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.     

I Don't Need Leadership: An Exploration of the Societal Discourse of Leadership

Even with a myriad of definitions of leadership, we still know little about the discourse of leadership in which those of us without formal leadership education and development are embedded. Through a discourse analysis of interviews with a broad cross‐section of 12 “followers,” the current study begins exploring the idea of a societal discourse of leadership and how that discourse complements and conflicts with the academic and workplace discourses. Analysis shows that although individuals define leadership in a similar fashion to the academic discourse, they identify heroic figures as leaders, and they neither look for, nor feel they need, leadership in their own lives.     

Accruals and the naïve out-of-sample prediction of operating cash flow

Recent evidence indicates that a naïve no-change out-of-sample forecast of operating cash flow is as accurate as regression model forecasts. The current study uses this evidence to compare the accuracy of two naïve cash flow forecasts: 1) a pure no-change forecast and 2) a no-change forecast which includes adjustments for changes in accounts receivable, inventory and accounts payable. The size- and accrual-matched results indicate that the naïve cash flow forecast with accruals is notably more accurate than the naïve forecast without accruals. Moreover, the results indicate that large sums of positive accruals are more useful for cash flow prediction than large sums of negative accruals. Overall, the study provides creditors, analysts and other members of the financial community with an efficient and effective protocol for cash flow prediction.     

An “unofficial” history of race relations in the South African accounting industry, 1968–2000: Perspectives of South Africa's first black chartered accountants

“Official” histories are, typically, written by those with the most power and influence. In the case of the accounting industry, the content of professional journals and histories of major firms or professional leaders are taken as the most authoritative sources to uncover the past. In this paper, we contrast articles on racial inclusion published in South Africa's leading professional accounting journal with the experiences of black chartered accountants in the country. We interviewed 38 of the first 220 black CAs in South Africa. Their stories of discriminatory treatment by accounting firms contrast sharply with the official version of history gleaned from the professional journal. Sharing their stories herein helps correct the historical record.     

The role of social networks and institutions in the internationalization of Russian entrepreneurial firms: Do they matter?

Drawing upon network theory and institutional theory, this paper examines the influence of networks on the internationalization of Russian entrepreneurial firms. Our case analysis suggests that within the context of the Russian environment, networks play a much less important role in the internationalization process than it is usually assumed in the literature. For the Russian entrepreneurial firms examined in our study, the most important factor in their internationalization was their engagement in honest business practices that established trust and commitment in their relationships with international business partners. This study underscores the importance of the institutional context of an entrepreneurial firm’s country.     

UK EXCESS SHARE RETURNS: FIRM SIZE AND VOLATILITY

Using the family of GARCH-M(p, q) models and UK data comprising of the market portfolio and a portfolio of smaller company shares over the period January 1970 through June 1994, this paper provides support for the notion that the degree of market capitalisation is an important factor in the analysis of risk-return relationships. The evidence reported supports the view that, although both portfolios appear to be driven by the persistence of volatility shocks, there exist significant differences in risk-return behaviour.     

Managed care and U.S. hospitals' capital costs

This study examined the effects of managed care organizations (MCOs) on the yields paid by U.S. hospitals on newly issued debt. The analysis improved on existing studies by utilizing a two-stage method that compensated for both simultaneity and self-selection effects. A reduced form probit analysis was first used to identify the factors determining whether hospitals in a random sample of 717 issued new debt in the study period (1995 and 1996). Bond yields were then analyzed using a second stage reduced form regression, incorporating selection effects, for the subset of 58 hospitals that had issued fixed rate debt. The results demonstrated that MCOs had only a modest positive influence on hospitals' costs of capital. Of greater import were insurance status, length of stay, and teaching status, with investors demanding greater yields for bonds issued without insurance and from hospitals with either longer lengths of stay or medical residency programs.     

Union organising in ‘Big Blue's backyard

This article considers the effectiveness of recruitment and organising approaches during ISTC's successful recognition campaign at FCI Ltd, focussing in particular on the role of ‘shadow stewards’. The case study illustrates the positive impact of innovative grassroots campaigning associated with the organising model. However, it also highlights the real difficulties facing key union players in transforming successful recruitment and recognition into effective workplace representation and robust trade unionism.     

Precariousness in everyday life: homelessness in Japan

The Japanese social structure was established and has been maintained through a mixed economy comprising a balance between the state, the market, the family and the company. Vital elements in maintaining this balance have been the traditional family, full employment and increasing prosperity. More recently, developments have seen a reversal of economic prosperity, rising unemployment, increasing pressure to restructure the employment system and a potential rise in the number of households experiencing housing difficulties. In addition, the predominance of the nuclear family, the increased employment of women and decreased fertility has put the enterprise, family and state dynamic under challenge. This article explores some of the implications of these trends as some of the certainties of the past are giving way to increasing insecurity and risk across a wider section of society. It begins by exploring the institutional and social structure of post‐war Japan, when there was little evidence of poverty and homelessness. It goes on to consider the recent rise in the number of people living on the streets of Japanese cities and the policies put in place. The article then outlines some of the processes of social change that have contributed to the growth in the numbers of homeless people in Japan. La structure sociale japonaise a été créée et préservée grâce à une économie mixte, équilibre complexe entre É tat, marché, famille et entreprise. Les éléments essentiels à cet équilibre étaient la famille traditionnelle, le plein emploi et une prospérité croissante. Or, on a pu constaté dernièrement un revirement économique, une hausse du chômage, une accentuation des forces visant à restructurer l'emploi et une progression latente du nombre de ménages confrontés à des difficultés de logement. De plus, la prédominance de la famille nucléaire, le travail croissant des femmes et la diminution de la fertilité ont remis en question la dynamique entreprise‐famille‐É tat. L'article explore certains effets de ces évolutions, alors que nombre de certitudes passées laissent place à un renforcement de l'insécurité et du risque dans une part plus vaste de la société. L'étude débute par la structure institutionnelle et sociale du Japon de l'après‐guerre, lequel comptait peu de cas de pauvreté et de sans‐abris. Elle aborde ensuite la hausse récente du nombre de personnes vivant dans les rues des grandes villes nippones et les politiques publiques mises en place, tout en décrivant certains des processus de changement social impliqués dans la multiplication des sans‐abris au Japon.