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Article
Publication date: 9 April 2018

Comments on two sides of CEO pay injustice: A power law conceptualization of CEO over and underpayment

Martin J. Conyon

This is a short commentary on Herman Aguinis, Geoffrey Martin, Luis Gomez-Mejia, Ernest Boyle and Harry Joo (2017): “Two sides of CEO pay injustice: A power law…

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Abstract

Purpose

This is a short commentary on Herman Aguinis, Geoffrey Martin, Luis Gomez-Mejia, Ernest Boyle and Harry Joo (2017): “Two sides of CEO pay injustice: A power law conceptualization of CEO over and underpayment.”

Design/methodology/approach

Using insights from prior studies on executive compensation, the author’s commentary presents a critical evaluation of “Two sides of CEO pay injustice: […].” In addition, the author offers potential avenues for further research.

Findings

The paper “Two sides of CEO pay injustice” is well executed and makes several significant contributions to the management and executive compensation literature. Particularly, noteworthy are the use of advanced quantitative methods, the use of power law distributions to explain chief executive officer (CEO) pay outcomes, the focus on pay-for-performance and the role of justice in CEO outcomes. The author’s commentary in the present paper discusses the measurement of CEO pay and performance, poses alternative estimation methods to explore the pay-for-performance link and offers thoughts on justice theory in the context of CEO pay.

Research limitations/implications

The authors’ findings may be briefly stated as CEO pay is better described by a power law distribution than a normal distribution, CEO pay is not linked to firm performance and the patterns of CEO pay does not conform to patterns of distributive justice. Overall, the authors provide an important way to evaluate CEO pay outcomes. Thy set the stage for new avenues of research.

Practical implications

CEO pay is a highly controversial subject in the domain of corporate governance. This paper offers boards of directors and policymakers a method to better understand the success or failure of boardroom pay policies.

Social implications

CEO pay is an important social measure.

Originality/value

The authors’ paper is original by offering a method for determining over and underpayment of CEOs. The author in the present paper makes suggestions on how one might extend the research.

Objetivo – Este es un comentario sobre el trabajo de Herman Aguinis, Geoffrey Martin, Luis Gomez-Mejia, Ernest Boyle y Harry Joo (2017): “Two sides of CEO pay injustice: A power law conceptualization of CEO over and underpayment”.

Diseño/metodología/aproximación – Utilizando las ideas de la literatura previa sobre retribución de ejecutivos, mi comentario presenta una evaluación crítica del artículo “Two sides of CEO pay injustice: […]”. Además, esbozo algunas ideas para la investigación futura.

Resultados – El artículo “Dos lados de la injusticia de la retribución de los CEO” está bien desarrollado y realiza varias contribuciones significativas a las literaturas de gestión y retribución de ejecutivos. En particular, son de señalar: a) el uso de métodos cuantitativos avanzados, b) el uso de la distribución de ley de poder para explicar los resultados de la retribución de los CEO, c) el foco en el pago por resultados, d) el papel de la justicia en el rendimiento del CEO. Mi comentario a) discute las medidas de retribución y rendimiento del CEO, b) propone métodos de estimación alternativos para la relación entre retribución y rendimiento y c) ofrece ideas en torno a la teoría de la justicia en el contexto de la retribución del CEO.

Implicaciones – Los resultados de los autores pueden resumirse así: a) La retribución de los CEO se describe mejor como una distribución de ley de poder que como una distribución normal, b) la retribución del CEO y el rendimiento empresarial no están conectados, c) los patrones de retribución del CEO no concuerdan con los patrones de justicia distributiva. En general, los autores proporcionan un importante método para evaluar los resultados de la retribución de los CEO y fomentar la investigación futura.

Implicaciones prácticas – La retribución del CEO es un tema muy controvertido en el ámbito del gobierno corporativo. Este artículo proporciona a los consejos de administración y a los decisores públicos un método para entender mejor el éxito o fracaso de las prácticas retributivas en los consejos de administración.

Originalidad/valor – El trabajo de los autores es original al ofrecer un método para determinar la sobre o la infra retribución de los CEO. Yo apunto algunas sugerencias sobre cómo puede extenderse esta investigación.

Objetivo – Este é um breve comentário a Herman Aguinis, Geoffrey Martin, Luis Gomez-Mejia, Ernest Boyle and Harry Joo (2017): “Two sides of CEO pay injustice: A power law conceptualization of CEO over and underpayment”.

Metodologia – Usando conhecimentos de estudos anteriores em compensação executiva, o meu comentário apresenta uma avaliação crítica de “Two sides of CEO pay injustice:….”. Adicionalmente, ofereço potenciais avenidas para investigação futura.

Resultados – O artigo “Two sides of CEO pay injustice” está bem feito e apresenta diversas contribuições importantes à literature sobre compensação executiva e de gestores. Em particular, são de salientar: a) o uso de métodos quantitativos avançados b) o uso de distribuições da lei de potência para explicar os resultados do pagamento a CEOs c) O enfoque no pagamento pela performance d) o papel da justiça nos resultados para o CEO. O meu comentário a) discute a medida de pagamento ao CEO e do desempenho b) Propõe métodos alternativos de estimação para explorar a ligação pagamento ao desempenho e c) Apresenta argumentos da teoria da justiça no contexto da compensação do CEO.

Implicações – Os resultados dos autores podem resumir-se como: a) Compensação do CEO é mais bem descrita por uma distribuição da lei de potência que por uma distribuição normal b) Compensação do CEO não está ligada à performance da empresa c) Os padrões da compensação do CEO não se conformam com justiça distributiva. Em geral, os autores fornecem uma forma importante de avaliar a compensação do CEO. Apresentam por isso novas vias para investigação futura.

Implicações práticas – Compensação do CEO é um tópico controverso do domínio da governança corporativa. Este artigo oferece aos Conselhos de Administração e decisores politicos um método para melhor perceber o sucesso ou insucesso das políticas de pagamento aos membros das Administrações.

Originalidade/valor – O artigo é original e oferece um método para determinar sobre ou sub compensação do CEO. Faço sugestões de como se pode estender a investigação.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 16 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/MRJIAM-11-2017-0791
ISSN: 1536-5433

Keywords

  • Justice
  • Distributive justice
  • CEO performance
  • CEO pay
  • Justice theory
  • Pay-for-performance
  • Chief executive officer (CEO) and executive compensation
  • Pay equity
  • Retribución del consejero delegado (CEO) y de los ejecutivos
  • Rendimiento empresarial
  • Retribución por resultados
  • Teoría de la justicia
  • Chief Executive Officer (CEO) e compensação executiva
  • Performance da empresa
  • Pay-for performance
  • Teoria da justiça

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Article
Publication date: 9 April 2018

The two sides of CEO pay injustice: A power law conceptualization of CEO over and underpayment

Herman Aguinis, Geoffrey P. Martin, Luis R. Gomez-Mejia, Ernest H. O’Boyle and Harry Joo

The purpose of this study was to examine the extent to which chief executive officers (CEOs) deserve the pay they receive both in terms of over and underpayment.

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Abstract

Purpose

The purpose of this study was to examine the extent to which chief executive officers (CEOs) deserve the pay they receive both in terms of over and underpayment.

Design/methodology/approach

Rather than using the traditional normal distribution view in which CEO performance clusters around the mean with relatively little variance, the authors adopt a novel power law approach. They studied 22 industries and N = 4,158 CEO-firm combinations for analyses based on Tobin’s Q and N = 5,091 for analyses based on return on assets. Regarding compensation, they measured the CEO distribution based on total compensation and three components of CEO total pay: salary, bonus, and value of options exercised.

Findings

In total, 86 percent of CEO performance and 91 percent of CEO pay distributions fit a power law better than a normal distribution, indicating that a minority of CEOs are producing top value for their firms (i.e. CEO performance) and a minority of CEOs are appropriating top value for themselves (i.e. CEO pay). But, the authors also found little overlap between CEOs who are the top performers and CEOs who are the top earners.

Implications

The findings shed new light on CEO pay deservingness by using a novel conceptual and methodological lens that highlights systematic over and underpayment. Results suggest a violation of distributive justice and offer little support for agency theory’s efficient contracting hypothesis, which have important implications for agency theory, equity theory, justice theory, and agent risk sharing and agent risk bearing theories.

Practical implications

Results highlight erroneous practices when trying to benchmark CEO pay based on average levels of performance in an industry because the typical approach to CEO compensation based on averages significantly underpays stars and overpays average performers.

Originality/value

Results offer new insights on the extent of over and underpayment. The findings uncover an extremely large non-overlap between the top earning and top performing CEOs and to an extent far greater in magnitude than previously suggested.

Objetivo – El objetivo de nuestro estudio fue examinar si los directores ejecutivos (CEOs) merecen la remuneración monetaria que reciben.

Metodología – En lugar de utilizar el enfoque tradicional que asume que la distribución del rendimiento de CEOs sigue la curva normal (con la mayoría de CEOs agrupados en torno a la media y relativamente poca variación), adoptamos un enfoque diferente basado en la ley de potencia. Incluimos 22 industrias y N = 4.158 combinaciones de CEO-firma para análisis basados en Tobin’s Q y N = 5.091 para análisis basado en la rentabilidad de los activos. En cuanto a la remuneracion, medimos distribuciones basadas en la remuneración total y tres componentes del pago completo a los CEOs: salario, bonos, y el valor de las opciones ejercitadas.

Resultados – 86% de las distribuciones de rendimiento de CEOs y el 91% de las distribuciones de pago de los CEO se aproximan mejor a una distribución de ley de potencia que a una distribución normal. Esto indica que una minoría de los CEOs produce un valor muy superior para sus empresas (es decir, el rendimiento CEO) y una minoría de los CEOs apropia valor superior para sí mismos (es decir, pago de los CEO). Sin embargo, encontramos muy poco solapamiento entre aquellos CEOs que se desempeñan mejor y los CEOs que ganan más.

Implicaciones – Nuestros hallazgos usando una conceptualización y metodología novedosas ponen en relieve que a muchos CEOs se les paga demasiado y que a muchos no se les paga suficiente (en comparación con su desempeño). Los resultados sugieren una violación de los principios de justicia distributiva y no apoyan la hipótesis de “contratación eficiente,” y tienen implicaciones para para la teoría de la agencia, de la equidad, de la justicia, y de la distribución de riesgos.

Implicaciones prácticas – Los resultados destacan las prácticas erróneas con respecto a la distribución de compensación a CEOs que se basan en los niveles medios de rendimiento en una industria. Estas prácticas llevan a no pagar suficiente a los directivos “estrella” y pagar demasiado a los directivos con desempeño medio.

Originalidad/valor – Los resultados ofrecen nuevas perspectivas sobre la relación entre desempeño y compensación de CEOs y que los que se desempeñan mejor no son los que reciben más pago, y viceversa. Estas diferencias son mucho más grandes de que lo que se creía anteriormente.

Objetivo – O objetivo do nosso estudo foi examinar se os CEOs merecem a compensação monetária que recebem.

Metodologia – Em vez de utilizar a abordagem tradicional que assume que a distribuição do desempenho do CEO segue a curva normal (com a maioria dos CEOs agrupados em torno da média e relativamente pouca variação), adotamos uma abordagem diferente com base num enfoque inovador da lei de potência. Incluímos 22 indústrias e N = 4.158 combinações de CEO-empresa para análise baseada no Q de Tobin e N = 5091 para análise baseado na rentabilidade dos ativos. Em relação à compensação, medimos as distribuições de CEO com base no total de compensação e três componentes do pagamento total dos CEOs: salário, bônus e o valor das opções exercidas.

Resultados – 86% do desempenho do CEO e 91% das distribuições de pagamento do CEO correspondem a uma lei de potência melhor do que uma distribuição normal, indicando que uma minoria de CEOs está produzindo valor superior para suas empresas (ou seja, desempenho do CEO) e uma minoria de CEOs se apropriando do valor superior para si próprios (isto é, o salário do CEO). Mas, também encontramos pouca sobreposição entre CEOs que tem os melhores desempenhos e os CEOs que tem as maiores ganancias.

Implicações – Nossas descobertas lançam nova luz sobre o merecimento do pagamento do CEO, usando uma nova lente conceitual e metodológica que destaca o excessivo e o baixo pagamento sistemático. Os resultados sugerem uma violação da justiça distributiva e não apoiam a hipótese da contratação eficiente, e tem implicações para a teoria da agência, teoria da igualdade, teoria da justiça e distribuição de riscos.

Implicações práticas – Os resultados destacam práticas errôneas quando se tenta benchmark de remuneração do CEO baseado em níveis médios de desempenho em uma indústria, porque essas práticas levam a não pagar o suficiente aos CEOs “estrela” e pagar em excesso CEOs com desempenho médio.

Originalidade/valor – Os resultados oferecem novas perspectivas sobre a relação entre desempenho e retribuição dos CEOs e que os que desempenham melhor não são os que recebem um pagamento maior, e vice-versa. Estas diferenças são muito maiores do que se pensava anteriormente.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 16 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/MRJIAM-02-2017-0731
ISSN: 1536-5433

Keywords

  • Justice
  • Power
  • Firm performance
  • Corporate governance
  • Agency theory
  • Executive compensation
  • CEO pay
  • CEO performance
  • Chief executive officers, CEOs
  • Directores ejecutivos (CEOs)
  • Compensación de ejecutivos
  • Desempeño de las empresas
  • Teoría de la agencia
  • Teoría de la justicia
  • Equidad
  • Poder
  • Diretores executivos (CEOs)
  • Compensação de executivos
  • Desempenho das empresas
  • Teoria da agencia
  • Teoria da justiça
  • Igualdade
  • Poder

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Article
Publication date: 9 April 2018

CEO pay is indeed decoupled from CEO performance: charting a path for the future

Herman Aguinis, Luis R. Gomez-Mejia, Geoffrey P. Martin and Harry Joo

The purpose of the study is to set a research agenda so that future conceptual and empirical research can improve the understanding of why CEO pay and CEO performance are…

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Abstract

Purpose

The purpose of the study is to set a research agenda so that future conceptual and empirical research can improve the understanding of why CEO pay and CEO performance are decoupled.

Design/methodology/approach

The paper compiles and adds to many of the explanations provided by this special issue’s nine commentaries regarding why CEO pay and CEO performance are decoupled. These explanations were grouped into two categories: economic (e.g. marginal productivity theory, agency theory and behavioral agency model) and social-institutional-psychological (e.g. CEO individual differences and characteristics and CEO-organization interactions). Moreover, new analyses based on additional data were conducted to examine measurement-related explanations for the observed pay-performance decoupling.

Findings

Results based on alternative measures of pay and performance confirmed, once again, the existence of pay-performance decoupling.

Research limitations/implications

This paper will stimulate research pitting theoretical explanations against each other to understand their relative validity in different contexts.

Practical implications

The paper informs ongoing efforts to link CEO pay to performance.

Social implications

The paper also revisits the decoupling of CEO pay and firm performance from a normative and value-based perspective (i.e. regarding whether pay and performance should be related).

Originality/value

The paper clarifies that the articles in this special issue largely concluded that CEO pay is decoupled from CEO performance.

Objetivo – El objetivo es proponer una ageda de investigación de forma que la futura investigación conceptual y empírica pueda mejorar la comprensión sobre por qué la retribución y el rendimiento del CEO no están conectados.

Diseño/metodología/aproximación – El artículo compila y añade a la mayoría de las explicaciones proporcionados por los nueve comentarios publicados en este número especial acerca de porqué la retribución y el rendimiento del CEO están desconectados. Estas explicaciones se agrupan en dos categorías: económicas (e.g. teoría de la productividad marginal, teoría de agencia, modelo de agencia comportamental) y socio-institucional-psicológicas (e.g. diferencias y características individuales del CEO, interacción CEO-organización). Además, se llevan a cabo nuevos análisis sobre datos adicionales para examinar algunas explicaciones relativas a la medición para la falta de conexión entre retribución del CEO y su rendimiento.

Resultados – Los resultados basados en medidas alternativas de retribución y rendimiento confirman, una vez más, la existencia de una desconexión entre ambas magnitudes.

Limitaciones/implicaciones – Este artículo estimulará a investigación contraponiendo diferentes explicaciones teóricas para entender su validez relativa en diferentes contextos.

Implicaciones prácticas – El artículo informa sobre los esfuerzos actuals para relacionar la retribución del CEO y su rendimiento.

Implicaciones sociales – El artículo revisa la desconexión entre la retribución y el rendimiento del CEO desde una perspectiva normativa y de valor (i.e. sobre si la retribución y el rendimiento deben estar conectados).

Originalidad/valor – El artículo clarifica que los artículos en este número especial concluyen que la retribución del CEO está desconectada de su rendimiento.

Objetivo

O objetivo é estabelecer uma agenda de investigação para que futuros estudos conceptuais ou empíricos possam melhorar a compreensão do porquê de a compensação do CEO e o desempenho do CEO estarem dissociados.

Metodologia – O artigo compila e acrescenta às muitas explicações fornecidas pelos oito comentários deste número especial sobre as razões da dissociação da compensação e do desempenho do CEO. Estas explicações agrupam-se em duas categorias: económicas (eg., teoria da produtividade marginal, teoria da agência, modelo da agência comportamental) e Socio-institucional-psicológicas (eg., características e diferenças individuais do CEO, interações CEO-Organização). Além disso, conduziram-se novas análises baseadas em dados para examinar explicações baseadas em medições para a dissociação pagamento-desempenho.

Resultados – Resultados baseados em medidas alternativas de pagamento e desempenho confirmaram, uma vez mais, a existência da dissociação entre pagamento e performance.

Limitações/implicações – Este artigo estimula investigação que contraponha diferentes explicações teóricas, para perceber a sua validade relativa em diferentes contextos.

Implicações práticas – O artigo dá informação sobre esforços em curso para ligar a compensação do CEO ao desempenho.

Implicações sociais – O artigo revisita a dissociação do pagamento e desempenho da empresa Numa perspectiva normative e baseada em valores (ie, sobre se a compensação e a performance devem estar relacionadas).

Originalidade/valor – O paper clarifica que os artigos neste número especial basicamente concluiram que a compensação do CEO está dissociala do desempenho do CEO.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 16 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/MRJIAM-12-2017-0793
ISSN: 1536-5433

Keywords

  • Corporate governance
  • Firm performance
  • Agency
  • Power
  • Executive compensation
  • Justice
  • Chief executive officers, CEOs
  • Rendimiento de la empresa
  • Agencia
  • Poder
  • Retribución de ejecutivos
  • Justicia
  • Directores ejecutivos
  • Consejeros delegados, CEOs
  • Governança corporativa
  • Desempenho da empresa
  • Agência
  • Poder
  • Remuneração executiva
  • Justiça
  • Executivos, CEOs

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Book part
Publication date: 6 August 2020

Brazil's Legislation of Alcohol Consumption by Sports Fans and the 2014 FIFA World Cup

Bárbara Schausteck de Almeida and Wanderley Marchi Júnior

Purpose – To outline the arguments and consequent legislation that prohibited and then allowed alcohol consumption by fans in Brazilian sports arenas since 1996.…

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Abstract

Purpose – To outline the arguments and consequent legislation that prohibited and then allowed alcohol consumption by fans in Brazilian sports arenas since 1996.

Design/methodology/approach – We present the social and political debates regarding alcohol consumption by sports fans having the Brazilian legislation as a starting point and using the multiple streams framework (Kingdon, 1995). We identify the problems, policies and politics streams on three phases: the prohibition of sale and consumption of alcohol in sport stadiums, the exceptional allowance for the 2014 FIFA World Cup and its consequences on state laws five years after the 2014 event.

Findings – Violence among football supporters was the focal event to approve laws prohibiting alcohol consumption in sports arenas. For the 2014 FIFA World Cup, the sport governing body demanded the opposite, so Brazil and some states approved an exception to their laws. Since then, states see an opportunity to allow the sale and consumption of alcohol in and around the stadiums, questioning the relationship between alcohol and violence. These state laws are under examination by the Supreme Court because they may counteract a national law.

Research limitations/implications – Public safety is the key justification to uphold the laws, but a lack of empirical data and research delimit the arguments on how beneficial alcohol prohibition is to suppress supporters' violence. Lawmakers and groups of interest may also include beer industry lobbying strategies and health-related issues as relevant variables in the debate, although they are not discussed in this chapter.

Details

Sport, Alcohol and Social Inquiry
Type: Book
DOI: https://doi.org/10.1108/S1476-285420200000014007
ISBN: 978-1-78769-842-0

Keywords

  • Legislation
  • sport
  • alcohol
  • violence
  • megaevents
  • Brazil

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Book part
Publication date: 27 November 2015

A Decade of Affirmative Action in Brazil: Lessons for the Global Debate

Marion Lloyd

Just over a decade after the first universities in Brazil adopted quotas for Afro-Brazilians and other disadvantaged groups, the country has implemented the most sweeping…

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Abstract

Just over a decade after the first universities in Brazil adopted quotas for Afro-Brazilians and other disadvantaged groups, the country has implemented the most sweeping affirmative action policies in the Western Hemisphere. The surrounding controversy has inspired a large number of studies, which seek to evaluate the impact and scope of the policies, in terms of racial and social inequality, as well as to gauge perceptions within the public at large. This paper reviews some of the most significant findings of those studies, which have important implications for the global debate over affirmative action in higher education.

Details

Mitigating Inequality: Higher Education Research, Policy, and Practice in an Era of Massification and Stratification
Type: Book
DOI: https://doi.org/10.1108/S1479-358X20150000011011
ISBN: 978-1-78560-291-7

Keywords

  • Brazil
  • affirmative action
  • higher education
  • racial inequality

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Book part
Publication date: 10 November 2014

The Effect of Land Title on Child Labor Supply: Empirical Evidence from Brazil

Mauricio Moura and Rodrigo Bueno

This paper assesses the effect of property titling on child labor. Our main contribution is to investigate the potential impact of property rights on child labor supply by…

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Abstract

This paper assesses the effect of property titling on child labor. Our main contribution is to investigate the potential impact of property rights on child labor supply by analyzing household response regarding the child labor force to exogenous changes in property ownership status. The causal role of legal ownership is isolated by comparing the effect of land titling using data from a unique study in two geographically close and demographically similar communities in Osasco, a town of 654,000 people in the Sao Paulo metropolitan area. Survey data were collected from households in both communities before and after the granting of land titles, with neither type knowing ex ante whether it would receive land titles. The econometric estimates, applying the Difference-in-Difference (DD) methodology and propensity score matching, suggest that land titling decreases child labor.

Details

Factors Affecting Worker Well-being: The Impact of Change in the Labor Market
Type: Book
DOI: https://doi.org/10.1108/S0147-912120140000040007
ISBN: 978-1-78441-150-3

Keywords

  • Property rights
  • land titling
  • child labor force
  • P14
  • Q15
  • J22
  • O18
  • O54

Content available
Article
Publication date: 11 February 2019

Effects of the management control system in unethical behaviors

Luciana Klein, Ilse Maria Beuren and Delci Dal Vesco

This study investigates which dimensions of the management control system (MCS) increase the perception of organizational justice and reduce unethical behavior in the…

Open Access
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Abstract

Purpose

This study investigates which dimensions of the management control system (MCS) increase the perception of organizational justice and reduce unethical behavior in the perception of managers. The purpose of this paper is to validate the theoretical model of the study of Langevin and Mendoza (2012), testing the theoretical hypotheses formulated by the authors.

Design/methodology/approach

A survey was performed in companies listed among the Best and Largest of Exame Magazine, and the sample is composed of 102 respondents of the research, which consists of 41 assertions.

Findings

The results of the structural equation modeling show that the definition of objectives increases the perception of procedural justice, but the same was not observed regarding the remuneration of the managers. Likewise, disregarding aspects that are uncontrollable by managers in performance evaluation does not lead to the perception of procedural and distributive justice. However, feedback quality leads to the understanding that the MCS is fair. Perception of procedural and distributive justice was also observed in the use of multiple measures of performance by the company.

Research limitations/implications

Other factors that have not been investigated may interfere with and contribute to the reduction of unethical behavior (budget slack and data manipulation).

Originality/value

The only variable that interferes in the reduction of unethical behavior is feedback quality. The non-confirmation of all the hypotheses instigates the replication of the research in other contexts for empirical validation of the theoretical model of Langevin and Mendoza (2012).

Details

RAUSP Management Journal, vol. 54 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/RAUSP-06-2018-0036
ISSN: 2531-0488

Keywords

  • Organizational justice
  • Budgetary slack
  • Data manipulation
  • Management control system
  • Unethical behaviors

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Article
Publication date: 1 October 2004

Organizational Commitment: Toward a Different Understanding of the Ways People Feel Attached to Their Organizations

Arménio Rego, Regina Leite, Teresa Carvalho, Carla Freire and Armando Vieira

This paper aims to contribute to the understanding of the three‐dimensional model of organizational commitment proposed by Meyer and Allen (e.g., 1991). It focuses on…

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Abstract

This paper aims to contribute to the understanding of the three‐dimensional model of organizational commitment proposed by Meyer and Allen (e.g., 1991). It focuses on whether continuance commitment should be considered one‐dimensional or bidimensional (low alternatives; high sacrifices). Whether affective commitment should be divided into two components (affective commitment; future in common) or if it should remain as a one‐dimensional construct is also discussed. The paper also considers a “new” factor identified by Rego (2003), which he named “psychological absence”, but which we denominated here as accommodating commitment. Besides the confirmatory factor analysis, the paper shows how four dimensions of organizational justice (distributive, procedural, interpersonal, and informational) explain organizational commitment. The sample comprises 366 individuals from 22 organizations operating in Portugal. The predictive value of the justice perceptions for both instrumental commitment components is quite weak, despite ranging from 25 per cent to 36 per cent for the other components. Procedural and interpersonal justice are the main predictors. The accommodating dimension improves the fit indices of the factorial model, but its meaning is not clear. It is also not clear whether one should consider it as a new component of commitment or whether its items should be removed from the measuring instruments. The findings suggest that some gains can be achieved in the partition of the affective and instrumental commitment, but further research is necessary to clarify the issue.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 2 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/15365430480000510
ISSN: 1536-5433

Keywords

  • Commitment
  • Organizational justice
  • Portugal
  • Affective commitment
  • Continuance commitment

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Article
Publication date: 17 February 2021

Capitals and decisions about sustainability in a Brazilian ecocide organization: a narrative analysis based on Bourdieusian sociology

Beatriz Lima Zanoni, Rafael Borim-de-Souza, Eric Ford Travis and Jacques Haruo Fukushigue Jan-Chiba

The aim of this study is to analyze the capitals moved in decisions about sustainability in narratives from and referring to Samarco Minerações, S.A. under a perspective…

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Abstract

Purpose

The aim of this study is to analyze the capitals moved in decisions about sustainability in narratives from and referring to Samarco Minerações, S.A. under a perspective guided by Bourdieusian sociology.

Design/methodology/approach

Oriented by historicist ontology and historical epistemology, this research is classified as qualitative, descriptive and documentary, with narrative analysis and case study. The selected organization-case was Samarco Minerações, S.A. The documentary sources considered were sustainability reports, social networks channels and news published in Brazilian newspapers of high circulation. The collected information was submitted to the narrative analysis method.

Findings

Samarco Minerações, S.A. maintained the sustainability posture before and after the ore tailings dam rupture. The decision models adopted (decentralized) and the moved capitals (economic and technological) after the ecocide revealed a change in the organizational practices in front of a new instability scenario, and the organization’s attempt to reach acknowledgment, legitimacy and power.

Social implications

The organization was selected because of its involvement in an ecocide. The crime generated economic (suspension of tax collection caused by the organizational inactivity), social (unemployment and deaths) and environmental (iron ore tailings contaminated the region’s ecosystem) impacts.

Originality/value

The greatest value and contribution this paper offers is an alternative intermediary methodological approach using Bourdieusian micro-sociology to analyze narratives based on capitals dynamics and doxa. This theoretical and methodological approach can prove fruitful for further research in sustainability studies on other topics, and even in other fields.

Propósito

Analisar, bajo orientación de la sociología bourdieusiana los capitales movidos en decisiones sobre sustentabilidade, desde narrativas referentes a Samarco Minerações S.A.

Design/Metodología/Enfoque

Orientado por una ontología historicista y epistemología histórica, esa pesquisa se clasifica como: cualitativa, descriptiva y documental, con el analisis de narrativa y estudio de caso. La organización elegida fue Samarco Minerações S.A. Las fuentes documentales fueron: informes de sustentabilidad, canales en redes sociales y notícias publicadas en periódicos brasileños de gran circulación. Las informaciones recogidas fueron sometidas al método de analisis narrativa.

Resultados

La Samarco Minerações S.A. mantuvo la postura de sustentabilidad antes y después del rompimiento de la represa. Los modelos de decisiones adoptados (descentralizado) y los capitales manejados (económico y tecnológico) después el ecocidio, revelaron un cambio en las prácticas organizacionales frente una escena de instabilidad, y el intento de la organización de alcanzar reconocimiento, legitimidad y poder.

Impacto social

La organización fue elegida por su participación en un ecocidio. El crimen generó impactos económicos (interrupción de recaudación de los impuestos causado por la inaticvidad organizacional), impacto social (desempleo y muertes), impacto ambiental (desechos de minério del hierro contaminarón al ecosistema de la región).

Originalidad/valor

El principal valor y contribución que el artículo ofrece es un enfoque metodológico intermedio y alternativo que se utiliza de la microsociología bourdieusiana para analisar narrativas basadas en la dinamica de los capitales y de la doxa. El enfoque teorico metodológico puede ser benéfico para las nuevas pesquisas en los estudios de sustentabilidad, de las narrativas, en otros temas y hasta mismo en otros campos.

Propósito

Analisar, sob orientação da sociologia bourdieusiana, os capitais movimentados em decisões sobre sustentabilidade, a partir de narrativas da e referentes à Samarco Minerações S.A.

Design/Metodologia/Abordagem

Orientada por uma ontologia historicista e epistemologia histórica, essa pesquisa classifica-se como: qualitativa, descritiva e documental, com análise de narrativa e estudo de caso. A organização selecionada foi a Samarco Minerações S.A. As fontes documentais foram: relatórios de sustentabilidade, canais em redes sociais e notícias publicadas em jornais brasileiros de grande circulação. As informações coletadas foram submetidas ao método de análise narrativa.

Resultados

A Samarco Minerações S.A. manteve a postura de sustentabilidade antes e após o rompimento da barragem. Os modelos de decisão adotados (descentralizado) e os capitais movimentados (econômico e tecnológico) após o ecocídio, revelaram uma mudança nas práticas organizacionais diante de um cenário de instabilidade, e a tentativa da organização de alcançar reconhecimento, legitimidade e poder.

Impacto social

A organização foi selecionada por seu envolvimento em um ecocídio. O crime gerou impacto econômicos (suspensão de arrecadação de impostos causada pela inatividade organizacional), impacto social (desempregos e mortes), impacto ambiental (rejeitos de minério de ferro contaminaram o ecossistema da região).

Originalidade/valor

O principal valor e contribuição que o artigo oferece é uma abordagem metodológica intermediária e alternativa que se utiliza da microssociologia bourdieusiana para analisar narrativas baseadas na dinâmica dos capitais e da doxa. A abordagem teórico-metodológica pode ser benéfica para novas pesquisas em estudos de sustentabilidade, de narrativas, em outros temas e até mesmo em outros campos.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/MRJIAM-08-2020-1085
ISSN: 1536-5433

Keywords

  • Sustainability
  • Narratives
  • Capitals
  • Decision
  • Bourdieusian sociology
  • Samarco Minerações S.A.
  • Ecocide
  • Capitales
  • Decisiones
  • Sustentabilidad
  • Sociologia Bourdieusiana
  • Ecocidio
  • Samarco Minerações S.A.
  • Narrativas
  • Capitais
  • Decisão
  • Sustentabilidade
  • Socioloigia Bourdieusiana
  • Ecocídio
  • Samarco Minerações S.A.
  • Narrativas

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Article
Publication date: 29 November 2013

Itineraries of immigrant women in São Paulo, Brazil

Ana Cecilia Andrade de Moraes Weintraub and Maria da Penha Costa Vasconcellos

This paper presents the results of a field research conducted with five immigrant women in the city of São Paulo, Brazil. The aim of this paper is to show the itineraries…

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Abstract

Purpose

This paper presents the results of a field research conducted with five immigrant women in the city of São Paulo, Brazil. The aim of this paper is to show the itineraries they used in order to build a new life as foreigners in the city.

Design/methodology/approach

An ethnography study was undertaken during one year (May/2010 to May/2011) mapping the itineraries made by them in the city and their correspondent narratives.

Findings

Foreign women did not have difficulties to access health care structures in São Paulo, since the health care system is universal in Brazil; they found many more opportunities of social care and assistance in the multiplicity of the city, rather than in the self-proclaimed institutions that exists especially for foreigners. Their different juridical categories did not impact much in their routine activities in the city.

Practical implications

This research may impact the activities of institutions that offer assistance to immigrants.

Originality/value

This paper presents a unique map of itineraries of foreign undesirable immigrant women in São Paulo, in contrast with other researches that tend to focus either on the juridical status or mental health care strategies for immigrants.

Details

International Journal of Migration, Health and Social Care, vol. 9 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/IJMHSC-06-2013-0011
ISSN: 1747-9894

Keywords

  • Public health
  • Brazil
  • Lifestyles
  • Migrant women
  • São Paulo
  • Urban itineraries

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