Ensuring the Success of Information-Based Regulation
A system of mandatory corporate environmental and social reporting is
necessary to achieve true corporate accountability, according to a new
study by David
Hess, assistant professor of business law.
Although more firms now issue social reports and the methodology is improving
(a new version of the widely used Global
Reporting Initiative's standards was released in October), social
reporting appears to be failing as a mechanism that improves the behavior
of a significant number of firms, says Hess.
"The current voluntary system of social reporting has failed to
achieve the goals of organizational transparency and stakeholder engagement,
and may actually work against those goals," Hess said. "Many
corporations have been able to co-opt a process designed for stakeholder
accountability and turn it into a means of stakeholder management. Firms
also have engaged in strategic disclosure for the purpose of protecting
their legitimacy rather than painting a complete picture of the company's
environmental and social performance."
Ridicule Shapes Brand Awareness
Students learn the three Rs in school, but there's a fourth one as well—ridicule,
says assistant professor of marketing David
In a study appearing in the Journal of Consumer Research, Wooten explores
the impact of adolescent ridicule on consumer behavior and brand consciousness.
Ridicule, he says, helps teach teenagers what brands and styles of clothes
and shoes to wear and which ones to avoid—if they want acceptance
from their peers. These pressures also play a major role in thefts and
violence by teens who covet expensive symbols of belonging, but who cannot
afford to buy them.
How Group Culture Affects Cooperation
Cultural values and norms may impact the cooperative behavior of decision-makers
in dealing with social dilemmas more than most people think.
Kopelman, assistant professor of management and organizations,
suggests that adopting a "cultural lens" can provide a better
understanding of cooperation in conflict situations.
Group culture, she says, is an important psychological factor that influences
the likelihood that decision-makers will cooperate in resolving difficult
social, economic or political situations, particularly in cases where
collective non-cooperation can lead to undesirable future outcomes for