Human Relations

http://hum.sagepub.com/ Economic inequality and management

Human Relations 2013 66: 299 DOI: 10.1177/0018726713478562 The online version of this article can be found at: http://hum.sagepub.com/content/66/2/299

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Human Relations Special Issue call for papers Economic inequality and management
Guest Editors: Hari Bapuji (University of Manitoba, Canada) and Suhaib Riaz (University of Massachusetts at Boston, USA) Papers to be submitted between 1 and 30 June, 2013 This special issue focuses on the relation between economic inequality and management in organizations. Particularly, we are interested in (i) how economic inequality at the societal level affects management in organizations and (ii) how organizational practices influence economic inequality at the societal level. Research in economics shows that economic inequality negatively affects human development, resulting in lower skills, low levels of trust, fewer opportunities for social mobility, lower physical and mental health, and contributes to a number of social ills, such as higher rates of infant mortality, homicide, percentage of population in prison, and teenage births (Wilkinson and Pickett, 2009). As a result, individuals in highly unequal societies make lower investments in developing their own human capital (Benabou, 1996; Mo, 2000). Further, to protect the system from the negative effects of high inequalitysuch as violence, crime and sabotagemore unequal societies employ more human resources in guard labour or monitoring roles (such as private guards, police, judicial and prison employees and supervisory labour), as opposed to productive roles (Jayadev and Bowles, 2006). In short, this body of research highlights the mechanisms through which economic inequality affects human development and increases other social costs. These findings at the societal level have not been extended to study specific effects at the organizational level. Although social costs of economic inequality are well known, very little is known about the organizational costs of economic inequality. While pointing out the lack of research in this area, Cote (2011) argued that social relationships, morality, judgment and decision making in organizations are influenced by the socio-economic class of individuals; this raises the question of whether such effects are more pronounced in societies with higher economic inequality. For example, Neville (2012) has shown that behaviours related to academic dishonesty were higher in areas with high economic inequality. These recent studies highlight the need for studying the effect of economic inequality on management. For example, lower human development engendered by higher inequality might translate into higher costs of managing in organizations. Lower physical and mental health might result in higher healthcare costs and costs of absenteeism; lower education and skill levels might result in higher costs of recruitment, selection, induction, training and development; lower trust levels could lead to higher costs of building teams, maintaining their cohesiveness and managing workplace conflicts. Organizational practices might have a role in perpetuating or increasing economic inequality at the societal level. Executive compensation has recently come under criticism because it is a major

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source of wealth accumulation in the West, besides inheritance (BCG Report, 2012). Organizational research on executive compensation and pay dispersion has so far focused on how these practices influence organizational performance (Bloom, 1999; Pfeffer and Langton, 1993; Fredrickson et al., 2010; Heyman, 2005; Riddell, 2011; Wade et al., 2006). However, even in the aftermath of the global financial crisis, very little scholarly research has examined how organizational practices such as executive compensation, dividend payment, debt management, risky lending, singular focus on stock market and cash accumulation might influence wider social issues, such as economic inequality at the societal level (Riaz et al., 2011). Notwithstanding the lack of research on the effect of management practices on economic inequality in society, business research has a rich tradition of studying the role organizations can play in society. For example, research within the CSR (corporate social responsibility) (Carroll, 1991; Carroll, 1999; Campbell, 2007) and BOP (Base of the Pyramid) (Prahalad and Hammond, 2002; Prahalad, 2004; Karnani, 2007; Karnani, 2011) approaches has studied organizational practices that directly aim to impact societal issues such as environmental sustainability, poverty, etc. Research attention is warranted to understand how CSR and BOP initiatives, as well as other organizational practices, might impact economic inequality in society. This special issue is interested in a wide range of questions focused around the core issues mentioned above. The questions listed below are aimed at serving as pointers to further illustrate the spirit of the special issue. These are, however, not meant to be exhaustive, and any other investigations of the topic are equally welcome. Effects of economic inequality on management What are the mechanisms, e.g. lack of skills, lack of trust, lack of motivation, etc., through which societal level economic inequality impacts management and organizations? What counter mechanisms can organizations adopt to manage these effects of economic inequality? What are the direct and indirect costs, e.g. guard labor, supervision costs, legitimacy and reputation costs, etc., that organizations face due to increased economic inequality? How can organizations manage these costs, or find ways to obliterate them? Does economic inequality create demand for certain products and services? Do organizations need new products, services and practices for a world with rising inequality? What are the management and organizational challenges associated with this? How do the interactions of economic inequality and other forms of inequality (social status, gender, ethnic, racial) influence management and organizations? How does country context impact the relationship between economic inequality and management? For example, are the mechanisms and costs of economic inequality different in some Western countries, as compared to some Asian cultures that are collectivist, power-distant, and more tolerant of uncertainty? Are these effects easier to manage for organizations operating in some cultures as compared to others (e.g., are monitoring costs engendered by economic inequality lower because of collectivism)?

Effects of management on economic inequality How do management practices, such as executive compensation, employee stock options, dividend payment, and cash accumulation, impact economic inequality in society?

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How do certain practices in organizations provide legitimating mechanisms for economic inequality in society, e.g., beliefs concerning efficiency, reward allocation, equity and economic inequality in organizations? How do organizational practices aimed at CSR initiatives and BOP markets influence economic inequality in society? Do sustainable products and fair-trade practices decrease economic inequality? Do affordable products and services aimed at BOP markets reduce the effect of economic inequality on the poor? How are managerial and organizational resources used to create, maintain or disrupt societal institutions underlying economic inequality? For example, how do political lobbying, charity initiatives, professional training and rhetoric influence regulations, norms and cultural beliefs related to economic inequality?

This special issue is aimed at charting a new territory in management literature by examining the relation between economic inequality and management. This multi-faceted, multi-level and complex phenomenon has wide societal relevance and poses significant intellectual challenges. Accordingly, the guest editors invite high quality conceptual and empirical papers. A variety of theoretical and methodological approaches, including qualitative and quantitative techniques, examining any aspect of the relation between economic inequality and management, are encouraged. In line with the strengths of Human Relations, interdisciplinary approaches and studies that connect multiple levels of analyses (individual, organizational and societal levels) are particularly welcome. In particular, we expect that theoretical papers will demonstrate clear extensions or develop entirely novel ideas related to the relationship between economic inequality and management, rather than simply describe the rise in economic inequality or reiterate well known ideological positions. For empirical work, papers are expected to add value by addressing the linkages between economic inequality and management, rather than focusing solely on either one of these per se. Contributors should note: This call is open and competitive, and the submitted papers will be double-blind reviewed as per the editorial policies of Human Relations. Submitted papers must be based on original material not accepted by, or under consideration with, any other journal or outlet. For empirical papers based on data sets from which multiple papers have been generated, authors must provide the guest editors with copies of all other papers based on the same data. The guest editors will select a limited number of papers to be included in the special issue. Other papers submitted to the special issue may be considered for publication in other issues of the journal at the discretion of the Editor-in-Chief.

To be considered for this special issue, submissions must fit with the Aim and Scope of Human Relations: http://www.tavinstitute.org/humanrelations/about_journal/aims.html as well as this call for papers. Papers should be submitted online in accordance with our submission guidelines: http:// www.tavinstitute.org/humanrelations/submit_paper.html Please indicate in your covering letter that the paper is intended for this special issue. The guest editors of the special issue are very happy to discuss initial ideas for papers and may be contacted directly:
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Hari Bapuji - email: hari.bapuji@ad.umanitoba.ca Suhaib Riaz - email: suhaib.riaz@umb.edu The deadline for submission of all papers is 30 June 2013. Papers should not be submitted before 01 June 2013. The special issue is intended for publication in 2015. Please direct questions about the submission process, or any administrative matter, to the Editorial Office: humanrelationsjournal@tavinstitute.org. References BCG Report (2012) Global Wealth 2012: The Battle to Regain Strength. Accessed on June 19, 2012; available at: https://www.bcgperspectives.com/Images/BCG_The_Battle_to_Regain_ Strength_May_2012_tcm80-106998.pdf. Benabou R (1996) Inequality and growth. In Bernanke B & Rotemberg J (eds) NBER Macroeconomics Annual 1174. Cambridge: MIT Press. Bloom M (1999) The performance effects of pay dispersion on individuals and organizations. Academy of Management Journal 42(1): 2540. Bloom M and Michel J (2002) The relationships among organizational context, pay dispersion, and managerial turnover. Academy of Management Journal 45(1): 3342. Campbell JL (2007) Why Would Corporations Behave in Socially Responsible Ways? An Institutional Theory of Corporate Social Responsibility. Academy of Management Review 32(3): 946967. Carroll AB (1991) The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons 34(July/August): 3948. Carroll AB (1999) Corporate Social Responsibility. Evolution of Definitional Construct. Business and Society 38(3): 268295. Cote S (2011) How social class shapes thoughts and actions in organizations. Research in organizational behavior 31: 4371. Fredrickson J, Davis-Blake A and Sanders G (2010) Sharing the wealth: Social comparisons and pay dispersion in the CEOs top team. Strategic Management Journal 31(10): 10311053. Heyman F (2005) Pay inequality and firm performance: Evidence from matched employeremployee data. Applied Economics 37(11): 13131327. Jayadev A and Bowles S (2006). Guard Labour. Journal of development Economics 79(2): 328348. Karnani AG (2007) The Mirage of Marketing to the Bottom of the Pyramid. California Management Review 49(4): 90111. Karnani AG (2011) Doing Well by Doing Good The Grand Illusion. California Management Review 53(2): 105-111. Mo PH (2000) Income Inequality and Economic Growth. Kyklos 53: 293316. Neville L (2012) Do Economic Equality and Generalized Trust Inhibit Academic Dishonesty? Evidence From State-Level Search-Engine Queries. Psychological Science 23(4): 339345. Pfeffer J and Langton N (1993) The effect of wage dispersion on satisfaction, productivity, and working collaboratively - Evidence from college and university faculty. Administrative Science Quarterly 38(3): 382407. Prahalad CK and Hammond A (2002) Serving the Worlds Poor, Profitably. Harvard Business Review 80(9): 4857.

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Prahalad CK (2004) Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits. Wharton School Publishing. Riaz S, Buchanan S and Bapuji H (2011) Institutional Work amidst the Financial Crisis: Emerging Positions of Elite Actors. Organization: The Critical Journal of Organization, Theory and Society 18(2): 187214. Riddell C (2011) Compensation policy and quit rates: A multilevel approach using benchmarking data. Industrial Relations 50(4): 656677. Wade J, OReilly C and Pollock T (2006) Overpaid CEOs and underpaid managers: Fairness and executive compensation. Organization Science 17(5): 527544. Wilkinson R and Pickett K (2009) The Spirit Level: Why Equality is Better for Everyone. London: Penguin Books.

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