This paper addresses the tension between the government policy to increase the number of citizens working in the private sector in the United Arab Emirates and the organizational preference for employing expatriate workers. Currently a dominant construal of the limited success of the policy is that the local workforce, traditionally employed largely in government positions, is unwilling to commit to the perceived greater rigor of the private sector. The author reconceptualizes the issue as one deriving from a principle of corporate (...) financialization in which companies claim the right to optimize their labor costs as much as possible. This paper briefly discusses corporate financialization, overviews the workforce localization program in the United Arab Emirates, termed Emiratization, highlights the reasons cited for its limited success, and argues that this is due to corporate strategy of selecting their workforce according to financial and rights-related criteria. The issue is an ethical one in that a local population, the natural labor force, is marginalized in a national context of immigration laws permitting the large scale importation of cheaper and more compliant foreign labor. (shrink)

ABSTRACT:This article considers the economic case for so-called sweatshop wages and working conditions. My goal is not to defend or reject the economic case for sweatshops. Instead, proceeding from a broadly pluralist understanding of value, I make and defend a number of claims concerning the ethical relevance of economic analysis for values that different agents utilize to evaluate sweatshops. My arguments give special attention to a series of recent articles by Benjamin Powell and Matt Zwolinski, which represent the latest and (...) best defense of the economic case for sweatshops. In the process, I challenge Zwolinski’s “non-worseness claim” (NWC), and the idea that opposition to sweatshop wages and working conditions fails to respect that the autonomy of would-be sweatshop workers. Ultimately, I conclude that even if the economic case for sweatshops rests on a solid empirical foundation, agents possess good reason to advocate for better wages and working conditions for sweatshop workers, and to prefer less exploitative or coercive relationships. Sweatshop labor undermines a compelling vision of free markets, according to both Kantian and republican conceptions of freedom, and the relationships formed by those who participate in such markets. (shrink)

Although the possibility that a firm’s stakeholders may take damaging measures against it in response to its activities has been an underlying assumption of stakeholder theory from inception, the conditions that predispose stakeholders to act against firms remain largely unexplored in the literature. Based on work in equity theory, expectancy theory, and resource dependence theory, we present and test hypotheses concerning stakeholders’ propensities to impose sanctions upon—or to support—firms. Using a vignette-based experiment, we found strong confirmation of the criticality of (...) fairness in the firm–stakeholder relationship: stakeholder equity perceptions were unequivocally associated with the proclivity to sanction the firm, or to engage in prosocial behaviours of benefit to it. Stakeholder expectancy perceptions and resource dependence were related to only certain forms of stakeholder action, indicating that researchers should take care to differentiate between types of stakeholder response when investigating questions surrounding stakeholder mobilization. Our results also suggest specific avenues for stakeholder dialogue that could help firms mitigate the likelihood of stakeholders taking damaging action against them. (shrink)

Corporate anti-corruption initiatives can make a substantial contribution towards curtailing corruption and advancing efforts to achieve the United Nations’ Sustainable Development Goals. However, researchers have observed that underdeveloped assumptions with respect to the conceptualization of corruption and how firms respond to corruption risk impeding the efficacy of anti-corruption programs. We investigate the relationship between the perceived level of corruption in foreign host countries and the organizational structure of subsidiary operations established by multinational corporations. Foreign host market corruption is disaggregated into (...) two components—private and public corruption. We employ an uncertainty-based perspective grounded in transaction cost theory to focus upon the distinct mechanisms through which private and public corruption can each be expected to impact a foreign subsidiary’s organizational structure [wholly-owned subsidiary or a joint venture with a local partner]. We expect that each type of corruption fosters a different type of uncertainty which predominates in shaping the MNC’s choice of foreign subsidiary investment structure. Hypotheses are developed and tested with a sample of 187 entries into 19 foreign host markets. Each type of corruption was found to exert a distinct effect upon the organizational structure of foreign subsidiaries. More precisely, while heightened perceived levels of public corruption were found to motivate MNCs to invest through a JV with a local partner rather than a WOS, more pronounced private corruption precipitated the opposite outcome. (shrink)

We examine how recruiting managers cope with communal norms and expectations of favoritism during recruitment and selection processes. Combining insights from institutional theory and network research, we develop a communal perspective on favoritism that presents favoritism as a social expectation to be managed. We subsequently hypothesize that the communal ties between job applicants and managers affect the strategies that managers employ to cope with this expectation. We test these ideas using a factorial survey of the effects of clan ties on (...) recruitment and selection processes in Kazakhstan. The results confirm communal ties as antecedents to the strategies managers use to cope with communal favoritism. Surprisingly, the results also show that these coping strategies are relatively decoupled from managers’ recruitment decisions. The findings contribute to favoritism research by drawing attention to the mitigating work of managers in societies in which favoritism is common. (shrink)

Off-shoring is a business decision increasingly being considered as a strategic option to effect expected cost savings. This exploratory study focuses on the moral recognition of off-shoring using ethical decision making embedded within affective events theory. Perceived magnitude of consequences and time pressure are hypothesized as affective event characteristics that lead to decision makers’ empathy responses. Subsequently, cognitive and affective empathy influence the decision makers’ moral recognition. Decision makers’ prior knowledge of off-shoring was also predicted to interact with perceptions of (...) the affective event characteristics to influence cognitive and affective empathy. Findings from a limited sample of human resource management professionals suggest that perceptions of magnitude of consequences and cognitive empathy directly relate to moral recognition and that affective empathy partially mediates the relationship between perceptions of the magnitude of consequences and moral recognition. The three-way interaction of the perceptions of magnitude of consequences, time pressure, and prior knowledge of off-shoring was marginally related to cognitive empathy. Interpretations of the findings, validity issues, limitations, future research directions, and management implications are provided. (shrink)