' concern for the environment, employees' perceived organizational support for environmental efforts and organizational commitment as antecedents of OCBE. Employees from two organizations (n = 547) completed an online survey. Controlling for organizational tenure, a significant relationship between (a) employees' concern for their environment and OCBE, (b) perceived organizational support for environment efforts and OCBE and (c) organizational commitment and OCBE were found. Furthermore, organizational commitment mediated the relationship between perceived organizational support for environmental efforts and OCBE, but not environmental concern. This study's insights into the factors that can drive employees' engagement in small, voluntary environmental actions at work can guide organizations wishing to encourage such behaviours. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment