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1 – 10 of over 6000This paper aims to explore the potential relationship between internal corporate social responsibility (CSR) and the decline of organised labour in countries of the global North…
Abstract
Purpose
This paper aims to explore the potential relationship between internal corporate social responsibility (CSR) and the decline of organised labour in countries of the global North. Given the opposing trends since the late 20th century and the widespread adherence of internationally recognised labour standards in CSR codes, standards, and reporting frameworks, questions arise about the disparity between CSR rhetoric and practice regarding the collective rights of in-house employees. The paper further explores the tendency in CSR scholarship to overlook violations of collective rights for in-house employees in the global North.
Design/methodology/approach
To examine whether there is an elective affinity between the rise of CSR and the decline of organised labour, the paper uses a discursive institutionalism approach, providing a meta-theoretical analysis of academic literature on internal CSR. A scoping review methodology was used to identify relevant literature and compile it into an empirical corpus for a metatheoretical analysis. The empirical corpus, consisting of 38 articles, was generated through a Google Scholar (GS) search guided by the following questions: (1) What are the dominant conceptual framings of internal CSR? (2) What are the dominant roles and practical aspects of internal CSR?
Findings
The paper identifies two key disparities in the literature: (1) between rhetoric and practice regarding the collective rights of in-house employees in the global North and (2) between the extensive CSR research on violations of collective rights of value chain workers and the limited attention to in-house employees’ collective rights. The analysis highlights two factors contributing to these disparities: the integration of internal CSR into the corporate managerial toolbox and the distinction in CSR discourse between core labour standards and workplace issues. The analysis shows that internal CSR has an elective affinity with the decline of organised labour.
Research limitations/implications
While scoping reviews are often standalone studies, this paper used the methodology for its stated purpose. Limitations include the broad span of internal CSR across various academic fields and reliance solely on GS. Measures taken to enhance inclusivity were unlimited review period, refined inclusion criteria and keywords during the selection process and cross-checks of cited articles.
Social implications
Considering the implications of the decline of organised labour on workers’ collective voice, poverty and the distribution gap in wealth and income, this paper suggests that for CSR to play a significant role in advancing sustainable social justice, scholars and practitioners should look at ways to reduce the disparity between rhetoric and practice regarding employees’ voice and collective rights.
Originality/value
The paper lays the foundation for a better understanding of the potential links between internal CSR and the decline of organised labour. It addresses a gap in the literature on the interrelations between CSR and organised labour in the global North and proposes root causes of this gap. This contribution enriches the scarce literature exploring the potential elective affinity between CSR and transformations in the global economy and labour markets since the late 1980s. Finally, the paper deepens the understanding of the implications of CSR for employees’ collective rights and voice as well as for organised labour.
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Pedro Cavalcanti Gonçalves Ferreira
The paper examines the impact of market power on wages within the context of a developing country, focusing on Brazil.
Abstract
Purpose
The paper examines the impact of market power on wages within the context of a developing country, focusing on Brazil.
Design/methodology/approach
With access to matched employer–employee data from Brazil, we first characterized the evolution of the local labor market concentration (Municipality Herfindahl–Hirschman Index [HHI]). Then, we built a fixed-effect model with instrumental variables to verify the association between the local labor market concentration and wages. Finally, a difference-in-difference (DiD) was implemented to verify whether a merger transaction impacted the workers’ earnings in the Brazilian banking sector.
Findings
The paper’s findings suggest that there may be a negative relationship between market power and workers’ earnings.
Originality/value
This research conducted an in-depth investigation of the labor market power in a developing country. As far as we know, our work is the first to evaluate the extension of local concentration in Brazilian formal labor markets and to illustrate its evolution over the last decades. Additionally, when going through the effects of market concentration on wages, we use a new identification strategy that explores changes in the HHI that are caused by national trends in an industry as a source of exogenous variation. Finally, the last part of the paper assesses the effects of antitrust policy on the labor market, a kind of investigation that is still scarce.
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Won-Moo Hur, Hyewon Park and June-ho Chung
This study investigates how organizational control systems induce emotional labor in frontline service employees (FLEs). Drawing on the stimulus–organism–response (S-O-R) theory…
Abstract
Purpose
This study investigates how organizational control systems induce emotional labor in frontline service employees (FLEs). Drawing on the stimulus–organism–response (S-O-R) theory, we hypothesized that two control systems, an outcome-based control system (OBCS) and a behavior-based control system (BBCS), trigger work engagement rather than organizational dehumanization in FLEs, leading them to choose deep acting rather than surface acting as an emotional labor strategy.
Design/methodology/approach
This study employed three-wave online surveys conducted 3–4 months apart to assess the time-lagged effects of S-O-R. We measured OBCS, BBCS (stimuli) and control variables at Time 1 (T1); work engagement and organizational dehumanization (organisms) at Time 2 (T2) and emotional labor strategies (responses) at Time 3 (T3). A total of 218 employees completed the T1, T2 and T3 surveys.
Findings
OBCS increased work engagement, leading to increased deep acting. BBCS enhanced organizational dehumanization, leading to increased surface acting. Post-hoc analysis confirmed that the indirect effect of OBCS on deep acting through work engagement and the mediation effect of BBCS on surface acting through organizational dehumanization were statistically significant.
Originality/value
This study collected three-wave data to reveal how organizational control systems affect FLEs’ emotional labor in the S-O-R framework. It illustrated how organizations induce FLEs to perform effective emotional strategies by investigating the effects of organizational control systems on their internal states.
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Mohammad Belayet Hossain and Muhammad Abdullah Fazi
Critical examination of Bangladeshi laws related to workers’ rights in the garment industry. This paper aims to examine the impact of foreign direct investment (FDI) on the…
Abstract
Purpose
Critical examination of Bangladeshi laws related to workers’ rights in the garment industry. This paper aims to examine the impact of foreign direct investment (FDI) on the protection of garment workers’ rights in Bangladesh, analyzing how international investment practices influence labor standards and the overall well-being of workers in the garment industry.
Design/methodology/approach
In this study, qualitative and analytical methods has been used to analyze legal frameworks related to labor rights in Bangladesh and BITs.
Findings
The findings indicate a need to strengthen the current legal framework to better protect workers' rights in Bangladesh. The study also provides recommendations for the relevant authorities to improve the existing laws.
Originality/value
Novel idea critically evaluating the Bangladeshi legal framework in the context of foreign direct investment and implications for worker's rights.
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Xiahai Wei, Chenyu Zeng and Yao Wang
In the process of making agricultural production decisions in rural households, severe weather conditions, either extreme cold or heat, may squeeze the labor input in the…
Abstract
Purpose
In the process of making agricultural production decisions in rural households, severe weather conditions, either extreme cold or heat, may squeeze the labor input in the agricultural sector, leading to a reallocation of labor between the agricultural and non-agricultural sectors. By applying a dataset with a wide latitude range, this study empirically confirms the influence of extreme temperatures on the agricultural labor reallocation, reveal the mechanism of farmers’ adaptive behavioral decision and therefore enriches the research on the impact of climate change on rural labor markets and livelihood strategies.
Design/methodology/approach
This study utilizes data from Chinese meteorological stations and two waves of China Household Income Project to examine the impact and behavioral mechanism of extreme temperatures on rural labor reallocation.
Findings
(1) Extremely high and low temperatures had led to a reallocation of labor force from agricultural activities to non-farm employment, with a more pronounced effect from extreme high temperature events. (2) Extreme temperatures influence famers’ decision in abandoning farmland and reducing investment in agricultural machinery, thus creating an interconnected impact on labor mobility. (3) The reallocation effect of rural labor induced by extreme temperatures is particularly evident for males, persons that perceives economic hardship or labor in economically active areas.
Originality/value
By applying a dataset with a wide latitude range, this study empirically confirms the influence of extreme temperatures on the agricultural labor reallocation, and reveals the mechanism of farmers’ adaptive behavioral decision and therefore enriches the research on the impact of climate change on rural labor markets and livelihood strategies.
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Oluwabunmi O. Adejumo, Joshua F. Obisanya and Folashade O. Akinyemi
Women’s direct or subtle exclusion from the labour market is still evident, necessitating more rigorous inquiries into the subject matter. The study aims to assess the moderating…
Abstract
Purpose
Women’s direct or subtle exclusion from the labour market is still evident, necessitating more rigorous inquiries into the subject matter. The study aims to assess the moderating factors that can boost the inclusion of women participation in the labour market by complementing and actualising the doctrine of the feminist U-shaped hypothesis.
Design/methodology/approach
This study is situated within the feminist U-shaped hypothesis and employs the generalised method of moments (GMM) on 38 countries in sub-Saharan Africa (SSA).
Findings
This study validates the U-shaped labour hypothesis and expands on the moderating effects of the U-shaped curve in 38 SSA countries.
Originality/value
The study contributes to the influences of human capital development and technological access that can significantly improve the workings of the feminist U- hypothesis in SSA countries.
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This study aims to explore the spatial impact of an increase in the minimum wage on the labor productivity of star-rated hotels in China.
Abstract
Purpose
This study aims to explore the spatial impact of an increase in the minimum wage on the labor productivity of star-rated hotels in China.
Design/methodology/approach
The impact is analyzed by using the dynamic spatial Durbin model.
Findings
The authors find a U-shaped link between the increase in minimum wage and labor productivity of star-rated hotels. The long-term impact of a minimum wage increase has a greater influence on labor productivity than its short-term effects. While there is no notable spatial spillover impact observed in the sample of 31 provinces in China, the authors do identify a spatial spillover effect of the minimum wage rises on the labor productivity of star-rated hotels in the central area. Furthermore, they observe heterogeneity across China. The eastern and western regions exhibit a U-shaped relationship, whereas the central region exhibits an inverted U-shaped relationship.
Practical implications
The findings of this study allow government agencies to get a more comprehensive comprehension of the actual consequences of minimum wage hikes on the tourism and hospitality sector, thereby establishing a solid basis for them to develop appropriate policies. Moreover, it offers a variety of suggestions aimed at enhancing the quality and efficiency of hotel management.
Originality/value
Research on the effects of minimum wage standards is scant in the hospitality industry. Based on human capital investment theory, this study examines the effect of the minimum wage standard hikes on labor productivity of star-rated hotels from the spatial perspective, filling the existing research gap.
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Sandy Harianto and Janto Haman
The purpose of our study is to investigate the effects of politically-connected boards (PCBs) on over-(under-)investment in labor. We also examine the impacts of the supervisory…
Abstract
Purpose
The purpose of our study is to investigate the effects of politically-connected boards (PCBs) on over-(under-)investment in labor. We also examine the impacts of the supervisory board (SB)’s optimal tenure on the association between PCBs and over-investment in labor.
Design/methodology/approach
We constructed the proxy for PCBs using a dummy variable set to 1 (one) if a firm has politically-connected boards and zero (0) otherwise. For the robustness check, we used the number of politically-connected members on the boards as the proxy for PCBs.
Findings
We find that the presence of PCBs reduces over-investment in labor. Consistent with our prediction, we found no significant association between PCBs and under-investment in labor. We also find that the SB with optimal tenure strengthens the negative association between PCBs and over-investment in labor. In our channel analysis, we find that the presence of PCB mitigates over-investment in labor through a higher dividend payout ratio.
Research limitations/implications
Due to the unavailability of data in firms’ annual reports regarding the number of poorly-skilled and highly skilled employees, we were not able to examine the effect of low-skilled and high-skilled employees on over-investment in labor. Also, we were not able to examine over-(under-)investment in labor by drawing a distinction between general (generalist) and firm-specific human capital (specialist) as suggested by Sevcenko, Wu, and Kacperczyk (2022). Generally, it is more difficult for managers to hire highly-skilled employees, specialists in particular, thereby driving the choice of either over- or under-investing in the labor forces. In addition, in the firms’ annual reports, there is no information regarding temporary employees. Therefore, if and when such data become available, this would provide another avenue for future research.
Practical implications
Our study offers several practical implications and insights to stakeholders (e.g. insiders or management, shareholders, investors, analysts and creditors) in the following ways. First, our study highlights significant differences between capital investment and labor investment. For instance, labor investment is considered an expense rather than an asset (Wyatt, 2008) because, although such investment is human capital and is not recognized on the firm’s balance sheet (Boon et al., 2017). In addition, labor investment is characterized by: its flexibility which enables firms to make frequent adjustments (Hamermesh, 1995; Dixit & Pindyck, 2012; Aksin et al., 2015), its non-homogeneity since every employee is unique (Luo et al., 2020), its direct impact on morale and productivity of a firm (Azadegan et al., 2013; Mishina et al., 2004; Tatikonda et al., 2013), and its financial outlay which affects the ongoing cash flows of a firm (Sualihu et al., 2021; Khedmati et al., 2020; Merz & Yashiv, 2007). Second, our findings reveal that the presence of PCBs could help to reduce over-investment in labor. However, if managers of a firm choose to under-invest in labor in order to obtain better profit in the short-term through cost saving, they should be aware of the potential consequences of facing a financial loss when a new business opportunity suddenly arises which requires a larger labor force. Third, our findings help stakeholders to re-focus on the labor investment. This is crucial due to the fact that labor investment is often neglected by those stakeholders because the expenditure of labor investment is not recognized on the firm’s balance sheet as an asset. Instead, it is written off as an expense in the firm’s income statement. Fourth, our findings also provide insightful information to stakeholders, suggesting that an SB with optimal tenure is more committed to a firm, and this factor plays an important role in strengthening the negative association between PCBs and over-investment in labor.
Social implications
First, our findings provide a valuable understanding of the effects of PCBs on over-(under-)investment in labor. Stakeholders could use information disclosed in the financial statements of a publicly-listed firm to determine the extent of the firm’s investment in labor and PCBs, and compare this information with similar firms in the same industry sector. Second, our findings give a better understanding of the association between investment in labor and political connections , which are human and social capital that could determine the long-term survival and success of a firm. Third, for shareholders, the appointment of board members with political connections is an important strategic decision to build political capital, which is likely to have a long-term impact on the financial performance of a firm; therefore, it requires thoughtful consultation with firm insiders.
Originality/value
Our findings highlight the role of PCBs in reducing over-investment in labor. These findings are significant because both investment in labor and political connections as human and social capital can play an important role in determining the long-term survival and success of a firm.
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Marta Escalonilla, Begoña Cueto and Maria Jose Perez-Villadoniga
This paper aims to analyse the short- and long-term effects of entering the Spanish labour market under tough economic conditions on young immigrant–native earnings and employment…
Abstract
Purpose
This paper aims to analyse the short- and long-term effects of entering the Spanish labour market under tough economic conditions on young immigrant–native earnings and employment outcomes.
Design/methodology/approach
The authors use cohorts, where the entry cohort into the labour market is the unit of observation. As a database, the authors use the continuous sample of working histories covering the period 2007–2021. Then, the authors estimate the model using weighted least squares.
Findings
The results show that the great recession and COVID-19 led to a blockage at the entrance of the labour market, reducing the number of workers. Additionally, the authors observe an adverse impact in terms of employment and earnings on those entering the labour market. Besides, this effect varies in intensity and persistence for natives and immigrants, as well as by country of birth, age of entry, gender and educational level.
Originality/value
A contribution to the literature is the analysis of the earnings and employment trajectories of young people entering the Spanish labour market for the first time during an adverse shock, such as the 2008 economic crisis or the COVID-19 crisis, and the possible differences that exist between native and immigrant workers. So, the authors analyse the labour market trajectories of workers covering the most recent years. Likewise, the authors carry out an extensive heterogeneity analysis in which they distinguish workers by educational level, gender, age of entry into the labour market and immigrants by their country of birth. This represents an additional contribution. The use of a cohort approach also contributes to the existing literature.
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María Cervini-Plá and José I. Silva
This study aims to contribute to the literature by examining the gender gap effects of childcare restrictions. Specifically, not using professional childcare services due to…
Abstract
Purpose
This study aims to contribute to the literature by examining the gender gap effects of childcare restrictions. Specifically, not using professional childcare services due to issues like access, quality or costs. Additionally, we explore the long-run consequences of extended work interruptions for childcare.
Design/methodology/approach
Using a specialized cross-sectional module from the 2018 Spanish Labor Force Survey, we estimated a set of linear regression models to capture the short and long run effects of childcare restrictions in labor market outcomes.
Findings
We identify substantial gender gaps in labor force, employment, full-time employment and hours worked among parents facing childcare constraints. In contrast, parents without such restrictions experience much lower gender gaps. The long-run analysis reveals that mainly career breaks lasting 2 years or more significantly diminish the labor supply and employment rates of mothers.
Originality/value
Our study goes beyond examining the effects of childcare restrictions on mothers’ labor market behavior and explicitly studies the gender disparities related to these restrictions. Moreover, our database includes information on work flexibility for childcare, allowing us to explore whether such flexibility can help mitigate these gender gaps. Additionally, we assess the long-term effects of work interruptions due to childcare responsibilities on women’s labor outcomes.
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