Growing concern about economic inequality has generated a polarized narrative regarding the causes and consequences of extreme wealth. We contend that divided ideological positions obscure a more mundane reality about the typical wealthiest 1% households. Using data from the triennial survey of consumer finance, we demonstrate that there is substantial heterogeneity within the 1%. Contrary to public discourse, the typical 1% household does not have wealth reflective of popular rich lists, but derives a significant share of its wealth from ownership (...) and active management of small- to medium-sized private enterprise. We use these findings to shed new insights on business families’ relationship to economic inequality and open promising new areas of inquiry regarding the role of the family business in society. (shrink)

The aim of this paper is to analyze whether a number of firm and industry characteristics, as well as media exposure, are potential determinants of corporate social responsibility (CSR) disclosure practices by Spanish listed firms. Empirical studies have shown that CSR disclosure activism varies across companies, industries, and time (Gray et al., Accounting, Auditing & Accountability Journal 8(2), 47–77, 1995; Journal of Business Finance & Accounting 28(3/4), 327–356, 2001; Hackston and Milne, Accounting, Auditing & Accountability Journal 9(1), 77–108, 1996; Cormier (...) and Magnan, Journal of International Financial Management and Accounting 1(2), 171–195, 2003; Cormier et al., European Accounting Review 14(1), 3–39, 2005), which is usually justified by reference to several theoretical constructs, such as the legitimacy, stakeholder, and agency theories. Our findings evidence that firms with higher CSR ratings present a statistically significant larger size and a higher media exposure, and belong to more environmentally sensitive industries, as compared to firms with lower CSR ratings. However, neither profitability nor leverage seem to explain differences in CSR disclosure practices between Spanish listed firms. The most influential variable for explaining firms’ variation in CSR ratings is media exposure, followed by size and industry. Therefore, it seems that the legitimacy theory, as captured by those variables related to public or social visibility, is the most relevant theory for explaining CSR disclosure practices of Spanish listed firms. (shrink)

Income inequality is emerging as the socioeconomic topic of our era. Yet there is no clear conclusion as to how income inequality affects the most comprehensive human outcome measure, subjective well-being. This study provides an explanation for the relationship between income inequality and SWB, by delving into its mechanisms, including egalitarian preferences, perceived fairness, social comparison concerns, as well as perceived social mobility. In a rigorous analysis using a large cross-country dataset, and accounting for the nested structure of the data, (...) as well as controlling for a variety of individual and country characteristics, we find that SWB is higher where income inequality is higher. Importantly, we also find support for this relationship being moderated by perceptions of poverty being caused by unfairness, an individual’s relative socioeconomic standing, as well as beliefs about hard work leading to success. Our study highlights the dire need for further scholarly attention to income inequality and its complex effects on SWB. (shrink)

This article explores the extent to which income inequality and income mobility—both considered indicators of economic inequality and conditions of formal regulatory institutions —facilitate or constrain the emergence of social entrepreneurship. Using 77,983 individual-level responses obtained from the Global Entrepreneurship Monitor survey of 26 countries, and supplementing with country-level data obtained from the Global Competitiveness Report of the World Economic Forum, our results from multilevel analyses demonstrate that country-level income inequality increases the likelihood of individual-level engagement in social entrepreneurship, while (...) income mobility decreases this likelihood. Further, income mobility negatively moderates the influence of income inequality on social entrepreneurship, such that the condition of low income mobility and high income inequality is a stronger predictor of social entrepreneurship. We discuss implications and limitations of our study, and we suggest avenues for future research. (shrink)

Wealthy individuals stand to gain materially from economic inequality and, moreover, have shaped many organizational and societal practices that perpetuate economic inequality. Thus, they are unlikely allies in the effort to remedy economic inequality. In this article, however, we study the mobilization of a small group of wealthy activists who join underprivileged allies to expose and contest the root causes of wealth consolidation; they offer an instructive alternative to “philanthrocapitalism,” whereby the wealthy give after extreme accumulation. Our study contributes to (...) the growing literature on inequality and organizations by recognizing how inequality is reproduced through organizations, cognizant that efforts to halt this reproduction will likely be contested by the wealthy. Our study examines how advocacy by the wealthy may be challenging, but it may garner attention because it is unexpected. We derive the concept of “privilege work” from our observations of an often awkward and fraught process that enables the wealthy to engage with their own privilege, use their insider knowledge of wealth accumulation as a lever for change, and work respectfully with underprivileged allies rather than invoking superior status. (shrink)

This paper addresses the question of the existence of corporate philanthropy. It proposes a framework for analysing corporate philanthropy along the dimensions of business/society interest and primary/secondary stakeholder focus. The framework is then applied in order to understand business involvement with the arts in the U.K. A unique dataset of 60 texts which describe different firms' involvement with the Arts is analysed using formal content analysis to uncover the motivations for business involvement. Cluster analysis is then used in order to (...) identify motivational groupings. Two broad types of involvement are identified – advertisers and legitimators. Only in one case of the 60 is there the potential to observe pure altruism. The contribution of this paper is twofold. First, it provides a clear framework to understand the motivations for corporate giving and applies this using empirical data. Secondly, this research finds little evidence, if at all, of corporate philanthropy in the context of firms giving to the Arts in the U.K. (shrink)

This article explores how economic inequality in the United States has led to growing levels of poverty, food insecurity, and obesity for the bottom segments of the economy. It takes the position that access to nutritious food is a requirement for living and for participating fully in the workplace and society. Because of increasing economic inequality in the United States, growing segments of the U.S. economy have become more food insecure and obese, eating unhealthy food for survival and suffering an (...) erosion of “equality of capabilities” that undermines their ability to play a “full and active part in the functioning of community.” Unequal access to nutritious foods in the United States is attributable in part to an industrial food system that is designed to produce short-term profits for industrial food producers, processors, and distributors that extract surplus labor value through market concentration and opportunistic behavior at the expense of the long-term benefits for consumers, food workers, and ecosystems. Economic inequality, food insecurity, and the erosion of equality of capabilities in the United States have given rise to protest movements, social movements, social innovations, and some modest strengthening of regulations to make access to and consumption of healthy food a right for every person. Implications for business and society research are explored. (shrink)

In this study, we investigate, both theoretically and empirically, the impact of language gender marking on gender wage inequality and country income inequality. We find that nations with a higher level of gender marking in their dominant language have a higher wage gap between genders. Using an instrumental variable approach, we also find that gender marking has an indirect impact on country income inequality via gender wage inequality. Furthermore, we find evidence that the income inequality of a society as a (...) whole is affected by gender wage inequality. Finally, we document that linguistic gender marking outperforms survey-based cultural gender dimensions as a predictor of both gender wage inequality and country income inequality. (shrink)

With the growth in income inequality now regarded as a crucial social issue, business and society scholars need to prepare themselves for the ambitious task of studying how corporate practices, intentionally or not, contribute to this trend. This article offers starting points for scholars wishing to explore this topic but lacking the necessary background for doing so. First, it offers suggestions as to finding the extant empirical work necessary for informed analysis. This is followed by an examination of alternate methods (...) of theory construction relevant to this topic, which transcend the limitations of the experimental science model of theory building. It then provides an example of a social science theory that exemplifies how empirically informed open theory can illuminate the dynamics behind growing inequality. The article concludes by suggesting that progress in this area requires embracing the spirit of earlier approaches to business and society scholarship while abandoning some outdated assumptions. (shrink)