Corporate Reputation and Social Performance: The Importance of Fit

abstract    Utilizing data on a sample of large firms, we estimate a model of corporate reputation. We find reputation, derived from the assessments of managers and market analysts, to be determined by a firm's social performance, financial performance, market risk, the extent of long-term institutional ownership, and the nature of its business activities. Furthermore, the reputational effect of social performance is found to vary both across sectors, and within sectors across the various types of social performance. Specifically, our results demonstrate the need to achieve a 'fit' among the types of corporate social performance undertaken and the firm's stakeholder environment. For example, a strong record of environmental performance may enhance or damage reputation depending on whether the firm's activities 'fit' with environmental concerns in the eyes of stakeholders.     

Experienced and Novice Investors: Does Environmental Information Influence Investment Allocation Decisions?

Economic Value Added (EVA) is a performance measure that is being used by an increasing number of companies, but academic research on EVA is limited. In addition, all prior empirical academic studies on EVA have used the firm as the unit of analysis. In this study, we examine the effect of EVA on the performance of individual managers. Specifically, we examine whether managers on EVA-based bonus plans outperform managers on traditional accounting-based bonus plans. We are able to test this because we have access to an EVA-focused company that has managers on both EVA and traditional bonus plans. Our results suggest that managers on EVA bonus plans who understand the EVA concept perform better than managers on traditional bonus plans. However, we find some evidence that the increase in performance results from increased consistency or congruence in the manager's evaluation–reward process rather than from superiority of EVA as a performance measure. Also, we find that the effect of EVA bonuses and EVA understanding differs depending on the area of the firm in which the manager is employed. This suggests that EVA may not be a universally appropriate base for reward systems. *Mohan Lal passed away 24 July 2002. This paper is dedicated to him.     

The impact of management on the engagement and well-being of high emotional labour employees

Australia, like many other countries, suffers high turnover of nurses and police officers. Contributions to effectively manage the turnover challenge have been called for, and there are few Australian studies of nursing/policing turnover intentions. The purpose of this study was to examine the impact of supervisor–subordinate relationships and perceived organisational support (POS) upon engagement, well-being, organisational commitment and turnover intentions. Second, we examined the similarities and differences between nursing and policing work contexts. The retention of nurses/police has been investigated from traditional management perspectives; however, we used a different theoretical approach – social exchange theory – and evaluated its utility as a framework. Findings are from Australian data collected during 2010–2011 from 510 nurses and 193 police officers, using a survey-based, self-report strategy. Partial least squares path modelling was used to analyse these data. Results indicated that for both samples, engagement predicts well-being and then, well-being predicts affective commitment and intentions to leave. MANOVA results suggested that nurses had significantly higher levels of satisfaction with their supervisor–subordinate relationships, POS, engagement, well-being and affective commitment than police officers. Only the intention to leave was similar for both groups. Given that turnover can be influenced by supervisors/management, this study provides new knowledge about targeted retention strategies.     

Effectiveness of a corporate HR department in an Australian public-sector entity during commercialization and corporatization

This study examines the effectiveness of the strategic human resource management (HRM) function performed by the corporate human resource department of an Australian public-sector entity, before and after its corporatization. Multiple methods (including a survey of senior managers and semi-structured interviews) were used to collect the data. Despite an improvement in the overall level of strategic integration between HRM and strategic management, the rating of strategic HRM role effectiveness remained low. The results indicate that the strategic HRM function, as a corporate headquarters function, was more effective in its administrative role than in a value-adding function. The difficulty in balancing the dual roles of a corporate headquarter unit, together with the challenges of becoming a strategic business partner to line managers, provided the major impediments to effective strategic HRM.     

‘Breaking the ICE’: workplace democracy in a modernized social Europe

The EU seeks to improve its labour market performance through implementing the Lisbon and European Employment Strategies which encourage the modernization of work organization through the development of partnership with the assistance of an ‘appropriate’ regulatory framework. Key aspects of this latter framework concern workers' rights regarding information, consultation and participation in corporate governance. European labour laws, introduced in the 1970s, sought to strengthen employers' consultation with their workforce and, more recently, the changing economic, technological and organizational environment has returned issues related to workplace democracy to the top of the social policy agenda. Here we evaluate the significance of the new Directive on Information and Consultation with Employees (ICE) within the context of this planned modernization of European social policy. In doing so, we re-examine the historical development of workers' consultation laws in Europe and assess the economic rationale for regulating workplace social dialogue in an enlarged Social Europe.     

The influence of strategic HRM and sector on perceived performance in health services organizations

In this study, we examine a variety of management characteristics of for-profit and not-for-profit organizations in the health services (HS) industry. Data collected from Australian senior executives are used to test the relationships between managerial constructs such as employee commitment, customer demandingness, strategic HRM orientation and the adoption of human capital-enhancing human resource (HR) practices and perceived overall performance. Data analysis conducted using the Partial Least Square Modeling show a statistically significant path from commitment to employees, customer demandingness and strategic HRM orientation to the adoption of human capital-enhancing HR practices (such as selective staffing, comprehensive training, and performance appraisal) to perceived organizational performance. The results also show that private sector health service organizations have a higher level of perceived performance.     

Extreme value analysis for emerging African markets

For the first time, an extreme value analysis is provided for financial data from Africa. The results of analysis show evidence of emerging economies in Africa.     

Diffusion and spatial equilibrium of a social norm: voting participation in the United States, 1920–2008

Social conformity can spread social norms and behaviors through a society. This research examines such a process geographically and over time for voting, which is strongly influenced by the norm that citizens should vote. A mathematical model for the spread of voting participation under the influence of social conformity is developed based on the diffusion equation, and predictions are tested with spatial analysis of state-level voter turnout in American presidential elections from 1920 to 2008. Results show that voter turnout has converged to a stable equilibrium in its geographical distribution across the states—but it is an equilibrium that results in persistent differences at the state level. Results are compared to individual-level and agent-based models. The model may be applied to other types of social diffusion that depend on specific geographical location.     

Inflation-Plus Targeting at the Reserve Bank of Australia

This article first outlines the dynamics of what appear to be increasingly prevalent cycles of asset price inflation in liberalised financial systems, as well as the difficulties entailed in successful monetary policy responses. The article then analyses the Reserve Bank of Australia's policy responses to recent rises in credit growth and asset price inflation in the property sector. The Bank's responses are characterized in terms of an inflation‐plus targeting framework which has subtly redefined the Bank's approach to inflation targeting to include vaguely defined factors such as mediumterm‘risks’, as well as extending the time frame of such risk assessment. The article explains why, for a variety of reasons, the Bank has been reticent to fully declare its hand.