Michelle Westermann-Behaylo

The Influence of Institutional Logics on Corporate Responsibility Toward Employees

Focusing on corporate responsibility (CR) toward employees, this article discusses how multilayered institutional logics affect the relationship between the firm and its employee stakeholders. It considers what constitutes CR toward employees and explores the institutional logics that can shape whether employers treat their employees as merely means to a strategic end or as ends in themselves. Specifically, the article examines market-, state-, professional-, and firm-based institutional logics that influence how employers treat their employees. The conclusion suggests that external institutional logics both enable and constrain firms to adopt a more instrumental relationship with their employees. However, some forms of organizational identity may generate firm-based institutional logics that enable firms to resist these pressures. Suggestions for future research focusing on the institutional and organizational drivers behind understanding CR toward employees are offered.

An examination of the impact of executive compensation disparity on corporate social performance

We investigate the relationship between top management team compensation disparity and corporate social performance. We argue that pay structures with high disparity are reflective of transactional, individualistic organizations that foster a shareholder orientation. In contrast, pay structures with low disparity are indicative of relational, cooperative organizations that foster a stakeholder orientation. Examining the effect of these attributes on corporate social performance, we find that corporate social performance is higher in low pay disparity firms than in high pay disparity firms. We discuss our contributions to executive compensation and corporate social performance research and suggest directions for future research.