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Cronyism as a Constraint in Social Capital Development: Investigating Dark Side of Social Relation
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Author: Ahmad Raza Bilal, Superior U. Lahore Pakistan
Author: Tehreem Fatima, Superior U. Lahore Pakistan
Author: Michele Akoorie, U. of Waikato
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Dilemma of dysfunctional social relations and subtle form of mistreatment is at forefront of research in the area of social psychology in higher educational institutions. Still, it has received scant attention of organizational scholars specifically in terms of reducing the level of organizational social capital. This research aims to bridge this gap by unveiling a dark side of organizational socio-psychological life. It is argued that cronyistic social relations are a potential cause of declining social capital whereby, workplace ostracism acts as intervening mechanism between these two. Further, this study proposes an amplifying impact of egoistic climates in the association of cronyistic social relations and ostracizing attitudes. Stratified sampling technique is used to collect data of 358 valid responses from teaching faculty of public sector higher educational institutes. Results offered support for the negative association of cronyism with organizational social capital where ostracism partially transmitted this negative impact. Moreover, cronyistic practices result in greater level of ostracism in institutions characterized by egoistic climates.
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Search Terms: Workplace ostracism | perceived organizational cronyism | social capital
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Paper is No Longer Available Online: Please contact the author(s).
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Employee Reactions to Corporate Moral Events
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Author: Daniel Gregory Bachrach, The U. of Alabama
Author: Pavlos Vlachos, ALBA Graduate Business School
Author: Frederick Morgeson, Michigan State U.
Author: Anthony C. Hood, U. of Alabama, Birmingham
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“Corporate morality” is often viewed by society as contradictory and oxymoronic. Yet, organizations often express core values through Corporate Moral Events (CME) such as those reflected in Corporate Social Responsibility (CSR) initiatives. The literature has almost universally assumed that CMEs are perceived as abstract “do-good” phenomena that lead to positive outcomes. But, CMEs are subject to multiple interpretations and a complex sensemaking process, yielding less positive reactions than hoped for in many instances. Little theory has addressed the complex interpretative process following CMEs. Corporate Morality Theory (CMT), an overarching multi-level theoretical system, explains how corporate moral event history affects employee sensemaking processes. This complex moral sensemaking process includes cognitive and affective steps; is triggered by newly aware and historical CSR event characteristics followed by attributions of locus of causality, controllability, and ensuing affective responses and stability attributions. This sensemaking process motivates employee behaviors. Complimenting micro-CSR, we develop an integrated theoretical system for understanding employee responses to firms’ investments in CMEs, showing that the motivations driving employees’ reactions are more multifaceted than currently assumed. CMT also extends applications of attribution theory in organizational settings by focusing on attributions of the causes underlying organization-level moral events versus supervisor and/or peer activity.
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Search Terms: Corporate Social Responsibility | Attributions | Corporate Morality
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Paper is No Longer Available Online: Please contact the author(s).
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Action is Eloquence? Executive-Worker Pay Ratio and Employee Related Discussion in CSR Reports
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Author: Shing-Jen Wu, Soochow U.
Author: Ta-Wei Wang, DePaul U.
Author: Ivana Zilic, DePaul U.
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The Securities and Exchange Commission (SEC) passed the rule about disclosing the pay ratio between the chief executive officer (CEO) and the median of total compensation received by the rest the company’s employees. Such rule may better help shareholders to understand the compensation practices of the companies. However, are such practices aligned with the companies’ discussion about employee related issues in their CSR reports? This study investigates the association between voluntary CSR disclosures about employee related issues and the executive-worker pay ratio by building on the theory regarding the manager’s intrinsic orientation that guides CSR activities. Using a sample for S&P 500 companies in 2015, our initial findings demonstrate that cognitive and linguistic processes may not align with a company’s CSR actions. In particular, we do not observe a significant association between a GRI-formatted CSR report and the executive-worker pay ratio. However, (GRI-formatted) CSR reports accompanied by third-party assurance are significantly and negatively related to the pay ratio. In addition, we review employee related disclosures in the company’s CSR report, and find that when a company only focus on positive (negative) information, it positively (negatively) affects the pay ratio. Our study contributes to the literature in executive-worker pay ratio and CSR.
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Search Terms: pay ratio disclosure | CSR report | third party assurance
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Paper is No Longer Available Online: Please contact the author(s).
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Daily ethical leadership: Insights from a diary study
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Author: Kai Christian Bormann, TU Dortmund U.
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The aim of this study was to advance literature on ethical leadership towards its day-level application. Daily ethical leadership is defined as ethical leadership behaviors a leader exhibits on a given day. Beneficial effects of daily ethical leadership on daily helping behavior and daily counterproductive work behavior via daily work engagement were examined. Furthermore, yesterday’s abusive supervision was postulated to moderate the impact of today’s ethical leadership on work engagement indicating moderated mediation. The relationship between daily ethical leadership and daily work engagement should be stronger when previous abusive supervision was high. This model was tested using an experience sampling methodology spread over five work days. Participants were 241 employees from different organizations. Results supported the beneficial indirect impact of daily ethical leadership on daily helping through strengthening daily work engagement. The indirect effect was nonsignificant for daily counterproductive work behavior. Consistent with theoretical assumptions, both indirect effects were strongest with high previous abusive supervision and diminished when previous abusive supervision was low. Implications for leadership research and managerial practice are discussed.
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Search Terms: diary study | abusive supervision | ethical leadership
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Paper is No Longer Available Online: Please contact the author(s).
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